Top LIC Investment Plans in India

Investing in a reliable and trustworthy life insurance policy is crucial for safeguarding your financial future and ensuring the well-being of your loved ones. Life Insurance Corporation of India (LIC) has been a pioneer in the Indian insurance sector, providing a wide range of investment plans to meet the diverse needs of individuals. Let’s look at the top 10 best LIC investment plans available in India.

1. LIC SIIP Plan

LIC SIIP Plan is a comprehensive investment and insurance solution designed to secure a financial future. This plan helps grow corpus through market-linked returns along with the added protection of insurance coverage. This ensures that the family’s financial well-being is safeguarded in the event of any unfortunate circumstances. By investing in the market, you can not only maximise your current savings but also create a financial cushion for yourself and your loved ones.

Key Features of LIC SIIP Plan:

• Flexibility: Choose from four fund options tailored to your risk appetite.
• Fund Switching: Switch between funds at zero cost if one fund underperforms.
• Tax Exemption: Avail tax exemption under sections 80C and 10(10D) of the Income Tax Act, 1961.
• Partial Withdrawals: Access a certain sum from the fund value in case of urgent financial needs.
• Benefits: The scheme offers death, maturity and rider benefits.

The LIC SIIP Plan offers a combination of investment growth and insurance protection, making it a suitable choice to secure your financial goals and provide for your loved ones.

2.LIC Jeevan Umang

LIC Jeevan Umang is a comprehensive whole-life insurance coverage and a combination of income and protection benefits for your family. This plan provides annual survival benefits to the policyholder from the end of the premium payment term until the policy matures. Additionally, it offers a lump-sum maturity benefit to the insured upon policy maturity or a death benefit to the nominee in the event of the insured’s demise during the policy term. 

Key Features of LIC Jeevan Umang:

• Death Benefit in Installments: The plan allows the option to receive the death benefit in regular instalments.
• Rider Options: Enhance the coverage of your policy by availing different rider options.
• Premium Payment Flexibility: Choose between regular premium payments or salary deductions during the premium payment term.
• Tax Exemption: Enjoy Tax Exemption under sections 80C and 10(10D) of the Income Tax Act.
• Premium Rebates: Get rebates on premiums for opting for a higher sum assured.

LIC Jeevan Umang provides comprehensive coverage and a range of benefits, making it an excellent choice for securing the financial well-being of your family throughout your life.

3. LIC Jeevan Labh

LIC Jeevan Labh is an insurance plan that offers a combination of protection and enhanced savings for policyholders. This plan ensures financial security for the insured’s family in the unfortunate event of their demise. Additionally, if the insured survives the policy term, they receive the maturity benefit, which includes a simple reversionary bonus and a final additional bonus.

Key Features of LIC Jeevan Labh:

• Flexible Policy Term: Choose from policy terms of 16, 21, or 25 years, based on your preference and needs.
• Bonus: The plan offers bonuses declared by LIC, which are based on the company’s annual profits.
• Limited Premium Payment: Enjoy the benefit of paying premiums for a specific period while maintaining coverage throughout the policy term.
• Premium Discounts: Avail premium discounts if the sum assured exceeds INR 5 Lakhs.

LIC Jeevan Labh provides a comprehensive solution by offering insurance protection and the opportunity for increased savings. It ensures financial stability for your family in case of an unfortunate event and rewards you with the maturity benefit upon survival till the end of the policy term.

4. LIC New Jeevan Anand

LIC New Jeevan Anand is a comprehensive life insurance plan that provides financial protection to the insured’s family in the event of an unfortunate demise. Additionally, if the insured survives the policy term, LIC New Jeevan Anand offers a maturity benefit. The plan also provides the flexibility of availing a loan facility to meet any financial emergencies.

Key Features of LIC New Jeevan Anand:

• Death Benefit in Installments: The plan allows the option to receive the death benefit in regular instalments.
• Premium Payment Flexibility: Choose between regular premium payments or salary deductions during the premium payment term.
• Rebates for Higher Sums Assured: Enjoy the benefit of premium rebates for opting for higher sums assured.
• Tax Exemption: Avail tax exemption under sections 80C and 10(10D) of the Income Tax Act.
• Surrender Option: The policy can be surrendered at any time, provided that the premiums have been duly paid for two full years.

This plan also offers additional riders to further enhance coverage and ensure comprehensive protection.

5. LIC New Jeevan Shanti

LIC New Jeevan Shanti is a single premium deferred annuity plan that offers coverage upon payment of a lump sum premium. This plan provides flexibility by allowing policyholders to choose between Joint life and Single life Deferred annuity options.

Key Features of LIC New Jeevan Shanti:

• Payout Frequency Flexibility: You have the option to choose the frequency of annuity payouts, whether it’s monthly, quarterly, half-yearly, or annually.
• Additional Riders: Enhance the coverage of your policy by adding optional riders for enhanced benefits and protection.
• Tax Exemption: Enjoy tax exemption under Section 80C and Section 10(10D) of the Income Tax Act.

LIC New Jeevan Shanti offers a comprehensive annuity plan with the flexibility to choose payout frequency and additional coverage options. The plan also provides tax exemption and the convenience of availing policy loans when needed.

6. LIC Tech Term Plan

Tech Term is a Non-Linked, Non-participating, Pure Risk Premium Plan that can be conveniently purchased online. This plan provides financial protection to the insured’s family in the event of their untimely demise.

Key Features of LIC Tech Term Plan:

• Dynamic and Flexible: Tech Term is known for its dynamic and flexible nature. It offers options such as Single Premium, Regular Premium, and Limited Premium Payment. You can also choose the Policy Term and Premium Paying Term according to your preferences.
• Instalment Benefits: Instead of receiving the death benefit as a lump sum, you have the option to receive it in instalments. This feature makes it an excellent investment plan for generating regular income even in your absence.
• Special Discounts: Tech Term offers special discounts for non-smokers and women, making it more affordable and accessible for these categories.
• Rider Options: Although the plan does not provide maturity benefits or loan facilities, you have the opportunity to enhance coverage by adding riders to the policy. By paying a little extra amount, you can avail additional benefits and facilities.

With its online purchase process and convenient features, Tech Term stands as one of the convenient investment plans in India for securing your family’s financial future.

7. LIC New Children’s Money Back Plan

LIC New Children’s Money-Back Plan is a participating non-linked money-back plan designed to cater to the financial needs of raising children, including education, marriage, and other requirements. The plan offers survival benefits and provides a life-risk cover for your child. You have the flexibility to pay regular premiums at different intervals, and the policy can be surrendered after three years of full premium payment.

Key Features of LIC New Children’s Money Back Plan:

• No maximum limit on the Sum Assured amount.
• A loan facility is available after three consecutive years of full premium payment.
• Money-back payments are made at fixed intervals as survival benefits.

LIC New Children’s Money-Back Plan is an investment plan for children in India, as it caters to their specific needs. With its survival benefits, flexible premium payment options, and the availability of death benefits, the plan provides comprehensive financial security. 

8. LIC Jeevan Lakshya

LIC Jeevan Lakshya is a traditional investment plan offered by LIC that combines insurance and investment benefits, along with an annual income benefit for the insured’s family in case of an unforeseen event. 

Key Features of LIC Jeevan Lakshya:

• Annual death benefit: 10% of the basic sum assured is paid from the policy anniversary coinciding with the date of death until the policy anniversary prior to the maturity date.
• Participation in profits: All in-force policies continue to participate in the company’s profits until the maturity date, even after the insured’s death.
• Maturity Benefit: If the insured survives the policy term, the plan provides a maturity benefit consisting of the basic sum assured, vested simple reversionary bonuses, and final additional bonuses (if any).
• Optional Additional Benefits: The plan offers optional additional benefits, including LIC’s accidental death and disability benefit rider and LIC’s new term assurance rider, to enhance coverage and protection.
• Loan Facility: Policyholders have the option to avail a loan facility against the plan, which can be useful for meeting liquidity needs.

LIC Jeevan Lakshya is designed to provide financial security and income benefits to the insured’s family, ensuring their well-being even in the face of unforeseen circumstances. The plan also offers additional riders and a loan facility, providing flexibility and added financial support.

9. LIC Jeevan Amar

LIC Jeevan Amar was introduced in August 2019 by the Life Insurance Corporation of India. It is a pure-term plan that focuses on providing financial assistance to the insured’s family in the event of their unfortunate demise. While it does not offer any returns or maturity benefits, it aims to ensure stability and security for the policyholder’s loved ones. This non-participating and non-linked life insurance term plan distinguishes itself from other insurance companies by offering various options to customers.

Key Features of LIC Jeevan Amar:

• Non-Market Linked: The plan is not dependent on market fluctuations.
• Flexible Sum Assured: Policyholders have the option to increase the Sum Assured and can choose between Level Sum Assured and Increasing Sum Assured options.
• No Maturity Amount: The plan does not provide any maturity benefits as it focuses solely on providing a death benefit.
• Premium Classification: Premium rates are categorised into two types – Smoker and Non-Smoker.
• Death Benefit Options: The death claim amount can be paid as a fixed lump sum or in instalments over a period of 5, 10, or 15 years.
• Customisable Policy: Policyholders can select the premium paying term and policy term that suit their needs.
• Premium Payment Options: Premiums can be paid regularly, in a lump sum, or through limited payments.
• Medical Cotinine Test: Non-smokers are required to undergo a mandatory Medical Cotinine Test for Urine.

LIC Jeevan Amar aims to provide comprehensive coverage and flexible options to policyholders, ensuring financial protection for their loved ones during difficult times.

10. LIC New Endowment Plan

LIC New Endowment Plan is a comprehensive insurance and savings solution that combines protection and savings. As a non-linked participating plan, it offers a range of benefits and features.

Key Features of LIC New Endowment Plan:

• Death Benefit: In the event of the policyholder’s death during the policy term, the plan provides a death benefit to the nominee.
• Maturity Benefit: If the policyholder survives the entire policy term, a maturity benefit is paid out at the end. The maturity benefit includes the basic sum assured, vested simple reversionary bonuses, and final bonuses (if applicable).
• Optional Rider: The plan offers an additional optional rider known as LIC’s Accidental Death and Disability Benefit Rider, providing enhanced coverage in case of accidental death or disability.
• Loan Facility: Policyholders have the option to avail a loan facility, which helps meet liquidity needs by leveraging the policy’s accumulated value.

LIC’s New Endowment Plan is a participating non-linked endowment plan that allows prospective buyers to choose the sum assured and premium payment mode according to their preferences. It ensures financial protection throughout the policy term and includes loyalty additions. The sum assured on death is determined based on the premiums paid, and the maturity benefits depend on the policyholder’s age at the time of entry.

Conclusion

It is crucial to recognise the importance of keeping insurance and investment needs separate. Mixing the two by opting for insurance cum investment plans may not always be the most prudent decision. Instead, it is advisable to consider a comprehensive insurance policy that provides full coverage for your needs and separate investments that align with your financial goals.

By opting for a full coverage insurance plan, you ensure that your loved ones are financially protected in the event of unforeseen circumstances. This type of insurance policy focuses solely on providing adequate coverage and does not include investment components.

For your investment needs, it is recommended to explore other avenues such as mutual fund SIPs (Systematic Investment Plans) or other investment vehicles that suit your financial goals and risk tolerance. Investing in dedicated assets allows you to tailor your investments to match your specific objectives and take advantage of potential market growth.

By keeping insurance and investment separate, you can optimise your financial strategy. This approach enables you to prioritise the security of your loved ones through comprehensive insurance coverage while also pursuing your long-term financial goals through targeted investments. Consulting with a financial advisor can provide valuable guidance in selecting the right insurance policy. They can also help design an investment portfolio that aligns with your unique circumstances and aspirations.

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