What are the Benefits of LIC 25 Lakh Policy?

With these plans, you can effectively plan for your future financial needs and side by side ensure that your family’s financial needs will be looked after if something happens to you.

What is the LIC 25 Lakh Policy?

LIC Policy of 25 Lakhs is a plan that offers a sum assured of ₹25 lakhs as either death benefit or maturity benefit. There are plans that offer combined benefits of savings and life coverage and also term insurance plans that offer death benefits to the beneficiary and help them to secure their future financially. Along with this, the term plan 25 Lakh policy by LIC also offers other benefits such as Tax benefits, loan facilities, a free-look period, and many more.

Which are the Best LIC Policies offering 25 Lakhs?

Below mentioned are some of the best LIC life insurance Plans that offer coverage of Rs.25 Lakhs. Have a look:

What are the Benefits of LIC 25 Lakh Policy?

• Death Benefits
  This LIC policy offers death benefits to the nominee if the policyholder dies during the policy tenure. The amount received can be used by the family to overcome the financial struggles that may arise after the death of the policyholder.

• Maturity Benefits
  Another benefit that one can enjoy is the Maturity benefit which is given if the policyholder survives till the end of the policy term. The plan gives the maturity benefit of Rs. 25 Lakhs and more to the policyholder and helps them to achieve their future goals.

• Tax Benefits
  The premiums paid against the LIC plans are eligible for tax deductions. One can claim tax benefits up to Rs 1.5 lakh on the premium paid for self, spouse, and children.

• Loan facility
  Emergencies come unannounced. To meet any such financial emergency, LIC offers a loan against your 25 Lakh policy, provided, you have paid the due premiums for at least 2 years.

• Free-look period
  In case you are not satisfied with your policy’s terms and conditions, you can cancel your policy within 15 days of its inception. These 15 days are known as the free-look period.

Why Do You Need a 25 Lakh LIC Policy?

Having Life Insurance coverage is a must nowadays, especially if you are the sole earning member of the family. This 25 Lakh Policy by LIC is a must-have if:

• You have outstanding loans
  After your death, your family will not only struggle emotionally but also financially. And if you have any outstanding loans, the burden of EMI will take a toll on your family’s happiness. Thus, it is very important to have a policy with a Sum Assured of Rs. 25 Lakhs to ensure that your family will be able to pay the loans, and can be financially free.

• You have several responsibilities
  Responsibilities like your children’s education, their marriage, or settling them in the future is a huge responsibility. With the LIC 25 Lakh Policy, you can ensure to fulfill all your children’s dreams.

• You have no source of income after retirement
  After your retirement, surviving can be very difficult if you do not have a perfect retirement plan. With the help of the LIC 25 Lakh policy, you can ensure that you and your spouse can live peacefully after your retirement.

What are the Advantages of Buying Insurance from LIC India?

Purchasing life insurance from LIC India offers several benefits as it is a government organisation and also one of the largest insurers in India.

• Government-Backed Security

The Government guarantees payment to LIC policyholders which is an added layer of financial security provided in the LIC India policies as per Section 37 of the LIC Act.

• History

LIC has a long history and has been one of the most trusted and reliable life insurers in India.

• Tax Benefits

Tax deductions will be available for premiums paid, subject to the provisions of Income Tax under Section 80C with conditions, and tax exemption may be available on maturity benefits and death benefits, subject to the provisions of Income Tax under Section 10(10D) with conditions.

• Guaranteed Benefits and Bonuses

Traditional LIC plans often include guaranteed benefits and bonuses (where available), allowing policyholders to achieve insurance coverage and long-term savings all in one.

• Multiple types of policies

LIC provides a variety of insurance policies including term, endowment, whole life, money-back, health and more.

• Loan Facility

Traditional policies may offer a loan facility to policyholders to access funds during financial emergencies. The loan facility is subject to specific policy's terms and conditions.

• Convenient Premium Payments

Multiple premium payment facilities like online, offline and various premium payment frequencies are offered by LIC, making premium payments more convenient.

Check out LIC Policy List 2026

How To Buy LIC 25 Lakhs Plan from PolicyBazaar?

Step 1: Visit LIC of India

Step 2: Fill in the form with your name and contact number

Step 3: Next, fill in your age and current city

Step 4: Once done, on the next page you can check the plans available and customize the amount and time period for your investments

Step 5: Choose the plan, and pay your premiums online.

LIC 25 Lakh Policy Premium Calculator

LIC India offers a very useful digital tool that calculates the amount of premium you will need to pay for your LIC 25 lakh policy as per your chosen mode and term of premium payment. The tool is called LIC Premium Calculator. The LIC Calculator tool is available online and free of cost on the LIC of India website.

To use the LIC term plan premium calculator online, open the calculator from the LIC website. First enter your personal details and then you will have to select the policy you have decided to buy. Now you will have to enter policy specific details like the basic sum assured which is ₹25 lakhs in your case, then policy term, your mode and frequency of premium payment and any other policy specific details mentioned. Once you have submitted all the information, the calculator will give you a detailed illustration of the 25 lakh term plan premium you will be paying for that particular LIC policy.

Similarly, you can use the LIC Maturity Calculator if you want to calculate the LIC Maturity Amount in case your LIC policy is an endowment or a market-linked plan or a plan with additional bonuses other than the basic sum assured.

Just like this policy, you can also calculate the premium amount and maturity benefits for a ₹20 lakh using the LIC 20 Lakh Calculator. This way you can compare premium and maturity for different coverage amounts and choose the one that fits your needs.

Summing It Up

Securing your family’s future needs with the LIC 25 Lakh policy is the best gift you can give to your loved ones. With the joint benefit of life insurance and investment, LIC policy of 25 Lakh is an ideal plan to invest your money in. Not only do these plans offer coverage to your family after your death, but also offer several other benefits.

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