Is LIC Policy a Good Investment?

Life Insurance Corporation of India has offered policyholders financial security for several decades. Being one of India's largest life insurance companies and a state-owned organisation, LIC provides a financially secure future to your loved ones and has proven to be a reliable investment option.

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We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

Benefits of Choosing LIC

LIC offers a comprehensive range of life insurance plans to suit every individual's insurance needs. Other reasons to choose LIC as a life insurance company are:

  • Financial Security and Protection:

    The primary purpose of life insurance is to provide financial protection to your loved ones in case of your untimely demise. LIC policies offer a lump sum payout or a combination of sum assured and bonuses to beneficiaries, ensuring they are financially secure.

  • Government Backing:

    LIC is a state-owned entity that adds credibility and stability to the company, reassuring investors about the reliability of their investments.

  • High Claim Settlement Ratio:

    The LIC’s claim settlement ratio for the financial year 2022-23 is 98.5%, showing that it settles its claims faster and without hassles. This number indicates the insurer's reliability in settling death and other claims. With LIC, you can rest assured that your family will receive the benefits they are entitled to on your death. 

  • Tax Benefits:

    LIC policies offer attractive tax benefits under various sections of the Income Tax Act. Premiums paid towards life insurance policies are eligible for deduction under Section 80C, subject to certain limits. Additionally, the maturity proceeds from life insurance policies are generally tax-free under Section 10(10D). 

  • Comprehensive Product Range:

    LIC offers diverse insurance and investment products to cater to different financial goals. Whether you are looking for pure life insurance coverage, a combination of insurance and savings, or market-linked investment opportunities, LIC has products that align with your needs and risk tolerance.

Why Should You Buy an LIC Policy?

For several reasons, investing in a Life Insurance Corporation of India (LIC) policy is an important financial decision. 

  • Firstly, LIC offers a robust combination of life coverage and wealth creation. The policies, backed by decades of consistent performance, offer security and reliability, which are crucial for individuals seeking financial stability. 

  • LIC policies come with guaranteed returns, making them an attractive option for low-risk investors who appreciate the assurance of a minimum return on their investment.

  • Additionally, the tax benefits associated with LIC policies enhance their appeal. Premiums paid towards life insurance policies are eligible for deductions under Section 80C, offering a tax-efficient avenue for wealth accumulation. The tax-free nature of maturity proceeds under Section 10(10D) further adds to the overall attractiveness of LIC policies from a tax perspective.

  • LIC's diverse product portfolio caters to a wide range of financial goals, ensuring individuals can find policies tailored to their needs and risk preferences. LIC has a solution, whether focused on long-term wealth creation, market-linked opportunities through Unit Linked Insurance Plans (ULIPs), or simply securing life coverage.

Buying a LIC policy offers a comprehensive and reliable approach to financial planning, combining life coverage, guaranteed returns, tax efficiency, and a diverse range of investment options.

LIC vs Other Insurers

Parameters LIC Other Insurers
Legacy and Credibility Oldest and most trusted; Government-backed Private sector
Product Diversity Diverse range catering to various needs Comprehensive product portfolio
Guaranteed Returns Many traditional plans offer guaranteed returns Offers some plans with guaranteed returns
Market-Linked Plans ULIPs available for market-linked opportunities Offers ULIPs with equity and debt options
Tax Benefits Premiums are eligible for tax deductions under Section 80C; Tax-free maturity proceeds. Tax benefits under Section 80C: Tax-free maturity proceeds

The Final Word!

LIC stands out as a good investment option for various reasons, including its robust historical performance, diverse product offerings, and unique advantages. LIC policies allow the policyholder to seek long-term wealth creation and financial stability. With its commitment to delivering value and stability, LIC continues to be a beacon of trust for investors, allowing them to grow their money and safeguard the future of their loved ones.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-
++Returns are 10 years returns of Nifty 100 Index benchmark

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