Review of LIC Short Term Investment Plans

A few months back, Mrs. Vrinda Pandey bought the LIC Short term Investment Plan. She bought the plan to provide herself and her family with financial protection. She decided to go with this plan as the plan offers the benefits of life protection and investments..

LIC Short term Investment Plan is an insurance policy wherein the policyholder pays a single lump sum premium amount for a short span of time. The policy then pays out a specified amount of money at a predetermined date in the future if the policyholder outlives the policy tenure. 

Let’s explore the other key benefits of the LIC Short term Investment Plan that convinced Mrs. Vrinda chose this plan.

LIC Short Term Investment Plans

What are the Benefits of LIC Short term Investment Plan?

With this plan, Mrs. Vrinda and her family will also be entitled to the below mentioned benefits:

1. Death Benefits

   • Return of a single premium, upon death of the policyholder within the policy period before to the date on which risk first became a concern.

   • In the event of death within the period of the policy following the date on which the risk began the sum assured, as well as any vested simple reversionary bonuses and final additional bonuses, if any will be paid to the nominee.

2. Maturity Benefits

   If the policyholder survives till the maturity date, the plan will offer the basic sum assured to the insured. The maturity amount will be calculated as the sum assured along with the vested Simple Reversionary Bonuses and Final Additional Bonus, if any,

3. Tax Benefits

   The LIC Single Premium Endowment policy offers tax benefits to the insured on the premium paid and on the claims received under Sections 80C and 10(10D) of the Income Tax Act.

4. Availability of Riders for enhanced protection

   The plan offers two additional riders namely LIC Accidental Death and Disability Benefit,and LIC New Term Assurance Rider. These riders can be added for extra protection against natural death, death or disability by accident.

5. Option to receive Death and Maturity Benefit in Installments

   The option to receive death/maturity benefits in installments is available to both the policyholder and the nominee. The minimum installment amount for each method of payment is as follows. The payments must be paid in advance at intervals of a year, a half-year, a quarter, or a month, depending on the option. 

   Mode of Installment payment	Minimum installment amount (in Rs.)
   Monthly	5,000
   Quarterly	15,000
   Half-yearly	25.000
   Yearly	50,000

To Sum it Up:

Along with Mrs. Vrinda, other buyers of the LIC Short term Investment Plan are satisfied with the advantages the plan provides. The plan is affordable in addition to providing thorough coverage. It is indeed one of the best endowment plans if you are looking for a plan that offers dual advantages under one plan.