Why investing in LIC is good or bad?

Is LIC a Good Investment? Insurance is best taken care of by buying a term insurance which is a pure risk cover. Thumb rules suggest that you require an insurance cover which is at least 10 times your annual income and term insurance is the only way to get such a cover. Hence LIC policies are a bad investment.

Is LIC facing loss?

In August, LIC reported a 2\% decline on a CAGR basis compared with 14\% growth for private life insurers. To be sure, LIC’s market share increased during lockdowns in the first and the second waves of the coronavirus pandemic. Even though LIC has been losing its grip, it still remains a formidable insurer in size.

Is LIC policy a good investment?

First of all, you should get the point that LIC policy is not for the investment purpose. Its the way to get your life secured over the period of time. If you are looking at LIC as an investment purpose, then you are putting your money in the wrong basket.

Why should you invest in a life insurance policy?

One of the many reasons why people prefer to invest in a life insurance is because of its tax saving aspect. Irrespective of the plan that you have taken, you can save tax with the different insurance policies. Begin As Early As Possible The earlier you invest in life insurance, the better deals you can get.

What are the chances of default in LIC policy?

Being backed by Government, LIC has implied Government Guarantee and thus no chances of default. People consider buying LIC policy is similar to making FD in SBI & not in some private banks, even though the returns are as bad as 4\% to 5\%.

When to opt for critical illness benefit under LIC policy?

If you are between 18 and 50 years of age, you may opt for Critical Illness Benefit equal to the life cover subject to a minimum of Rs. 50,000 and maximum of Rs. 10 lakh (including other policies with LIC of India) provided the policy term is 10 years and above.