Investment in life insurance plans leads to the creation of wealth. A file insurance policy comes in handy when needed the most. On maturity, a policyholder or the family can use the funds for a variety of purposes such as child’s education/ wedding, purchase of a new house or as a pension after retirement. Like resident Indians, Non-Resident Indians can also contribute to life insurance policies in India. Here we have picked the best LIC NRI life insurance plans that NRIs can choose from based on their requirements.
LIC NRI life insurance plans
Here are the top LIC NRI life insurance plans out of 32 policies offered by LIC. You can choose a policy that fulfils your objectives.
LIC Jeevan Labh
LIC Jeevan Labh is one of the best policies for NRIs and for individuals who have moved abroad for a short duration. This is a limited paying, with-profit endowment plan. LIC Jeevan Labh offers an optimal combination of investment and savings to the policyholders. This plan is best suited to NRIs with high-risk jobs such as Merchant Navy, Mining, Airlines, Refineries and constructions.
Key features of LIC Jeevan Labh plan
- Offers high returns
- Discounted plan
- Non-market linked plan
- 10 times the insurance cover of the annual premium paid
- Individuals aged between 8 years and 59 years can apply for this plan
- Premium prepayment options – 10 years, 15 years or 16 years
- Flexible policy terms for 16 years, 21 years and 25 years
- Accidental death and disability benefit rider
- Option to pay a premium on a monthly, quarterly, half-yearly and annual basis
- The minimum sum assured is Rs. 2,00,000/- with no upper limit
- The maturity amount is 100% tax-free
LIC Jeevan Shiromani
It is a non-linked, money back life insurance plan, especially designed for high net worth individuals. LIC Jeevan Shiromani offers financial support to the family members in case of the unfortunate death of the policyholder. In addition to the lump sum payment at the end of the policy term, periodic payments are made to the policyholder during the policy term. In case any of the 15 specified critical illnesses is diagnosed, you can get payment equivalent to 10% of Basic Sum Assured (BSA).
LIC Jeevan Shiromani comes with the following riders:
- Accidental death and disability benefit rider
- New term assurance rider
- New critical illness benefit rider
The payback for the policy is as under:
|Policy term||Periodic payment|
|14 years||30% each of BSA on completion of 10th and 12th year|
|16 years||35% each of BSA on completion of 12th and 14th year|
|18 years||40% each of BSA on completion of 14th and 16th year|
|20 years||45% each of BSA on completion of 16th and 18th year|
LIC Jeevan Lakshya
LICI Jeevan Lakshya is a complete family protection plan that offers both security and savings in a single plan. It offers annual income benefits and high-risk cover. In case of the natural death of the policyholder, the nominee will get the sum assured and in case of the accidental death, additional accident rider pays the amount equivalent to the sum assured.
The nominee will get an annual pension equal to 10% of the sum assured till the plan term and after the completion of the plan, she/he will get 110% of the sum assured. In case of maturity of the plan, the policyholder will get the sum assured + bonus + final addition bonus. Policyholders can enjoy loan facilities on LIC Jeevan Lakshya policy. Under this plan, a policyholder can take two additional riders – Accidental Death and Disability Benefit and LIC’s New Term Assurance Rider.
LIC New Jeevan Anand Policy
LIC New Jeevan Anand plan is a participating non-linked plan that offers an attractive combination of protection and savings. At the end of the policy, you will get the basic Sum Assured + Reversionary Bonuses + Final Additional Bonus vested in the policy. Jeevan Anand continues to offer the risk cover for life even after the maturity of the plan. The plan term ranges from 15 years to 35 years.
The policyholder also gets tax benefits in addition to the future protection of the family. The premium paid towards LIC New Jeevan Anand Policy is considered for savings rebate Under Section 80C of the Income Tax Act.
LIC Pension Plan Jeevan Shanti
This is the most suitable plan for NRIs who are working abroad and planning to return home after retirement. LIC pension plan guarantees a fixed return on investment along with provisions to provide regular monthly income (either immediate or deferred period). With the deferred period option, you will get an additional benefit of 105% insurance cover.
Two variants of LIC Jeevan Shanti scheme are immediate annuity and deferred annuity. Immediate annuity offers immediate income to the policyholder, depending on the mode of payment they choose i.e. monthly, quarterly, half-yearly or annual. Under the deferred annuity option, you will start receiving your income after the completion of the deferred period you selected. Under the deferred you get a higher rate of return.
LIC Jeevan Umang Plan for NRIs
This plan is ideal for NRIs who want to ensure a bright future for their kids. LIC Jeevan Umang policy for NRIs offers dual benefits – a higher return on investment and whole life protection. The endowment plan ensures a regular income to the buyer till the age of 100 years. The payout starts quickly after completion of the premium payment term (PPT) i.e. 15, 20, 25 and 30 years. It is not linked with the market and is free from any market risk.
Here are the benefits of LIC Jeevan Umang Plan for NRIs
- Survival benefits: Policyholders are eligible to receive survival benefits up to the age of hundred years after completion of the premium payment period. The benefit includes an annual return at 8% rate on the sum assured amount.
- Maturity benefits: The policyholder gets a lump sum amount on maturity of the policy, which includes amount assured + Simple Reversionary Bonus + any other benefits.
- Death benefit: If the policyholder dies before the maturity of the policy, his nominee will get the value of the policy + Simple Reversionary Bonus + any other benefits.
- Accidental death: Nominee will get death benefits in case of the accidental death of the policyholder.
- Income tax benefits: The policyholder can get tax deductions under Section 80C of the Income Tax Act 1961. In addition, policyholders are also exempted under Section 10 (D).
- Other riders: Jeevan Umang Plan also offers New Term Assurance Rider, Critical Illness Benefit rider at an extra cost.
LIC Child Education Plan
It is one of the best insurance plans offered by Life Insurance Corporation. LIC Child Education plan for NRIs is a children’s money back plan, which offers regular savings with handsome returns and ensures you get the right amount at the right time. Here are the benefits of LIC Child Education Plan:
- 20% of the amount is paid back when the age of the child is 18, 22 and 24 years.
- 40% of the amount of the sum assured + bonus + Final Addition Bonus (FAB) is paid on maturity of the policy.
|Minimum insurance amount||Rs. 1.00 lakh|
|Maximum insurance amount||No limit|
|Proposer||Parents or grandparents of the child|
|Age limit||For child between 1 day to 12 years|
|Maturity tenure||During the 25th year of the insured child|
|Maximum policy term||15 years|
Before selecting a policy, NRIs must conduct a careful examination of a life insurance policy along with fine prints to make an informed decision. At SBNRI, we understand that there are many obstacles faced by NRIs while trying to buy life insurance in India. You can download SBNRI App to connect with our experts and get end-to-end assistance related to insurance policies for NRIs.
The minimum sum assured is Rs. 2 lakh with no upper limit. The minimum annual premium is Rs. 9394 plus GST for Rs. 2 lakh sum assured with 16-year premium payment term.
The maturity amount is 100% tax-free U/S 10(10)(D).
Yes, NRIs can invest in LIC Jeevan Shanti plan with the immediate annuity as well as deferred annuity options.
You can invest a minimum of Rs. 150,000 with no upper limit of investment.