ULIPs and mutual funds are two popular yet distinct investment avenues, each coming with its unique set of benefits and drawbacks. Know which one is better for your individual needs and preferences.
Life Insurance Corporation of India (LIC) is the largest insurance provider in India with over 68% market share in India. The state-owned company now also offers insurance services in the UAE and the Middle East, with its international wing first opened in 1989 in Bahrain. LIC International is now operational in other Gulf countries such as Oman, Kuwait, and the UAE (Abu Dhabi and Dubai).
LIC International has several insurance and investment plans that can cover you and ensure good returns on your investment. One time investment plans by the company make for one such product, with such investment plans being popular in the UAE. With these plans, you can enjoy excellent returns and coverage by paying the premium just once!
To understand how such plans work, the benefits offered with them, and how you can find the LIC best one time investment plan for your requirements, continue reading the article below.
In the UAE, LIC International offers various options with respect to single premium or one-time investment insurance policies. Here is a list of the best LIC one time investment plans –
Let’s go through each entry in the list of the LIC best one time investment plans and explore their key features and benefits –
The New Future Bright Plan offered by LIC International is a single-premium plan that offers financial protection in the event of the policyholder's death as well as maturity benefits. With a fixed 9-year term, you can avail of this policy to fulfil your insurance and savings requirements in one place. Keep in mind that the minimum sum assured for this plan is USD 20,000.
The functioning of this LIC one time investment plan is fairly straightforward. As a policyholder, you will receive 10% of the sum assured after completing 3 and 6 years. Upon completion of the full 9 years, you will receive 102% of the premium amount with the applicable loyalty bonuses. If the life assured (policyholder) passes away during the tenure of the policy, the nominated beneficiary will receive the sum assured, irrespective of the survival benefits paid in the third and sixth years.
LIC will also pay the policyholder a surrender value if they terminate the policy only after a year from its commencement. Insurance holders may get a minimum of 95% of the single premium paid (excluding any taxes and extra premiums). Please note that the survival benefits paid will be deducted from the surrender value if the policy is terminated after its third year.
The New Future Smart is a single premium non-linked endowment plan that offers guaranteed returns to you along with a cover against death. Valid for a term of 5 years, this plan has a minimum sum assured of USD 25,000.
You should be aware that a minimum top-up premium of USD 10,000 has to be paid compulsorily at the onset of the plan. You can also increase the top-up premium in multiples of USD 1,000.
In terms of benefits, the plan offers maturity benefits, death benefits, and an additional guaranteed financial benefit. This guaranteed benefit is calculated after each term year at the rate of USD 23 per thousand of the sum assured and the top-up premium.
The surrender or refund policy for the New Future Smart plan is similar to the one in the New Future Bright (Plan No. 255) – the policy acquires a guaranteed minimum Surrender Value of 95% of the Single and Top-up Premium after the completion of the first year.
As evident from its name, this single premium pension plan is designed so that you receive your annuity payments immediately. With a minimum premium/price of purchase of USD 15,000, you can opt for a number of options with respect to benefits for the beneficiary.
LIC International currently offers four major annuity options here –
A unique offering from LIC is the New Deferred Future Secure Pension Plan, where the single premium is paid back to the holder in annual payments after the specified buffer/deferment period is completed. The deferment period varies from 3 to 10 years, and the minimum investment requirement is the same as Plan No. 259, i.e., USD 15,000.
For the annuity package, you can choose a deferred annuity with the return of premium price for either joint lives or single life. Keep in mind that annuity rates increase with an increase in the premium purchase amount.
As evident from its name, the New Future Smart II plan is a variation of the New Future Smart plan. This single premium savings plan has the same maturity and death benefits, term length, and premium amount as the related Plan No. 258 –
However, it differs in the guaranteed addition rate calculated on the sum assured and the top-up premium. In this case, the rate is USD 17 per thousand on completion of each policy year.
Future Smart III is another plan among the best LIC one time investment plans, with benefits related to maturity as well as policyholder’s death offered here. The only major aspects in which this plan can be distinguished from New Future Smart and New Future Smart II are the rate at which the guaranteed addition is calculated and the surrender policy. Future Smart III's guaranteed addition is estimated at USD 30 per thousand per annum on the basic single and top-up premium.
Regarding the surrender policy, you would be paid at least 98% of the single and top-up premium amounts when you opt for surrendering the plan. However, the surrender value will only come into effect only if the first year of the 5-year term is completed.
The New Professional Education scheme can be a great option if you are on the lookout for a one time investment plan for a child in LIC. As a parent or a relative of the child, you can get this single premium plan and have a sum assured of up to USD 500,000. An interesting thing about this LIC one time investment plan is that the provider will add a guaranteed sum to the sum assured at the rate of USD 25 per thousand of the latter.
Designed as a cashback plan, this plan facilitates the payment of the sum assured in five equal instalments every year, beginning from the 18th birthday of the child. The accumulated guaranteed addition is payable as a lump sum in the final year, i.e., when the beneficiary turns 23 years of age.
In the unfortunate event of the child's death, either before or after the commencement of the ‘risk period’, LIC International will pay back all the premiums and guaranteed additions without any deductions. However, if the proposer of the insurance policy passes away during the policy term, the policy will continue only if the optional Premium Waiver Benefit Rider is availed.
Interestingly, apart from having single premium payment options, the insurance proposer can also pay premiums on a monthly, quarterly, half-yearly, or annual basis with this one time investment plan for a child in LIC.
After exploring the LIC best one time investment plans in the UAE, let’s now understand the eligibility criteria for each plan that you would be required to fulfil –
Check out the following section to know more about the LIC best one time investment plans in the UAE –
Ans: As a policyholder, you can submit the premiums at the LIC International branches in UAE through cheque or cash in USD or the local currency. However, it is advised to pay the premiums through a cheque in favour of LIC International. Alternatively, you can pay the amount through SWIFT transfers (either in USD or AED).
Ans: Since a single premium is paid at the start of the policy, a grace period is not applicable for most LIC best one time investment plan schemes.
Ans: Loans are available with some LIC investment policies once the said plan acquires surrender value.