LIC Life Insurance Schemes Types, Benefits & Popular Plans

Published on 24 October 2025 by
LIC AAO

The Life Insurance Corporation of India (LIC) is one of the most trusted and oldest insurance institutions in India. Established in 1956, LIC offers a wide range of life insurance schemes to provide financial protection, savings, and long-term investment opportunities to individuals and their families.

LIC’s life insurance schemes are designed to meet diverse financial goals such as family security, children’s education, retirement planning, and wealth creation. Through its wide network and simple policy options, LIC continues to be the preferred choice for millions of Indians seeking financial security and peace of mind.

What are LIC Life Insurance Schemes?

LIC Life Insurance Schemes are financial protection plans that help individuals secure their family’s future in the event of unforeseen circumstances such as death, disability, or illness. In addition to providing life cover, many LIC plans also offer savings, investment returns, and tax benefits under the Income Tax Act.

LIC offers different types of life insurance policies tailored to suit various needs — from basic term plans for protection to endowment and pension plans for long-term savings. The flexibility and reliability of LIC make its schemes suitable for every income group and life stage.

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Types of LIC Life Insurance Schemes

LIC offers multiple types of life insurance schemes, each catering to a specific financial requirement. Below are the main categories:

Type of SchemeDescription
Term Insurance PlansProvide high life coverage at affordable premiums. Pure protection plans with no maturity benefit.
Endowment PlansCombine life insurance with savings, offering a lump-sum at maturity or on the insured’s death.
Whole Life PlansProvide lifelong coverage, ensuring financial security for dependents even after retirement.
Money Back PlansOffer periodic returns during the policy term along with life cover. Ideal for those seeking liquidity.
Pension / Retirement PlansHelp build a retirement corpus and ensure regular income after retirement.
Child PlansDesigned to secure a child’s future education and financial needs even if the parent is not around.
ULIPs (Unit Linked Insurance Plans)Combine insurance and investment, allowing policyholders to invest in market-linked funds.

Each of these schemes comes with unique benefits, premium options, and flexibility to meet different financial goals.

LIC offers several popular and well-performing policies that cater to varied customer segments. Some of the most trusted and widely purchased schemes include:

LIC SchemeKey Features
LIC Jeevan AnandCombines protection and savings; offers life cover even after policy maturity.
LIC New Endowment PlanProvides both death and maturity benefits; suitable for long-term savings.
LIC Tech Term PlanA pure online term plan offering high coverage at low premiums.
LIC Jeevan UmangOffers annual survival benefits after the premium payment term and lifetime cover.
LIC New Money Back Plan (20/25 Years)Provides periodic payouts along with life cover; ideal for medium-term goals.
LIC Jeevan LakshyaEnsures income for family needs and provides a lump-sum at maturity.
LIC Jeevan ShantiA single premium annuity plan providing regular income post-retirement.

These plans reflect LIC’s commitment to combining protection, savings, and investment benefits under one umbrella.

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Benefits of LIC Life Insurance Schemes

LIC Life Insurance Schemes offer multiple advantages that go beyond basic life cover. These benefits make them one of the most reliable financial tools in India.

BenefitDescription
Financial SecurityEnsures the insured’s family is financially protected in case of death.
Savings & InvestmentHelps build wealth for future goals like education, marriage, or retirement.
Flexible Premium OptionsAllows monthly, quarterly, half-yearly, or yearly payments.
Tax BenefitsPremiums qualify for deductions under Section 80C, and maturity proceeds are often tax-free under Section 10(10D).
Loan FacilityPolicyholders can avail loans against their policies in times of need.
Bonus AdditionsParticipating plans earn bonuses declared by LIC, enhancing policy value.

LIC’s life insurance policies are structured to ensure both protection and long-term financial growth.

Why Choose LIC Life Insurance?

Choosing LIC means choosing trust, reliability, and strong financial backing. With decades of service, LIC has consistently upheld its promise to secure millions of Indian families.

  • Backed by the Government of India.
  • Wide range of plans for all age groups and income levels.
  • Strong claim settlement record.
  • Nationwide presence and digital accessibility.
  • Policies designed to suit long-term Indian financial habits.
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FAQs

Q1: What is the main purpose of LIC Life Insurance Schemes?
A1: The main purpose of LIC Life Insurance Schemes is to provide financial protection to the policyholder’s family in case of death, along with options for savings, investment, and long-term wealth creation.

Q2: What types of life insurance plans does LIC offer?
A2: LIC offers various types of plans, including Term Plans, Endowment Plans, Whole Life Policies, Money Back Plans, Child Plans, and Pension Plans, each designed to meet specific financial goals.

Q3: Are LIC policies eligible for tax benefits?
A3: Yes, premiums paid for LIC life insurance policies qualify for tax deductions under Section 80C of the Income Tax Act, and maturity proceeds are generally exempt under Section 10(10D).

Q4: Which is the best LIC policy for long-term savings?
A4: Policies like LIC Jeevan Anand and LIC New Endowment Plan are popular choices forlong-term savings, as they offer a combination of life cover, bonus, and maturity benefits.

Q5: Can I buy LIC Life Insurance online?
A5: Yes, many LIC plans, including term and endowment plans, are available for online purchase through the official LIC website or authorized digital channels.