LIC’s Best Investment : If you’ve ever looked for a safe, long-term investment option that combines life cover with guaranteed returns, LIC (Life Insurance Corporation of India) offers some of the best traditional investment-cum-insurance plans in the market. One such plan is gaining popularity due to its ability to turn modest annual investments into a sizable maturity amount. In this article, we’ll break down how investing ₹72,000 per year in LIC can fetch you a maturity value of up to ₹28 lakh.
Let’s explore this high-performing LIC policy, understand its benefits, terms, and how you can make the most out of your long-term investment.
Why LIC Policies Are Still Among the Best Investment Options
LIC, being a government-backed organization, has a strong reputation for security, guaranteed returns, and customer trust. Over the decades, LIC has evolved into more than just a life insurance provider—it has become a preferred investment avenue for millions of Indians. Here’s why:
- Government-backed assurance and reliability
- Long-term savings with risk coverage
- Tax benefits under Section 80C and 10(10D)
- Consistent and attractive bonuses
- Flexible policy terms for various financial goals
See More :
How ₹72,000 Annually Can Grow to ₹28 Lakh
One of LIC’s endowment plans is structured in such a way that an annual investment of ₹72,000 (₹6,000 per month) over a fixed term can accumulate into a maturity corpus of around ₹28 lakh. This calculation includes the basic sum assured, accrued bonuses, and final additional bonus (FAB), if applicable.
Let’s understand this with an illustration.
Investment Illustration Table
| 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 x 25 years) |
| Estimated Bonus (Approx.) | ₹7,00,000 to ₹8,00,000 |
| Final Additional Bonus (FAB) | ₹2,50,000 to ₹3,00,000 |
| Total Maturity Value | ₹27,50,000 to ₹28,00,000 |
Note: Bonus rates and FAB are indicative and vary year to year based on LIC’s performance.
Key Features of This LIC Investment Plan
LIC’s New Endowment Plan or similar endowment-based policies offer a range of features that make them attractive for long-term investors:
- Life Coverage: Full insurance cover throughout the policy term.
- Maturity Benefit: Guaranteed Sum Assured + Accrued Bonuses + Final Bonus.
- Loan Facility: Loans can be availed after a few policy years.
- Tax Benefits: Premiums are eligible for deductions under Section 80C; maturity is tax-free under 10(10D).
- Bonus Linked: Participating plan that earns bonuses from LIC’s profits.
- Flexible Premiums: Pay annually, semi-annually, quarterly, or monthly.
Benefits of Investing in LIC Over Other Avenues
Here’s a comparative view of why LIC stands out in traditional investment categories:
Investment Comparison Table
| Feature/Plan | LIC Endowment Plan | Bank FD | PPF | Mutual Funds |
|---|---|---|---|---|
| Risk | Low | Very Low | Very Low | Medium to High |
| Returns | Moderate (With Bonus) | Fixed | Fixed | Market Linked |
| Life Cover | Yes | No | No | No |
| Tax Benefits | 80C + 10(10D) | 80C (Partial) | 80C + Tax-Free Maturity | 80C (ELSS Only) |
| Loan Facility | Yes | Yes | Yes | Yes (via SWP) |
| Government Backing | Yes | Yes | Yes | No |
Who Should Consider This LIC Investment Strategy?
This LIC strategy is ideal for:
- Individuals seeking low-risk investments with decent returns
- Salaried professionals looking to build a retirement corpus
- Parents planning long-term wealth creation for children’s education
- Anyone looking for dual benefits of insurance and investment
Policyholder Eligibility and Other Details
| Eligibility 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 |
| Premium Modes | Monthly/Quarterly/Half-Yearly/Yearly |
| Maturity Benefit | Sum Assured + Bonuses |
Tax Implications of Investing in LIC
LIC policies provide tax-saving benefits under the Income Tax Act:
- Section 80C: Premiums paid up to ₹1.5 lakh are deductible from taxable income.
- Section 10(10D): Maturity proceeds are fully tax-free, provided premium-to-sum assured ratio is within guidelines.
These benefits make LIC not only a safe investment but also an efficient tax planning tool.
Is It the Right Time to Invest?
With increasing financial uncertainty and market volatility, investing in a guaranteed return plan like LIC’s endowment policies ensures peace of mind and long-term stability. The earlier you start, the lower your premiums and the higher your final maturity value, due to compounded bonuses.
It is particularly useful for conservative investors who do not wish to take risks in volatile markets yet want a reliable corpus after 20-25 years.
LIC’s endowment policies offer a compelling combination of savings, insurance, and guaranteed returns. While the returns may not match aggressive market-based instruments like mutual funds, the peace of mind, capital protection, and tax benefits make it an excellent option for long-term wealth creation.
If you’re someone who prefers financial safety, wants a disciplined savings route, and is planning for major life goals like retirement or education, investing ₹72,000 a year into an LIC plan could well be your smartest move.
How much can ₹72K per year turn into with LIC's best investment?
₹28 lakh.
How much can ₹72K per year invested in LIC mature into?
₹28 Lakh
What is the final maturity amount for investing ₹72K annually in LIC?
₹28 lakh is the maturity amount for ₹72K yearly investment in LIC.
What is the ROI for investing ₹72K/year in LIC for maturity of ₹28 lakh?
The ROI is impressive with a maturity amount of ₹28 lakh.
Join
Join