List of LIC Tax Saving Plans In 2021

Life Insurance Corporation of India (LIC) is a public sector enterprise that has created a mark for itself in the insurance marketplace. Established over 100 years ago, LIC is one of the most prominent insurance companies in India that has an unparalleled trust of the customers throughout the country.

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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 2021. 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

Minimum Basic Sum Assured 

Rs. 2,00,000

MaximumBasic Sum Assured
(The Basic Sum Assured shall be in multiples of Rs. 25,000/-)

 No limit

Premium Paying Term 

 15, 20, 25 and 30 years

Policy Term 

 (100 - age at entry) years

Minimum Age at entry 

 90 days (completed)

Maximum Age at entry 

 55 years(nearer birthday)

Minimum Age at the end of premium paying term 

 30 years(nearer birthday)

Maximum Age at the end of premium paying term 

 70 years(nearer birthday)

Age at maturity 

 100 years(nearer birthday)

Sample Illustrative Premium

Age/ Policy Term

Premium Paying Term
Amount

 

15

20

25

30

20

15,739 /-

10, 692/-

7,830/-

6,105/-

30

15,739/-

10,692 /-

7,879/-

6,282/-

40

15,739/-

10,741/-

8,291/-

6880/-

50

15,739/-

11,544 /-

-

-

Rebates

Mode Rebate

Annual Mode

 2% of tabular premium

Half-yearly mode

 1% of tabular premium

Quarterly, monthly mode

 Nil

High Basic Sum Assured Rebate

Basic Sum Assured (B.S.A) 

 Rebate on Tabular Premium

Rs. 2,00,000 to Rs. 4,75,000

 Nil

Rs.5,00,000 to Rs.9,75,000

 1.25% of BSA

Rs.10,00,000 to Rs.24,75,000

 1.75% of BSA

Rs. 25,00,000 and above

 2.00% of BSA

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

Age of Life Assured (nearer birthday)

30 Years

Policy Term (years)

25 Years

Premium Payment Term

16 Years

Premium Payment Mode

Yearly

Basic Sum Assured (Rs)

2,00,000

Premium (excluding Taxes) (Rs)

9,134

Eligibility Conditions And Other Restrictions

Minimum Basic Sum Assured

Rs. 2,00,000

Maximum Basic Sum Assured

 No Limit

(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)

Policy Term/Premium Paying Term

 (16/10), (21/15) & (25/16) years

Minimum Age at entry

 [8] years (completed)

Maximum Age at entry

[59] years (nearest birthday) for Policy Term
16 years
[54] years (nearest birthday) for Policy Term
21 years
[50] years (nearest birthday) for Policy Term
25 years

MaximumMaturity Age

 [75] years (nearest birthday)

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

Age

Policy Term/ Premium Paying Term (In Years)

16(10)

21(15)

25(16)

20

16,699 /-

10, 682/-

9,006/-

30

16,758/-

10,770 /-

9,134/-

40

17,013/-

11,133/-

9,584/-

50

17,826/-

12,123 /-

10,741/-

Rebates

Mode Rebate

Yearly mode 

 2% of Tabular Premium

Half-yearly mode

 1% of Tabular premium

Quarterly,Monthly& SSS 

 NIL

High Sum Assured Rebate

Basic Sum Assured (B.S.A)

Rebate (Rs.)

2,00,000 to 4,90,000 

 Nil

5,00,000 to 9,90,000 

 1.25%o B.S.A.

10,00,000 to 14,90,000 

 1.50%o B.S.A.

15,00,000 to and above 

 1.75%o B.S.A.

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

Age of the life assured (Nearer Birthday)

30 Years

Policy Term

35 Years

Premium Payment Mode

Yearly

Basic Sum Assured

1,00,000

Premium (Excluding Taxes)

3,165

Eligibility Conditions and Other Restriction

 Minimum Basic Sum Assured

100000

 Maximum Basic Sum Assured

No Limit

(The Basic Sum Assured shall be in multiples of 5000/-)

 Minimum Age at entry

18 years (completed

 Maximum Age at entry

50 years (nearer birthday

 Maximum Maturity Age

75 years (nearer birthday

 Minimum Policy Term

15 years

 Maximum Policy Term

35 years

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:

Age

Policy Term

15

25

35

20

7,747/-

4,341/-

2,935/-

30

8,080/-

4,581/-

3,165/-

40

8,644/-

5,037/-

3,636/-

50

9,575/-

5,846/-

 

Rebates

Mode Rebate:

Yearly mode

2% of Tabular Premium

Half-yearly mode

1% of Tabular premium

Quarterly, Monthly mode & Salary Deduction

NIL

High Sum Assured Rebate on Permium:

Basic Sum Assured (B.S.A)

Rebate

1, 00,000 to 1, 95,000 

Nil

2, 00,000 to 4, 95,000

1.50%o B.S.A.

5, 00,000 and 9, 95,000

2.50%o B.S.A.

10, 00,000 and above

3.00%o B.S.A

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

Age of Life Assured (nearer birthday)

30 Years

Policy Term (years)

25 Years

Premium Payment Term

22 Years

Premium Payment Mode

Yearly

Basic Sum Assured (Rs)

1,00,000

Premium (excluding Taxes) (Rs)

4,366

Eligibility Conditions and Other Restrictions

Minimum Basic Sum Assured 

100,000

Maximum Basic Sum Assured 

 No Limit

(The Basic Sum Assured shall be in multiples of 10,000/-)

Policy Term

 13 to 25 years

Premium Paying Term 

 (Policy Term – 3) years

Minimum Age at entry 

 18 years (last birthday)

Maximum Age at entry 

 50 years (nearer birthday)

Maximum Maturity Age 

 65 years (nearer birthday)

Rebates

Mode Rebate

Yearly mode 

 2% of Tabular Premium

Half-yearly mode

 1% of Tabular premium

Quarterly and Salary Deduction

 NIL

High Sum Assured Rebate

Basic Sum Assured (B.S.A)

Rebate (Rs.)

1,00,000 to 1,90,000 

 Nil

2,00,000 to 4,90,000 

2% of Basic Sum Assured

5,00,000 and above

3% of Basic Sum Assured

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.

Written By: PolicyBazaar - Updated: 23 August 2021
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