LIC SIP Plan

Investing for your future is no longer optional—it's essential. Among the many financial products available, SIPs (Systematic Investment Plans) offer a disciplined way to build wealth over time. While most people associate SIPs with mutual funds, LIC (Life Insurance Corporation of India) also offers SIP-like investment options that cater to long-term financial goals with the added benefit of life insurance coverage. Here's everything you need to know about LIC SIP Plans.

List of LIC SIP Plan 

SIP Plans  5 Year Return  10 Year Return 
LIC MF Midcap Fund Direct Growth 26.73% NA
LIC MF Large Cap Fund Growth 17.64% 10.55%
LIC MF ELSS Tax Saver -Direct Plan Growth Option 22.55% 13.14%
LIC MF Aggressive Hybrid Fund Direct Plan Growth Option 16.47% 10.12%
LIC MF Small Cap Fund Regular Growth 31.69% NA

What is an LIC SIP Plan?

An LIC SIP Plan is not a traditional SIP in mutual funds but rather a mode of regular premium payment into LIC's insurance-cum-investment plans. You invest a fixed amount regularly (monthly or quarterly), and in return, you not only build a savings corpus but also secure life cover. It offers the twin benefits of disciplined investing and financial protection.

Benefits of LIC SIP Plans

  • Life Insurance Coverage: Every investment comes with a life cover, offering financial security to your loved ones.

  • Disciplined Savings: SIPs promote a habit of regular savings.

  • Long-Term Wealth Creation:Ideal for goals like children’s education, marriage, or retirement, Choosing the best SIP depends on long-term financial goals.

  • Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C.

  • Low Risk: Backed by the Government of India, LIC plans are among the safest investment options.

Popular LIC SIP Plans Table

Plan Name Policy Term Life Cover Included Maturity Benefit Tax Benefits
LIC New Endowment Plan 12 to 35 years Yes Lump sum on maturity Yes (Sec 80C)
LIC Jeevan Labh 16, 21, 25 years Yes Sum assured + Bonus Yes (Sec 80C)
LIC Jeevan Anand 15 to 35 years Yes Lifetime risk cover + maturity sum Yes (Sec 80C)
LIC Tech-Term Plan 10 to 40 years Yes Pure term cover (no maturity benefit) Yes (Sec 80C)
LIC SIIP (ULIP-based) 10 to 25 years Yes Market-linked returns + life cover Yes (Sec 80C)

How to Start an LIC SIP Plan

  • Choose a Plan: Select a plan based on your financial goals and risk appetite.

  • Decide Investment Amount: Set a comfortable monthly/quarterly investment amount.

  • Visit LIC Website/Agent: Apply online or through an LIC agent.

  • Complete KYC: Submit documents like PAN, Aadhaar, and address proof.

  • Start Investing: Make your first premium payment and track regularly.

Who Should Invest in LIC SIP Plans?

  • First-time investors looking for low-risk options.

  • Salaried individuals seeking tax savings and insurance.

  • Parents planning for children’s future.

  • Anyone aiming for disciplined long-term wealth accumulation.

Conclusion

LIC SIP Plans offer a unique blend of investment and insurance. While the returns may not match high-risk instruments like equity mutual funds, they provide unmatched safety and stability. For anyone looking to build a secure financial future with regular investments and insurance protection, LIC SIP Plans are a reliable choice.

FAQs

  • Is LIC SIP the same as mutual fund SIP?

    No. LIC SIP involves regular premium payments into insurance plans, while mutual fund SIPs invest in market securities.

  • Can I withdraw my money early?

    Most LIC plans have a lock-in of 3-5 years. Early withdrawal may attract penalties.

  • Is the LIC SIP Plan safe?

    Yes. LIC is government-backed and offers guaranteed returns in many of its traditional plans.

  • Can I increase the SIP amount later?

    In most plans, the premium amount is fixed. You may need to buy a new policy to invest more.

  • Are there any online tools to calculate returns?

    Yes. LIC and various financial portals provide online calculators to estimate maturity amounts.
Invest ₹10K/Month & Get ₹1 Crore# Tax-Free*
*under 10(10D)

˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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