Lic Whole Life Insurance Policy

Life Insurance Corporation of India or LIC is one of the most prominent companies in India. The whole life insurance policy is one of the most outstanding traditional plans of the company. The solve objective behind this policy is to serve insured with financial protection of their family and to ensure good returns on investment. Some of the most significant features (USPs) of this plan include bonuses and riders as well as whole life plan.

Eligibility

In order to purchase LIC whole life insurance policy, the customers should follow some of the eligibility requirements of the company. They include minimum and maximum age requirements, premium payment term, maximum sum assured and premium payment mode. In addition, the entry age ranges from 15 yrs to 60 yrs while the maturity age is 80 yrs. The company has set regular premium payment term and annual amount of Rs 50000 has been set for maximum sum assured. Mode of premium outgo entails yearly, half yearly, quarterly, monthly or even single.

Benefits of Whole life policy

Before the maturity of the policy, if the policyholder dies suddenly, then the insurer will pay out sum assured with vested bonus. The designated beneficiary of the insured will avail the death benefit form the company in this regard. In addition, if the insured dies or becomes disabled due to an accident, the insured will paid additional lump sum amount consequently. This is called accidental rider. There is also maturity benefit with this plan. Here, the insured will be paid sum assured with vested bonus at the end of the policy term.

In addition, the insured persons will also enjoy the benefit of bonus with LIC whole life policy. In fact the bonus will be accrued or added at the end of every financial year. However, the percentage over sum assured is based on the subjective decision of the company.

Amount other benefits that an insured person can avail from LIC whole life insurance policy, he can also enjoy the tax benefit, too. As per the Indian Tax Act in Section 80D, if the annual premium doesn't exceed Rs 1 lakh, then the insured can avail tax benefit. The section 10D also says that the insured will not be taxed over death claim. Means, death claim is also tax exempt.

Point to consider

The policy can be surrendered after 3 yrs from the time of commencement. The policy can be cancelled within the 15 days of time after receiving policy contract.