10 Best LIC Plans to Invest in 2023

Top 10 LIC Plans to Invest in 2023

While the uncertainty of life has its charms, it also throws some of the worst financial problems at us. Life insurance helps us bear these circumstances and offset some of the economic risks that come with them. 

LIC has been at the forefront of designing such policies that help cover our financial troubles and potentially secure our long-term goals in life. Even after 64 years, LIC plans continue to remain relevant to the current needs of society at large. 

The state-owned entity has introduced and constantly update new and existing policies to offer its large customer base with a range of insurance products such as Whole Life and Term Insurance plans, ULIPs, Money-back plans, Pension plans, among others. 

The 10 of the best LIC Plans that you should consider investing in are detailed below. 

Best LIC Plan in India in 2023*

** The Maximum Entry Age and Maximum Maturity Maturity Age vary per the Policy Term chosen

* Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

To help you make the most informed decision, we have described the key features of the above-mentioned plans. 

1. LIC New Jeevan Anand

   LIC New Jeevan Anand is a type of endowment plan designed to offer dual benefits of protection and savings. While it assures financial protection of your family in the event of your death, it also pays off a lump sum amount to you if you survive the policy term. 

   Key Features 

   The policy offers the following key features:

   • It provides a death benefit in case of policyholder’s demise during the policy tenure.

   • The policy also provides survival benefit if the policyholder survives the policy term or death occurs after the policy matures. However, to be eligible to receive this benefit, you have to ensure that all the due premiums have been paid. 

   • It also offers an additional bonus in the form of a Simple Reversionary Bonus and Final (Additional) Bonus in addition to the basic sum assured, subject to a certain minimum term. 

   • A policyholder can also enhance the protection cover by adding suitable riders such as Accidental Death and Disability Benefit Rider. Further, riders against Critical Illnesses can also be availed of under this policy. 

2. LIC Tech Term

   It is an online pure risk term insurance cover. The plan offers extensive coverage against the policyholder’s death to her/his family. The benefits can be used by the family to secure short-term and long-term goals and maintain a healthy standard of living. 

   Key Features

   The key features of this policy are:

   • The policy provides a death benefit and enables a policyholder to select from two death benefit options, that are Increasing Sum Assured and Level Sum Assured. Policyholders also have the option to receive the sum assured on death as regular installments instead of a lump sum payout.

   • The plan offers flexibility in the mode of premium payment, viz. Single, Limited, and Regular payments. The premiums can be made online which makes this plan an ideal option for the digitally forward population. 

   • The policyholder can choose LIC's Accident Benefit Rider to receive an additional payout with the death benefit. 

3. LIC New Endowment Plus

   This is a unit-linked endowment plan that offers combined benefits of investment and insurance. It offers buyers to invest in multiple fund options as a measure to maximize their savings. 

   Key Features 

   The key features of this plan are:

   • The policy offers flexibility in premium payments. A policyholder can choose premium payment terms like annual, half-yearly, quarterly, and monthly.

   • It also provides a death benefit. If death occurs before risk commencement, an amount equal to the fund value is paid to the nominees. However, if death occurs after the risk commences, an amount equal to the basic sum assured or the fund value (whichever is higher) is paid. 

   • The feature of optional benefit/ riders is also offered. A policyholder can opt for Accidental Death Benefit Rider to ensure extra protection if death occurs as a result of an accident. 

4. LIC Jeevan Shiromani

   LIC’s Jeevan Shiromani plan is a life insurance savings option specifically designed for individuals with a high net worth. The minimum sum assured under this plan is Rs. 1 Crore. Individuals can enjoy accrued guaranteed additions (up to Rs.55 per thousand basic Sum Assured). Further, loyalty additions subject to company profits can also be availed by the policyholders. 

   Key Features

   The key features of this plan are:

   • Under death benefit sum assured on death is payable as 125% of the basic sum assured or 7 times the annualized premium, whichever is higher. 

   • The policy provides survival benefit as a fixed percentage, ranging from 30% to 45% of the basic sum assured depending on the policy term. 

   • The policy also offers sum assured on maturity ranges from 10% to 40% of the basic sum assured. Further, applicable loyalty additions and accrued bonuses are paid along with the maturity benefit.

   • The plan also comes with the following rider benefits to get enhanced protection:

   • Accidental Death and Disability Benefit Rider

   • Accident Benefit Rider

   • New Term Assurance Rider

   • New Critical Illness Benefit Rider

5. LIC Jeevan Amar

   The LIC Jeevan Amar plan is a non-linked, pure protection plan. This term insurance plan comes out with reasonable premium rates, which makes it an economical choice for those on a budget. The death benefit payable under this plan can serve as a strong financial measure for the policyholder’s family in the event of her/his death.

   Key Features

   The key features of this plan are:

   • The death benefit can be paid out as 

   • Level Sum Assured, wherein the sum assured remains constant throughout the policy term

   • Increasing Sum Assured, wherein the sum assured increases at a fixed percentage of the basic sum assured. 

   • Flexible premium payment term as a single lump sum amount or as periodic payments under Regular and Limited payment modes. 

   • Offers rebates with a single premium payment. The rebates differ according to the age of the policyholder, the sum assured, and the death benefit option. Please note that the minimum sum assured has to be Rs.50 Lakhs to be eligible for this rebate.   

6. LIC New Jeevan Shanti

   The plan has been sought after at large owing to its many benefits. It is a pension plan designed to offer you a financially stable future post-retirement. It is a single premium, deferred annuity plan.

   Key Features

   The key features of this plan are:

   • The policy also offers an annuity payout during the deferment period. 

   • The death benefit is defined as higher of:

   • The combined amount of purchase price and accrued benefits minus the total annuity payable till death

   • 105% of the purchase price

   • Policy loans can be availed after three months of policy issuance. 

7. LIC New Children’s Money-back Plan

   The plan offers some attractive payouts depending on the various important stages of a child’s growth. The money-back plan helps secure every milestone of your child’s life, be it education, marriage, etc. LIC New Children’s Money-back plan comes with an insurance cover for the child in addition to survival benefits.

   Key Features

   The key features of this plan are:

   • The policy offers a death benefit. If death occurs before the commencement of risk, the total premium paid is paid to the nominees. However, if death occurs after the risk commences, the sum assured on death is payable by the insurer. 

   • The policy also offers a survival benefit that is 20% of the basic sum assured at policy inception. It is payable on reaching the ages of 18 years, 20 years and 22 years by the life assured. 

   • Sum assured on maturity, defined as 40% of the basic sum assured, is payable to the life assured along with applicable Simple Reversionary Bonus and Final Additional Bonus. 

   • LIC’s Premium Waiver Benefit Rider can be availed if the Life Assured is a minor.

   • The plan offers the option to receive the death benefit in periodic installments over 5, 10, or 15 years. 

8. LIC Jeevan Umang

   It is a whole-life insurance plan that guarantees an income source for your family in case of your unfortunate demise during the policy term. The benefits offered by this plan are manifold, inclusive of the death benefit, maturity benefit, and annual survival benefit.

   Key Features 

   The key features of this plan are:

   • The policy provides a death benefit if the Life Assured under this plan dies during the policy term.  

   • If the Life Assured survives the maturity period, (s)he is eligible to receive maturity benefit which is equal to the basic sum assured. Further, applicable any Final Additional bonus and vested Simple Reversionary Bonus is payable by LIC along with the sum assured. 

   • In case the policyholder survives the policy term, (s)he can avail of survival benefit which is equal to 8% of the basic sum assured. 

   • Policyholders can also avail of a loan during the policy term, subject to the policy acquiring a surrender value. 

9. LIC SIIP

   LIC SIIP is a unit-linked life insurance plan. The benefits of this ULIP are two-fold, viz. investment and insurance cover. It can be bought online or through an intermediary at your convenience. Further, you have the option of investing your premiums in any of the 4 fund options available.

   Key Features

   The key features of this plan are:

   • The flexibility of premium payment. The premiums payable can be made at yearly, half-yearly, quarterly, or monthly intervals. 

   • The policy also offers a death benefit. An amount equal to the fund value is payable as a death benefit if death occurs before the commencement of risk. 

   • If the policyholder survives maturity and all the due premiums have been paid by the policyholder, an amount equal to the fund value is payable by the Insurer.

   • Policyholders can enjoy guaranteed additions to their fund value on the completion of certain policy years. 

10. LIC Jeevan Akshay VII

    It is an individual, immediate annuity life insurance plan. This pension plan comes with 10 different annuity options to choose from on paying a lump sum amount. LIC Jeevan Akshay VII pays annuities throughout the lifetime of the Life Assured.

    Key Features

    The key features of this plan are:

    • The annuity payments are made by the insurer in arrears till the time the policyholder is alive. On the death of the annuitant, annuity payouts are made as per the type of annuity chosen at policy inception. 

    • Policyholders opting for Option F and Option J are eligible to avail of the loan under this policy. This option can be availed only after the completion of 3 months from the date of policy issuance.

    • The plan comes with incentives for purchase prices above Rs.5 Lakhs, subject to an increase in the annuity rate. The incentives also vary based on the mode of the annuity.

Summing It Up

While the options discussed above are vast in terms of their scope and features, each plan serves to fulfill the inherent need for financial security. Be it to secure your child's education, your family's life, post-retirement planning, or maximizing savings, LIC plans are designed to be comprehensive and are some of the most rewarding in the Life Insurance space today.* So go ahead and pick your best life insurance plan from LIC and make way for a secure and stable future.