Quick Answer: Why LIC Term Plan Is So Costly?

Is LIC better than FD?

Fixed deposits are best for both short and medium term investments whereas life insurance plans are designed for long term investments.

You can invest for a period of as low as 7 days in fixed deposits unlike a life insurance plan wherein you need to invest for at least 10 years.

You can invest a minimum amount of Rs..

Is there any LIC policy for 5 years?

Jeevan Mangal Plan by LIC is a term insurance plan which can be brought for a term of 5 years only through the single premium payment option that pays returns in the form of a premium on the maturity of the plan.

Which endowment plan is best in India?

Best Endowment Plans in India 2020Endowment PoliciesEntry Age (Min-Max)Premium Paying TermJeevan Nivesh Plan18-55 years5,7 or 10 yearsKotak Classic Endowment Policy8 – 60 years7 – 15 yearsKotak Premium Endowment Policy18 – 60 years10 – 30 yearsLIC New Endowment Policy8 – 55 years12 – 35 years25 more rows

Is LIC term plan best?

As one of the best LIC policies, LIC Jeevan Amar is with profit, a non-linked pure protection plan that offers the flexibility to the policyholder to choose from tow different options of the death benefit. The plan offers comprehensive insurance coverage to the family of the insured in case of any eventuality.

Is money safe in LIC?

MUMBAI : Refuting claims of its weak financial position, national insurer Life Insurance Corporation (LIC) on Wednesday assured its millions of policyholders that their money is safe and secure as its “financial health is sound.

Which term insurance is best 2020?

Best Term Insurance Plans in IndiaTerm PlanEntry Age(Min-Max)Policy Term (Min-Max)Exide Life Smart Term Plan18-65 years10-30 yearsFuture Generali Flexi Online Term Plan18-55 years10-65 yearsHDFC Life Click 2 Protect 3D Plus18-65 years18-65 yearsICICI Prudential iProtect Smart18 – 60 Years18 – 60 Years19 more rows•Dec 2, 2020

Which is better LIC or Icici?

This will give you a better understanding of the cost-benefit in the premium amount….Cost-Benefit Analysis of LIC vs Private Insurers.Term Insurance PlanMinimum Premium AmountLIC Term Insurance PlanSingle Premium – INR 30,000 Limited and Regular Premium – INR 3,000ICICI Prudential PlanINR 2,400 excluding GST3 more rows•Sep 10, 2020

Which insurance plan is best?

5 Best Term Insurance Policies to Consider in 2019LIC e-Term Insurance Plan.ICICI Pru iProtect Smart. Protection Benefits of ICICI Pru iProtect Smart.SBI Smart Shield.HDFC Click 2 Protect Plus.

Is it worth taking term insurance?

In short, term life insurance is a worthwhile (and affordable) way to help financially protect your loved ones. A policy’s death benefit could help: Replace lost income and pay living expenses, like rent or a mortgage. Pay debts you leave behind.

Is endowment plan a good investment?

Endowment plans are beneficial since this is a long term plan and provides better returns over a long period of time. 4. … An endowment plan may give you lower returns but the investment associated risk is very low in an endowment plan. Under endowment policy, the policyholder can also avail tax benefits on the returns.

Why term insurance is best?

For young earners like Gautam, term insurance is the most affordable form of insurance, which provides maximum sum assured at lowest possible premium. Ensuring his family’s financial security at a low cost is the ‘return’ offered by term insurance. Insurance is not an investment product; it is a protection instrument.

Is Icici term plan good?

Review of ICICI Pru iProtect Smart It gives death cover till the age of 75 years which is extensive coverage for Indian nationals. With a healthy claim settlement ratio of 96.2% in FY 2016, it is a very good competitive term insurance plan available in the market today under a strong ICICI brand name.

How can I double my money in 5 years?

Rule of 72: Divide 72 by the Expected Annual Returns Since you want to double your money in 5 years, your investments will need to grow at around 14.4% per year (72/5). Or if your goal is to double in 10 years, you should invest in a manner to earn around 7.2% every year.

Which term plan is best Icici or HDFC?

Best Term Insurance Plans in India with Claim Settlement RatioInsurance CompaniesBest Online Term Insurance PlansClaim Settlement Ratio (%)LICLIC e-Term Plan98.04ICICI PrudentialICICI Pru iProtect Smart97.88SBISBI Smart Shield96.76HDFC Click 2 Protect Plus97.81 more row

Which life insurance is best?

Best Overall: Prudential Prudential offers term life insurance coverage, universal life insurance, indexed universal life insurance, and variable universal life insurance, and you can add riders to your policy that include an accidental death benefit, a living needs benefit, and a children’s protection rider.

What is a 10 year endowment policy?

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’) or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

Which is better term plan or endowment plan?

Secondly, while a term plan offers only the death benefit, an endowment plan offers both the death and the maturity benefits. … On the other hand, term plans are beneficial for those who want higher coverage at low premium rates, providing financial protection for their family in case they are not around.