Are you seeking for a dependable investment strategy to help you build your wealth over time? There is no need to look any further! We introduce LIC Plan-5 Years Double Money, a great investment opportunity offered by LIC (Life Insurance Corporation of India), in this detailed tutorial. With its unique features and rewards, this plan has the potential to double your investment in just five years. Continue reading to see how this strategy works and how it can help you accomplish your financial goals.
What is a life insurance policy?
Life insurance is fundamentally a contract between an insurance company and a policyholder. The insurance company costs the policyholder a fee for the coverage and in exchange provides certain benefits. If the policyholder dies during the policy’s term, the beneficiary will be entitled to death benefits. If the policyholder survives the insurance term, he or she will receive a maturity payment.
Read more: Understanding LIC surrender value calculator & formula
Key Features and Advantages
LIC Plan with Guaranteed Returns for 5 Years Double Money guarantees you a return on your investment. This feature gives you peace of mind because you know your money is safe and will grow over time.
Short Investment Tenure: With a five-year tenure, this plan provides investors with a rapid return period. LIC Plan-5 Years Double Money is ideal if you have short-term financial goals or wish to diversify your investment portfolio.
Multiple Premium Payment alternatives: To accommodate your financial capacities, this investment plan provides multiple premium payment alternatives. Whether you prefer a lump sum payment or monthly installments, you can select the approach that best suits your financial needs.
Tax Advantages: The LIC Plan-5 Years Double Money has appealing tax advantages. According to the current tax legislation, you can deduct premiums paid under Section 80C of the Income Tax Act of 1961. This assists in lowering your overall tax liability.
Loan Facility: In the event of a financial emergency, you can borrow against your LIC Plan-5 Years Double Money insurance. This tool allows you to access cash when you need them most, without having to liquidate your entire investment.
Life Insurance Coverage: LIC Plan-5 Years Double Money includes life insurance coverage in addition to investment rewards. If the policyholder dies during the policy term, the nominee will get the sum insured as well as any collected bonuses.
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2. LIC Pension Plus Scheme
In the LIC Plan 5 Years Double Money category, the LIC Pension Plus Plan stands out as an amazing pick. It is designed to double your investment within this time frame, delivering a consistent income stream after retirement.
Because of its 5-year double money feature, there is a lock-in period that prevents early withdrawals. However, policyholders can surrender the plan and receive their invested funds after this term.
For example, if you are 30 in 2023 and invest Rs. 100,000, your investment will grow to around Rs. 200,000 by 2028 at an annual interest rate of 19.02%, demonstrating the plan’s success.
| LIC Pension Plus Plan Details | |
| Policy Period | 10-42 years |
| Premium Payment Term | Min 5 years |
| Maximum Sum Assured | No cap |
| Minimum Sum Assured | 1 Lakh |
| Age Limit | 25-75 years |
Key characteristics include:
- The strategy is overseen by LIC Mutual Fund, which increases confidence and trustworthiness. It is an added bonus for a plan to be LIC Plan 5 Years Double Money Plan.
- The plan makes it easier to save for retirement and ensures a regular income after retirement.
- Based on their risk tolerance, policyholders can select between stock, debt, or a combination.
- A minimum investment of Rs. 20,000 is required, with lump sum payment alternatives available.
- The minimum policy period for LIC plans is 5 years, and the maximum policy term is
- 20 years, after which regular pension payments begin.
| Eligibility Criteria | Minimum | Maximum |
| Amount of Sum Assured | Rs. 5,00,000 | Rs. 25,00,000 |
| Age of Entry | 18 years | 65 years |
| Age of Maturity | – | 70 years |
| Term of Policy | 5 years | 40 years |
3. Saral Jeevan Bima LIC
LIC Saral Jeevan Bima is a life insurance policy that covers short-term risks. If the policyholder dies within the coverage period, LIC will pay out the sum insured on death to the policyholder’s family members, ensuring their financial security. The policyholder can have piece of mind knowing that their family will not experience financial issues in their absence with this plan.
Features –
- A Standard term plan provides inexpensive security for your family.
- Standard terms and conditions are simple to understand.
- Convenience of paying premiums only once, on a regular basis, or for a set time (5/10 years).
- Tax advantages as defined by the Income Tax Act of 1961.
- Tax benefits are determined by Income Tax legislation and are subject to change at any time. For more information, please contact your tax advisor.
Advantages
- Simplicity
The product contains conventional terms and conditions that make it simple to comprehend.
- Affordability
Take advantage of a protection plan at a low cost.
- Security
Financial stability for you and your loved ones with no complications
- Flexibility
Pay the premium once, on a regular basis (every year of the coverage), or for a set time (5/10 years).
4. LIC Dhan Sanchay-
This strategy assists you in generating an income stream after the policy has matured. If you die during the policy term, the plan’s death benefit amount will be paid to the nominee you designate. Please keep in mind that this 5-year LIC plan is only available in the following options: Single Premium Level Income Benefit and Single Premium enhanced cover with Level Income Benefit.
| Eligibility Criteria | Minimum | Maximum |
| Entry Age | 3 years | 65 years |
| Single premium | Rs.2 lakh | No limit |
| Policy term | 5 years, 10 years, or 15 years | |
| Sum Assured on Death | Single Premium Level Income Benefit – Rs. 2.5 Lakhs Single Premium enhanced cover with Level Income Benefit – Rs. 22 Lakhs | |
- Depending on the option selected by the policyholder, the death benefit will be paid in a lump sum or in instalments over a 5-year period.
- If the policyholder survives the designated maturity date, the maturity benefit will be paid as Guaranteed Income Benefit and Guaranteed Terminal Benefit.
- If the policyholder dies during the payment period, the Guaranteed Income Benefit, along with the Guaranteed Terminal Benefit, will be paid to the nominee in line with the applicable payout method for the remainder of the payout period.
5. LIC MF Large & Mid Cap Growth Fund
The LIC MF Large & Mid Cap Fund – Growth is an insurance policy that has been rated as one of the finest LIC policies for the past five years. This strategy aims to quadruple your money in five years. It operates within LIC’s portfolio as a form of mutual fund, allocating 96% of your investment to equity assets of both large-cap and mid-cap companies.
This allocation includes 31% in large-cap firms, 31% in mid-cap companies, and 22% in small-cap companies, with the remaining funds wisely allocated elsewhere. As a result, the portfolio becomes more balanced and diverse.
This best LIC insurance for 5 years focuses on companies with significant market capitalization, which equates to a low level of risk. As a result, this has a great growth potential. Your money are invested in some of the most prestigious names in the stock market, like Reliance Industries, Hindustan Unilever, TCS, and others, under the skilled guidance of LIC.
In terms of returns, if you put Rs 10,000 in the LIC MF Large & Mid Cap Fund in 2023, you can expect it to be worth roughly Rs 17,000 in five years, effectively doubling your initial investment. For the past five years, it has been one of the finest LIC plans due to these characteristics.
| LIC Mutual Fund Large & Mid Cap Fund | |
| Investment Objective | To give long-term capital growth by investing in both large-cap and mid-cap companies. |
| Fund Category | Large and Midcap Fund |
| Minimum Investment Amount | INR 1000 |
| Exit Load | 1% if redeemed within one year from the date of allotment |
| Investment Options | Lump sum and SIP |
| Fund Manager | Mr. Sudhir Kedia |
| Benchmark | Nifty Large Midcap 250 TRI |
Characteristics-
- The LIC Large & Mid Cap Fund is an open-ended equity strategy carefully managed by LIC Mutual Fund.
- The fund’s strategy is to deliver long-term capital appreciation by combining large and mid-cap equity securities. As a result, it has been one of the finest LIC plans for the past five years.
- The fund takes a flexible approach, investing between 35% and 65% of its assets in large-cap firms and an equal percentage in mid-cap companies to strike a balance between stability and growth potential.
- Investors can begin with a Rs 1,000 investment and can also make recurring investments through a Systematic Investment Plan (SIP).
