Looking for a secure, long-term investment that offers both life insurance coverage and guaranteed returns? Life Insurance Corporation of India (LIC) continues to be a top choice for risk-averse investors. One of LIC’s most popular endowment plans allows policyholders to accumulate up to ₹28 lakh by investing just ₹72,000 per year.
Here’s a comprehensive look at how this plan works, its features, and who should consider investing in it.
Why LIC Plans Remain a Trusted Investment Option
LIC is backed by the Government of India and has earned the trust of millions over decades due to its safety, consistent returns, and life cover benefits. Key advantages include:
- Government-backed credibility and assured returns
- Combines savings and life insurance
- Tax deductions under Sections 80C and 10(10D)
- Attractive bonuses and maturity benefits
- Flexible premium payment options
How ₹72,000 a Year Can Grow into ₹28 Lakh
With a long-term commitment, this LIC policy helps investors convert small yearly contributions into a significant maturity corpus. Here’s a typical illustration based on LIC’s New Endowment Plan.
Investment Illustration
| Particulars | Details |
|---|---|
| Plan Name | LIC New Endowment Plan |
| Entry Age | 30 Years |
| Policy Term | 25 Years |
| Annual Premium | ₹72,000 |
| Total Premium Paid | ₹18,00,000 (₹72,000 × 25 years) |
| Estimated Bonus | ₹7,00,000 – ₹8,00,000 |
| Final Additional Bonus | ₹2,50,000 – ₹3,00,000 |
| Maturity Value (Total) | ₹27,50,000 – ₹28,00,000 |
Note: Actual returns depend on LIC’s declared bonuses and performance.
Key Features of This LIC Plan
- Life Cover: Financial protection throughout the policy term
- Guaranteed Maturity: Sum Assured + Bonuses + Final Bonus
- Loan Facility: Option to borrow against the policy
- Tax Benefits: Premiums deductible under Section 80C; maturity amount is tax-free under 10(10D)
- Bonus Participation: Eligible for annual LIC bonuses
- Flexible Payments: Choose monthly, quarterly, half-yearly, or yearly mode
LIC vs Other Traditional Investment Options
| Feature/Plan | LIC Endowment | Bank FD | PPF | Mutual Funds |
|---|---|---|---|---|
| Risk Level | Low | Very Low | Very Low | Medium to High |
| Returns | Moderate | Fixed | Fixed | Market-Linked |
| Life Cover | Yes | No | No | No |
| Tax Benefits | 80C + 10(10D) | Partial | 80C + Tax-Free | 80C (ELSS Only) |
| Loan Facility | Yes | Yes | Yes | Yes (via SWP) |
| Govt. Backing | Yes | Yes | Yes | No |
Who Should Consider This Investment?
- Salaried individuals seeking safe long-term savings
- Parents planning for children’s higher education or marriage
- Investors nearing retirement aiming for guaranteed income
- Risk-averse individuals preferring assured returns over market-linked options
Policy Eligibility Criteria
| Criteria | Details |
|---|---|
| Minimum Entry Age | 8 Years |
| Maximum Entry Age | 55 Years |
| Minimum Sum Assured | ₹1 Lakh |
| Policy Term | 12 to 35 Years |
| Premium Payment Term | Same as policy term |
| Payment Modes | Monthly/Quarterly/Half-Yearly/Yearly |
Tax Advantages of LIC Plans
- Section 80C: Deduction up to ₹1.5 lakh on premiums paid
- Section 10(10D): Maturity amount is tax-free if premium-to-sum assured ratio complies with guidelines
These provisions make LIC policies not just safe investment instruments but also valuable tools for tax planning.
Is Now the Right Time to Invest?
Amid rising inflation and market volatility, LIC endowment plans offer long-term peace of mind and capital safety. Starting early ensures lower premiums and higher maturity value, thanks to accumulated bonuses over time.
This plan is ideal for conservative investors who prioritize financial safety and disciplined savings over high-risk high-return investments.
Conclusion
LIC’s endowment policies deliver a strong blend of guaranteed returns, life insurance, and tax benefits. By investing ₹72,000 annually, you can build a secure financial future with a maturity value nearing ₹28 lakh—making it an excellent option for retirement planning, education savings, or long-term wealth accumulation.
FAQs
What is the maturity value if I invest ₹72,000 annually in this LIC plan?
You can receive a maturity corpus of around ₹27.5 to ₹28 lakh after 25 years, depending on bonus rates.
Is the maturity amount taxable?
No, the maturity proceeds are tax-free under Section 10(10D), subject to policy conditions.
Can I avail a loan against this LIC policy?
Yes, after a few policy years, you can borrow against the surrender value.
What happens if I miss a premium payment?
LIC offers a grace period and revival options for lapsed policies under certain conditions.
Is this plan suitable for retirement savings?
Yes, it is ideal for long-term savings with life cover and assured maturity benefits.