List of LIC Tax Saving Plans In 2023

Life Insurance Corporation of India offers an extensive range of policies keeping in mind the different needs and requirements of people. One prominent requirement in India when it comes to investing in a policy is tax saving. LIC offers several tax-saving plans to select from.

In this article, you will get to know about some of the best LIC tax-saving plans to invest in 2023. To buy a policy, a buyer needs to compare different policies and choose the one that suits his requirement. Here are some elaborated LIC tax saving plans for you to make an informed decision.

LIC JeevanUmang

LIC Jeevan Umang is a participating, non-linked, with profit whole life assurance plan which offers a combination of income and protection to your family. The plan provides annual survival benefits after the completion of premium payment tenure. Also, a lump-sum payment is made at the time of maturity or the demise of the policyholder during the policy term.

In addition, LIC Jeevan Umang also takes care of liquidity needs through loan facilities.

Jeevan Umang Benefits

1. Death Benefit

   On the demise of the policyholder during the policy term, all premiums shall be paid as under

   1. On Death Before Commencement of Risk

      The entire premium amount paid till date is payable to the beneficiary of the policy without any applicable interest as (Return of Premium)

   2. On Death After the Commencement of Risk

      Death benefit as the sum assured amount along with vested simple reversionary bonus and final additional bonus if any is paid to the beneficiary of the policy.

      The sum assured amount paid as the death benefit is higher or basic sum assured amount or 7 times of the annualized premium.

      The death benefit should not be less than 105% of the total premium paid till the date of death.

2. Tax benefit

   Statutory taxes, if any, are imposed by the Government of India or any other constitutional Tax Authority of India as per Tax Laws. The rate of Tax varies from time to time. The amount of tax paid shall not be considered for the calculation of benefits payable under the LIC JeevanUmang Plan.

3. Survival Benefit

   If the life assured survives after the end of the premium paying term, provided all premiums are duly paid, Survival benefit equal to 8% of Basic Sum Assured shall be payable each year. The first survival benefit is paid at the end of the premium paying term and thereafter on completion of each year till the policyholder survives or the plan anniversary before the date of maturity, whichever is earlier.

4. Maturity Benefit

   On survival of the life assured through the entire policy tenure, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

   Sum Assured on Maturity is equal to Basic Sum Assured.

5. Loan Benefit

   The loan facility can be availed under the LIC Jeevan Umang plan. The policyholder can take a loan up to 90% of the surrender value after the completion of 3 years of the policy, provided the premium of the policy is thoroughly paid. For eligibility, the plan should acquire a surrender value.

6. Riders Benefit

   These are the following 5 options available under Riders Benefits. However, the policyholder can opt between Accidental Death and Disability Benefit Rider or Accident Benefit Rider options. So, 4 out of 5 can be availed under the policy.

   • LIC'sAccidentalDeathandDisabilityBenefitRider
   • LIC's Accident Benefit Rider
   • LIC’s New Term Assurance Rider
   • LIC’s New Critical Illness Rider
   • LIC’s Premium Waiver Benefit

Eligibility Conditions And Other Restrictions

Sample Illustrative Premium

Rebates

LIC Jeevan Labh

Offering a combined benefit of protection and savings features, LIC Jeevan Labh is a limited premium paying, individual, participating, non-linked, life assurance saving plan. The combination of protection and savings provides financial support to the family of the policyholder in case of their unfortunate demise during the policy period and a lump sum amount at the time of maturity if the policyholder survives. LIC’s Jeevan Labh also takes care of liquidity needs through its loan facility.

Jeevan Labh LIC Policy Benefits

The following are the benefits offered by LIC Jeevan Labh Plan. 

1. Death Benefit

   The death benefit is the amount payable by the insurer to the policyholder in case of their unfortunate demise during the policy tenure, provided the policy is in force. The death benefit payable to the nominee of the policy is:

   Sum Assured on Death along with vested Simple Reversionary Bonuses and Final Additional bonus if any.

   The sum assured on death is defined as:

   • Higher of 7 times the annualized premium or
   • Basic sum assured amount

   The death benefit paid to the nominee of the policy should not be less than 105% of the total premium paid. 

2. Tax benefit

   Statutory taxes, if any, are imposed by the Government of India or any other constitutional Tax Authority of India as per Tax Laws. The rate of Tax varies from time to time.

3. Maturity Benefit

   On the survival of the policyholder through the entire policy tenure, provided all the premiums of the policy are dully paid and the policy is in force, maturity benefit offered is:

   Sum Assured on Maturity along with Vested Simple Reversionary Bonus and Final Additional Bonus if any.

   The Sum Assured on Maturity is equal to the Basic Sum Assured amount of the policy.

4. Participation in Profits

   The policy participates in the profits of the corporation and is entitled to receive a Simple Reversionary Bonus declared as per the experience of the corporation, provided the policy is in force.

   The Final Additional Bonus is also declared under the policy in the year the claim is made either as death or maturity.

Benefit Illustration

Eligibility Conditions And Other Restrictions

Options Available

Some options available under LIC Jeevan Labh 936 are as follows

1. Rider Benefits

   • LIC's Accidental Death and Disability Benefit Rider
   • LIC's Accident Benefit Rider
   • LIC's New Term Assurance Rider
   • LIC's New Critical Illness Benefit Rider
   • LIC's PremiumWaiver Benefit Rider

2. Option To Take Death Benefit In Installment

   This option is to receive the death benefit in installments of 5, 10, or 15 years rather than a lump-sum amount under an in force as well as paid-up policy.

   Have a look at the illustration for a better understanding

   Mode of Installment payment	Minimum installment amount
   Monthly	Rs. 5,000/-
   Quarterly	Rs. 15,000/-
   Half-Yearly	Rs. 25,000/-
   Yearly	Rs. 50,000/-

Sample Illustrative

Rebates

LIC New Jeevan Anand

LIC’s New Jeevan Anand Plan is a Non-linked, Participating, Individual, Life Assurance plan which offers an attractive combination of protection and savings. This combination offers financial protection against the unfortunate demise throughout the lifetime of the policyholder. Through its loan facility, this plan also takes care of liquidity needs.

Jeevan Anand LIC Policy Benefits

1. Death Benefit

   In case of the demise of the insured person, the beneficiary of policy LIC JeevanAnand is payable of total Sum Assured amount along with the Simple Reversionary Bonus and Final Additional Bonus, if any, shall be payable.

   Sum Assured on Death + Accrued Bonuses

   • Sum Assured on Death is defined as higher of:
   • 125% of the Basic Sum Assured as per policy terms,
   • 7 X (Annualized premium)
   • Subject to a minimum of 105% of the total premiums payable as on date of death
   • On the insured’s death, the Basic Sum Assured is paid as the death benefit to the nominee and the plan terminates.

2. Tax benefit

   Statutory taxes, if any, are imposed by the Government of India or any other constitutional Tax Authority of India as per Tax Laws. The rate of Tax varies from time to time.

3. Maturity Benefit

   In case the life insured survives the entire tenure of the policy then a Basic Sum Assured amount along with the Accrued Bonus or Simple Reversionary Bonus and Final Additional Bonus, is paid to the insured as maturity benefit after the completion of the whole policy year. Here Sum Assured on Maturity is equal to Basic Sum Assured.

4. Participation in profits

   This LIC policy for 15 years shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during the policy in force.

Benefit Illustration

Eligibility Conditions and Other Restriction

Options Available

Some options available under LIC New Jeevan Anand are:

1. Riders Benefit

   • LIC’s Accidental Death and Disability Benefit Rider
   • LIC’s Accident Benefit Rider
   • LIC’s New Term Assurance Rider
   • LIC’s New Critical Illness Benefit Rider

2. Option to take death benefit in installments

   This option is to receive the death benefit in installments of 5, 10, or 15 years rather than a lump-sum amount under an in force as well as paid-up policy.

   Have a look at the illustration for a better understanding

   Mode of Installment payment	Minimum installment amount
   Monthly	5,000/
   Quarterly	15,000/
   Half-Yearly	25,000/
   Yearly	50,000/

Sample Illustrative Premium

The sample illustrative annual premiums in rupees for Basic Sum Assured of 1 Lakh for Standard lives are as under:

Rebates

LIC JeevanLakshya

LIC’s JeevanLakshya is a non-linked, traditional, participating, individual, life assurance plan which offers a combination of savings and protection. It offers Annual Income benefits, primarily for the benefit of children, in case of the unfortunate demise of the policyholder during the policy term. A lump sum amount is also paid if the policyholder survives the policy tenure. LIC JeevanLakshya also takes care of liquidity needs through its loan facility.

Benefits of LIC JeevanLakshya Plan

1. Death Benefit

   The death benefit is the amount payable by the insurer to the policyholder in case of their unfortunate demise during the policy tenure, provided the policy is in force. The death benefit payable to the nominee of the policy is:

   Sum Assured on Death along with vested Simple Reversionary Bonuses and Final Additional bonus if any.

   The sum assured on death is defined as:

   • Higher of 7 times the annualized premium or
   • Basic sum assured amount

   The death benefit paid to the nominee of the policy should not be less than 105% of the total premium paid. 

2. Tax benefit

   Statutory taxes, if any, are imposed by the Government of India or any other constitutional Tax Authority of India as per Tax Laws. The rate of Tax varies from time to time.

3. Maturity Benefit

   On the survival of the policyholder through the entire policy tenure, provided all the premiums of the policy are dully paid and the policy is in force, maturity benefit offered is:

   Sum Assured on Maturity along with Vested Simple Reversionary Bonus and Final Additional Bonus if any.

   The Sum Assured on Maturity is equal to the Basic Sum Assured amount of the policy.

4. Participation in Profits

   The policy participates in the profits of the corporation and is entitled to receive a Simple Reversionary Bonus declared as per the experience of the corporation, provided the policy is in force.

   The Final Additional Bonus is also declared under the policy in the year the claim is made either as death or maturity.

Benefit Illustration

Eligibility Conditions and Other Restrictions

Rebates

Child Plans

Be it JeevanTarun, New Children’s Money Back, Child Career, JeevanLakshya, or any other Child Plan, each child policy of LIC comes under the best LIC tax saving plans. The main purpose of Child plans is to provide future corpus to your child as well as offer great benefits to you so that you can invest your money smartly and responsibly.

Types of Child Insurance Plans

Broadly there are 3 types of Child insurance plans available in India

• Child ULIP
• Unit Linked Insurance Plans
• Traditional Endowment Plans
• Single-Premium Child Plan
• Regular Premium Child Plan

Key features of Child Insurance Plan

A Child insurance plan comes with many useful features to ensure a rewarding return and protection for your child. Here are some key features of the best Child Insurance plans in India:

• Capital guarantee
• Waiver of premium
• Partial payments
• Sum assured
• Tax benefits
• Immediate financial protection
• Loan benefits

Additional riders

Certain riders are available, which give you more than just a simple life insurance policy. These riders are available in three sub-categories:

1. Accidental Death and Disability Benefit

   The Accidental Death and Disability Rider Benefit pay the extra sum assured in the event of your unfortunate mishap causing death or disability

2. Premium Waiver Benefit

   This rider may be already added to the best child education plan, so check your policy document in this regard

3. Critical Illness Rider Benefit

   Critical Illness rider benefit offers coverage for a pre-determined set of critical diseases

Benefits of Child Insurance Plan

• Flexible payment of funds
• Secured loans are available
• You can choose from either ULIP or Endowment plan
• Flexible premium payment options
• Funds available on the demise of the insured or after the maturity of the policy

Summing It Up

Most of the LIC Policies offer tax benefits but the above mentioned are some top LIC Tax Saving Plans that you should consider while buying your next policy. The main motive of these policies is to help you save your hard-earned money and instead of paying it as tax, saving it for your future use. So, every person who is an earning member should always go for buying policies to keep their future safe and secure.

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