LIC Savings Plans in Ulwe, Navi Mumbai
Savings plans — mostly endowment-type plans — combine life cover with disciplined saving towards a fixed date. You pay premiums for a set period and receive a maturity benefit at the end, as per plan terms. If something happens to you during the term, your nominee receives the death benefit.
Good reasons to use a savings plan
- A goal with a fixed date — education, a wedding, a down payment
- You prefer stability over market ups and downs
- You want saving and life cover in one policy
How LIC Endowment and Savings Plans Work
In a typical endowment plan, you choose a sum assured and a policy term. You pay premiums — for the full term or a shorter premium paying term, depending on the plan. At maturity, you receive the benefit specified in the plan, which may include the basic sum assured plus any bonuses declared. If the life assured dies during the term, the death benefit as per the policy is paid to the nominee.
Bonuses — guaranteed or not?
Many traditional LIC savings plans are participating: they may receive bonuses declared by LIC from time to time. Once declared and attached to your policy, those bonuses become part of your benefit, but future bonuses are not guaranteed in advance. Non-participating plans have benefits fixed in the policy document. I'll show you clearly which part of a projection is guaranteed and which isn't.
Choosing the premium paying term
Some plans let you pay premiums for fewer years than the policy term — for example, paying for 10 years in a 15- or 20-year policy. This can suit people who expect income to be higher now than later, or who want premiums finished before retirement. The yearly premium is higher, so we'll check it against your EMI and monthly budget.
Stopping early costs money
Savings plans work best when kept till maturity. If you stop premiums early, the policy may become paid-up with reduced benefits, or you can surrender it for its surrender value, which in the early years is often much less than the premiums paid. If you're facing difficulty, look at a policy loan or reviving a lapsed policy before surrendering.
Be realistic about growth: savings plans are about safety and discipline, not high returns. If your main need is family protection, a term plan gives much larger cover for the same premium.
Using Savings Plans for Common Goals
Examples to start the conversation. The right term depends on your timeline.
| Goal | How a savings plan is usually set up |
|---|---|
| Child's college admission | Policy term ending around the admission year (see child plans) |
| Money at retirement | Maturity close to retirement age (see retirement planning) |
| Expenses at intervals | Money back plan with survival benefits along the way |
| Disciplined long-term saving | Endowment plan with a premium you can sustain for the full term |
Please note: LIC plan benefits, premiums, eligibility and applicable terms depend on the specific plan and prevailing LIC rules. Please verify the latest details and policy terms before making a decision.
Official LIC website →LIC Savings Plans – Common Questions
What people ask before choosing an endowment or savings plan.
The basic sum assured is payable as per plan terms. In participating plans, future bonuses are not guaranteed in advance and depend on LIC's declarations. Non-participating plans have benefits specified in the policy.
Depending on the plan and how long you've paid, the policy may become paid-up with reduced benefits, may be surrendered for its surrender value, or may lapse. It can often be revived within the period allowed by the policy terms.
Many traditional plans allow a policy loan once they acquire a surrender value, as per plan terms. Interest is charged by LIC on the loan amount.
In an endowment plan, the main benefit comes at maturity. In a money back plan, part of the sum assured is paid at intervals during the term, with the balance at maturity.
Get LIC Plan Details for Your Goal
Tell me what you're saving for and by when. A short call is enough to start.