Which LIC Policy is Best?

The Comprehensive Guide to LIC: Safety, Policies, and Comparisons

The Life Insurance Corporation of India (LIC) has been a cornerstone of financial security for millions of Indians for decades. However, several questions often arise when considering LIC policies: Is LIC 100% safe? Is it good or bad? Which LIC policy is best? Is LIC better than Fixed Deposits (FD)? This article aims to address these questions and provide a detailed overview of various LIC plans, their benefits, and how they compare to other investment options.

Is LIC 100% Safe?

LIC is a government-owned entity, which adds a layer of security and trust. The Government of India guarantees the policies offered by LIC, which means that the risk of default is extremely low. Additionally, LIC is regulated by the Insurance Regulatory and Development Authority of India (IRDAI), ensuring that it operates within the prescribed norms and regulations. While no investment can be termed 100% safe, LIC is as close to a safe bet as one can get in the financial world.

Is LIC Good or Bad?

The perception of LIC being good or bad depends largely on individual financial goals and needs. LIC policies are known for their long-term benefits and stable returns. They provide financial security through a combination of insurance and investment. However, the returns from LIC policies may not be as high as some other investment options like mutual funds or equities. For those looking for stable and assured returns with an insurance cover, LIC can be a good option.

Which LIC Policy is Best?

Choosing the best LIC policy depends on your specific needs:

• For Wealth Creation: LIC's New Jeevan Anand is popular for its dual benefit of savings and protection.
• For Children’s Education: LIC’s New Children’s Money Back Plan is tailored for securing your child's future education.
• For Retirement Planning: LIC’s Jeevan Akshay VI offers immediate annuity plans which are excellent for retirement income.

Is LIC Better Than Fixed Deposits?

Comparing LIC with Fixed Deposits (FDs) involves understanding the primary differences between insurance and pure investment:

• Security: Both are considered safe investments. However, LIC provides insurance cover, which FDs do not.
• Returns: FDs usually offer fixed interest rates, whereas LIC policies provide bonuses that may result in higher returns over the long term.
• Liquidity: FDs are more liquid compared to LIC policies, which generally have a lock-in period.

What is Rs. 5000 Per Month in LIC Policy?

Investing Rs. 5000 per month in an LIC policy can offer substantial returns over time, along with an insurance cover. For example, investing in LIC’s Jeevan Anand for a term of 20 years with Rs. 5000 per month can yield a significant corpus, including bonuses and final additional bonuses, along with a life cover throughout the policy term and beyond.

What is LIC’s Rs. 10,000 Per Year Plan?

LIC offers various plans where you can invest Rs. 10,000 per year. One such plan is the LIC New Endowment Plan, which combines savings with protection. This plan provides financial security to the policyholder’s family in case of unfortunate demise during the policy term and a lump sum amount at the end of the policy term if the policyholder survives.

Which LIC Plan Gives 8% Fixed Return?

Currently, LIC does not offer a policy with a fixed 8% return. Most LIC policies provide returns in the form of bonuses which are declared annually. The actual return on investment may vary based on the bonuses declared by LIC. It is important to note that while the returns are not fixed, LIC policies have historically provided stable and decent returns.

What is LIC Policy Rs. 1000 Per Month?

For those looking for affordable investment options, LIC offers policies where the premium can be as low as Rs. 1000 per month. LIC’s Jeevan Labh is one such plan that requires relatively low monthly investments but offers comprehensive benefits, including maturity benefits and life cover.

What is the Rank of LIC Brand?

LIC is one of the most trusted and well-recognized brands in India. According to the Brand Trust Report, LIC consistently ranks among the top brands in India, known for its reliability and comprehensive customer service. It is not just a financial institution but a symbol of trust for millions of Indians.

Is LIC Better Than PPF?

Public Provident Fund (PPF) and LIC serve different purposes:

• PPF: Primarily a savings scheme with tax benefits, offering around 7-8% interest, and has a 15-year lock-in period.
• LIC: Provides insurance cover along with investment returns. The returns may vary but offer life cover, which PPF does not.

Why is LIC Premium So High?

LIC premiums may seem high because they include both insurance and investment components. Additionally, the premiums factor in the assured returns and bonuses, which contribute to the overall cost. It's important to compare the premium with the benefits provided by the policy, including the life cover, maturity benefits, and bonuses.

Can We Trust LIC Policy?

LIC policies are backed by the Government of India, making them highly trustworthy. The long-standing reputation of LIC, its comprehensive customer service, and the regulatory oversight by IRDAI further add to the trustworthiness of LIC policies.

Conclusion

LIC offers a variety of policies catering to different financial needs, from wealth creation and children’s education to retirement planning. While no investment is without risks, LIC provides a relatively safe and secure option with the added benefit of life insurance. Understanding the specific policies and their benefits can help you make an informed decision about whether LIC is the right choice for you.