LIC’s New Single-Premium Plan: Deposit ~₹93,000, Get ~₹5.45 Lakh at Maturity
The Life Insurance Corporation of India has rolled out a new single-premium offering that blends the certainty of a fixed deposit with the protection and bonus potential of a life insurance endowment. Marketed as an “FD-like” LIC plan, it’s designed for conservative investors who want one-time investing, predictable outcomes, and the added security of life cover.
What the plan promises
At its core the scheme requires a single lump-sum payment and accumulates value over a long term through guaranteed benefits plus annual and terminal bonuses. LIC is pitching an example where an investment of roughly ₹93,000 can grow to about ₹5.45 lakh at maturity over a 25-year term. That projection illustrates how bonuses and a sum assured can produce materially higher long-term returns than a simple bank deposit — especially for investors focused on capital preservation.
Key features at a glance
- Single premium: Pay once, no recurring instalments.
- Minimum sum assured: Starts at ₹50,000; no stated maximum.
- Flexible age eligibility: Suitable for children, working adults and seniors; child policies fully vests at age eight.
- Policy term: Up to 25 years, suitable for long-range objectives.
- Bonuses: Annual additions plus a final bonus can significantly boost maturity value over two decades or more.
- Death benefit: Nominees receive the sum assured plus accumulated bonuses if the policyholder dies during the term — a protection layer absent in traditional FDs.
Why it’s being compared to an FD
The comparison to fixed deposits comes from the plan’s simplicity: a single upfront deposit, no active management, and a fixed maturity horizon. Unlike bank FDs, however, LIC’s product adds life insurance and bonus accumulation. For risk-averse savers who want more than nominal interest — and who value government-backed credibility — this hybrid model can be an attractive alternative.
Who should consider it
- Parents seeking a long-term corpus for children’s education or marriage.
- Retirees or pre-retirees wanting a predictable, low-volatility vehicle.
- Lump-sum investors looking for a combination of savings plus life cover without market exposure.
Caveats and final thoughts
Returns depend on LIC’s declared bonuses and specific plan terms; projections like the ₹5.45 lakh example are illustrative, not guaranteed. Prospective buyers should review the official policy booklet, check precise eligibility and premium requirements, and consult a financial advisor to compare this product against bank FDs and other fixed-income options.
