India’s most trusted life insurer, Life Insurance Corporation of India, has introduced a new savings plan that is being widely discussed as a fixed-deposit-like option for people looking for secure and guaranteed returns. The plan focuses on capital safety, steady growth, and long-term financial security, making it attractive for conservative investors and families planning for future needs.
With rising uncertainty in markets and changing interest rates, many people are shifting back toward guaranteed return products. LIC’s new offering is designed to provide predictable maturity benefits along with life insurance protection.
What Is the LIC Fixed Deposit-Style Scheme
This new LIC plan is not a traditional bank fixed deposit, but a guaranteed savings or insurance-linked plan that works in a similar way. You invest a fixed amount either as a lump sum or through regular premiums, and the policy provides a guaranteed maturity amount at the end of the term.
The main goal of the plan is to offer stable growth, life cover, and tax benefits under a single product. It is especially suitable for people who want safe returns without exposure to market risks.
Key Features of the New LIC Plan
- Guaranteed maturity benefit at the end of the policy term
- Life insurance cover during the policy period
- Flexible premium payment options
- Suitable for both short-term and long-term goals
- Tax benefits under applicable income tax rules
- Loan facility available after a certain period
Investment Options and Policy Terms
The scheme offers multiple tenure options, allowing investors to choose a duration that matches their financial goals. Investors can select policy terms such as 5, 10, 15, or 20 years, depending on the specific variant of the plan.
Premium payments can be made monthly, quarterly, half-yearly, yearly, or as a single payment. This flexibility makes the scheme suitable for salaried individuals, self-employed persons, and retirees.
Expected Returns and Maturity Benefits
The plan focuses on guaranteed returns rather than market-linked gains. The maturity amount depends on the premium paid, policy term, and the age of the policyholder at entry.
| Investment Term | Monthly Investment | Estimated Maturity Value |
|---|---|---|
| 5 years | ₹3,000 | ₹2.2 – ₹2.5 lakh |
| 10 years | ₹3,000 | ₹4.5 – ₹5.2 lakh |
| 15 years | ₹3,000 | ₹8 – ₹9.5 lakh |
| 20 years | ₹3,000 | ₹12 – ₹15 lakh |
These figures are only indicative and may vary based on policy conditions and bonus declarations.
Who Should Consider This Scheme
This LIC plan is ideal for individuals who prefer safe and predictable investments. It suits:
- Salaried employees seeking secure long-term savings
- Parents planning for children’s education or marriage
- Retirees looking for guaranteed returns
- First-time investors who want low-risk financial products
- People who want insurance and savings in one plan
Tax Benefits Under the Scheme
Policyholders may get tax benefits under existing income tax rules. Premiums paid toward the policy may qualify for deductions, and maturity proceeds could be tax-free if the policy meets prescribed conditions.
Investors should check the latest tax rules or consult a financial advisor to understand the exact benefits.
How to Apply for the LIC Scheme
You can apply for the plan through:
- LIC branch offices
- Authorized LIC agents
- LIC’s official online portal
Applicants need to provide basic documents such as identity proof, address proof, age proof, and bank account details.
Why This Plan Is Gaining Popularity in 2026
In recent years, many investors have become cautious about market volatility. Guaranteed return products are again gaining attention because they provide stability and peace of mind.
LIC’s reputation, government backing, and long-standing trust among Indian households are key reasons why such schemes attract strong interest.
Conclusion
LIC’s new fixed deposit-style scheme offers a combination of guaranteed returns, life insurance coverage, and flexible investment options. It is designed for people who value safety, stability, and long-term financial planning. While returns may be lower than high-risk investments, the assurance of capital protection and predictable maturity makes it a strong option for conservative investors.
Disclaimer
This article is for informational purposes only. Scheme features and returns may change, so always check official LIC documents before investing.
FAQs
Is this LIC plan the same as a bank fixed deposit
No. It is an insurance-linked savings plan that offers guaranteed returns along with life cover.
What is the minimum investment required
The minimum premium depends on the chosen policy variant and payment mode.
Are returns guaranteed in this scheme
Yes, the plan focuses on guaranteed benefits, though exact maturity values depend on policy terms.
Can I withdraw money before maturity
Yes, a loan or surrender option may be available after a specific lock-in period.