LIC's Plan 820 is a with-profits, whole life policy which offers a unique features combination of insurance and investment. This makes it a very popular choice among people looking for both protection and savings.
Plan 820 provides for annual payment of premium for a limited period of 16 years. Thereafter, the policy will be in force for the entire life of the policyholder without any need for further premiums payment.
The policy provides for a death benefit which is the sum assured plus any accrued bonuses. In addition, there is a provision for a terminal bonus, which is paid out on the death of the policyholder or on the maturity of the policy, whichever is earlier.
Plan 820 also provides for some unique investment features. It offers the policyholder the choice of investing in either a money back account or a guaranteed maturity account.
The money back account provides for guaranteed periodic payments at regular intervals. The guaranteed maturity account, on the other hand, provides for a lump sum payment at maturity.
Both these options provide for the payment of bonuses, which are declared at the end of each financial year.
Thus, Plan 820 from LIC is a very popular choice among people looking for both protection and savings. It offers a unique combination of features which makes it an attractive proposition.