Life insurance is one of the most important investments you can ever make. In case something wrong happens to you, you need to be able to financially safeguard your family members. LIC, or Life Insurance Corporation of India, is surely one of the most popular life insurers in the nation. Given their popularity, a good number of individuals purchase their life insurance plans from them. However, what most people don’t know is Life Insurance Corporation of India also offers short-term insurance policies to their customers.
So, here are the top-rated 5-year life insurance plans from LIC that you can purchase to safeguard your family against sudden financial hardships.
A 5-year life insurance plan can be defined as a classification of life insurance policies which have a 5-year policy tenure. The functioning of a 5-year life insurance plan is easy, with a simple operating approach. Individuals are obliged to pay premium amounts for the length of the insurance and are entitled to coverage throughout this time. If he or she dies during this period, his or her nominated individual will get a death benefit based on the amount of premium paid. This programme has no maturity incentive, and the individual is not eligible for any monetary payout when the policy matures. Furthermore, no payout will be provided if a person dies after the insurance tenure has lapsed or expired.
This policy is appropriate for those who have urgent financial issues that may worsen after they die. It is appropriate for individuals who believe their death may cause their family to suffer in the coming years. Individuals nearing retirement age might choose this coverage if they are fit and qualified to get coverage. It is also suitable for people nearing retirement age but still have to take care of their family and have schooling or marital duties. Individuals with modest financial resources might benefit from this coverage because the premium is often cheaper than that of standard-term life insurance plans.
Life insurance policies are lucrative and should be seriously considered by every individual out there. You will be in a life insurance contract with LIC for five years. If you are in dire need of timely financial assistance, a good amount of cash can come in handy. So, make sure that you buy a good LIC 5-years policy and that your family is taken care of.
There are many reasons to choose LIC for a life insurance plan, and with an incredible range of products from which to choose, you can find a plan that suits your exact needs. Here are the most popular and recommended 5-year life insurance plans from LIC:
To encourage insurance protection among economically underprivileged parts of society, the Insurance regulator of India, IRDAI or Insurance Regulatory & Development Authority of India has introduced a specific type of insurance plans known as micro-insurance plans. Micro-insurance is defined and enabled under the 2005 IRDA Micro-insurance Regulations. A micro life insurance plan is one that has an assured sum amount of INR 50,000 or even less.
| Insured Entry Age | 18 years to 55 years |
| Maximum Age of Maturity | 65 years |
| Minimum Assured Sum | INR 10,000 |
A retirement policy is a form of a life insurance policy intended to meet a person's post-retirement requirements. It contributes to the formation of a corpus as well as the generation of a continuous income following retirement in the format of pension income. As a result, it is also called a pension life insurance plan.
| Insured Entry Age | 30 years to 85 years |
| Minimum Purchase Price | INR 1.5 lakhs for online sales INR 1 lakh for other distribution channels |
| Yearly Annuity Amount | Depends as per age of insure |
| Insured Entry Age | 20 years to 60 years (for lumpsum payment) 20 years to 58 years (for regular payment) |
| Vesting Age | 55 years to 65 years |
| Assured Sum Amount | INR 1 lakh (for lumpsum payment) No limit for regular payment |
A group life insurance plan is a type of life insurance plan that offers insurance to a set number of people, often employees in an organisation. The fundamental goal of a group life insurance plan is to give financial freedom and help to a worker's family in the event of an emergency. In the event that the responsible employee dies while working for the firm, the related group insurance coverage would give the bereaved family much-needed financial security.
| Insured Entry Age | 18 years to 60 years |
| Maximum Age of Maturity | 65 years |
| Minimum Assured Sum | INR 4 lakhs |
| Insured Entry Age | 18 years to 60 years |
| Maximum Age of Maturity | 65 years |
| Minimum Assured Sum | INR 5,000 to 10 lakhs |
If you need a short-term plan of insurance for your family, then we recommend that you opt for any of the LIC 5-years policy.
During unfortunate occurrences, a 5-year life insurance coverage might come in handy. It provides short-term advantages and is appropriate for our fast-paced era. The reasons listed below demonstrate why purchasing a short-term insurance policy is essential:
A short-term LIC 5-years policy will cost you much less than a standard term or unit-linked life insurance product. However, remember, the amount you pay for your plan should never be in inverse proportion to its quality. You need to consider a number of factors before you go ahead and purchase a policy – so make sure that you do your research beforehand. Above all, ensure that the short-term life insurance policy is tailored to meet your specific needs and requirements.
