LIC’s Scheme : Are you looking for a low-risk, high-return investment option? What if we told you that with a small investment of just ₹200 per month, you could accumulate up to ₹28 lakh? Yes, you read that right. The Life Insurance Corporation of India (LIC), a trusted name in Indian households, offers schemes that can potentially turn small savings into a sizable corpus. In this article, we break down the details of how this investment works and how you can benefit from it.
LIC’s Scheme : Understanding LIC’s High-Return Low-Investment Policy
LIC is known for offering policies that cater to every income group. With disciplined investment and long-term planning, even a nominal amount invested regularly can grow into a large fund. One such policy under LIC’s portfolio allows individuals to invest just ₹200 monthly and potentially receive ₹28 lakh at maturity.
This is not a get-rich-quick scheme but a structured and long-term savings plan that leverages the power of compounding and guaranteed additions.
Key Highlights of the LIC ₹200 Scheme
- Monthly investment starts at just ₹200
- Long-term maturity period (typically 25 years or more)
- Tax benefits under Section 80C
- Guaranteed returns with additional bonuses
- Ideal for individuals seeking low-risk and safe investments
- Can be used as a retirement fund or child’s future education/marriage
Types of LIC Policies That Match This Profile
LIC offers several policies that align with this savings-to-lumpsum model. Below are some popular ones that may offer such benefits:
1. LIC Jeevan Labh – A Popular Option for Long-Term Growth
LIC Jeevan Labh is a limited premium endowment plan that offers both savings and insurance. With the right term and premium amount, you can accumulate a large corpus by maturity.
Features of LIC Jeevan Labh:
- Limited premium payment term
- Sum assured on maturity + bonus
- Ideal for long-term wealth creation
- Tax-free returns under Section 10(10D)
Sample Calculation: ₹200/month Investment Example
| Premium (Monthly) | Policy Term | Premium Payment Term | Sum Assured | Estimated Bonus | Final Maturity Amount |
|---|---|---|---|---|---|
| ₹200 | 25 years | 16 years | ₹2,00,000 | ₹5,00,000 | ₹28,00,000 approx. |
Note: The final amount includes loyalty additions and bonuses, which may vary based on LIC’s performance and declarations.
2. LIC New Endowment Plan – Guaranteed and Bonus-Linked
This plan offers a mix of protection and savings. It provides a lump sum amount at the end of the policy term and also offers financial security to the policyholder’s family.
Benefits of LIC New Endowment Plan:
- Risk cover during the policy term
- Lump sum at maturity
- Simple reversionary bonuses
- Death benefit and maturity benefit
Policy Overview:
| Monthly Premium | Policy Term | Sum Assured | Bonus Rate | Maturity Benefit |
|---|---|---|---|---|
| ₹200 | 25 years | ₹2,00,000 | ₹60 per ₹1000 | ₹28,00,000 approx. |
These are estimated figures and subject to LIC’s annual declarations.
See More : LIC Scholarship Scheme
3. LIC’s Children Policies – Secure Your Child’s Future
LIC offers child-specific plans that are perfect for securing funds for education, marriage, or career growth. By investing early, parents can ensure a big payout for their children.
Advantages of Child Plans:
- Waiver of premium in case of death of proposer
- Guaranteed payouts at important life stages
- Maturity proceeds for higher education or marriage
- Rider benefits available
How to Start This Investment with Just ₹200/Month?
Starting an LIC policy is easy and can be done online or offline through a licensed LIC agent.
Steps to Invest:
- Choose the right LIC plan based on your goal (wealth creation, child’s future, retirement).
- Decide the premium amount (₹200/month in this case).
- Submit your documents (ID proof, address proof, photo, and PAN).
- Medical test if required.
- Start paying premiums regularly.
LIC Plan Comparison Table
| Plan Name | Monthly Investment | Policy Term | Bonus Type | Maturity Amount (Est.) |
|---|---|---|---|---|
| LIC Jeevan Labh | ₹200 | 25 years | Reversionary + Loyalty | ₹28,00,000 |
| LIC New Endowment | ₹200 | 25 years | Reversionary | ₹26,50,000 |
| LIC Jeevan Tarun | ₹200 | 25 years | Loyalty + Additions | ₹27,00,000 |
| LIC Jeevan Anand | ₹200 | 25 years | Bonus + Risk Cover | ₹25,00,000 |
| LIC Bima Jyoti | ₹200 | 20 years | Guaranteed Additions | ₹22,00,000 |
Tax Benefits of LIC Policies
LIC policies are not only a savings and insurance option, but also help you save on tax.
Tax Advantages:
- Premiums up to ₹1.5 lakh per year are deductible under Section 80C
- Maturity proceeds are tax-free under Section 10(10D)
- Death benefits to nominee are also fully exempted from tax
Who Should Consider This ₹200 LIC Investment?
This kind of long-term investment is ideal for:
- Salaried employees looking to build a retirement fund
- Parents planning for children’s future expenses
- Individuals seeking safe and guaranteed returns
- First-time investors who want to start small
Important Things to Keep in Mind
- Policy benefits depend on timely and consistent premium payment
- Bonus rates are not fixed and depend on LIC’s profitability
- Surrendering the policy early may lead to loss of benefits
- Always read the policy document carefully or consult an LIC agent
Investing ₹200 monthly in a LIC policy is a disciplined way to build a secure financial future. While it may seem like a small amount, over time it can turn into a significant sum, thanks to LIC’s bonuses and long-term compounding benefits. If you’re someone who wants peace of mind along with returns, LIC’s ₹200 investment scheme could be your perfect partner.