The Life Insurance Corporation of India (LIC) is a renowned insurance provider that offers a wide range of plans catering to the diverse needs of individuals. One such plan that has gained popularity in recent times is the LIC 500 per month plan. This plan provides an affordable option for individuals looking for life coverage and financial security. In this article, we will delve into the details of the LIC 500 Per Month Plan, including its features, benefits, eligibility criteria, and how to apply for it.
Life is uncertain, and it is essential to ensure the financial well-being of our loved ones in case of any unfortunate event. LIC understands this need and has designed the LIC 500 per month plan to offer a convenient and cost-effective solution. With a nominal premium of just 500 per month, this plan provides life coverage and various other benefits.
What is LIC?
LIC, short for Life Insurance Corporation of India, is a state-owned insurance group that has been serving the nation for decades. It is the largest life insurance company in India and offers a wide range of insurance products to meet the diverse needs of individuals. LIC has a strong presence across the country and is known for its reliability and trustworthiness.
Overview of the LIC 500 Per Month Plan
The LIC 500 Per Month Plan is a unique insurance product that aims to provide life coverage and financial security at an affordable price point. This plan offers a sum assured of a certain amount, which is payable to the nominee in the event of the policyholder’s unfortunate demise. Additionally, the plan also provides maturity benefits if the policyholder survives the policy term.
Benefits of the plan
The LIC 500 per month plan comes with several benefits, making it an attractive option for individuals seeking life insurance. Some of the key benefits include:
- Affordable premium: The plan requires a monthly premium of just 500, making it accessible to a wide range of individuals.
- Life coverage: The plan provides life coverage for the policyholder, ensuring financial security for their loved ones.
- Maturity benefits: If the policyholder survives the policy term, they are entitled to receive maturity benefits, which can provide a lump sum amount to meet their financial goals.
- Tax benefits: The premiums paid towards the LIC 500 Per Month Plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
Eligibility Criteria
Before applying for the LIC 500 per month plan, it is important to understand the eligibility criteria. The plan is available to individuals who
meet the following conditions:
- Age: The minimum age at entry for this plan is 18 years, and the maximum age varies depending on the policy term.
- Policy term: The policy term can range from a minimum of 10 years to a maximum of 20 years, depending on the applicant’s age.
- Premium payment term: The premium payment term is equal to the policy term.
It is advisable to carefully review the eligibility criteria before applying for the plan to ensure that you meet all the requirements.
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How to Apply for the LIC 500 Per Month Plan
Applying for the LIC 500 per month plan is a simple and straightforward process. Follow the steps below to apply for this plan:
- Visit the official LIC website or contact your nearest LIC branch to obtain the necessary forms.
- Fill in the application form with accurate personal and contact details.
- Submit the completed form along with the required documents, such as identity proof, address proof, and age proof.
- Pay the first premium amount to initiate the policy.
Once the application is submitted, LIC will review the information provided and process the application accordingly. It is important to provide accurate details and complete all the necessary documentation to ensure a smooth application process.
Features of the LIC 500 Per Month Plan
The LIC 500 per month plan comes with several features that make it a popular choice among individuals. Let’s take a closer look at some of the key features:
Sum assured
The plan offers a sum assured, which is the amount payable to the nominee in the event of the policyholder’s demise. The sum assured varies based on factors such as the age of the policyholder and the chosen policy term.
Policy term
The policy term for the LIC 500 Per Month Plan can range from a minimum of 10 years to a maximum of 20 years, depending on the age of the policyholder. It is essential to select a policy term that aligns with your financial goals and requirements.
Premium payment term
The premium payment term for this plan is equal to the policy term. Policyholders need to pay the premium amount consistently and on time to keep the policy active.
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Comparison with other LIC plans
While the LIC 500 Per Month Plan offers an affordable and convenient insurance option, it is essential to compare it with other LIC plans to make an informed decision. LIC provides a range of insurance products catering to different needs. Some plans offer higher coverage, longer policy terms, or additional benefits. It is advisable to assess your requirements and compare the LIC 500 per month plan with other available options to choose the one that best suits your needs.
Different plans and their benefits
LIC offers a wide range of insurance plans to cater to the diverse needs of individuals. Let’s explore some of the popular plans offered by LIC and the benefits they provide:
1. LIC Jeevan Anand:
This plan combines both insurance and savings benefits. It offers life coverage for the policy term and provides a maturity benefit if the policyholder survives the term. The plan also offers a bonus and participates in the company’s profits.
2. LIC New Endowment Plan:
This plan is designed to provide life coverage and savings benefits. It offers a lump sum as the sum assured, along with accrued bonuses. The plan also provides maturity benefits if the policyholder survives the policy term.
3. LIC Jeevan Labh:
This plan offers both protection and savings features. It provides life coverage and a lump sum amount as the sum assured. The plan also offers additional benefits in the form of loyalty points and bonuses.
4. LIC Money Back Plans:
These plans are ideal for individuals looking for periodic payouts along with life insurance. Under these plans, a certain percentage of the sum assured is paid back to the policyholder at regular intervals. In the event of survival until the end of the policy term, the remaining sum assured and bonuses are provided.
5. LIC Single Premium Plans:
These plans require a one-time premium payment and provide life coverage along with savings benefits. They are suitable for individuals who prefer a single premium payment instead of regular premium payments.
6. LIC Child Plans:
These plans are specifically designed to secure the future of children. They provide a combination of life coverage and savings to ensure the child’s financial needs, such as education, are met at different stages of life.
7. LIC Pension Plans:
These plans focus on providing a regular income after retirement. They help individuals build a corpus during their working years, which is then used to provide a pension or annuity income during their retirement years.
Each of these LIC plans has its own unique features and benefits. It is important to carefully assess your needs, financial goals, and risk appetite before selecting a plan. Consulting with a financial advisor can also provide valuable insights to help you make an informed decision.
By considering the different plans and their benefits, you can choose the LIC insurance plan that aligns with your requirements and offers the necessary coverage and benefits for your financial security.
How the LIC 500 Per Month Plan Works
The LIC 500 per month plan follows a simple mechanism. The policyholder pays a premium of 500 per month for the selected policy term. If the policyholder survives the policy term, they are entitled to receive maturity benefits, which provide a lump sum amount. In the event of the policyholder’s unfortunate demise during the policy term, the sum assured is paid to the nominee, ensuring financial security for their dependents.
Policy Maturity and Death Benefits
The LIC 500 Per Month Plan offers policyholders both maturity and death benefits, providing comprehensive coverage and financial security. Understanding these benefits is crucial to making an informed decision and ensuring the policy aligns with your financial goals. Let’s take a closer look at the policy maturity and death benefits of the LIC 500 Per Month Plan.
Policy Maturity Benefits
If the policyholder survives the entire policy term of the LIC 500 Per Month Plan, they become eligible to receive maturity benefits. These benefits are provided in the form of a lump-sum payment at the end of the policy term. The maturity amount is predetermined and depends on various factors, including the sum assured, premium paid, and policy term.
The maturity benefits can serve as a valuable financial resource to fulfil long-term goals, such as funding higher education for children, starting a business, or planning for retirement. The policyholder can utilise the maturity amount as per their requirements, providing them with a sense of financial stability and independence.
Death Benefits
In the unfortunate event of the policyholder’s demise during the policy term, the LIC 500 Per Month Plan offers death benefits to provide financial support to the policyholder’s family and dependents. The death benefit is payable to the nominee or the legal heir as specified in the policy.
The death benefit is equal to the sum assured under the plan. This lump sum payment can help the nominee navigate through challenging times by providing financial assistance to cover immediate expenses, outstanding debts, and maintain the family’s standard of living. The death benefit ensures that the policyholder’s loved ones are safeguarded from financial hardships during an emotionally difficult period.
It is important to note that the LIC 500 per month plan provides both maturity and death benefits, making it a comprehensive insurance solution. These benefits provide a safety net for policyholders and their families, offering financial security and peace of mind.
To ensure the smooth settlement of the death claim, it is essential for the nominee or legal heir to promptly inform LIC about the policyholder’s demise. They would need to submit the necessary documents, such as the death certificate, policy documents, and any other information requested by LIC. LIC’s dedicated claims settlement team will guide the nominee through the process and facilitate the timely payment of the death benefits.
The LIC 500 Per Month Plan’s maturity and death benefits make it a reliable choice for individuals looking to secure their family’s financial future. By carefully assessing their needs and considering these benefits, individuals can make an informed decision and protect their loved ones from unforeseen circumstances.
Tax Benefits of the LIC 500 Per Month Plan
One of the significant advantages of the LIC 500 per month plan is the tax benefits it offers. The premiums paid towards this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Policyholders can claim a deduction for the premium amount paid, up to a maximum limit prescribed by the tax laws.
By availing of these tax benefits, policyholders can effectively reduce their taxable income and save on their tax liabilities. It is advisable to consult a tax professional or refer to the relevant tax laws for detailed information on the tax benefits associated with the LIC 500 per month plan.
FAQs About LIC 500 Per Month Plan
Question 1: What happens if I miss a premium payment?
If a policyholder misses a premium payment for the LIC 500 per month plan, there is a grace period during which the payment can be made without any penalties. If the premium remains unpaid even after the grace period, the policy may lapse, and the benefits associated with it may no longer be available. It is crucial to pay premiums on time to keep the policy active.
Question 2: Can I take a loan against my LIC policy?
Yes, policyholders have the option to avail of a loan against their LIC policies, including the LIC 500 Per Month Plan. The loan amount depends on the surrender value of the policy and other terms and conditions specified by LIC. The interest rate charged on the loan amount may vary and should be repaid within the stipulated time to avoid any negative implications for the policy.
Question 3: Is the LIC 500 per month plan available for non-residents?
No, the LIC 500 per month plan is available only to residents of India. Non-residents are not eligible to apply for this plan. LIC offers different plans for non-residents, and it is advisable for them to explore the available options specific to their needs.
Question 4: Can I surrender my policy before maturity?
Yes, policyholders have the option to surrender their LIC 500 per month plan before the maturity date. However, surrendering the policy before completion may result in a loss of benefits and may not be financially advantageous. It is advisable to consult with LIC or a financial advisor to understand the implications of surrendering the policy and explore alternative options if needed.
Question 5: How can I check the status of my LIC policy?
Policyholders can check the status of their LIC 500 per month plan through various channels provided by LIC. These include online portals, mobile apps, SMS services, or by contacting the LIC customer service helpline. It is advisable to keep the policy details handy and follow the instructions provided by LIC to access the policy status information.
Conclusion
The LIC 500 per month plan is an excellent choice for individuals seeking affordable life insurance with attractive benefits. With a nominal premium of just 500 per month, this plan provides life coverage, maturity benefits, and tax advantages. It is important to carefully review the plan’s features, eligibility criteria, and other relevant details before making a decision. By securing this plan, individuals can ensure the financial well-being of their loved ones and gain peace of mind.
Get access now.
To explore the LIC 500 Per Month Plan and secure your financial future, visit the official LIC website or contact your nearest LIC branch.