lic plan – 5 years double money

lic plan – 5 years double money –  Are you looking for an investment plan that offers high returns with guaranteed benefits? LIC’s 5-year double money plan might be the answer.

lic plan – 5 years double money –  Investing in life insurance is a smart move for anyone who wants to secure their future financially. The Life Insurance Corporation of India (LIC) offers a variety of investment plans that cater to different financial needs. Among them, the 5-year double money plan is one of the most popular options.

With this plan, investors can double their investment in just five years, making it an attractive option for those who want to grow their wealth quickly. Moreover, LIC’s 5-year double money plan is a non-participating, non-linked, and single premium plan, which means that the premium amount is paid only once, and the policyholder is not entitled to any bonuses.

If you’re considering investing in LIC’s 5-year double money plan, you might have some questions. In this article, we’ll provide you with a comprehensive guide that covers everything you need to know about this investment plan.

Benefits of LIC’s 5-year double money plan

The 5-year double money plan offered by LIC is a single premium investment plan that guarantees the policyholder double the sum assured at maturity. Here are some of the benefits of investing in this plan:

• Guaranteed returns: The policyholder is guaranteed to receive double the investment amount at maturity, making it a safe investment option.
• Short tenure: The plan has a tenure of just five years, which means that the policyholder can double their investment in a relatively short period.
• Tax benefits: The policyholder can claim tax benefits under Section 80C of the Income Tax Act for the premium amount paid.
• No market risks: Since the plan is non-linked, the policyholder is not exposed to any market risks.
• Liquidity: The policyholder can surrender the plan after the completion of one year from the date of commencement.

Eligibility criteria

Before applying for LIC’s 5-year double money plan, investors must meet certain eligibility criteria. Here are the key requirements:

• The minimum entry age for this plan is 90 days, while the maximum entry age is 65 years.
• The minimum sum assured for the plan is Rs.1 lakh, while the maximum sum assured has no limit.
• The policy term is fixed at five years.

How to apply for LIC’s 5-year double money plan

Applying for LIC’s 5-year double money plan is easy. Here’s what you need to do:

• Visit the official website of LIC and download the application form.
• Fill in the required details and attach the necessary documents.
• Pay the premium amount using any of the available payment options.
• Submit the application form and wait for the policy to be issued.

Documents required

To apply for LIC’s 5-year double money plan, investors must provide the following documents:

• Identity proof (Aadhaar card, PAN card, passport, voter ID, etc.)
• Address proof (electricity bill, phone bill, bank statement, etc.)
• Age proof (birth certificate, passport, school leaving certificate, etc.)
• Passport size photograph of the policyholder.

The policy details of LIC’s 5-year double money plan are as follows:

• Policy term: The plan has a fixed term of five years.
• Premium payment: The premium amount is paid only once, and the policyholder is not required to pay any additional premiums.
• Sum assured: The minimum sum assured for the plan is Rs.1 lakh, while there is no maximum limit.
• Maturity benefit: The policyholder is entitled to receive double the sum assured at maturity, provided they have paid the premium amount in full.
• Death benefit: In case of the policyholder’s demise during the policy term, the nominee will receive the sum assured amount.
• Surrender value: The policyholder can surrender the plan after the completion of one year from the date of commencement. The surrender value will be the higher of Guaranteed Surrender Value or Special Surrender Value.
• Loan facility: The policyholder can avail a loan against the policy after the completion of one year from the date of commencement.
• Grace period: A grace period of one month is provided for the payment of premiums. If the premium is not paid within the grace period, the policy will lapse.
• Revival: The policy can be revived within two years from the date of the first unpaid premium by paying the arrears of premium with interest.
• Free look period: The policyholder has a 15-day free look period to review the policy terms and conditions. If they are not satisfied, they can return the policy and receive a refund of the premium paid.

Surrender value is an important feature of LIC’s 5-year double money plan. It refers to the amount that the policyholder is entitled to receive if they decide to surrender the policy before the completion of the policy term.

If the policyholder surrenders the plan after one year from the date of commencement, they will receive the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). The GSV is a pre-defined percentage of the total premiums paid (excluding taxes and extra premiums), while the SSV is determined by LIC based on the current market conditions and other factors.

It is important to note that the surrender value is only paid if the policyholder has paid the full premium amount. In case the policy has lapsed or the premium is not paid in full, the surrender value will not be applicable.

The surrender value is a useful feature for those who are facing financial difficulties or who wish to invest their money elsewhere. However, it is recommended to surrender the policy only if it is absolutely necessary, as the benefits received will be lower than the maturity benefits. Additionally, surrendering the policy may also attract surrender charges, which can reduce the amount received by the policyholder.

Investing in LIC’s 5-year double money plan can provide tax benefits to the policyholder. The premiums paid towards the plan are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per annum.

In addition to this, the maturity benefits received by the policyholder are also tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions. If the sum assured is at least ten times the premium amount paid, the maturity benefits received will be tax-free. However, if the sum assured is less than ten times the premium amount, the maturity benefits will be taxable as per the policyholder’s income tax slab.

It is important to note that tax laws are subject to change, and the policyholder should consult a tax advisor for the latest tax rules and regulations. Additionally, the tax benefits are only available if the policyholder has paid the premium amount in full and the policy is in force. If the policy lapses or is surrendered before maturity, the tax benefits will not be applicable.

Maturity benefits are a key feature of LIC’s 5-year double money plan. At the end of the policy term, the policyholder is entitled to receive double the sum assured amount, provided they have paid the full premium amount. The maturity benefit is tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions.

The policyholder can choose to receive the maturity benefits in one of the following ways:

• Lump sum payment: The entire maturity benefit amount is paid to the policyholder as a lump sum.
• Installment payments: The policyholder can choose to receive the maturity benefit in installments over a period of time.

The policyholder can select their preferred option at the time of policy purchase.

It is important to note that the maturity benefits are only payable if the policy is in force and all premiums have been paid in full. If the policy has lapsed or has been surrendered, the maturity benefits will not be applicable. Additionally, the sum assured is not guaranteed and is subject to the policyholder’s eligibility and underwriting requirements.

Here are some frequently asked questions about LIC’s 5-year double money plan:

1. What is the policy term of LIC’s 5-year double money plan? The policy term of this plan is 5 years, after which the policyholder is entitled to receive the maturity benefits.
2. Is the sum assured guaranteed under this plan? The sum assured is not guaranteed and is subject to the policyholder’s eligibility and underwriting requirements.
3. Can the policy be surrendered before maturity? Yes, the policy can be surrendered before maturity. However, surrendering the policy may attract surrender charges and the benefits received will be lower than the maturity benefits.
4. What is the surrender value of the policy? The surrender value is the amount that the policyholder is entitled to receive if they decide to surrender the policy before the completion of the policy term. It is determined by LIC based on the current market conditions and other factors.
5. Are there any tax benefits of investing in this plan? Yes, investing in this plan is eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per annum. Additionally, the maturity benefits received are also tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions.
6. Can the maturity benefits be received in installments? Yes, the policyholder can choose to receive the maturity benefits in installments over a period of time.
7. What happens if the policyholder misses a premium payment? If the premium is not paid in full, the policy may lapse and the benefits may not be payable. It is important to ensure timely premium payments to keep the policy in force.
8. Can the policy be renewed after maturity? No, the policy cannot be renewed after maturity. The policyholder can choose to purchase a new policy or opt for a different investment option.
9. Can the policy be surrendered online? Yes, the policy can be surrendered online through the LIC website or mobile app.
10. Can the policy be transferred to another person? No, the policy cannot be transferred to another person. The policy benefits are only applicable to the policyholder who has paid the premiums.