Life Insurance Corporation of India (LIC) is one of the most trusted names in the Indian insurance sector. LIC offers a wide variety of life insurance products to suit different financial needs, including policies that provide coverage amounts above ₹1 crore. These high-value policies are designed for individuals who want significant financial protection for themselves and their loved ones.
In this guide, we’ll explore the LIC policies that offer coverage above ₹1 crore, the benefits of choosing high-value policies, and some key considerations before purchasing such plans.
LIC Policies Offering Coverage Above ₹1 Crore
LIC offers several life insurance plans that allow policyholders to choose a sum assured of more than ₹1 crore. These plans are suitable for high-net-worth individuals or anyone who wants to provide a significant financial safety net for their family or business.
Here are some of the popular LIC policies that allow coverage of ₹1 crore and above:
1. LIC Jeevan Anand
LIC Jeevan Anand is one of the most popular combination plans offered by LIC. It provides both endowment and term insurance features, making it ideal for individuals who want financial security for their family, along with an investment component.
Coverage: You can opt for a sum assured of ₹1 crore or more, depending on your requirements.
Policy Term: Typically ranges from 15 to 35 years.
Premium Payment Term: The premium payment term can range from 5 years to 25 years, depending on the policyholder’s age and financial goals.
Key Features:
Risk Cover after Policy Term: After the endowment term, you continue to enjoy life cover without having to pay premiums.
Bonus Facility: The policy participates in the corporation’s bonus facility, which can enhance your corpus.
Premium Example: A 35-year-old male looking for ₹1 crore coverage may need to pay an annual premium of around ₹40,000–₹50,000 depending on the selected term and payment mode.
2. LIC New Endowment Plan
The LIC New Endowment Plan is a traditional endowment plan that provides both risk cover and savings benefits. This is a great option for individuals who want to provide for their family in case of an unforeseen event while also accumulating a corpus over the policy term.
Coverage: Sum assured of ₹1 crore or more is available.
Policy Term: Typically between 15 to 30 years.
Premium Payment Term: 5, 10, 15 years, or as per the policyholder’s choice.
Key Features:
Bonus Facility: The policy is eligible for bonuses, which increase the maturity benefits.
Life Cover with Investment: It offers a combination of life insurance cover along with an investment component.
Lumpsum Payment: In case of death during the policy term, the nominee receives the sum assured along with bonuses.
Premium Example: A 40-year-old male with a sum assured of ₹1 crore can expect an annual premium ranging from ₹50,000 to ₹60,000, based on the policy term and premium payment mode.
3. LIC Jeevan Lakshya
The LIC Jeevan Lakshya plan is a limited premium paying endowment plan. It is ideal for individuals looking to cover high financial needs such as funding children’s education, marriage, or securing the future of loved ones.
Coverage: The policy allows sum assured amounts starting from ₹1 crore and above.
Policy Term: Available from 15 to 25 years.
Premium Payment Term: 5 years to 12 years.
Key Features:
Life Cover and Bonus Facility: Offers both a life cover and the opportunity to earn bonuses, adding value to the total payout at maturity.
Limited Premium Payment: This plan allows limited premium payment while enjoying full coverage for the policy term.
Premium Example: For a sum assured of ₹1 crore, the premium for a 30-year-old male might range between ₹40,000 and ₹50,000 annually, depending on the term.
4. LIC Jeevan Pragati
LIC Jeevan Pragati is a non-linked, limited premium paying plan that offers life cover at affordable premiums. It is suited for individuals looking for coverage of ₹1 crore or more, along with added benefits.
Coverage: Sum assured starting from ₹1 crore is allowed.
Policy Term: Ranges from 15 to 20 years.
Premium Payment Term: 5 years to 12 years.
Key Features:
Increasing Risk Cover: This plan offers increasing risk cover at different stages of life.
Bonus Facility: The policy is eligible for bonuses, which increase the total amount payable at the time of maturity or death.
Loan Facility: Loans can be availed against the policy, providing liquidity if needed.
Premium Example: A 35-year-old male may pay an annual premium of approximately ₹40,000–₹45,000 for ₹1 crore coverage.
Key Benefits of LIC Policies Above ₹1 Crore
Comprehensive Financial Security: High-value policies like these ensure your family is financially protected in case of untimely death or disability.
Tax Benefits: Premiums paid towards LIC policies are eligible for tax deduction under Section 80C of the Income Tax Act, and the sum received on maturity is also tax-free under Section 10(10D).
Bonus Facility: Many LIC policies offer the option to participate in the corporation’s bonus scheme, which can significantly increase the amount paid out to the policyholder or nominee.
Flexibility: The policies offer flexibility in terms of premium payment terms, policy terms, and the ability to select the sum assured as per your financial needs.
Loan Facility: High-value policies allow the policyholder to take loans against the policy if necessary, providing financial liquidity.
How to Choose the Right LIC Policy for ₹1 Crore and Above
When opting for a life insurance policy with coverage over ₹1 crore, consider the following factors:
Purpose of the Insurance: Understand the reason for purchasing the policy. Is it for securing your family’s future, funding your child’s education, or business succession? This will help you select the right plan.
Premium Affordability: Ensure that the premium fits your budget and is sustainable over the long term. The higher the sum assured, the higher the premium.
Policy Features: Compare different policies based on their features such as bonus facility, loan availability, and premium payment options.
Tax Benefits: All LIC policies offer tax benefits, but you should evaluate whether the policy aligns with your tax planning strategy.
Claim Settlement Ratio: Choose LIC due to its strong claim settlement ratio, ensuring that the insurance company honors its commitments.
Premium Calculation Example for ₹1 Crore LIC Policy
Policy: LIC Jeevan Anand (Endowment Plan)
Sum Assured: ₹1 crore
Age: 35 years
Policy Term: 20 years
Premium Payment Term: 15 years
Estimated Annual Premium: ₹45,000 – ₹50,000 (approximate, based on policyholder’s age and selected terms)
These premiums may vary based on other factors such as lifestyle, health conditions, and additional riders chosen.
Conclusion
LIC offers a wide range of life insurance plans with coverage of ₹1 crore and above, catering to the diverse needs of high-net-worth individuals and those with significant financial responsibilities. Whether you are looking for comprehensive life cover, tax benefits, or the opportunity to accumulate savings, LIC policies provide an array of options to suit your needs.
For personalized advice, premium quotes, and further information, it is always advisable to visit the nearest LIC branch or consult an insurance counselor who can guide you on the best high-value insurance plans that match your financial goals.
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