LIC Whole Life Policy

LIC Whole Life Policy

The Whole Life Policy from LIC is a simple regular payment whole life plan along with Bonus facility.

In this plan, the premium is paid for 35 years or till the life insured is 80 years old. The Life Insured can choose to withdraw the Sum Assured + accrued Bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided the life insured has attained a minimum age of 80 years. However, if the Life Insured dies, then his nominee would be given the Sum Assured + accrued Bonuses and the policy would be terminated.

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Key Features of the Whole Life Policy from LIC

• This plan is a simple whole life plan with regular premium paying term
• Death Benefit is Sum Assured + Accrued Bonus
• After the Life Insured attains 80 years of age and completes 40 policy years, he may choose to withdraw the Sum Assured + Accrued Bonuses
• Simple Reversionary Bonus is payable on maturity or earlier death
• An additional Accidental Death Benefit rider can be opted for

Benefits you get from the Whole Life Policy from LIC

Death Benefit – In case of death of the Life Insured, the nominee would get the Sum Assured + accrued Bonus.

Maturity Benefit – This being a whole of life plan has no specific maturity date. However, there is an option to withdraw the Sum Assured + accrued bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided the life insured has attained a minimum age of 80 years.

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

Eligibility conditions and other restrictions in the Whole Life Policy from LIC

Sample illustration of premium of The Whole Life Policy from LIC

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs 1,00,000.

Premium Paying Term = 80 years – Age at Entry.

Additional Features and Benefits of The Whole Life Policy from LIC

Riders – There 1 additional Rider available - Accidental Death Benefit Rider

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What happens if? 

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would not be eligible to participate in the bonuses declared thereafter. The bonuses already declared would be payable if the premiums have been paid at least for 5 years.

You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years. Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium

You want a loan against your policy – Loan facility is available under this policy