What is the sum assured in LIC? Sum assured is also also known as the amount ensured is actually the total amount of money which a person will be getting after any eventuality or happening such as death. This amount is ensured while buying the insurance policy.
Are you wondering why Sum assured is more or less in some cases? Here’s the answer
The sum assured in LIC is dependent on the person’s annual income and somehow it also depends on the policy or the insurance firm. So, accordingly, the sum assured is provided to the person in case of any happening like death. This is the reason why the sum assured is different for the poor and the rich. Maximum the sum assured can be 10 times the annual income of a person.
When you are buying a LIC insurance policy, your nominee is asked and mentioned. Also, the sum assured is mentioned. In case of an insured event takes place, the total amount will be given to the nominee.
Here are some benefits of Sum Assured or also known as life insurance.
1)- There are many insurance policies and insurance types but the sum assured of also called life insurance is one of the simplest and purest forms of the insurance policy.
2)- Flexibility is one of the major features of this LIC insurance policy. Whenever you feel that this policy is not for you, you can cancel it anytime. You can add another policy anytime to even get more benefits or the benefits for which you are looking for your loved ones in your absence.
3)- As you got to know in the 1st point that this is the simplest form of policy. A middle-class person in India and even get a policy up to 50lacs rupees.
Here are some of the tips for you before buying any insurance policy.
1)- Buy LIC insurance policies when you are young.
When you are young you don’t have health issues or any other problems and the chance of death are very less. So buy the insurance policy at that time. As you grow older the cost of insurance policy increases. Also, you have different health and other problems when you are older. So, the cost increases, and somehow the sum assured also decreases.
2)- Think Carefully Before Buying / Consult a good advisor.
Before buying any policy you must note down your all expenses and it’s not an easy task. It’s better if you consult a professional financial advisor and tell your situations like expenses, debits, family expenditures, etc. and expectations. A financial advisor will definitely help you to choose the best policy according to your objectives.
3)- Choose a Trusted Firm & Read All the terms & conditions before buying.
It’s better if you know well about the firm where you are buying the insurance policy. LIC is one of the most trusted firms in India. After consulting an advisor there are still some small things left which you must take care of. Such as if your kids get separated in the future, choose the nominees accordingly. Fill the form carefully, get all information with you and double-check before filling.
- If you are looking for the best LIC Mutual Funds, then jump to this article LIC Mutual Fund.
I hope, you’ve got your answer after reading this article. If yes, then please share this article with your lovely friends and family members.