Best LIC Insurance Policies in 2025
Life Insurance Corporation of India (LIC) remains the most trusted name in the Indian insurance industry. With a legacy of more than 65 years, backed by government ownership and a massive claim settlement network, LIC policies continue to be the first choice for crores of Indians in 2025.Which is the best LIC Insurance policy in 2025.
But with over 25+ active policies – ranging from term insurance to endowment, pension, and money-back plans – the biggest question remains:
Which is the best LIC insurance policy in 2025?
The answer depends on your age, income, financial goals, risk appetite, and family responsibilities.
- The top LIC policies in 2025 with features & benefits
- Real customer experiences – positive and negative
- Pros & cons of each policy
- A comparison table for quick decision-making
- A step-by-step buying guide
- FAQs about LIC in 2025
Why Choose LIC in 2025?
Before we dive into individual plans, here’s why LIC continues to dominate the Indian insurance market despite competition from private players like HDFC Life, ICICI Prudential, and TATA AIA:
Government-backed security – LIC policies are considered one of the safest financial instruments in India.
High claim settlement ratio (98.52% as per IRDAI 2023–24) – among the best in the industry.
Widest branch network – Easy to find LIC offices and agents across urban and rural India.
Diverse plans – From risk-only term policies to retirement annuity schemes.
Trust factor – Generations of Indian families continue to depend on LIC.
Top 5 Best LIC Insurance Policies in 2025
After analyzing policy features, IRDAI data, and real customer experiences, here are the 5 best LIC policies in 2025:
1. LIC Tech-Term Plan (Pure Protection Term Insurance)
- Type: Online-only term insurance (non-linked, pure risk cover)
- Best For: Sole breadwinners seeking high life cover at low premiums
Features & Benefits:
- Life cover of up to 20–25 times annual income.
- Premiums start as low as ₹8,000/year for ₹1 Cr cover (age 30).
- Riders available: Accidental death, critical illness, waiver of premium.
- Death benefit payout options – lump sum or installments (5/10/15 years).
- Online purchase, no agent involvement (saves cost).
Customer Experience:
✔ Young salaried professionals found this plan cheaper than private insurers.
✘ Some older customers (40+) reported higher premiums compared to HDFC Life/ICICI Prudential.
Pros:
- Cheapest LIC policy for pure protection
- Flexible death benefit options
- Online convenience
Cons:
- No maturity benefit (only death cover)
- Not suitable for those looking for savings
2. LIC Jeevan Labh (Limited Premium, Endowment Plan)
- Type: Non-linked, with-profit savings + protection plan
- Best For: People looking for both insurance + long-term savings
Features & Benefits:
- Premium payment limited to 10/15/16 years.
- Maturity available at 16/21/25 years.
- Maturity benefit includes Sum Assured + Bonus + Final Addition Bonus.
- Loan facility available.
- Tax benefits under 80C and 10(10D).
Example:
Invest ₹1.5 lakh annually for 16 years → Get around ₹70–80 lakhs (including bonuses) after 25 years.
Customer Experience:
✔ Customers liked assured maturity and survival benefits.
✘ Some felt returns (5–6%) were lower than mutual funds.
Pros:
- Good for long-term disciplined savings
- Life cover + bonuses
- Flexible maturity options
Cons:
- Lower returns vs market-linked funds
- Higher premium compared to term plans
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3. LIC Jeevan Umang (Whole Life + Pension-like Plan)
- Type: Non-linked, with-profit whole life assurance plan
- Best For: Retirement planning and lifelong cover
Features & Benefits:
- Provides annual survival benefit (8% of Sum Assured) after premium term.
- Lifetime coverage up to age 100.
- Lump sum maturity benefit at policy closure or on death.
- Can function like a pension plan with guaranteed yearly payouts.
Customer Experience:
✔ Popular among retirees who want regular income after retirement.
✘ Some customers said payouts were modest vs annuity products like Jeevan Shanti.
Pros:
- Lifetime coverage (up to 100 years)
- Annual survival benefits
- Tax-free payouts
Cons:
- Requires long-term commitment
- Lower yield compared to private pension funds
4. LIC New Jeevan Anand (Combination of Endowment + Lifetime Risk Cover)
- Type: Endowment plan with lifetime coverage
- Best For: People wanting maturity benefit + lifelong risk cover
Features & Benefits:
- Dual benefit: Lump sum at maturity + lifelong insurance.
- Participates in LIC profits (bonuses included).
- Loan facility available.
- Premium paying terms: 15–35 years.
Customer Experience:
✔ Families liked the lifelong insurance even after maturity payout.
✘ Complaints included complex bonus calculations and moderate returns.
Pros:
- Unique combination of investment + lifetime protection
- High trust value
- Loan facility
Cons:
- Higher premium than Jeevan Labh
- Complex structure for beginners
5. LIC Jeevan Shanti (Pension/Annuity Plan)
- Type: Single premium, immediate/deferred annuity
- Best For: Retirement income seekers
Features & Benefits:
- One-time premium → lifelong annuity.
- Choice of Immediate or Deferred Annuity.
- Nine different annuity options.
- Guaranteed annuity rates fixed at purchase.
- Loan and surrender facility after 1 year.
Customer Experience:
✔ Retired policyholders appreciated guaranteed lifelong income.
✘ Some younger customers felt returns were conservative vs mutual fund SIPs.
Pros:
- Reliable retirement income
- Customizable payout options
- Guaranteed annuity rates
Cons:
- Best suited only for retirees or near-retirees
- Not ideal for wealth creation
Comparison Table: Best LIC Policies in 2025
| Policy Name | Type | Best For | Coverage Age | Key Benefits | Drawbacks |
|---|---|---|---|---|---|
| Tech-Term | Term Insurance | Pure protection | Up to 80 yrs | ₹1 Cr cover at low premium | No maturity benefit |
| Jeevan Labh | Endowment Plan | Protection + savings | Up to 70 yrs | Maturity with bonuses | Returns 5–6% only |
| Jeevan Umang | Whole Life Plan | Retirement + lifetime cover | Up to 100 yrs | 8% survival benefit yearly + maturity | Long-term lock-in |
| New Jeevan Anand | Endowment + Whole life | Savings + lifelong insurance | Lifetime | Lump sum + lifelong risk cover | High premium |
| Jeevan Shanti | Pension Plan | Retirement income | Lifetime | Immediate/Deferred annuity | Returns conservative |
Real Customer Insights
- Positive Reviews:
- “LIC gives me peace of mind because it is government-backed.”
- “My Jeevan Labh plan ensures my kids will have money for education.”
- “Jeevan Umang feels like a pension plan with yearly income.”
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- Negative Reviews:
- “Policy returns are too low compared to mutual funds.”
- “Policy documents are complicated to understand.”
- “Agent promised higher returns, but actual maturity value was lower.”
Buying Guide: How to Select the Best LIC Policy
- Define Your Goal
- Family protection → Tech-Term
- Child education & marriage → Children’s Money Back
- Retirement income → Jeevan Umang / Jeevan Shanti
- Wealth + protection → Jeevan Labh / Jeevan Anand
- Check Your Budget
- Term plans cost as low as ₹8,000/year.
- Endowment/whole-life policies need higher premiums.
- Don’t Mix Insurance & Investment
- Use term insurance for protection.
- Use SIPs, mutual funds, or PPF for wealth creation.
- Buy Directly Online
- Saves commission
- Ensures clarity in terms
- Use Free-Look Period
- LIC gives 15 days to cancel after receiving policy documents.
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FAQs – Best LIC Policies in 2025
Q1. Which LIC policy is best for retirement?
👉 Jeevan Umang (lifetime cover + annual payout) and Jeevan Shanti (pension/annuity).
Q2. Which LIC plan is best for children?
👉 LIC New Children’s Money Back Plan – payouts at key education stages.
Q3. Which LIC policy is best for high returns?
👉 Jeevan Labh and New Jeevan Anand (5–6% safe returns with bonuses).
Q4. Is LIC Tech-Term better than private term insurance?
👉 LIC Tech-Term has slightly higher premiums but better trust and claim settlement.
Q5. Can I surrender my LIC policy anytime?
👉 Yes, after 3 years (for most policies). Surrender value depends on policy term and premiums paid.
Final Verdict – Which LIC Policy Should You Choose in 2025?
- For pure life protection: Tech-Term Plan
- For savings + protection: Jeevan Labh
- For retirement + lifelong income: Jeevan Umang / Jeevan Shanti
- For savings + lifetime cover: New Jeevan Anand
Pro Tip: Don’t depend only on your LIC agent’s recommendation. Always compare, read the brochure carefully, and align the policy with your financial goals.
