What is the advantages of an Endowement Assurance Plans and Money Back Plans on LIC of India?

Question

I want to take an LIC policy for myself next month.. I'm 24yrs old. The main reason is investment and Income Tax savings. I'm confused about what kind of policy should I take. Can anyone explain the advantages of Endowement Assurance Plans and Money Back Plans given by LIC of India?

And also can I take a loan thru the policy in future with the total loan amount being deducted in the final settlement? Please suggest any such loan schemes available with LIC...

Answer 1

LIC has Endowment Plans where in you get the Life cover even after the completion of the tenure. It offers good returns too. To be more specific, the plan name is Jeevan Anand, you get life cover even after the company has paid your promised amount along with the bonus. Any Insurance investment comes with tax benefit under the section 80c. Coming to Money Back plans, these offer returns after specific intervals. You get back a percentage of the promised amount( eg 25%) after a particular time interval(eg 5 yrs). But the total life cover remains the same. ie, in case of death, the total sum assured is paid without deducting the amount paid earlier as the first installment. As a result of this the premiums are little higher, as the company gives back a part of your money but still has to cover any risks with the full amount. Money back schemes are the ones if you are looking for early returns. (same as taking a loan).

Answer 2

better consult on phone

09311584115