Why LIC Policies Are Still Trusted for Long-Term Savings
Life Insurance Corporation of India (LIC) is one of the most trusted financial institutions in the country. For decades, LIC has been offering policies that blend insurance protection + steady long-term savings + guaranteed maturity benefits.
In 2025, with increasing financial uncertainty, rising healthcare costs, and the need for future security, many people are again turning to safe and stable LIC savings plans.
If you’re planning:
- long-term wealth creation
- family financial protection
- tax benefits under Section 80C & 10(10D)
- guaranteed returns
- disciplined savings
…then LIC policies remain among the most reliable options.
In this article, we break down the Top 5 LIC Policies for Long-Term Savings in 2025—with benefits, maturity, who should buy them, and expert recommendations.
⭐ Top 5 LIC Policies for Long-Term Savings (2025)
These plans are selected based on:
- Long-term savings value
- Guaranteed maturity benefits
- Bonus rate performance
- Policyholder satisfaction
- Low risk + stable return combination
1. LIC New Jeevan Anand (Plan 915) – The All-Time Favourite
Why It’s the No. 1 Long-Term LIC Plan
LIC’s New Jeevan Anand is one of the most popular participating endowment plans. It provides lifetime risk coverage (even after maturity), guaranteed savings, and annual bonuses.
This means even after the policy matures and you receive the full payout, your life cover continues—this is extremely rare and valuable.
Key Features
- Life cover continues for a lifetime, even after maturity.
- Guaranteed return + annual bonus + final bonus (if declared).
- Loan facility available after 3 years.
- Death benefit remains even post-maturity.
Ideal For:
- Families wanting lifelong protection + savings
- Long-term wealth creation
- People who want guaranteed returns with low risk
Expected 20-year maturity value (example)
For a 30-year-old, ₹20 lakh sum assured:
➡ Total maturity value: ₹32–38 lakhs (depending on bonus rates)
2. LIC New Endowment Plan (Plan 914) – Best for Guaranteed Savings
A simple, safe, and guaranteed-return plan ideal for people who want disciplined long-term savings with insurance protection.
Key Features
- Combines savings + insurance
- Eligible for annual bonus
- Tax-free maturity under Section 10(10D)
- Very good for long-term disciplined investors
Ideal For:
- Salaried individuals
- Parents planning future funds for children
- Anyone wanting a low-risk savings instrument
Maturity Expectation (15–20 years)
₹10 lakh sum assured → ₹16–18 lakhs approx at maturity.
3. LIC Jeevan Labh (Plan 936) – High-Return Limited Premium Plan
LIC Jeevan Labh offers limited premium payment (10, 15, or 16 years) with long coverage (16–25 years), making it a high-value savings plan.
Why People Love This Plan
- Pay premiums only for a short time
- Get long-term insurance coverage
- High maturity due to strong bonuses
- Great for people who want savings without paying for long durations
Key Features
- Premium paying term is shorter
- Good for long-term wealth creation
- Bonuses increase maturity value significantly
Ideal For:
- Business owners
- Salaried professionals who want high returns
- Parents planning children’s education/marriage fund
Maturity Expectation
For ₹15 lakh sum assured:
➡ Possible maturity: ₹24–30 lakhs (based on policy term & bonus)
4. LIC Jeevan Umang (Plan 945) – Lifetime Income + Savings
LIC Jeevan Umang is a popular income + life cover plan. It gives you annual income every year after the premium-paying period and provides life cover up to age 100.
Key Features
- Coverage till age 100
- Annual guaranteed income (8% of sum assured)
- Maturity benefit + bonuses
- Excellent for retirement planning
Ideal For:
- People planning for retirement
- Those who want lifelong regular income
- Individuals wanting guaranteed returns + insurance
Example:
Sum Assured: ₹10,00,000
Annual Income: ₹80,000 per year (after premium paying term)
Maturity Value: Sum assured + bonuses + additional benefits
5. LIC New Children’s Money Back Plan (Plan 932) – Best for Child’s Future
For parents who want to build a future fund for education, marriage, or child expenses, this plan is one of LIC’s best long-term options.
Key Features
- Designed specially for children
- Money-back payouts at key milestones:
- Age 18
- Age 20
- Age 22
- Final maturity at age 25 with bonuses
- Low premium + good maturity value
Ideal For:
- Parents planning long-term financial security
- Education planning
- Marriage fund
Example Payout Structure
For ₹10 lakh sum assured:
- 20% at age 18 (₹2 lakh)
- 20% at age 20 (₹2 lakh)
- 20% at age 22 (₹2 lakh)
- Final maturity + bonuses at 25 (₹10–15 lakh expected)
⭐ Comparison Table: Top 5 LIC Long-Term Savings Policies
| LIC Plan | Type | High Savings? | Life Cover? | Best For |
|---|---|---|---|---|
| New Jeevan Anand | Endowment | ⭐⭐⭐⭐ | Lifetime | Family + lifetime cover |
| New Endowment Plan | Endowment | ⭐⭐⭐ | Yes | Guaranteed long-term savings |
| Jeevan Labh | Limited Premium | ⭐⭐⭐⭐ | Yes | High maturity wealth creation |
| Jeevan Umang | Whole Life | ⭐⭐⭐⭐ | Yes | Retirement income + lifelong cover |
| Children’s Money Back | Child Plan | ⭐⭐⭐ | Yes | Child’s future goals |
How to Choose the Best LIC Plan for Long-Term Savings
Use this quick framework:
✔ If you want lifetime cover + savings
→ Choose New Jeevan Anand
✔ If you want simple savings + guaranteed maturity
→ Choose New Endowment Plan
✔ If you want high maturity + short premium payment
→ Choose Jeevan Labh
✔ If you want lifetime income + retirement security
→ Choose Jeevan Umang
✔ If you want to save for your child’s future
→ Choose Children’s Money Back Plan
Tax Benefits You Get
All these LIC plans offer:
✔ Section 80C
Premiums up to ₹1,50,000 are tax-deductible.
✔ Section 10(10D)
Maturity amount is completely tax-free, subject to conditions.
Frequently Asked Questions (FAQs)
1. Which LIC policy gives the highest maturity value?
LIC Jeevan Labh usually gives higher maturity benefits due to strong bonus rates.
2. Which LIC plan is best for guaranteed returns?
LIC New Endowment Plan and Jeevan Anand provide strong guaranteed savings.
3. What is the best LIC plan for retirement?
LIC Jeevan Umang gives guaranteed income + lifelong cover + maturity benefits.
4. Which LIC plan continues cover after maturity?
LIC New Jeevan Anand gives life cover even after the policy matures.
5. Are LIC plans safe?
Yes. LIC is backed by the Government of India and is considered one of the safest long-term savings instruments.
Final Verdict — The Best LIC Policy for Long-Term Savings
All five policies are excellent, but based on long-term stability, savings power, and overall protection:
🥇 1. LIC New Jeevan Anand – Best Overall
🥈 2. LIC Jeevan Labh – Best for High Savings
🥉 3. LIC Jeevan Umang – Best for Retirement Income
Choose based on your:
- Age
- Income
- Financial goals
- Premium paying capacity
- Long-term expectations
Selina Milani is a Financial Analyst and content specialist who writes about personal finance, insurance, lifestyle habits, and emerging technologies like artificial intelligence. She blends analytical expertise with clear, engaging storytelling to simplify complex topics for everyday readers. Committed to accuracy and high editorial standards, she creates trustworthy, well-researched content that supports confident financial and lifestyle decisions.
