Which LIC policy has sold the most in India?

The best LIC plan for investing depends on your specific financial goals, but top options for 2026 include LIC Index Plus for market-linked returns and LIC Jeevan Umang for guaranteed lifelong income.

Top LIC Investment Plans by Goal

• For Market-Linked Growth: LIC Index Plus (Plan 873) is a Unit Linked Insurance Plan (ULIP) that links your investments to index-based funds, offering a mix of life cover and wealth creation over a 10-to-25-year term.
• For Guaranteed Regular Income: LIC Jeevan Umang (Plan 745) provides a whole-life cover up to age 100 alongside an annual survival benefit of 8% of the basic sum assured after the premium payment term ends.
• For Predictable Lifelong Payouts: LIC Jeevan Utsav (Plan 771) is a limited-premium whole-life plan that offers a regular guaranteed income of 10% of the basic sum assured.
• For Traditional Long-Term Savings: LIC Jeevan Labh (Plan 736) is a limited-premium endowment plan that combines steady savings with life insurance, paying out a lump sum with accrued bonuses at maturity.
• For Retirement / Annuity: LIC New Jeevan Shanti (Plan 858) is a single-premium deferred annuity plan that secures a guaranteed retirement income stream.

Key Investment Benefits

• Tax Savings: Contributions qualify for deductions under Section 80C (up to ₹1.5 lakh), and maturity or death payouts are generally tax-free under Section 10(10D).
• Safety: Traditional policies carry a sovereign guarantee on claims under Section 37 of the LIC Act.

Unit-Linked Insurance Plans (ULIPs) generally provide the highest potential returns among insurance policies because they invest a portion of your premium into market-linked funds like equities.

Types of Insurance Policies and Returns

• Unit-Linked Insurance Plans (ULIPs): Offer the highest growth potential over the long term by tying returns to stock and bond market performance. They include a 5-year lock-in period and allow free fund switches.
• Endowment and Guaranteed Return Plans: Provide safe, fixed, or predictable returns (typically ranging between 5% and 7% interest rates) with zero market risk, but yield lower overall long-term wealth accumulation compared to ULIPs.
• Term Insurance with Return of Premium (TROP): Refunds 100% of your base premiums if you outlive the policy term, but offers no investment profit or growth.

You can compare specific market options using the Policybazaar Investment Plans Guide or look at traditional options on the Policybazaar Traditional Plans Page.

For individuals above 50 years old, the best LIC policies focus on guaranteed regular income, retirement planning, or whole-life financial stability rather than long-term wealth accumulation.

Top Recommended LIC Policies for Age 50+

• LIC New Jeevan Shanti: A single-premium deferred annuity plan where you invest a lump sum once and receive guaranteed regular pension payouts after a chosen deferment period (entry age up to 79 years).
• LIC Jeevan Umang: A whole-life assurance plan offering life cover up to age 100 alongside guaranteed annual survival benefits (8% of the basic sum assured) after the premium paying term ends (entry age available up to 55 years).
• LIC Jeevan Akshay VII: An immediate annuity plan that starts providing regular pension payouts right after a single lump-sum premium payment, ideal for immediate post-retirement income.
• LIC Jeevan Labh: A limited-premium endowment plan available for entry ages up to 59 years, helping secure high returns and savings over a 16-, 21-, or 25-year term.

LIC is better for traditional safety and guaranteed returns backed by the government, while SBI Life is better for lower term insurance premiums and flexible, market-linked growth.

Company Overview

• LIC (Life Insurance Corporation of India): A state-owned public sector giant founded in 1956 with a massive rural and urban network. It holds the highest trust and market share in traditional plans.
• SBI Life Insurance: A private sector insurer backed by the State Bank of India and BNP Paribas Cardif. It is known for modern, tech-enabled digital services and diverse product features.

Key Comparisons

• Claim Settlement Ratio (CSR): LIC typically averages around 98.5% to 98.6%, while SBI Life registers around 97%. Both are strong and reliable in honoring claims.
• Cost of Premiums: SBI Life often provides more affordable rates for pure term insurance plans compared to traditional LIC policies.
• Returns & Investment: LIC specializes in endowment and traditional savings plans with guaranteed bonuses. SBI Life offers better Unit Linked Insurance Plans (ULIPs) and market-linked returns for aggressive investors.
• Safety & Guarantee: LIC enjoys a sovereign guarantee from the Government of India, whereas SBI Life operates as a regulated private entity with a healthy solvency ratio above 1.90.

Which One Should You Choose?

• Choose LIC if: You want absolute government-backed safety, traditional savings, and long-term peace of mind for family protection.
• Choose SBI Life if: You want cheaper pure term coverage, higher market-linked investment returns, or modern digital policy features.

The best policy for your future is a pure term life insurance plan combined with a separate emergency fund and long-term investments, as it offers the highest life cover at the lowest cost.

🛡️ Term Life Insurance

• What it is: Pure death-benefit protection for a set period.
• Why it works: Maximum coverage for minimal cost.
• Drawback: No cash value or maturity payout if you survive the term.

📈 Market-Linked / Retirement Plans

• What it is: Wealth-building instruments like PPF or NPS.
• Why it works: Harnesses compounding interest for growth.
• Drawback: Subject to market volatility or long lock-in periods.

💰 Endowment / Whole Life Plans

• What it is: Insurance combined with forced savings.
• Why it works: Guarantees a maturity payout.
• Drawback: Significantly higher premiums with lower overall returns.