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Best Short Term LIC Plans


Life Insurance Corporation (LIC) plans, generally comes with a longer duration, as it involves covering the life of a person. But, there are also some short term LIC Plans, which could come useful, if you are not looking at 15-20 year investment plans. However, these would be a minimum of 5 years, as there are no plans with a shorter duration.


LIC Jeevan Nischay

Under LIC Jeevan Nischay, you pay a premium once and the policy coverage starts. There are a few features that are commendable. For example, if you are unhappy, you can return the policy after 1 year and you would get a guaranteed sum of 90 per cent of the premium paid. But, why lose the 10 per cent and another 8 per cent that you would have otherwise got in the bank.

Best Short Term LIC Plans
The other advantage is that you can also avail a loan of 90 per cent of the amount. Like most other policies, the LIC Jeevan Nischay does not cover suicide with one year from the date the policy was taken.

Also, if you are not happy, you can return the policy within 15 days of taking it.

Go in for some LIC Money Back Policies

Moneyback policies from LIC also offer short term plans. However, as mentioned earlier, you would have to invest for a minimum of 5 years. However, the drawback of the LIC Moneyback policy is that you are only going to get partial payment back.

In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year.

In the case of a LIC Money-Back Policy that would be taken for 25 years, you get 15 per cent of the sum assured being made payable after 5, 10, 15 and 20 years, and the balance 40 per cent plus the accrued bonus would be paid after the 25th year.


This may not be one of the best short term LIC plan, but, remember that it comes with insurance coverage for the full 25 years. So, you are getting money back, plus insurance coverage. This means you can say that you can have the cake and eat it too.


There are many such policies that you can take from other insurance companies as well. However, since we are discussing about Life Insurance Corporation, we have mentioned the policies from the corporation itself.

There are a few things that we wish to tell are readers though. It is not a good idea to buy LIC policies with short term plans in mind. If you are a 30-year old, you should be taking 20 and 30 year old insurance policies. Secondly, the money back and one time premium policies do not offer you much coverage.

If you wish to get coverage, you need to take a proper term insurance policy. Endowment plans are neither insurance nor investments. It is best, if you take an online term insurance policy. There are a host of companies that offer coverage including the private insurers.

Also we stress the need to buy an online term insurance, because, you are likely to get it cheaper. LIC has only recently started offering online term insurance policies. These are cheaper, though you may have to do your medical to get the policy. The medicals would again depend on the amount of policy and your age. If the coverage amount is really high, you would need to get a medical done.

In any case, it is worth taking an LIC term insurance plan rather than a endowment plan.

We wish to also emphasize that the claims settlement ratio of the corporation is the best in the business.

Read more about: lic jeevan nischay
Story first published: Monday, February 22, 2016, 8:45 [IST]
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