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Monday, December 16, 2013
By Manoj Aswani

Manoj Aswani is VP at

I have a Jeevan Suraksha LIC plan which will be vesting on Aug 2014 with a premium of Rs 10000 yearly taken in 2000. Which is the best option to choose among the offers by LIC?
    —Shivaji Amre, Matunga
LIC has a few Annuity Options with LIC Jeevan Suraksha Plan. You need to choose the best possible option according to your need

  • Annuity for Life - where pension is paid till the life assured is alive and nothing is payable on death
    When Should this be Taken: When you want the HIGHEST Annuity rate which is level for the entire tenure and you do not wish to leave behind anything for your family
  • Annuity Guaranteed for Certain Periods - where pension is paid for 5/10/15 or 20 years as chosen whether the life assured is alive or not
    When Should this be Taken: When you wish to guarantee your annuity at least for a few years like 5/10/15 or 20 such that you will SURELY receive Annuity for that tenure and even if you die then your family will surely receive the money at least for that tenure chosen. This type is usually chosen when you still have some liability unfulfilled and a monthly income will help your family run smoothly for the tenure specified.
  • Annuity with Return of Purchase Price on Death - Pension is paid till the life assured is alive and the remaining amount of the corpus is paid to the nominee as death benefit
    When Should this be Taken: When you wish to leave a legacy for your child/family after your death
  • Increasing Annuity - pension is paid till the life assured is alive at an increasing rate of 3% p.a.
    When Should this be Taken: When you worry about Inflation/rising lifestyle expenses or increasing Medical Expenses and you fear that your Annuity might or might not be able to suffice the rising cost, then you can opt for Increasing Annuity which rises every year
  • Joint Life Last Survivor Annuity - pension is paid till the life assured is alive. On the death of the life insured, 50% of the pension is payable to spouse as long as the spouse if alive.
    When Should this be Taken: When you wish to provide annuity for your spouse in your absence, you may opt for this option.
    Thus, whichever option is best suited for you; you must opt for that choice.

I am planning to buy a LIC policy for my wife aged 28 years. Which is the best policy for working women in LIC? Can you suggest me few policies name and why?
    —Ramesh Shrivastav, Mulund
Need Analysis for Life Insurance Policy:
To be very honest, no one can suggest a “good plan” since ALL plans are good.  You need to decide upon the plan which you need. Your wife needs to set her priorities and choose how much money she needs and when and to get that how much money can she pay per month and how much risk can she afford to take. All this depends on her risk appetite.

Once her need is analyzed it is much easier to decide which plan she needs to take and why but not before that. Insurance for the Women of Today is a very important topic of discussion and is quite valid too, since the women have started to live a parallel life hand in hand with their male counterparts.

Popular LIC Plans: If you are specifically looking at some popular plans from LIC, you could opt for:

  • LIC Jeevan Saral Plan is actually an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans. Hence it is categorized under Special Plans. This is a non unit-linked insurance plan with Double Death Benefit of Sum Assured + Return of Premium.
    When should this plan be opted for: When you are looking for flexibility of ULIPs in an Endowment environment and you want Guaranteed Returns along with Loyalty. This is a unique plan and has amazing returns in the Endowment Space.
  • LIC Jeevan Anand Plan: This is an Endowment cum Whole Life Plan along with Bonus facility. This is a Double Death Benefit Plan if the life insured survives till the end of the policy term. This plan has average premium, high bonus rate and great liquidity features.
    When should this plan be opted for: When you are looking for Whole Life coverage along with Maturity Benefits and yet coverage to continue forever and ever. This is the uniqueness of Jeevan Anand Plan.
  • LIC Jeevan Tarang Plan is a Whole Life cum Money Back Plan. In this plan, the premium is paid for the Accumulation Period that is chosen by the policyholder of 10, 15 or 20 years. When the Accumulation Period ends, i.e. the Premium Paying Term is over, the vested Bonus is paid in a Lumpsum and the policy continues.
    When should this plan be opted for: When you are looking at Whole Life Coverage and yet Money Returns at interim and Guaranteed Returns. Thus, if you need anticipated Money Back at specified times.
    Thus, there are many plans that can be opted for and it can only be suggested once you tell us the need for your wife. There are many plans and 2 or more plans can also be combined to provide coverage but all this is also possible once the need is established.

(The author is Vice President at, insurance comparison website in India. You may write to him at
[email protected])

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