One of my relative is nagging me to take a LIC investment policy. I'm in my 20s and he said it will be really beneficial considering my premium amount will be considerably less compared to people in age group of 30s and 40s.
I'm a noob when it comes to investment. I basically only save and invest money in Bank Fixed deposits which offers around 9 % to 9.5% compound interest annually. I have not much details about the LIC plans but he did mention about investing it for upto 15 years or something.
So any of you guys have any tips about the cons and pros of investing money in LIC plans.
Is there any advantage of these LIC thing over Fixed Savings Bank deposits ?
Everyone must have atleast one policy that ensures your family get some amount in case something happens to you. I think this should be mandatory by the government for everyone who earns.
Anyway, so I am guessing you are not working yet, else you would have come to realize the need for insurance from somewhere. When you get employment the company automatically insures you for a fixed amount, but that is health insurance. Not sure whether death benefit is included in it. So atleast one LIC policy is a must. I known my TL have multiple LIC policies. Big and small. My dad have multiple too. I have two of them. I pay around Rs 2100 yearly for one policy.
Also, more important then having a policy is making sure your family knows that you have one. Lots of people don't claim the insurance money since they are just not aware that their family member (who passed away) had an insurance.
Besides an LIC policy, one must also have an accidental policy and an health policy. There are many renowned companies who provide good accidental policy. Where you pay a small amount per year (depending on your age, and health and whether you smoke or drink). Which is valid for a period you specify. During this period if you happen to be in any accident that affected any of your body parts you get good amount of money. One finger got chopped of? You get money in lakhs. One hand badly affected in the accident? You get multiple lakhs. But if nothing happens to you for the period, you get *nothing*. Zero. Now it may seem that this is very bad policy where you get nothing, but actually that's why the premium each year is very low, but it also pays a lot if god forbid, anything happens to you. It makes sense to invest in accidental and health policy while you are in your 20s, since as age increases so does the premium.
I myself have to take an accidental policy and health policy. I will do further research before getting any. Though, in LIC policy you loose nothing in the long run.
