LIC Whole Life Policy Plan 02

Life Insurance Corporation of India (LIC) is a trusted name in insurance, providing various life insurance policies to help individuals and families secure their future financially. One of its oldest and most popular policies is LIC The Whole Life Policy Plan 02. This plan is designed to provide lifelong coverage, ensuring financial protection for you and your family.

The plan offers insurance protection for the entire life of the policyholder, unlike term insurance, which covers a fixed number of years. LIC The Whole Life Policy Plan 02 also offers options for savings accumulation and benefits at maturity or in case of the policyholder’s unfortunate demise.

For those interested in understanding how much premium they would have to pay or what benefits they might receive, the LIC Whole Life Policy Plan 02 calculator is a useful tool. It provides quick estimates based on user inputs.

Key Features of LIC The Whole Life Policy Plan 02

• Lifelong Coverage: The policy provides coverage for the entire lifetime of the insured, offering peace of mind to the policyholder.
• Sum Assured Benefits: The family receives the sum assured along with bonuses, if any, upon the death of the insured.
• Bonuses: Like many traditional LIC plans, this plan encourages long-term savings by declaring bonuses annually, which add to the final payout.
• Premium Payment Options: Premium can be paid yearly or as per the terms decided at the time of policy purchase.
• Loan Facility: The policyholder can avail loans against the policy after certain years of premium payment.
• Surrender Value: If you decide to discontinue the policy, surrender value is available as per LIC norms after a minimum period.

Benefits of the LIC The Whole Life Policy Plan 02

1. Life-long Security: This policy pays out either on death or on maturity, whichever comes later, ensuring long term financial security.
2. Financial Support to Family: Your family receives the sum assured plus bonuses on your passing, helping them meet any financial needs.
3. Savings with Insurance: The plan combines the benefits of insurance and savings through bonuses declared by LIC each year.
4. Tax Benefits: Premiums paid under this policy are eligible for tax benefits under the Income Tax Act, providing added financial advantage.
5. Loan Facility: Enables policyholders to take financial help by way of loans against the policy.
6. Guaranteed Payout: Unlike investment-linked policies, the whole life plan assures a guaranteed sum assured.

Calculation of Premium and Maturity Value

Calculating the premium and maturity value manually can be complex, considering the sum assured, age of the insured, policy term, bonuses, and other factors. This is where the LIC Whole Life Policy Plan 02 calculator helps.

What Inputs Are Needed?

• Age of the insured person
• Sum assured (the coverage amount)
• Mode of premium payment (yearly, half yearly, quarterly)
• Policy term (length of premium payment period, usually up to whole life)
• Expected bonuses (if available, often projected in the calculator)

How The Calculation Works:

1. Premium Calculation: Based on the sum assured and age, the calculator estimates the premium amount payable annually or for the chosen period.
2. Maturity Value: The calculator projects maturity benefits, including sum assured plus accumulated bonuses.
3. Death Benefit: The nominee receives the sum assured plus bonuses if the policyholder passes away during the policy term.
4. Surrender Value: The calculator can also provide the estimated surrender value if the policy is discontinued after a certain period.

Using such a calculator provides transparency to policyholders about their investment and expected returns according to official LIC rates.

Using the LIC The Whole Life Policy Plan 02 Calculator

The LIC Whole Life Policy Plan 02 calculator is available on many insurance websites, including LIC’s official portal and insurance aggregator sites. It is designed to be user-friendly and requires just a few inputs.

Steps to Use the Calculator:

1. Enter your age: The calculator requires your current age as the premium varies by age.
2. Select sum assured: Specify the amount of coverage you want.
3. Choose premium payment term: This could be yearly or for a specific number of years.
4. Input policy term: Typically for whole life, but some calculators may ask.
5. Calculate: The calculator generates an instant estimate of your premium amount and maturity benefits.

Why Use the Calculator?

• Plan your finances: Know how much you need to invest yearly.
• Compare plans: Check different sum assured or premium options.
• Transparency: You get a clear idea of returns and benefits.

Important Dates: Launch and Withdrawal

• Launch Date: LIC The Whole Life Policy Plan 02 was originally launched many decades ago as one of the flagship policies of LIC.
• Withdrawal Date: The plan was formally withdrawn on 24th November 2013. Since then, it is no longer available for new customers but existing policyholders continue to enjoy benefits and can use calculators to estimate their ongoing value.

Although withdrawn, this plan remains important historically and for existing policyholders who want to calculate their benefits.

How to Buy and Surrender the Policy

Since the Whole Life Plan No. 02 is withdrawn, new customers cannot buy it now. For existing policyholders:

• Buying: Previously, it could be purchased from LIC offices and agents by choosing the coverage and premium terms.
• Surrendering: If you want to surrender the policy, LIC allows this after a minimum period (generally after 2-3 policy years) with surrender value payable as per conditions.

Surrendering results in receiving a percentage of premiums paid minus any benefits already received or loans against the policy.

Why Choose LIC Whole Life Policy Plan 02 (For Existing Policyholders)

• Trusted Legacy: LIC’s Whole Life Plan 02 has stood the test of time as a reliable life insurance product offering lifelong security.
• Guaranteed Benefits: Bonuses and sum assured paid ensure good returns.
• Loan Facility: Financial liquidity with loans against policy.
• Tax Savings: Eligible for tax benefits on premium paid.

Although new policies are not issued now, this plan remains a valuable coverage for those who purchased it before 2013.

Frequently Asked Questions

Conclusion

The LIC The Whole Life Policy Plan 02 is a classic insurance plan providing lifelong protection with savings benefits. While withdrawn in 2013, it remains relevant for existing policyholders wanting to understand their benefits. LIC The Whole Life Policy Plan 02 calculator is an essential tool for estimating premiums, bonuses, maturity, and surrender values, making it easier to plan financially.