Best LIC Policies for Investment in 2022

When it comes to purchasing a life insurance plan, LIC policies can be a good investment choice given that it is a government-backed entity. Its insurance product range offers comprehensive life cover to individuals along with opportunities to save money and grow wealth through market-linked returns. The company has a strong customer base of more than 250 million and enjoys a large market share in the life insurance business in India. 

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The Life Insurance Corporation of India (LIC) offers an extensive range of insurance products to cater to the various requirements of insurance buyers. As per one's requirement, the customers can choose from pure protection to whole life, endowment, money-back plan, and unit-linked insurance plans. Among the different policies issued by the company, these are some of the best LIC plans to invest in right now.

Best LIC Plans List for 2022

LIC Policies Plan Type Entry Age Maximum Maturity Age Policy Term Sum Assured
LIC SIIP Plan Unit-linked insurance plan 90days(completed)-65 years 85 years 10-25 years 7 to 10 times the annual premium
LIC Bima Jyoti Plan Endowment Plan 90days(completed)-60 years 75 years 15-20 years Min- Rs.1,00,000 Max- No upper limit
LIC Jeevan Labh Traditional savings plan 8 years-59 years 75 years 16, 21, or 25 years Min-Rs.2,00,000 Max- No upper Limit
LIC Jeevan Umang Whole Life Insurance 90days(completed)-55 years 100 years 100 years minus(-) the age at entry Min- Rs. 2,00,000 Max- No upper Limit
LIC Bima Ratna Money Back Policy 90days(completed)-55 years 70 years 15, 20, or 25 years Min-Rs.5,00,000 Maximum- No upper limit
LIC Money Back 25 years Money Back Policy 13 years-45 years 70 years 25 years Min-Rs.1,00,000 Max- No upper limit
LIC New Jeevan Anand Endowment Plan 18 years- 50 years 75 years 15 years-35 years Min- Rs.1,00,000 Max- No upper limit

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply

To choose the best LIC policy, the buyers must compare the plans and go through the LIC policies in detail. Here we have elaborated top LIC plans in detail.

LIC SIIP Plan

With this plan, you get to grow your corpus through market-linked returns as well as enjoy insurance protection. This means that you can secure the financial future of your family if anything were to happen to you. Along with this, investment in the market allows you to maximize your current savings and create a financial cushion for yourself and your family. These are just some of the reasons why LIC SIIP is considered as one of the best LIC plans to invest.

  1. Features of LIC SIIP Plan

    • You can choose from 4 fund options depending on your risk appetite.

    • If one of the funds isn’t performing well, you can switch to a different one at zero cost.

    • You can save on taxes under sections 80C and 10(10D) of the Income Tax Act, 1961.

    • You can withdraw a certain sum from the fund value if you are in urgent need of money.

  2. Death Benefit

    On your death, the beneficiary gets the highest of the following benefits –

    • Unit fund value

    • 105% of the total premium paid

    • Basic sum assured

    The final sum will be reduced by any partial withdrawals made, if any. You can choose to receive the death benefit in lump sum or in installments.

  3. Maturity Benefit

    If you survive the whole policy term, you get the final fund value and a refund of the mortality charges levied on the premium amount.

  4. Eligibility Criteria

    Entry Age Maturity Age Sum Assured Policy Term
    Minimum 90 days(completed) 18 years 7 times the annual premium 10 years
    Maximum 65 years 85 years 10 times the annual premium 25 years
  5. Rider Benefit

    It comes with accidental death benefit rider which offers an additional sum assured to your family if you were to die as a result of an accident.

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LIC Bima Jyoti Plan

This plan offers you an opportunity to save systematically while also being protected under a life insurance policy. You get a guaranteed lump sum payment if you survive the policy term and if not, your family receives financial compensation for their loss.

  1. Features of LIC Bima Jyoti Plan

    • You have the flexibility to choose the sum assured and the policy term.

    • The policy comes with guaranteed additions to the sum assured at the end of each policy year.

    • You have the option to receive the death and maturity benefit in installments instead of a lump sum.

    • Premiums can be paid monthly, quarterly, half-yearly, or yearly, as per your convenience.

  2. Death Benefit

    Your family can claim the sum assured on death along with the guaranteed additions made to the policy until the date of death. Sum assured on death payable if the higher of the following –

    • 125% of Basic Sum Assured, or

    • 7 times of annual premium

  3. Maturity Benefit

    If you survive the whole policy term, you get the basic sum assured along with the guaranteed additions.

  4. Eligibility Criteria

    Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 90 days(completed) 18 years Rs. 1,00,000/- 15 years Policy term minus 5 years
    Maximum 60 years 75 years No limit 20 years
  5. Rider Benefit

    You have the following rider options with LIC Bima Jyoti –

    • 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 Premium Waiver Benefit Rider

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LIC Jeevan Labh

This LIC plan is another product that combines insurance protection with increased future savings for policyholders. It provides financial security to the family of the insured in the event of his/her unfortunate demise. At the end of the tenure, if the insured survives they get the maturity benefit with a simple reversionary bonus and a final additional bonus.

  1. Features of LIC Jeevan Labh

    • Jeevan Labh LIC Plan offers the flexibility to choose from a policy term of 16, 21, or 25 years.

    • It comes with bonuses that are declared by LIC based on its profits in a year.

    • You get to pay premiums for a limited period of time and still enjoy coverage after.

    • It offers discounts on premiums if the sum assured is above Rs. 5 Lakhs.

  2. Death Benefit

    In the event of the demise of the insured during the policy tenure, the death benefit is payable by the insurer to the beneficiary of the policy. The sum assured on death is defined as:

    • 7 times the annualized income; or

    • Basic sum assured

    The absolute amount paid on death will be equal to whichever of the above amount is higher. The death benefit also comes with bonuses.

  3. Maturity Benefit

    If you have paid all the premiums for the life cover, then surviving till the end of the policy term entitles you to the basic sum assured on maturity along with bonuses.

  4. Eligibility Criteria of LIC Jeevan Labh

    Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 8 years N/A Rs. 2,00,000/- 16, 21, or 25 years 10, 15, or 16 years
    Maximum 59 years 75 years No limit
  5. Rider Benefits Offered by LIC Jeevan Labh

    • Accidental Benefit Rider
    • Accidental Death and Disability Benefit Rider
    • Term Assurance Rider
    • Critical Illness Rider
    • Premium Waiver Benefit
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LIC Jeevan Umang

As one of the best LIC plans, LIC Jeeva Umang offers whole-life insurance cover and the combined benefit of income and protection to the family. The plan offers annual survival benefits to the insured from the end of the premium paying term until the maturity of the policy. Moreover, a lump-sum payment as maturity benefit is paid to the insured at the time of maturity of the policy, or a death benefit is paid to the nominee of the policy in case of demise of the insured during the policy term. Let's take a look at the features and benefits offered by the policy.

  1. Features of LIC Jeevan Umang

    • The plan offers the option to receive a death benefit in installments.

    • Different rider options can be availed to increase the coverage of the policy.

    • The plan offers the option to pay the premium of the policy through regular premium payment or by salary deductions during the PPT of the policy.

    • Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.

    • Offers the benefit of rebates on premiums for a higher sum assured amount.

  2. Death Benefit

    In case of the demise of the life insured during the tenure of the policy, the death benefit is paid to the beneficiary of the policy.

    On death before the commencement of risk

    In the case of the demise of the insured before the commencement of risk, the return of premium is paid without interest is paid to the beneficiary of the policy.

    On death after the commencement of risk

    In the case of the demise of the insured after the commencement of risk, the death benefit is defined as the sum assured on death plus vested reversionary bonus, and a final additional bonus (if any) is paid to the beneficiary of the policy. The sum assured on death is defined as:

    • Higher of 7 times the annualized premium; or

    • 105% of the total premium paid to date.

  3. Survival Benefit

    In case the life insured survives the premium paying tenure of the policy, survival benefit as 8% of the basic sum assured amount is paid annually till the date of policy maturity.

  4. Maturity Benefit

    In case the life insured survives the entire tenure of the policy, the maturity benefit is paid to the insured as the sum assured on maturity plus vested reversionary bonus and final additional bonus (if any). The sum assured on maturity is equal to the basic sum assured amount.

  5. Eligibility Criteria of LIC Jeevan Umang

    Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 90 days(completed) 100 years Rs. 2,00,000/- 100 years minus(-)age at entry 15 years
    Maximum 55 years 80 years No limit 30 years
  6. Rider Benefits Offered by LIC Jeevan Umang

    • Accidental Death and Disability Benefit Rider

    • Accidental Benefit Rider

    • New Term Assurance Rider

    • New Critical Illness Benefit Rider

    • Premium Waiver Benefit Rider

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LIC Bima Ratna

As one of the best LIC policies, LIC Bima Ratna comes with payouts at regular intervals to help policyholders meet key milestones in their lives along with insuring their lives. If anything untoward happens, the family is compensated with the death benefit amount. If the policyholder survives the whole tenure, they not only get a maturity benefit amount but multiple survival benefits at different policy years.

  1. Features of LIC Bima Ratna

    • On choosing a policy term of 15 years, the insured receives 25% of the BSA on surviving the 13th year and another 25% on the 14th policy year.

    • Similarly, for a policy term of 20 years, survival benefits are paid out on the 18th and 19th policy years.

    • Guaranteed additions up to Rs. 60 per Rs. 1000 basic sum assured are made to increase your savings.

    • You can also benefit from its loan facility if you are in need of urgent funds.

  2. Death Benefit

    If the insured dies during the policy tenure, the sum assured on death is paid by the insurer to the beneficiary of the policy. Whichever of the following amount if higher is payable.

    • 7 times the annualized income; or

    • 125% of the basic sum assured (BSA)

    The absolute amount paid on death also includes the total guaranteed additions that have accumulated.

  3. Maturity Benefit

    Maturity benefit is offered to the life assured if he/she survives the entire tenure of the policy. The amount is equal to 50% of the basic sum assured plus guaranteed additions.

  4. Eligibility Criteria of LIC Bima Ratna

    Let’s take a look at the eligibility criteria of the policy.

    Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 90days(completed) N/A Rs. 5,00,000/- 15, 20, or 25 years 11, 16, or 21 years
    Maximum 55 years 70 years No limit
  5. Rider Benefits Offered by LIC Bima Ratna

    • Accidental Death and Disability Benefit Rider

    • Accidental Benefit Rider

    • New Term Assurance Rider

    • New Critical Illness Benefit Rider

    • Premium Waiver Benefit Rider

Read More

LIC New Money Back Plan - 25 Years

This is a limited premium payment, non-participating, individual life insurance plan, which offers dual benefit of insurance coverage plus periodic payment on surviving specific durations within the policy tenure. This combined benefit provides financial backup for the family on the unfortunate death of the insured and also provides a lump sum amount on maturity if the insured survives the entire tenure.

  1. Features of LIC New Money Back Plan - 25 Years

    • The New Money Back - 25 years LIC plan offers a settlement option to receive the maturity benefit. This means that the insured can receive the maturity benefit in installments over a period of 5 years, 10 years, or 15 years.

    • The plan offers the option to take death benefits in installments as well.

    • The policyholder can avail of the benefit of the loan facility.

    • Rebates are applicable for a higher sum assured amount.

    • The plan offers the option to pay the premium of the policy through regular premium payment or by salary deductions during the PPT of the policy.

    • Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.

  2. Death Benefit

    If the life assured dies an unfortunate death during the tenure of the LIC policy, the death benefit will be payable by the insurer to the beneficiary of the policy. The death benefit will be payable as the 'sum assured on death along with a vested simple reversionary bonus and final additional bonus, (if any). The sum assured on death is defined as:

    • Higher of 125% of the basic sum assured or

    • 7 times the annualized premium; or

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

  3. Survival Benefits

    Provided all the premiums are dully paid, 15% of the BSA will be paid to the insured on surviving each of the following policy years - 5th, 10th, 15th, and 20th policy year.

  4. Maturity Benefit

    If the life insured survives the entire tenure of the policy, he/she gets the sum assured on maturity plus vested reversionary bonus and final additional bonus (if any). The sum assured on maturity is equal to 40% of the basic sum assured amount.

  5. Eligibility Criteria of the LIC New Money Back Plan - 25 Years

    Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 13 years N/A Rs.1,00,000/- 25 years 20 years
    Maximum 45 years 70 years No limit
  6. Rider Benefits Offered by LIC New Money Back Plan - 25 Years

    • Accidental Death and Disability Benefit Rider

    • Accidental Benefit Rider

    • New Term Assurance Rider

    • New Critical Illness Benefit Rider

    • Premium Waiver Benefit Rider

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LIC New Jeevan Anand

LIC New Jeevan Anand provides financial protection to the family of the insured in case of an unfortunate demise of the insured person. Moreover, LIC New Jeevan Anand also provides a maturity benefit to the insured if he/she survives the entire tenure of the policy. The plan also takes care of the liquidity needs of the family through its loan facility.

  1. Features of LIC New Jeevan Anand

    • The plan offers the option to receive the death benefit in installments.

    • The plan offers the option to pay the premium of the policy through regular premium payment or by salary deductions during the PPT of the policy.

    • The plan offers the benefit of rebates for higher sums assured.

    • Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.

    • The policy can be surrendered at any time provided the premiums of the policy are duly paid for two full years.

  2. Death Benefit

    If the life assured dies an unfortunate death during the tenure of the LIC policy, death benefit will be payable as the 'sum assured on death along with a vested simple reversionary bonus and final additional bonus, (if any). The sum assured on death is defined as:

    • Higher of 125% of the basic sum assured or

    • 7 times the annualized premium

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

    • On the death of the insured after the expiry of the policy tenure i.e. after the date of maturity, beneficiaries receive the basic sum assured amount.

  3. Maturity Benefit

    In case the life insured survives the entire tenure of the policy, he/she receives the sum assured on maturity plus vested reversionary bonus and final additional bonus (if any). The sum assured on maturity is equal to the basic sum assured amount.

  4. Eligibility Criteria of LIC New Jeevan Anand

    The following are the eligibility criteria of the policy.

    Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 18 years N/A Rs. 1,00,000/- 15 years Regular pay
    Maximum 50 years 75 years No limit 35 years
  5. Rider Benefits Offered by LIC New Jeevan Anand

    • Accidental Death and Disability Benefit Rider

    • Accidental Benefit Rider

    • New Term Assurance Rider

    • New Critical Illness Benefit Rider

Read More

The Bottom Line!

These are some of the most remunerative LIC plans that insurance buyers can consider purchasing as per their affordability and financial needs. However, make sure that you go through the details of the plan before making an informed choice. Don't forget to secure the financial future of your family with a life insurance policy.

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

*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply

“Tax benefit is subject to changes in tax laws. Standard T&C apply.”

FAQ's

  • Q1. Is it advisable to Invest in a LIC Plan?

    Ans: Yes, LIC offers life insurance policies that cater to the unique needs of customers. If you are searching for a life cover + investment component in one plan, you can consider a ULIP or Endowment option according to your risk appetite and financial goals. One of the key reasons to purchase LIC plans is that the company is backed by the Government of India. This makes it a reliable insurer.
  • Q2. Can I Take the LIC Jeevan Labh Policy? Is it any good?

    Ans: Yes. The LIC Jeevan Labh policy gives maturity and death benefits with an extra profit participation bonus. This policy has been rated among LIC’s best-selling endowment policies. It is meant for people in the age group of 8-59 years. This policy provides a plethora of benefits to the insured along with flexible features.
  • Q3. Is FD better than LIC, or is it the opposite?

    Ans: Fixed deposits are ideal for medium and short-term investments. Contrary to this, a life insurance plan is designed to be a long-term investment. You can put money into an FD plan for a duration of as little as 7 days, unlike life insurance plans where you have to put in your money for at least 10 years. However, you do not get a risk cover for your untimely death with an FD. Each option comes with unique features and benefits. One should consider their own requirements before investing in either option.
  • Q4. How to calculate the LIC maturity amount?

    Ans: The simple way is Basic Sum Assured + Bonuses + Final Additional Bonus (if applicable).
  • Q5. What is the best LIC policy for 5 years?

    Ans: LIC 5-years policies are short-term life covers. The best LIC policies for 5 years for you to explore are –
    • LIC Saral Jeevan Bima
    • LIC’s Dhan Sanchay
    • LIC’s New Jeevan Shanti
    • LIC Bhagya Lakshmi Plan
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