Is LIC term plan good?

Is LIC Term Plan Good? Does it still make sense to buy life insurance in 2021

Yes, buying a term plan is the most underrated and often neglected financial planning step. As soon as someone gets his/her first salary or income life insurance must be bought. Yes, before you save, invest or start building assets, life insurance must be taken care of. It took me 10 years to realize the true meaning of life insurance and the importance of getting one’s life insured. Always remember, Sabse Pahle Life Insurance, the slogan by IRDA’s life insurance initiative for public awareness. 

You won’t drive a new car without insurance, you don’t start using the mobile phone without a cover then how come you neglect the importance of insuring the most important thing, ‘your life’.

The most basic rule of financial planning or money management is to secure your belongings. Life insurance does that very efficiently and in fact it is the only way to secure your future earning

capabilities.

Another outlook to life insurance is that you plan your legacy (something that you wish to leave for your loved ones) well before you actually earn it. So even if you haven’t earned and saved enough, you can still make provisions for a huge mount to be passed on to your next generation, in case you face untimely death.

To understand why term plan from LIC of India is a good (if not the greatest) financial investment decision, lets look at the risks of not getting ample life insurance. Life is uncertain and full of surprises. You never know what will happen the next moment. That’s life and we cannot cannot everything it does to us. Though we can surely be prepared to face the worst, if not all aspects at least money wise.

A term plan or the pure insurance plan helps us in doing this. A life insurance plan is the replacement of financial earnings in case the policy holder dies. Agreed money cannot buy you everything but surely it does help you buy mos of the things and you need money foremost. Money cannot compensate fully for the loss but will surely give you the financial support to fight the bad days.

How does LIC term insurance work

LIC term plan Amar Jeevan works beautifully and in its simplest form. You pay premiums for a fixed time and if the policy holder dies LIC pays the nominees the sum assured. Amar Jeevan is the most economical product by LIC of India for the simple reason that no part of the premium you pay is giving ut any returns. LIC just need to take care of the sum assured in case of the death of the policy holder.

Which is the best LIC term plan

Amar Jeevan is the term plan that starts from insurance cover of 25 lakhs and there is no upper limit. You can opt for various payment plans like regular, limited payment and one time payment. The maximum policy term is 40 years.

Benefits of Buying LIC Term Insurance Plan

The sole purpose and benefit of buying a term life insurance is to get death claim. There is no maturity benefit, no loan is available on the plan and only in special cases can you surrender the policy. Even if you surrender the policy you will not be getting you entire premium back.

What is the premium for LIC term plan?

Amar Jeevan Regular Premium Price

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Amar Jeevan Limited Premium Price

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Amar Jeevan Single Premium Price

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Term plans with maturity benefit

There is no such thing as a term plan with maturity benefit. If you are falling for this, bear in mind you are paying (way too much that you actually get back) for the return of maturity benefit. In simple terms if you plan guarantees return of premium you have been tricked into buying a life insurance plus investment plan.

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