Which Life Insurance Corporation of India Plan Is Best?

 When it comes to securing your family’s financial future, one name that almost every Indian household trusts is the Life Insurance Corporation of India (LIC). With decades of experience, LIC has created a reputation for reliability, strong returns, and a wide variety of plans that suit different needs.

But here’s the tricky part: LIC offers so many different insurance plans that it is natural to wonder, “Which Life Insurance Corporation of India plan is best for me?”

The answer depends on your needs, goals, and budget. In this blog, we will break it down in simple words so you can make the right choice without feeling overwhelmed.

Why Choosing the Right LIC Plan Matters

Buying an insurance plan is not just about paying a premium and getting a policy document. It is a long-term financial commitment that impacts you and your family for years to come.

The right LIC plan can:

·       Give your family financial stability in case of unanticipated circumstances.

·       assist you in setting aside money for future objectives like marriage, a home purchase, or the education of your children.

·       Act as a retirement income source.

·       Provide tax benefits in accordance with Income Tax Act Sections 80C and 10(10D).

·       On the other hand, the wrong plan might not give you enough coverage or returns, leaving you under-protected. That’s why understanding each plan type is so important.

Understanding the Types of LIC Plans

Before deciding which LIC plan is best, let’s first understand the categories of plans they offer:

• ·       Term Insurance Plans – Pure protection plans with low premiums and high coverage.
• ·       Endowment Plans – Combine insurance with savings; you get a lump sum on maturity.
• ·       Money-Back Plans – Provide periodic payouts during the policy term along with insurance cover.
• ·       Whole Life Plans – Offer coverage for your entire lifetime (often up to 100 years).
• ·       Pension/Retirement Plans – Focus on building a retirement income.
• ·       Market-linked investments and insurance are combined in unit linked insurance plans, or ULIPs.
• ·       Child Plans – Designed to secure your child’s future education and needs.

Each category serves a different purpose, so your choice depends on what you’re looking for.

 

Popular LIC Plans and Who They are Best For

Here are some of the well-known LIC plans and their key features:

1. LIC Tech Term Plan

Type: Term Insurance (online only)

Best For: People looking for high coverage at low premiums.

Why Choose It: Offers pure life cover without any savings component. Flexible premium payment options.

2. LIC Jeevan Labh

Type: Endowment Plan

Best For: Those who want both savings and protection.

Why Choose It: Limited premium paying term, lump sum at maturity, and life cover.

3. LIC Jeevan Umang

Type: Whole Life Plan

Best For: People seeking lifelong cover and a regular income after a certain age.

Why Choose It: Offers annual survival benefits after the premium payment term ends and a lump sum at maturity.

4. LIC New Endowment Plan

Type: Endowment Plan

Best For: Those who want disciplined savings with life insurance.

Why Choose It: Provides maturity benefit plus bonuses, along with life cover.

5. LIC Jeevan Amar

Type: Term Insurance

Best For: Families looking for large life cover to protect against loss of income.

Why Choose It: Multiple death benefit payout options and flexibility in coverage.

6. LIC New Children’s Money Back Plan

Type: Child Plan

Ideal For: Parents making plans for their child's future needs and education.

Why Choose It: Offers periodic payouts at important milestones and life cover for the child.

7. LIC Jeevan Shanti

Type: Pension Plan

Best For: Individuals planning a stress-free retirement.

Why Choose It: Single premium payment with guaranteed lifetime annuity.

How to Pick Your Ideal LIC Plan

Since there’s no single “best” plan for everyone, here’s a step-by-step guide to find the right one for your needs:

Step 1: Identify Your Goal

• If your main aim is financial protection, choose a term plan.
• If you want savings plus protection, go for an endowment or money-back plan.
• If you are planning for retirement, a pension plan works best. If your main aim is financial protection, choose a term plan.
• If you want savings plus protection, go for an endowment or money-back plan.
• If you are planning for retirement, a pension plan works best. 
• For a child’s future, choose a child plan.

Step 2: Decide Your Budget

Look at how much premium you can comfortably pay without affecting your daily expenses.

Step 3: Check Coverage Amount

The sum assured should be at least 10–15 times your annual income in order to ensure adequate protection.

Step 4: Consider the Policy Term

Match the policy term with your financial milestones, for example, until your children complete their education or until retirement.

Step 5: Look at Additional Benefits

Riders like accidental death benefit, critical illness cover, and waiver of premium can enhance protection.

Comparison Table of Popular LIC Plans

Plan Name	Type	Main Benefit	Best For
LIC Tech Term	Term Plan	High coverage, low premium	Young earners, breadwinners
LIC Jeevan Labh	Endowment	Savings + life cover	Long-term planners
LIC Jeevan Umang	Whole Life	Lifetime cover + regular income	Retirement income seekers
LIC New Endowment Plan	Endowment	Lump sum + bonuses	Disciplined savers
LIC New Children’s Money Back	Child Plan	Periodic payouts + cover	Parents with young children
LIC Jeevan Shanti	Pension	Guaranteed annuity	Retirees or near-retirement people

If you are young and healthy, start with a term plan because it is affordable and gives high coverage. You can later add an endowment plan or whole life plan to build savings. This way, you will have both protection and wealth creation.

Conclusion

The best Life Insurance Corporation of India plan depends entirely on your personal needs, life stage, and financial goals. A term plan like LIC Tech Term is great for complete protection. If you want savings with insurance, LIC Jeevan Labh or LIC Jeevan Umang might be better. For retirement, LIC Jeevan Shanti is a strong choice.

Before making a decision, assess your goals, compare plans, and choose one that gives you peace of mind along with financial security. If you need expert guidance in selecting the right plan or understanding your options, Square Insurance can help you make a well-informed choice that perfectly fits your needs.