What is the LIC 20000 per year plan?
There is no single official Life Insurance Corporation of India (LIC) product named the "20,000 per year plan," as LIC premiums depend on your age, chosen Sum Assured, and policy term rather than a fixed annual price.
However, paying roughly ₹20,000 per year typically aligns with customized premium quotes for several popular individual savings or traditional endowment plans:
🔎 Common Contexts for ₹20,000/Year Premiums
- Endowment & Money Back Plans: Traditional policies like LIC's New Money Back Plan - 20 Years or LIC New Endowment Plan can be structured by an agent to fit an annual budget of ₹20,000 based on the basic sum assured you select.
- Unit-Linked Insurance Plans (ULIPs): Plans like LIC Index Plus permit yearly or monthly regular premium allocations starting at modular thresholds (frequently quoted around ₹20,000–₹30,000 annualized minimums depending on the specific risk/fund band).
- Scholarship Schemes: If you are not referring to an insurance policy, "₹20,000 per year" is the disbursement rate for regular scholars under the LIC Golden Jubilee Scholarship Scheme.
How much money will I get after 20 years of LIC policy?
The exact amount you will get after 20 years from a Life Insurance Corporation of India (LIC) policy depends heavily on your Basic Sum Assured, your specific plan type, and the annual bonus rates declared by LIC.
Because your exact policy name is missing, we must make a reasonable assumption. A 20-year term typically points to one of LIC's most popular plans: LIC's New Money Back Plan (20 Years - Plan 920). If your policy is a standard Endowment Plan, the math changes slightly since you do not receive intermediate payouts.
Option A: LIC's New Money Back Plan - 20 Years (Plan 920)
If you have a Money Back policy, you receive payouts during the term, meaning your final maturity amount is a remaining percentage of the sum assured plus your total accumulated bonuses.
- Premium Payment Term: You pay premiums for 15 years instead of 20.
- Survival Payouts (During the 20 Years): You get 20% of the Sum Assured at the end of the 5th, 10th, and 15th years.
- Final Maturity Payout (Year 20): You get the remaining 40% of the Sum Assured + Accrued Reversionary Bonuses + Final Additional Bonus (FAB).
Simulated Returns Example (Assuming a ₹10 Lakh Sum Assured)
Based on historical average LIC bonus estimates (~₹35 to ₹40 per thousand per year):
| Milestone Event | Payout Percentage | Estimated Cash Received |
|---|---|---|
| End of Year 5 | 20% of Sum Assured | ₹2,00,000 |
| End of Year 10 | 20% of Sum Assured | ₹2,00,000 |
| End of Year 15 | 20% of Sum Assured | ₹2,00,000 |
| End of Year 20 (Maturity) | 40% of Sum Assured + Accumulated Bonuses | ₹11,00,000 to ₹12,00,000 |
| Total Lifetime Returns | ~110% to 120% of Base + Bonus | ~₹17,00,000 to ₹18,00,000 |
Option B: LIC Endowment Policy - 20 Years (Plan 914)
If you have a traditional savings/endowment plan, you do not receive money back every 5 years. Instead, you get one large lumpsum amount at the very end.
- Maturity Calculation Formula: 100% Sum Assured + Accrued Bonuses + FAB.
- Simulated Returns (Assuming a ₹10 Lakh Sum Assured): You would receive nothing during the 20 years, but a massive single payout of approximately ₹18,00,000 to ₹19,50,000 at the end of Year 20.
⚠️ Hidden Realities & Advice
Traditional LIC policies are highly secure and provide tax-free maturity benefits under Section 10(10D). However, from a wealth-building perspective, they have a major downside:
- Low Annualized Returns (XIRR): When you factor in the premiums paid over 15 to 20 years against the final payouts, the actual return on your investment usually translates to an annualized rate of only 4% to 6%.
- Inflation Risk: A payout of ₹18 Lakhs 20 years from now will have significantly less purchasing power than it does today.
My primary recommendation is to keep the policy if it is already near maturity to avoid severe early exit/surrender penalties. However, if you are planning new long-term financial goals, look toward a combination of Term Life Insurance (for high life cover protection) and Equity Mutual Funds/PPF (which historically generate 8% to 12%+ yields) to protect your money against inflation.
To calculate your exact final cash figure, could you share:
- What is the exact name or Plan Number of your policy?
- What is your Basic Sum Assured amount?
- How many years of premiums have you already paid?
What is the LIC 10,000 per month plan for 5 years?
An LIC policy with a premium of ₹10,000 per month for 5 years typically aligns with a limited-premium endowment or pension scheme where you concentrate your payments in a short 5-year window.
Key Details of a 5-Year Premium Payment Plan
- Total Investment: Paying ₹10,000 monthly equals ₹1,20,000 per year, totaling ₹6,00,000 over the 5-year payment term.
- Plan Structure: LIC traditional endowment or whole-life plans (like LIC India Insurance Plans) allow a Limited Premium Payment Term (PPT) where you stop paying after 5 years, but the policy benefits or life cover continue for a longer maturity duration.
- Pension/Retirement Context: Some monthly schemes or annuity options relate a ₹10,000 monthly flow to post-retirement payouts or accumulated corpus returns depending on your entry age and the specific Policybazaar plan chosen.
What is the best LIC Money Back Plan for 20 years?
The best and official option for a 20-year term is the LIC New Money Back Plan 20 Years (Plan 720), which is a non-linked, participating individual life assurance savings plan.
Key Plan Details
- Policy Term: 20 years
- Premium Paying Term: 15 years (you pay premiums for 15 years while coverage and benefits continue)
- Entry Age: 13 to 50 years (maximum maturity age is 70 years)
- Minimum Sum Assured: ₹100,000 (no upper limit)
Benefits Breakdown
- Survival Benefits: You receive 20% of the basic sum assured at the end of the 5th, 10th, and 15th policy years.
- Maturity Benefit: At the end of the 20th year, you receive the remaining 40% of the basic sum assured plus accrued simple reversionary bonuses and final additional bonuses.
- Death Benefit: If the policyholder passes away during the term, the nominee receives the sum assured on death plus accumulated bonuses (guaranteed to be at least 105% of total premiums paid).
- Liquidity: Loan facilities are available after paying premiums for at least two full years.
Which LIC pension plan is the best in 2026?
The best LIC pension plan depends on your financial goal, with LIC Smart Pension Plan 879 and LIC New Jeevan Shanti leading as top choices for guaranteed regular income in 2026.
Because "best" depends on whether you want immediate payouts, deferred growth, or market-linked returns, LIC offers distinct options to fit different retirement needs.
Top LIC Pension Plans
- LIC Smart Pension Plan (Plan 879): Best for immediate, guaranteed lifelong income starting right after a single lump-sum payment. It allows flexible payout frequencies (monthly, quarterly, half-yearly, yearly) and entry ages ranging from 18 to 100 years.
- LIC New Jeevan Shanti (Plan 758): Best for deferred annuity if you want to invest a single lump sum now and lock in guaranteed pension rates to start receiving payouts at a later date.
- LIC Jeevan Akshay-VII (Plan 857): Best for senior citizens looking for a traditional immediate annuity with 10 different payout options, including single and joint-life coverage.
- LIC New Pension Plus (Plan 867): Best for younger individuals who want market-linked returns through a Unit Linked Insurance Plan (ULIP) to actively build a larger retirement corpus over time.
- LIC Saral Pension (Plan 862): Best for a simple, standardized single-premium immediate annuity with straightforward terms and a uniform payout structure.
2025 में LIC के 5 बेस्ट प्लान | Best Plan for LIC 2025 | Most popular plans of LIC 2025
Is LIC better than fd?
Neither LIC (Life Insurance Corporation) nor an FD (Fixed Deposit) is universally "better"; they serve completely different financial purposes.
- Choose a Fixed Deposit if you want high liquidity, short-term parking of funds, and guaranteed, predictable interest.
- Choose an LIC savings or traditional policy only if you specifically need long-term life insurance coverage combined with forced savings.
Key Differences
| Feature | Fixed Deposit (FD) | LIC Traditional / Endowment Policies |
|---|---|---|
| Primary Purpose | Pure savings and wealth parking. | Life insurance protection + a modest savings component. |
| Returns | Fixed, guaranteed interest rate known upfront. | Lower or modest returns tied to bonuses, often yielding low XIRR (4%–6%). |
| Liquidity | High. You can break an FD anytime, though it may incur a small penalty. | Low. Heavy penalties or loss of capital if exited early; subject to long lock-in periods. |
| Tax Benefits | None, except for specific 5-year tax-saver FDs under Section 80C. | Premiums and maturity payouts may qualify for tax deductions under Section 80C and 10(10D). |
| Safety | Very safe, though bank FDs are insured up to ₹5 lakh by DICGC. | Highly secure as it carries sovereign backing from the Indian government. |
Which Should You Pick?
- When FD Wins: FDs are much better for short- to medium-term goals (1 to 5 years) or emergency funds because you can withdraw your money quickly without losing a large chunk of your principal.
- When LIC Wins: LIC provides a life cover payout to your family if something happens to you. Pure term insurance is vastly superior and cheaper for this, but traditional LIC plans bundle protection with a savings tool for disciplined, long-term investors.
- The Financial Consensus: Financial experts generally advise against mixing insurance with investment. It is usually wiser to buy a pure term insurance policy for protection and invest your surplus savings in higher-yielding options like Fixed Deposits or Mutual Funds rather than traditional LIC endowment plans.
What happens if I stop paying LIC premium after 10 years?
If you stop paying your Life Insurance Corporation of India (LIC) premium after 10 years, your policy will not lapse because you have crossed the 3-year threshold. Instead, it automatically converts into a reduced paid-up policy, or you can choose to surrender it completely.
Here are your main options and what happens to your money:
1. Converted to a Paid-Up Policy (Default Option)
If you simply stop paying further premiums, your policy stays active with a reduced benefit.
- Reduced Sum Assured: The total sum assured is reduced proportionally based on the number of premiums you actually paid versus the total number you were supposed to pay.
- Life Cover: A smaller life insurance cover continues until the original maturity date.
- Payout: You receive the reduced paid-up value as a lump sum either at the end of the policy term (maturity) or if the policyholder passes away before then.
- Bonuses: You generally do not earn future bonuses after making the policy paid-up.
2. Surrender the Policy (Immediate Exit)
If you want cash immediately rather than waiting for maturity, you can formally surrender the policy.
- Surrender Value: LIC pays you a one-time surrender amount. After 10 years of consistent payments, this typically ranges between 30% to 60% of the total premiums you paid, plus any accumulated bonuses.
- Loss of Cover: All life insurance protection and future benefits end immediately.
- Tax Impact: You lose future tax exemptions or benefits tied to that policy under Section 80C.
You can check how much cash you would get by using an online LIC Surrender Value Calculator or by visiting your LIC Policy Guidelines servicing branch with your policy bond and identity proof.
Can I get a 50000 LIC policy?
An LIC policy with a ₹50,000 sum assured or investment amount typically refers to specific micro-insurance, older women-focused endowment plans like Jeevan Bharati (which allowed a minimum sum assured of ₹50,000), or entry-level single-premium/endowment schemes.
Key Details of Lower-Tier / ₹50,000 Sum Assured Plans
- Minimum Sum Assured: While major flagship plans like LIC New Jeevan Anand or Jeevan Labh generally start at a minimum sum assured of ₹2,00,000, older or specialized entry tiers (such as legacy micro-insurance or specific women's endowment policies) allowed basic sums assured starting at ₹50,000.
- Micro Insurance Options: LIC offers Micro Insurance Plans designed for affordable budgeting, though newer standalone savings products usually set baseline thresholds higher (e.g., ₹1,00,000).
- Returns & Premiums: Premium outlays for smaller base sums depend heavily on your entry age and chosen policy term (ranging from 10 to 20 years). They accrue loyalty additions, simple reversionary bonuses, or guaranteed returns depending on whether the plan is participating or non-participating.
You can check active eligibility criteria or compute exact customized rates directly on the Official LIC Portal.
Which LIC plan is best for monthly income?
LIC's Jeevan Akshay VII is generally considered the best LIC plan if you want an immediate monthly income, while LIC Jeevan Umang or Jeevan Utsav work best if you prefer building a future regular income through systematic savings.
Most users on Quora agree that selecting the right plan depends on whether you want immediate payouts or a long-term accumulation phase.
Top LIC Plans for Monthly Income
- LIC Jeevan Akshay VII (Immediate Annuity):
- How it works: You pay a single lump-sum amount once.
- Payout: Your monthly income starts right away.
- Best for: Retirees who have a lump sum and need an immediate, guaranteed lifetime pension.
- LIC New Jeevan Shanti (Deferred Annuity):
- How it works: You invest a single amount and choose a deferment period (1 to 12 years).
- Payout: Guaranteed monthly payouts begin after the waiting period ends, lasting for life.
- Best for: Individuals wanting to lock in a guaranteed future income rate today before they retire.
- LIC Jeevan Umang / Jeevan Utsav (Whole Life / Regular Income):
- How it works: You pay regular premiums for a set term.
- Payout: After the premium-paying term finishes, the plan provides a fixed annual/monthly survival benefit percentage for life, plus a final maturity or death corpus.
- Best for: Younger investors who want to build a secondary lifelong income stream through disciplined, long-term saving.
Can I get an LIC policy for 10 lakhs?
Yes, you can easily get an LIC 10 Lakh Policy through various endowment, savings, or single-premium plans.
Available LIC Options for ₹10 Lakhs
- Endowment Plans: Plans like LIC New Jeevan Anand and LIC Jeevan Labh allow a basic sum assured starting from ₹1 or ₹2 lakh, making a ₹10 lakh cover simple to set up.
- Single Premium Plans: Options like the Single Premium Endowment Plan or pension schemes let you invest a lump sum of ₹10 lakhs directly.
- Where to Buy: You can explore and purchase these options directly through an agent or online on the LIC India Buy Online Portal.