Best LIC Policies For a 30 Year Old

Traditionally, LIC life insurance has been one of the most reliable Insurance Companies in India and when you decide to take up an insurance policy then it is a good choice to start with. So, as an informed 30-year-old, you must know about all the life insurance plans that LIC of India offers and then choose the one which best suits your needs.

Following are few LIC  Policy with the required detail to let you choose among them:

1. LIC New Jeevan Anand Plan

The LIC New Jeevan Anand Plan could be one of the first plans that you can consider as a 30-year old. It is a traditional plan, i.e. non linked. This plan provides both death benefit as well as maturity benefit. In fact, you get an entire life coverage in this plan. 
Details about LIC New Jeevan Anand Plan:

1. Death Benefit:
   • If You Die Within the Policy Tenure:
     In case you happen to die within the policy tenure, your nominee would be entitled to get the Sum Assured plus all the vested Simple Reversionary Bonus plus the Final Additional Bonus if any such is declared. 
     This sum Assured at Death is either 125% of the Basic Sum Assured or ten times of the Annual Premium paid by the policyholder, whichever is higher. 
     Also, the Sum Assured at any point in time during the policy period would not be anything less than 105% of the total premium paid by the policyholder till the date of the demise.
   • If You Die After the Policy Tenure:
     Since this is a combination of endowment cum whole life plan, in case you happen to die after the end of the term, i.e. whenever you die, your nominee gets the Basic Sum Assured. 
     This benefit would be paid even after paying you a maturity benefit at the end of the policy tenure. So, this is like a double benefit for you along with lifelong coverage from the age of 30!
2. Maturity Benefit: 
   • On survival till the end of the policy tenure, you will receive a maturity benefit of a total of the Sum Assured, plus all the vested Simple Reversionary Bonus plus the Terminal Bonus if any such is declared. It is a profit policy thus the Simple Reversionary Bonus or any other bonus may differ from time to time depending on the profit made by the life insurance company and the policy continues lifelong.
3. The Bonus Component:
   • Since, this is a traditional and a participating plan (with profit plan), you are entitled to a bonus that is declared by the insurance company as a payment to its policyholders. This bonus is a part of the profits made by the company. This bonus is paid in the form of the Reversionary Bonus.
   • The policy is also entitled to receive a Final Additional Bonus if that is declared by the company in the year the policy is to mature or if there is a death claim that arises that year.
4. Tax  Advantage:  If you opt for LIC’s New Jeevan Anand Plan, you are also entitled to a Tax Exemption of your premium paid upto INR 1.5 lakhs a year under section 80C of the Income Tax Act, 1961. Your maturity benefit is also tax free under section 10(10)D provided your sum assured is at least more than 10  times your annualised premium. Death Benefit is also tax-free. Hence investing in LIC New Jeevan Anand Plan will help you with your tax planning as well right from an early age of 30 years.
5. Other Benefits:
   • Loan:
     This policy provides liquidity by providing a loan facility, which you can utilise for your higher studies, marriage, buying a house, vacation, etc.
   • Additional Rider Benefits:
     Accidental Death and Disability Rider is available in this policy. It is an optional rider and the policyholder can avail the same by paying an extra amount of premium.

2. LIC Jeevan Amar Plan

This is the other plan that you can consider in your 30’s. Since this is a pure protection plan, you can opt for the highest coverage at the lowest premium. Opting for a higher coverage at 30 years of age is one of the wisest financial decisions ever!
In this plan, you would get life coverage so that if you happen to die within the policy tenure, your nominee would receive the death benefit. Being a pure protection plan, there is no component of loan, bonus or savings in this plan. Hence, there is no maturity benefit in this plan.

1. Death Benefit of LIC Jeevan Amar Plan
   You have two options of Sum Assured that can be opted for in this plan, the Level Sum Assured and the Increasing Sum Assured. And as the name suggests the level sum assured is the option where the sum assured is fixed and does not change throughout the term. Thus its premium too is fixed unless it varies for some other reason like a rider. And in Increasing Sum Assured the Sum Assured is fixed for the first 5 years of the policy and then increases per annum, post the completion of the 5th year. The premium for this type may or may not vary during the policy term.
   The mode of payment of the sum assured (death benefit) can also be chosen from like you can either opt for the sum assured to be paid in one go at the time of the demise of the life insured or it can be paid in instalments. You can also choose a combination of both the forms if you want to.
2. Tax Benefit:
   The premium paid for LIC Jeevan Amar Plan is tax free upto INR 1.5 lakhs a year under section 80C of the Income Tax ct, 1961. Death Benefit is also tax free under section 10(10)D.

3. LIC New Money Back Plan – 20 years

This is yet another plan that you can consider in your 30s, especially if you are looking at a predefined schedule of payment during the entire policy tenure. The LIC New Money Back Plan is a non linked, participating plan (with-profit) plan. It allows you to achieve certain goals at certain intervals as you may have set up for yourself and as the name suggests the policy gives a return of a part of the Sum Assured at 5 years interval while the policy is in enforced status as the survival benefit. And then at the end of the term, the policyholder receives a maturity benefit too. 

1. Death Benefit of LIC New Money Back Plan – 20 years -In case you die within the policy term, the Death Benefit i.e. the Sum Assured + all the vested Simple Reversionary Bonus and the Terminal Bonus (if any declared) would be paid to the nominee and the policy would be terminated. 
   This death benefit is known as the ‘Sum Assured in Death” and it is defined to be 125% of the Basic Sum Assured or 10 times of the Annual Premium, whichever is higher at the time of claim. Whichever it be, the Death Benefit cannot be less than 105% of the total amount of all the annualised premium paid till the date of death.
2. Survival Benefit of LIC New Money Back Plan – 20 years -The New Money Back Plan of LIC provides you with a survival benefit which is distributed over the tenure of the policy. In this policy, you get back 20% of the Sum Assured after every 5years during the policy term. Therefore as the policy has a term of 20 years it means that 20% of the sum assured would be paid back to you on the completion of 5th, 10th and 15th year. And the other 40% would be saved for the maturity benefit.
3. Maturity Benefit of LIC New Money Back Plan – 20 years -The maturity benefit in this policy is 40% of the Sum Assured (as 20% would already have been paid in 3 instalments till date. Which means 60% of the Sum Assured has already been paid by then) plus all the vested Reversionary Bonus and Terminal Bonus as may be declared in the year of maturity.
4. Tax Benefits of LIC New Money Back Plan – 20 years -If you opt for LIC’s New Money Back Plan - 20 years, you are eligible for a Tax Exemption for the premium paid upto INR 1.5 lakhs every year under section 80C of the Income Tax Act, 1961. Even the maturity benefit is also tax free under section 10(10)D, subject to sum assured being at least more than 10 times the annualised premium in all the years. Death Benefit is also tax-free.
5. Bonus of LIC New Money Back Plan – 20 years -The bonus, as declared by the company from time to time would be added to this plan. This bonus is a part of the profits made by the company. This bonus is paid in the form of the Reversionary Bonus.
   This policy is also entitled to receive a Final Additional Bonus if that is declared by the company in the year the policy is to mature or if there is a death claim that arises that year.
6. Riders of LIC New Money Back Plan – 20 years  - Accidental Death and Disability Rider is available in this policy. An optional holder can avail the same by paying an extra amount of premium.                                                                                                                  

Conclusion

Thus at the age of 30, you can decide from the array of the policies offered by LIC to choose as per your financial requirements. You should take into account the amount of money you have at your disposal to invest, the number of years you want to invest them for, the financial goals that you want to achieve, and the amount that you would need to protect the financial requirements of your family in case of any unforeseen conditions faced by you.