What are the Benefits of Buying LIC 20 Lakh Policy?

What are LIC 20 Lakh Plans?

LIC Policy of 20 Lakhs is the plan that is designed to offer the benefits of Rs. 20 Lakhs. These plans come with a death benefit wherein if the policyholder dies during the policy term, the nominee will receive an amount of Rs. 20 Lakhs. On the other hand, if the policyholder outlives the policy tenure, he/she will get a maturity benefit of Rs. 20 Lakhs.

Benefits of LIC 20 Lakh Plans

LIC Policy of 20 Lakhs offers certain benefits to its policyholders. Some of them are mentioned below:

• Dual Benefit of Life Protection and Savings

  LIC 20 Lakh insurance policy offers the double benefits of savings and life protection under a single plan.

• Tax Benefits

  One can avail tax benefits for the premiums paid for LIC 20 Lakhs Insurance policy under Section 80C of Income Tax Act,1961

• Enhanced Protection with Riders

  LIC of India offers several riders in their 20 Lakh Insurance policy. By paying extra premiums at the time the policy is first issued or when it is renewed, one can increase their level of coverage. The available raiders are:

  • Accident Benefit Rider,

  • New Term Assurance Rider,

  • Accidental Death & Disability Benefit Rider, and 

  • New Critical Illness Benefit Rider. 

• Loan Facility

  In order to meet emergency financial needs, LIC policies allow you to avail loan against your policy, provided you have paid premiums for at least 2 years.

Who should buy LIC 20 Lakh Plans?

Buying a LIC 20 Lakh policy is an ideal choice if:

1. You are looking for wide coverage with affordable premiums

   LIC plans with Rs. 20 Lakh life cover is an ideal way of securing the life of your loved ones without burdening your pockets. These plans offer sufficient coverage at affordable premium rates.

2. You wish to create financial security for your retirement days

   Post-retirement life can become stressful if you don’t have enough funds to support yourself and your basic needs. Thus, with a life cover of Rs. 20 Lakhs, you can ensure to have sufficient money to look after your needs.

3. You want to fulfill your financial needs

   With LIC 20 Lakh Policy, you will get a guaranteed amount of Rs. 20 Lakhs at the time of maturity, which can be further used to fulfill your financial needs. Be it any outstanding loans, or sending your kids for higher education you can achieve them all.

Sample Premium Illustration of LIC 20 Lakhs Policy

Below mentioned is the sample premium illustration of some of the LIC 20 Lakh Insurance plans. Have a look:

Note: The premiums are calculated for the 30-year-old male, with a policy term of 20 years.

Summing it up

Buying LIC 20 Lakhs plans is a perfect way of securing your family’s future in your absence. These plans provide coverage of up to Rs. 20 Lakhs to your family after your demise, ensuring their financial stability. In addition to this, these plans also offer maturity benefits in case the policyholder outlives the policy tenure.