Life insurance is an important financial product that, ideally, every earning member should purchase. The insurance policy gives an assurance to the individual that his/her family will be protected financially in case of his/her unfortunate death. It ensures that the family resumes their regular lives and they don’t have to worry about making any sacrifices in order to make ends meet.
However, many people avoid buying life insurance policies due to the amount of premium that has to be paid in one shot, especially if it is an endowment or a money-back plan. Once the person pays the premium towards the life insurance policy, he/she may find it difficult to manage other expenses for the rest of the month. To help such people who have tight finances and cannot afford to pay a major chunk of their monthly salary, LIC has introduced the monthly premium payment option. This option allows the policyholder to pay the premium on a monthly basis. Therefore, the contribution is much lesser when compared to the yearly premium.
Given below are the LIC life insurance plans that offer the monthly premium payment option:
An endowment plan is one which provides not only a death benefit when the life assured passes away, but also provides a maturity benefit if he/she survives the complete policy term.
The endowment plans by LIC that offer the monthly premium payment option are:
LIC’s Jeevan Pragati
: This is a with-profits, non-linked plan which covers one’s risk as well as provides a platform to save one’s earnings. The speciality of the plan is that the risk cover increases every five years. The plan comes with the optional LIC’s Accidental Death and Disability Benefit Rider. Also, the plan offers a loan facility.
LIC’s Jeevan Labh
: LIC’s Jeevan Labh is also a with-profits, non-linked plan, limited premium paying plan that offers a death benefit as well as a maturity benefit. The riders offered under this plan are LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider. Loans can be availed from the policy when required.
LIC’s New Endowment Plan
: This endowment plan is a non-linked, participating plan that provides a maturity benefit if the life assured survives and a death benefit in case he/she does not. The plan offers LIC’s Accidental Death and Disability Benefit Rider as an optional benefit and also offers the loan facility to cater to one’s liquidity needs.
LIC New Jeevan Anand
: This is yet another endowment plan that provides a lump sum amount at the end of the policy term if the individual survives or pays the death benefit to the nominee in case the life assured passes away during the term. This plan offers the loan facility to policyholders and comes with an optional rider - LIC’s Accidental Death and Disability Benefit Rider.
LIC Jeevan Rakshak: This is a participating, non-linked endowment plan that acts as a savings tool for the policyholder and as a medium for financial support for his/her family if he/she is not around. The insurer offers a loan facility in case the individual has to cater to liquidity needs. The optional benefit provided under the plan is LIC’s Accidental Death and Disability Benefit Rider.
LIC Limited Premium Endowment Plan
: A non-linked, participating insurance plan, the Limited Premium Endowment Plan offers two major benefits – the death benefit and the maturity benefit. The sum assured on death is paid in case the life assured passes away before the end of the policy term and the sum assured on maturity is paid in case he/she survives the term. This plan, too, offers the loan facility.
LIC Jeevan Lakshya
: This is a unique endowment policy that provides a death benefit in case the person passes away and a maturity benefit at the time of maturity of the policy, whether the life assured has survived the term or not. In case the person passes away during the term of the policy, the family will receive an Annual Income Benefit until the date of maturity. The loan facility is also available with this plan.
LIC’s Aadhaar Shila: This is a special endowment plan offered by LIC exclusively for female individuals who have an Aadhaar card provided by the UIDAI. The plan provides a death benefit as well as a maturity benefit. The policyholder can also avail LIC’s Accident Benefit Rider with this plan. The additional benefits offered under the policy are the loan facility and the auto cover option. The auto cover option allows the policyholder to enjoy the benefits under the plan for a period of 6 months to 2 years even if he/she doesn’t pay the premiums, provided premiums for a fixed period are duly paid.
LIC’s Aadhaar Stambh: This an endowment plan similar to LIC’s Aadhaar Shila and has been designed exclusively for male individuals who hold Aadhaar cards issued by the UIDAI. The plan offers a death benefit, a maturity benefit, loan facility, auto cover facility, and LIC’s Accident Benefit Rider.
Whole life plan
A whole life insurance policy is one which offers coverage for the person’s entire life. Typically, insurance companies offer risk coverage until the person turns 100 years old. The details given below are that of the whole life plan offered by LIC that offers the monthly premium payment option:
LIC’s Jeevan Umang
: This is a with-profit, non-linked plan that provides the nominee of the family with a death benefit in case the life assured passes away during the term of the policy. The policyholder also receives survival benefits after the completion of the premium payment term. At the end of the term i.e. on maturity, a lump sum amount is provided to the individual.
In a money-back insurance plan, the insurance company provides a regular stream of returns as decided between the insurer and the insured. The regular instalment provided is a fixed percentage of the sum insured amount.
The money-back plans that offer the monthly premium payment term under LIC are:
LIC’s Bima Shree
: This non-linked, with-profit, limited premium payment money-back life insurance plan offers both savings as well as protection to people with high net worth. The benefits included under the plan are death benefit, maturity benefit, and survival benefit. The plan offers as many as five riders that include LIC’s New Critical Illness Benefit Rider and LIC’s Premium Waiver Benefit Rider. The plan offers certain flexible features such as the option that allows the policyholder to defer the survival benefit payable and receive it with interest at a later point in time during the policy. The plan also has the option to receive the death benefit in regular instalments for a fixed period of time.
LIC's Jeevan Shiromani
: This non-linked, with-profit, limited premium payment money-back plan designed for high net worth individuals provides a death benefit if the life assured passes away during the policy term and a maturity benefit if he/she survives it. Also, the individual will receive a survival benefit throughout the term of the policy. The plan offers fours riders that policyholders can attach to their plans if they want additional coverage. The speciality of the plan is that it has an in-built critical illness benefit feature which provides a certain amount if the life assured is diagnosed with a critical illness.
New Money Back Plan – 20 years
: This is a 20-year participating, non-linked money-back plan that provides death benefit, maturity benefit, and survival benefit. The rider offered under the plan is LIC’s Accidental Death and Disability Benefit Rider. The rider can be availed by paying an additional premium. The plan also provides the loan facility to help the policyholder take care of his/her liquidity requirements.
New Money Back Plan – 25 years: This plan is similar to the New Money Back Plan – 25 years but is offered for a 25-year policy tenure. This plan also offers a death benefit on the death of the life assured, a survival benefit on his/her survival during the term, and a maturity benefit if he/she survives the complete term. The same LIC’s Accidental Death and Disability Benefit Rider is offered under this plan as well. The loan facility can also be availed by the policyholder.
LIC's New Children's Money Back Plan
: This is a participating, non-linked money-back plan designed keeping in mind the growing needs of a child such as expenses related to education, marriage and so on. The plan will fund such key milestones through the survival benefits that will be paid throughout the term of the policy. The plan also offers a death benefit that will help manage the child’s expenses when he/she is not around. A maturity benefit will be payable if the life assured survives the complete term. The rider available under this plan is LIC’s Premium Waiver Benefit Rider. The plan also has an option to defer the survival benefit to a later date during the policy term.
LIC Jeevan Tarun
: This plan, designed for the benefit of the growing needs of children, is a non-linked, participating, limited premium payment life insurance policy. It offers survival benefits for children between the age of 20 years and 24 years. It offers a maturity benefit when the child reaches the age of 25 years. In case of death of the life assured, a death benefit is provided. The amount of death benefit payable will depend on whether the death occurred after commencement of risk or before commencement of risk. The plan also offers an optional rider called LIC’s Premium Waiver Benefit Rider.
How to Pay Premiums for your LIC policy
The monthly premium payments towards any of the above-mentioned LIC life insurance policies can be done through three methods - Electronic Clearing Service (ECS), salary deduction, or National Automated Clearing House (NACH).
- The ECS method helps transfer funds from one account to another and can be use to pay instalments too. The policyholder will be required to provide a mandate to the concerned bank to permit transfer of the fixed amount on a monthly basis. The individual will be informed of the debit through an SMS on the registered phone number.
- The salary deduction method is an easy payment option that directly deducts the premium amount from one’s salary
- The NACH method of payment has been designed by the National Payments Corporation of India (NPCI) to consolidate the many ECS systems and ensure smooth transfer of funds of high value.
All three payment methods are not available for each of the LIC policies. Here is a table that elucidates the payment method available for each of the monthly premium payment plans offered by LIC:
|Electronic Clearing System (ECS)
||National Automated Clearing House (NACH)
|LIC’s Jeevan Pragati
||LIC’s Jeevan Pragati
||LIC's Aadhaar Shila
|New Jeevan Anand
||New Jeevan Anand
||LIC's Aadhaar Stambh
|LIC Jeevan Lakshya
||LIC Jeevan Lakshya
||LIC's Jeevan Umang
|LIC Jeevan Labh
||LIC's Bima Shree
|LIC New Endowment Plan
||LIC's Jeevan Shiromani
|LIC Jeevan Rakshak
|Limited Premium Endowment Plan
|LIC New Money Back Plan – 20 years
|LIC's New Children's Money Back Plan
|LIC's Jeevan Tarun
Alternatively, individuals can pay the premium offline at any of the LIC branch offices. The payment can be made by cash, cheque or DD.
As established, LIC offers several life insurance policies of various types that allow monthly payment of premiums. Any individual looking for such a policy can go through the details of each of the policies and pick one that suits him/her best.