Best LIC Plans in 2025:- Choosing the right life insurance plan can feel like navigating a maze, especially with the variety of options offered by the Life Insurance Corporation of India (LIC). With a legacy of trust backed by the Government of India, LIC remains a top choice for millions seeking financial security. But with so many plans—endowment, term, pension, and child-focused policies—how do you know which one is truly worth your investment in 2025? This article dives deep into the best LIC plans in 2025, comparing their features, benefits, and suitability to help you make an informed decision.
Whether you’re planning for retirement, securing your child’s future, or seeking high returns, we’ve got you covered with expert insights and real-world examples.
Why Choose LIC in 2025?
LIC’s reputation as India’s most trusted insurer is built on its government backing, high claim settlement ratio (98.2% as of recent data), and diverse product offerings. Here’s why LIC stands out:
- Government-Backed Security: LIC’s policies are supported by the Government of India, ensuring reliability.
- High Claim Settlement Ratio: With a 96.69% claim settlement ratio in 2020-2021, LIC is a dependable choice.
- Tax Benefits: Premiums qualify for deductions under Section 80C, and maturity proceeds are often tax-exempt under Section 10(10D).
- Flexible Options: From short-term to lifelong coverage, LIC caters to diverse financial goals.
Top LIC Plans in 2025: A Detailed Breakdown
Let’s explore the Best LIC Plans in 2025, focusing on their features, eligibility, and ideal use cases. Each plan is evaluated for its value, returns, and suitability.
1. LIC New Jeevan Anand (Plan No. 915)
Overview
LIC New Jeevan Anand is a participating, non-linked endowment plan combining savings and protection. It offers lifelong coverage, even after maturity, making it a popular choice for long-term financial planning.
Key Features
- Lifelong Coverage: Provides risk cover beyond the policy term.
- Maturity Benefit: Lump sum payout at maturity, including sum assured and bonuses.
- Death Benefit: Sum assured plus vested bonuses paid to nominees.
- Loan Facility: Available to meet liquidity needs.
- Tax Benefits: Under Sections 80C and 10(10D).
Eligibility
| Criteria | Details |
|---|---|
| Minimum Entry Age | 8 years |
| Maximum Entry Age | 55 years |
| Policy Term | 15–35 years |
| Minimum Sum Assured | ₹1,00,000 |
Who Should Choose It?
Ideal for individuals seeking a balance of savings and lifelong protection. It’s suitable for young professionals or parents planning for future financial security.
Real-World Example
Ravi, a 30-year-old IT professional, opted for LIC New Jeevan Anand with a ₹5 lakh sum assured and a 20-year term. By paying an annual premium of ₹30,000, he secured lifelong coverage and a projected maturity benefit of ₹8–10 lakh, including bonuses, to fund his retirement.
Suggested Visual: A chart comparing maturity benefits with and without bonuses for LIC New Jeevan Anand.
2. LIC Jeevan Amar (Plan No. 855)
Overview
LIC Jeevan Amar is a pure term insurance plan designed for affordability and high coverage, ideal for those prioritizing family protection on a budget.
Key Features
- Flexible Death Benefit Options: Choose between level sum assured or increasing sum assured.
- Affordable Premiums: Starts at low rates, especially for non-smokers.
- Rebates: Discounts for higher sums assured (minimum ₹50 lakh for rebates).
- Offline Purchase: Available through LIC agents.
Eligibility
| Criteria | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 65 years |
| Policy Term | 10–40 years |
| Minimum Sum Assured | ₹25 lakh |
Who Should Choose It?
Best for young professionals or breadwinners seeking high coverage at low premiums. Non-smokers can benefit from lower rates after medical tests.
Real-World Example
Priya, a 35-year-old single mother, chose LIC Jeevan Amar with a ₹1 crore sum assured for a 30-year term. Her annual premium of ₹12,000 ensures her child’s financial security in case of her untimely demise.
Suggested Visual: An infographic showing premium comparisons for smokers vs. non-smokers.
3. LIC Jeevan Umang (Plan No. 945)
Overview
LIC Jeevan Umang is a whole-life insurance plan offering guaranteed annual survival benefits and lifelong coverage, perfect for those seeking steady income post-retirement.
Key Features
- Whole-Life Coverage: Up to age 100.
- Survival Benefits: 8% of sum assured paid annually after premium payment term.
- Maturity Benefit: Lump sum at the end of the policy term.
- Loan Facility: Available for liquidity needs.
- Bonus Participation: Includes reversionary and final additional bonuses.
Eligibility
| Criteria | Details |
|---|---|
| Minimum Entry Age | 90 days |
| Maximum Entry Age | 55 years |
| Premium Payment Term | 15, 20, 25, or 30 years |
| Minimum Sum Assured | ₹2,00,000 |
Who Should Choose It?
Suitable for individuals planning for retirement or seeking regular income alongside protection. It’s ideal for those who want lifelong financial support.
Real-World Example
Anita, a 40-year-old teacher, invested in LIC Jeevan Umang with a ₹10 lakh sum assured and a 20-year premium payment term. After paying premiums, she receives ₹80,000 annually as survival benefits, supplementing her retirement income.
Suggested Visual: A timeline showing survival benefit payouts over 20 years.
4. LIC New Children’s Money Back Plan (Plan No. 932)
Overview
This plan is tailored for parents planning for their child’s education, marriage, or other milestones, offering periodic payouts and life cover.
Key Features
- Survival Benefits: 20% of sum assured paid at ages 18, 20, and 22.
- Maturity Benefit: 40% of sum assured plus bonuses at age 25.
- Premium Waiver Benefit: Continues the policy if the parent dies.
- Loan Facility: Available after three years of premium payments.
Eligibility
| Criteria | Details |
|---|---|
| Minimum Entry Age | 0 years (90 days) |
| Maximum Entry Age | 12 years |
| Policy Term | 25 years – entry age |
| Minimum Sum Assured | ₹1,00,000 |
Who Should Choose It?
Perfect for parents wanting to secure their child’s future with periodic payouts for education or marriage expenses.
Real-World Example
Mr. Kumar, a 35-year-old father, bought this plan for his 6-year-old daughter with a ₹5 lakh sum assured. The policy will pay ₹1 lakh at ages 18, 20, and 22, and ₹2 lakh plus bonuses at 25, aligning with her higher education and marriage needs.
Suggested Visual: A table showing payout schedules for different entry ages.
5. LIC Jeevan Shanti (Plan No. 850)
Overview
LIC Jeevan Shanti is a single-premium annuity plan offering guaranteed income for retirees, with flexible payout options.
Key Features
- Immediate or Deferred Annuity: Choose when payouts begin.
- Flexible Payouts: Monthly, quarterly, half-yearly, or yearly.
- Death Benefit: Purchase price refunded to nominees.
- Loan Facility: Available after three years.
- Tax Benefits: Under Section 80CCC for premiums.
Eligibility
| Criteria | Details |
|---|---|
| Minimum Entry Age | 30 years |
| Maximum Entry Age | 85 years |
| Minimum Purchase Price | ₹1,50,000 (offline) |
| Annuity Options | Immediate or Deferred |
Who Should Choose It?
Ideal for retirees or those nearing retirement who want a steady income stream with minimal risk.
Real-World Example
Suresh, a 60-year-old retiree, invested ₹10 lakh in LIC Jeevan Shanti for an immediate annuity. He receives ₹60,000 annually, ensuring financial stability in retirement.
Suggested Visual: A graph comparing annuity payouts for different purchase amounts.
Comparing the Best LIC Plans: Which One Suits You?
| Plan Name | Type | Best For | Key Benefit | Risk Level |
|---|---|---|---|---|
| LIC New Jeevan Anand | Endowment | Long-term savings + protection | Lifelong coverage | Low |
| LIC Jeevan Amar | Term Insurance | High coverage, low premiums | Affordable protection | Low |
| LIC Jeevan Umang | Whole Life | Retirement income | Annual survival benefits | Low |
| LIC New Children’s Money Back | Child Plan | Child’s future planning | Periodic payouts | Low |
| LIC Jeevan Shanti | Pension/Annuity | Retirement income | Guaranteed annuity | Low |
Internal Link: Learn more about LIC’s claim settlement process.
External Link: Check tax benefits under Section 80C.
Factors to Consider When Choosing an LIC Plan
- Financial Goals: Are you saving for retirement, your child’s education, or family protection?
- Budget: Assess how much premium you can afford annually or as a lump sum.
- Risk Appetite: ULIPs offer market-linked returns but carry higher risk, while endowment plans are safer.
- Policy Term: Short-term (5–10 years) or long-term (20–35 years) based on your needs.
- Riders: Add-ons like accidental death or critical illness riders enhance coverage.
Case Study: Neha, a 28-year-old freelancer, wanted a plan for both savings and protection. After comparing options, she chose LIC New Jeevan Anand for its lifelong coverage and maturity benefits, aligning with her goal of building a retirement corpus while ensuring family security.
FAQs About the Best LIC Plans in 2025
1. What is the best LIC plan for retirement planning in 2025?
Answer: For retirement planning, LIC Jeevan Shanti and LIC Jeevan Umang are top choices. LIC Jeevan Shanti is a single-premium annuity plan offering immediate or deferred payouts, ideal for retirees seeking guaranteed income. For example, a ₹15 lakh investment can yield ₹90,000–₹1,20,000 annually, depending on age and annuity option. LIC Jeevan Umang, on the other hand, provides whole-life coverage with 8% annual survival benefits after the premium payment term, making it suitable for those who want lifelong income and protection. Choose Jeevan Shanti for immediate income needs or Jeevan Umang for long-term savings with regular payouts. Always use LIC’s online calculator to estimate returns based on your age and investment.
2. Which LIC plan offers the highest returns in 2025?
Answer: Returns depend on the plan type and bonus rates. LIC’s participating plans like LIC New Jeevan Anand and LIC Jeevan Labh offer high returns through bonuses. For instance, LIC New Jeevan Anand provides a maturity benefit with simple reversionary bonuses (historically ₹40–₹50 per ₹1,000 sum assured) and a final additional bonus. LIC SIIP, a unit-linked plan, offers market-linked returns (8–10% historically, though variable). For maximum returns, consider your risk appetite: endowment plans for stability or ULIPs for higher, market-dependent gains. Consult an LIC agent to align the plan with your financial goals.
3. Are LIC plans safe and reliable in 2025?
Answer: Yes, LIC plans are highly reliable due to their government backing and strong financial track record. LIC’s claim settlement ratio of 98.2% reflects its credibility. As a government-owned entity since 1956, LIC guarantees policyholder security, making it a safe choice for long-term investments. Policies like LIC Jeevan Amar and LIC New Jeevan Anand offer predictable benefits, while tax exemptions under Sections 80C and 10(10D) add value. Always verify policy details with LIC’s official website or a certified agent to avoid misinformation.
4. Which LIC plan is best for a child’s future in 2025?
Answer: LIC New Children’s Money Back Plan and LIC Jeevan Tarun are top picks for securing a child’s future. The New Children’s Money Back Plan offers survival benefits (20% of sum assured at ages 18, 20, and 22) and a maturity benefit at 25, ideal for education or marriage expenses. Its premium waiver benefit ensures the policy continues even if the parent passes away. LIC Jeevan Tarun allows flexible survival benefit options, catering to milestones like higher education. For example, a ₹5 lakh sum assured plan can provide ₹3 lakh in total payouts by age 25. Compare both plans based on your child’s age and financial needs.
5. Can I get a loan against LIC plans in 2025?
Answer: Yes, most LIC plans, including LIC New Jeevan Anand, LIC Jeevan Umang, and LIC New Children’s Money Back Plan, offer loan facilities after three years of premium payments. The loan amount typically ranges from 75–90% of the policy’s surrender value, depending on the plan. For instance, LIC Jeevan Shanti allows loans up to 75% of the purchase price. Interest rates vary but are competitive, often around 8–10% per annum. Check eligibility and terms with your LIC branch to ensure liquidity without surrendering the policy.
6. How do I choose the right LIC plan for my needs?
Answer: Selecting the right LIC plan involves assessing your financial goals, budget, and risk tolerance. For protection, opt for term plans like LIC Jeevan Amar. For savings and protection, consider endowment plans like LIC New Jeevan Anand. For retirement, LIC Jeevan Shanti or LIC Saral Pension are ideal. Use LIC’s online calculators to estimate premiums and returns. Consult a certified LIC agent or financial advisor to tailor the plan to your needs, ensuring it aligns with your long-term objectives. Always read policy documents carefully to understand terms and conditions.
Conclusion: Making an Informed Choice in 2025
The best LIC plans in 2025 cater to diverse needs, from affordable term insurance to retirement-focused annuities and child-centric savings plans. LIC New Jeevan Anand offers lifelong coverage, LIC Jeevan Amar provides high protection at low costs, LIC Jeevan Umang ensures steady income, LIC New Children’s Money Back Plan secures your child’s future, and LIC Jeevan Shanti guarantees retirement income. By aligning your financial goals, budget, and risk appetite, you can choose a plan that delivers value and peace of mind.
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