Your 2025 Guide to LIC’s Best Budget Insurance Plans – Save More, Get More

 


In today's uncertain world, safeguarding your family's financial future is more important than ever. And when it comes to life insurance in India, one name stands out with unmatched trust - Life Insurance Corporation of India (LIC). Established in 1956 and backed by the Government of India, LIC has built its reputation on providing affordable, reliable, and comprehensive life insurance plans for individuals from all walks of life.

As we move into 2025, LIC has evolved with the times, offering digital services, low-cost plans, and flexible policy options to suit every budget. This guide will walk you through the best LIC insurance plans in 2025 that provide maximum value at minimum cost, ensuring you save more and get more from your investment.

Why Choose LIC for Budget Life Insurance in 2025?

Before diving into specific plans, let’s understand why LIC remains the top choice for millions of Indians:

  •  Government-backed institution – Trusted for over 65 years.
  •  High claim settlement ratio – Over 98% in recent years.
  • Affordable premium plans – Starting from as low as ₹500/month.
  •  Diverse plan options – Term insurance, endowment, money-back, pension, and child plans.
  • Bonus earnings – Many plans include annual bonuses and final maturity benefits.
  •  Online availability – Buy and manage policies digitally from anywhere.

What to Look for in a Budget LIC Plan?

A budget-friendly LIC plan selection requires knowing your objectives and coverage requirements. Here’s what you should focus on:

  • Low Premiums: Start with what you can afford monthly.
  •  Adequate Sum Assured: Enough to cover debts, education, and family expenses.
  •  Policy Term: Choose a duration that aligns with long-term goals.
  •  Return Options: Do you want a payout after maturity or just pure protection?
  •  Bonus & Benefits: Prefer plans with added bonuses or loyalty additions.

Top LIC Budget Insurance Plans in 2025

1. LIC Tech Term Plan: Exclusively Online, Cost-Effective Pure Protection

  • Type: Term Insurance
  • Entry Age: 18 to 65 years
  • Policy Term: 10 to 40 years
  • Minimum Sum Assured: ₹50 lakh
  • Monthly Premium: From ₹500 onwards

Why It’s Budget-Friendly:
This is one of LIC’s most affordable and high-cover policies, available only online. It offers pure life cover with flexible payout options, making it ideal for salaried and self-employed individuals looking for maximum cover at the lowest price.

Benefits:

  • Buy completely online without agents.
  • Customizable cover – choose level or increasing sum assured.
  • Death benefit payable as lump sum or in instalments.

2. LIC Jeevan Labh – Save and Get Life Cover Together

  • Type: Endowment cum Life Insurance
  • Entry Age: 8 to 59 years
  • Policy Term: 16, 21, 25 years
  •  Time limit: premium payment period (10, 15, or 16 years)
  • Monthly Premium: From ₹1,000 for ₹5 lakh cover

Why It’s Budget-Friendly:
Jeevan Labh offers a combo of savings and insurance, with a short premium-paying term. You stop paying after a few years, but coverage continues until the policy matures.

Benefits:

  • Guaranteed maturity benefits + bonuses.
  • Loan facility available after 3 years.
  • Ideal for future planning like buying a house or child's education.

3. LIC New Money Back Plan – Regular Returns + Life Cover

  • Type: Money Back + Life Insurance
  • Entry Age: 13 to 50 years
  • Policy Term: 20 years
  • Monthly Premium: Approx ₹1,200 for ₹5 lakh cover

Why It’s Budget-Friendly:
This plan offers money back every 5 years, which helps manage medium-term expenses. You also receive a lump sum at maturity, making it a great savings tool.

Benefits:

  • Periodic survival benefits (20% of sum assured).
  • Full death benefit even after money-back payouts.
  • Maturity bonus at the end of term.

4. LIC Jeevan Tarun – Best for Children’s Future

  • Type: Child Savings + Protection
  • Child Entry Age: 0 to 12 years
  • Policy Maturity: At age 25
  • Monthly Premium: ₹800+ depending on sum assured

Why It’s Budget-Friendly:
With low premiums and high returns structured around your child’s future needs, Jeevan Tarun ensures education and marriage expenses are planned from the start.

Benefits:

  • Yearly payouts during ages 20–24.
  • Lump sum maturity benefit at age 25.
  • Premium waiver if parent dies (policy continues).

5. LIC Saral Jeevan Bima – Simplified Term Insurance

  • Type: Standard Term Plan (Offline & Online)
  • Entry Age: 18 to 65 years
  • Policy Term: 5 to 40 years
  • Monthly Premium: Starting from ₹500

Why It’s Budget-Friendly:
This is a simple and standardized term plan that’s perfect for first-time insurance buyers. It guarantees that, should you pass away within the policy's term, your family will get a lump sum payment.

Benefits:

  • Minimum documentation required.
  • No complicated terms – easy to understand.
  • High sum assured at low cost.

Add-On Riders to Boost Coverage

You can enhance these budget LIC plans by adding optional riders at a small extra cost:

  •  Accidental Death Benefit Rider
  •  Disability Rider
  •  Critical Illness Cover
  •  Waiver of Premium Rider

These riders offer additional payouts or premium waivers in specific scenarios like accidents or illness.

How to Buy LIC Budget Plans Online Instantly

Buying a LIC plan in 2025 is now faster and easier:

  1. Visit: https://www.licindia.in or trusted aggregators like Square Insurance
  2. Compare: Choose plans based on your age, need, and premium.
  3. Calculate: Use the online premium calculator.
  4. Apply: Fill details, upload KYC, choose riders.
  5. Pay: Make payment online and download e-policy.

Conclusion

With LIC’s budget-friendly insurance plans in 2025, you don’t have to break the bank to secure your family’s future. From high-coverage term plans like Tech Term to savings-oriented policies like Jeevan Labh, LIC ensures there’s a plan for every budget and every need.

So don’t delay your protection. Start small, think big — and let LIC help you save more while getting the maximum value from your life insurance plan.

Explore more affordable LIC plans and apply online today at: squareinsurance.in

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