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LIC Investment Plans

Founded on 1st September 1956 by the Life Insurance Corporation Act which was passed by the Parliament, LIC (life Insurance Corporation of India) was the first life insurance company in India. The state-owned insurance group, being the oldest insurer in the country and specializing in a wide range of investment plans, has an extensive customer base.

LIC investment plans are customized to cater to varied investment objectives of individuals like education and marriage of children, health, life coverage, retirement planning, etc. In short, it financially secures your family against unforeseen and planned eventualities.

Let’s take a look at the six top life insurance policies from LIC.

Best Investment Plans offered by LIC

LIC Jeevan Labh

Features & Benefits

LIC Jeevan Labh is a non-linked, with-profits endowment plan, limited premium paying investment plan. Here are its salient features and Benefits:

  • Serves the dual purpose of protection and savings.
  • Offers Death Benefit, which is the sum assured payable to the beneficiary on the unforeseen death of the policyholder.
  • Includes Maturity Benefit as a lump sum amount that is paid to the policyholder after the completion of the plan.
  • Ensures liquidity through its loan facility.
  • Policyholders are eligible for receiving Simple Reversionary Bonuses, provided the policy is in-force.
  • Final (Additional) Bonus is also payable during claim settlement in case of the policyholder’s death or maturity of the policy.
  • Riders for complete protection.

Eligibility

  • Basic sum assured starts from a minimum of Rs. 2,00,000 and has no upper limit.
  • Entry age ranges between a minimum of 8 years to a maximum of –
    • 59 years for a policy term of 16 years;
    • 54 years for policy term of 21 years
    • 50 years for policy term of 25 years
  • Maximum maturity age is 75 years
  • Policy Term/Premium Paying Term : (16/10), (21/15)(25/16)years

LIC Jeevan Lakshya

LIC Jeevan Lakshya is a participating non-linked investment plan that offers the dual benefit of protection and savings.

Features & Benefits

  • Includes Annual Income benefit that financially secures the policyholder’s family in case of his/her unfortunate demise.
  • Offers maturity benefit as a lump sum amount after the completion of the policy tenure, irrespective of whether the policyholder has survived through the policy tenure.
  • Assured Absolute Amount offered is 110% of basic sum assured, payable after the maturity of the policy term under the death benefit.
  • Assures policyholder’s of liquidity through its loan facility.
  • Death Benefit offered is 105% of the total premiums paid till the date of the policyholder’s death.
  • Rider sum assured for complete protection.

Eligibility

  • Minimum basic sum assured is Rs. 1,00,000
  • Maximum basic sum assured has no upper limit
  • Policy term varies between 13 years and 25 years
  • Premium paying term would be policy term less 3 years
  • Entry age ranges between a minimum of 18 years and a maximum of 50 years
  • Maturity age extends till a maximum of 65 years

LIC Jeevan Umang

LIC Jeevan Umang is a non-linked, with-profit, whole life assurance plan. Its salient features and benefits are:

  • Serves the dual purpose of income and protection to your family.
  • Offers Annual Survival Benefit from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on death of the policyholder during the policy term.
  • Offers policyholders the financial security of liquidity through loan facility.
  • Vested Simple Reversionary Bonuses
  • Death Benefit shall not be less than basic sum assured or 10 times of annualised premium or 105% of all the premiums paid as on date of death.
  • Includes maturity benefit which is basic sum assured along with vested Simple Reversionary Bonuses and Final Additional bonus, if any.

Eligibility

  • Basic sum assured varies from a minimum of Rs. 2,00,000 and has no upper limit.
  • Basic sum assured shall be in multiples of Rs. 25,000.
  • Flexible premium paying tenure options are 15 years, 20 years, 25 years and 30 years.
  • Policy term is 100 less entry age.
  • Entry age starts from a minimum of 90 days to a maximum of 55 years.
  • Age at maturity : 100 years (nearest birthday)
  • Minimum Age at the end of premium paying term : 30 years (nearest birthday)
  • Maximum Age at the end of premium paying term : 70 years (nearest birthday)

LIC Jeevan Shanti

It is a single premium plan that offers policyholders the flexibility to select between Immediate and Deferred Annuity. Its salient features and benefits are:

  • The annuity rates are guaranteed at the inception of the policy for both types of annuity plans that are payable throughout the life time of annuitant(s).
  • Offers nine different annuity options to choose from, as per one’s investment objectives.
  • Annuity rates are fixed at the inception of the policy term.
  • Loan facility, available after completion of 1 policy year, ensures liquidity.
  • Can be surrendered after three months from the completion of policy when the policyholder has opted for an annuity option with return of purchase price.
  • Especially suitable for policyholders with handicapped dependant (Divyangjan) life.
  • Available online as well as offline.

Eligibility

  • Minimum vesting age is 31 years for deferred annuity option.
  • Maximum vesting age is usually 100 years for immediate annuity under option F, 85 years for all other options under immediate annuity and 80 years for deferred annuity.
  • Minimum deferment period is 1 year, while the maximum deferment period extends to 20 years, subject to the maximum vesting age.
  • Minimum annuity offered is Rs. 1,000 for monthly mode, Rs. 3,000 for quarterly mode, Rs. 6,000 for bi-annually mode and Rs.12,000 for annual mode.

LIC Jeevan Anand

One of the most sold investment plans from LIC, Jeevan Anand investment plan is a participating non-linked plan that includes the following features and benefits:

  • Offers the dual benefit of protection and savings.
  • Offers risk coverage even after the maturity of the investment plan.
  • It is an endowment cum whole life policy that offers protection along with bonus facility. This includes double death benefit in case of accidental death.
  • Assures liquidity through the loan facility.
  • Includes lump sum payment at the time of maturity.
  • Tax benefits available under Section 80C of the Income Tax Act, 1961.
  • Provides a good sum of financial protection against the death of the policyholder.

Eligibility

  • Basic sum assured varies from a minimum of Rs. 1 lakh, while there is no upper limit applicable
  • Basic sum assured are in multiples of Rs. 5,000
  • Entry age starts from 18 years to 50 years
  • Maximum maturity age is 75 years
  • Policy term varies between 15 years and 35 years

LIC New Children Money Back Plan

LIC New Children Money Back Plan is a participating non-linked traditional Money Back Plan that offers the following features and benefits:

  • As the name suggests, this investment plan is especially designed for policyholders to financially secure their child’s future ambitions and aspirations like education, marriage and other financial requirements during their growing age.
  • Includes risk cover on the child’s life during the tenure of the investment plan.
  • Survival Benefit applicable on the completion of the tenure of the investment plan.
  • Premium payment frequencies offered are monthly, quarterly, half-yearly and yearly, which can be paid through the ECS or SSS mode.
  • Offers the flexibility of the investment plan being surrendered at any time during the policy tenure on timely payment of premiums for the first three policy years.

Eligibility

  • Entry age ranges between 0 years and 12 years.
  • Applicable policy term is 25 years less age at entry.
  • Minimum Basic Sum Assured : Rs. 100,000
  • Maximum – No Limit

LIC Jeevan Saral

The salient features and benefits of this endowment policy are:

  • Offers 250 times the monthly premium together with loyalty additions, if any, and along with return of premium on death.
  • Offers flexible premium payment frequencies – monthly, quarterly, half-yearly and yearly via salary deductions, as specified by the policyholder, throughout the policy term or till his/her death, whichever is earlier
  • Participates in the profits of the Corporation life insurance business that shares its profits in the form of loyalty additions. These additions are terminal bonuses that are paid along with death benefit or maturity benefit.
  • Loyalty additions are generally paid from the 10th year, as per the profits made by the Corporation.

Eligibility

  • Entry age starts from 12 years and extends till 60 years.
  • Maximum maturity age is 75 years.
  • Includes tax benefits of up to Rs. 1.50 lakh as per Section 80C of the Income Tax Act, 1961.

How to Apply for LIC Investment Plans Online?

  • Visit the official website of LIC to fill up the online application form.
  • Mention the required details like name, contact number, email ID, DoB, type of investment plan you want to opt for, annual income, address details.
  • Select the ‘I Agree’ option.
  • Click on the ‘Submit’ button to complete the online application process.

FAQs on LIC Investment Plans

Can I invest lump sum in mutual funds?

Yes, you can invest in mutual funds either through a one-time annual lump sum payment or through SIP (Systematic Investment Plan). Some of the well - known mutual funds are:

  • ICICI Prudential Bluechip Fund - Direct
  • HDFC Small Cap Fund – Direct
  • Mirae Asset Emerging Bluechip Fund – Direct
  • Aditya Birla Sun Life Tax Relief 96 - Direct – Growth
  • Kotak Emerging Equity Scheme – Direct
  • Axis Focused 25 Fund – Direct
  • Reliance Large Cap Fund – Direct
  • Tata Equity P/E Fund – Direct
  • SBI Banking & Financial Services Fund - Direct – Growth
  • UTI Nifty Index Fund - Direct – Growth

Can we reduce LIC policy term?

Yes, LIC may offer policyholders the flexibility to increase or decrease the policy term depending upon the plan he wishes to invest in.

How can I double my money in bank?

Bank Fixed Deposits is one of the most effective investment options for doubling your money. At the current interest rate of 8% p.a., your invested capital will get doubled in 9 years. For instance, if you invest Rs. 2 lakh now, you will be eligible for receiving a maturity benefit of Rs. 4 lakh in 9 years.

How can I pay LIC premium online?

You can make your LIC premium payment online through any of these 3 options:

Through LIC website without logging in

  • Visit LIC’s official website and click on ‘Pay Premium Online’ under the ‘Online Services’ section.
  • You will be offered two options for proceeding with the payments option – Pay Direct (i.e. without logging into the website) and Through Customer Portal.
  • If you prefer to pay without logging in, select the Pay Direct option.
  • Next, click on the ‘Premium Payment’ option.
  • Select the ‘Proceed’ button from the pop-up option that will appear on your screen.
  • Mention the required details like policy number and your premium amount accurately and quickly to prevent the session from getting timed out.
  • Mention the captcha code correctly, click on ‘I Agree’ and then on the ‘Submit’ button.

By logging into LIC website

  • Enter your user ID, Password and Date of Birth, and then click on ‘Sign In’.
  • Select on the ‘Online Payments’ option
  • Click on the LIC investment plan that you want to pay for
  • Select the ‘Check & Pay’ option.
  • Confirm the policy details that you have previously registered with LIC, like email ID, mobile number and premium amount.
  • Select one from the available payment gateways to complete the premium payment process.

LIC Mobile App

Download the LIC app on your phone and proceed with the premium payment option available on the app.

How can I register my LIC policy contact online?

  • Go to the official portal of LIC and select the 'LIC's e-Services' button
  • Select the 'New User' button
  • Enter the required details like your policy number, premium amount, date of birth, etc.
  • Select the ‘Proceed’ button.
  • Choose a username and password, as per your preference, to complete the registration process.
  • You can then proceed on to making your premium payment.

How can I surrender my LIC policy after 5 years?

Yes, LIC policies can be surrendered only after you have completed the premium payments for 3 years. You can surrender the policy in lieu of its surrender value.

How is surrender value of LIC calculated?

Surrender Value on LIC policies is different for different plans and based on the year of surrendering the policy, one can check the same under the guaranteed surrender value section of the brochure or policy document.

Is insurance a good investment?

Yes, Insurance policies are designed to financially secure you and your family against accidents, losses and death. Insurance policies are best investment option for protection and investment.

Is LIC Plan a good investment?

Yes, LIC offers best life insurance plans. If you are looking for investment and protection option under one product, you can consider Endowment or Unit Linked Investment Plan (ULIP) as per your risk appetite and financial objectives.

Is LIC better or Mutual Fund SIP?

If investment objective is just wealth creation, only then mutual fund SIP (Systematic Investment Plans) are better than LIC investment plans because the former generally offers a higher rate of return.

Is LIC better than FD?

If your objective is to invest with a life cover, a LIC investment plan is a better option than a bank Fixed Deposit.

Is LIC better than mutual funds?

Whether you should invest in a LIC investment plan or mutual funds should depend on your financial goal and risk appetite. If you are looking for life coverage, LIC investment plan should be your choice. In contrast, if you have surplus funds in hand, you can invest it in mutual funds for capital growth and future financial goals.

Is LIC Jeevan Anand a good policy?

Yes, LIC Jeevan Anand is one of the best investment plans from the insurance company.

Is LIC maturity taxable?

No, LIC investment plans maturity benefits are tax free as per Section 10(10D) of the Income Tax Act, 1961.

Should I invest in LIC or mutual funds?

Investment in LIC or mutual fund depends on an investor’s unique financial objective and risk appetite, both of which differ between individuals. Investors who require life coverage can opt for LIC investment plan. On the other hand, investors with surplus funds in hand can invest in mutual funds to achieve capital growth for meeting future financial goals.

What is LIC term plan?

LIC term plans are designed to offer policyholders financial protection at low premium rates. It offers Death Benefit that is payable to the nominee of the term plan on the death of the policyholder. LIC term plans do not have any maturity benefit.

What is sum assured in LIC?

The sum assured of an LIC policy is the guaranteed amount that the policyholder is eligible for before the accumulated bonuses are added to it. This is the amount that the policyholder is insured for under the plan.

What is the average return on LIC?

Each LIC investment plan has different rates of return however, the average returns can range between 4% to 8%.

What is the benefit of Jeevan Anand LIC policy?

The benefits offered by LIC Jeevan Anand investment plan are:

  • Dual benefit of protection and savings
  • Risk coverage even after the maturity of the investment plan.
  • It is an endowment cum whole life policy that is offered along with the bonus facility. This includes death benefit when the policyholder survives through the policy term.
  • Loan facility assures policyholders of liquidity
  • Lump sum payout after the completion of the policy term
  • Tax benefits of up to Rs. 1.5 lakh as per Section 80C of the Income Tax Act, 1961

What is the benefit of LIC Jeevan Saral policy?

The benefits offered by LIC Jeevan Saral investment plan are:

  • Flexibility of Unit Linked Insurance Plans (ULIPs)
  • 250 times the monthly premium as sum assured along with return of premium
  • Flexible premium payment frequencies – monthly, quarterly, half-yearly and yearly via salary deductions, as per the preference of the policyholder, throughout the policy term or until his/her death, whichever is earlier
  • Participates in the profits of the Corporation life insurance business that shares its profits in the form of loyalty additions. These additions are accumulated bonuses that are paid along with maturity benefit or death benefit.
  • Loyalty additions are usually payable from the 10th policy year, and are determined by the profits made by the Corporation.

What is the return on LIC policies?

The general rate of return for maximum LIC Policies are in the range of 4–8%.

Which is the best Money Back policy?

Some of the best Money Back investment plans are:

  • LIC Money Back Policy - 20 years
  • SBI Life Money Back Gold
  • Bajaj Allianz Cash Assure
  • Aegon Life Regular Money Back Insurance Plan
  • Canara HSBC OBC Smart Stage Money Back plan
  • Reliance Super Money Back Plan

Which is best plan in LIC investment?

LIC Jeevan Anand is one of the most sold investment plans from the insurance company.

Which is the best LIC policy for child?

LIC New Children Money Back Plan is the best investment plan for children from the insurance company.

Which is the best LIC policy?

LIC Jeevan Anand is one of the most sold investment plans from the insurance company.

Which is the best way to invest money in India?

There are a varied range of investment plans that investors in India can select from, according to their unique financial objectives and risk appetites.