LIC FD Plan : Looking for a reliable monthly income without taking high risks? LIC’s Fixed Deposit (FD)-like plans are gaining popularity among investors looking for stability and consistent payouts. With the promise of monthly returns like ₹10,000, these plans offer a secure way to grow savings while ensuring regular income. Let’s dive deep into how this works, who can benefit, and why it’s becoming a top choice in 2025.
What Is the LIC FD Plan?
While LIC doesn’t offer traditional fixed deposits like banks, it provides life insurance cum investment products that function similarly to FDs. These plans offer guaranteed returns, tax benefits, and, in some cases, a monthly income stream – much like a fixed deposit.
One of the standout features of these plans is the Monthly Income Scheme (MIS) format, where investors can receive a fixed monthly amount, such as ₹10,000, after an initial lump sum investment. It’s ideal for retirees, homemakers, and those looking for passive income.
Key Features of LIC FD-Like Monthly Income Plans
- Guaranteed monthly income
- Low risk and backed by a government-owned insurer
- Suitable for long-term financial planning
- Tax benefits under Section 80C (on premiums) and tax-free returns under Section 10(10D)
- Can be tailored for 10-20 year terms
- Returns higher than traditional bank FDs in some cases
- Offers life coverage along with returns
How Much Do You Need to Invest to Get ₹10,000 Monthly?
To understand how much one needs to invest for a ₹10,000 monthly payout, let’s consider LIC’s Jeevan Akshay VII and LIC’s New Jeevan Shanti – two popular options offering annuity and deferred annuity models.
Here’s an illustrative table:
| Plan Name | Investment Type | Payout Type | Investment Needed (Approx) | Monthly Payout | Term | Age Eligibility |
|---|---|---|---|---|---|---|
| Jeevan Akshay VII | Single Premium | Immediate | ₹18,00,000 | ₹10,000 | Lifetime | 30-85 years |
| New Jeevan Shanti | Single Premium | Deferred | ₹14,00,000 (after deferral) | ₹10,000 | Lifetime | 30-85 years |
| LIC Monthly Income Plan | Regular Premium | Post Maturity | ₹5,000/month for 15 yrs | ₹10,000 | 20 years | 18-55 years |
| PMVVY (Govt-backed, not LIC) | Single Premium | Immediate | ₹15,00,000 | ₹10,000 | 10 years | 60+ years |
*Note: These are approximate calculations and actual values may vary based on age, gender, and plan selection.
See More : – SBI’s Fixed Income Plan for Seniors
Who Should Invest in LIC’s FD-Type Plans?
These plans are ideal for:
- Retired individuals seeking monthly income
- Housewives looking for low-risk financial stability
- Parents planning for children’s education or marriage
- Salaried individuals planning for long-term passive income
- Risk-averse investors who prefer guaranteed returns
LIC FD Plan vs Bank FD – A Quick Comparison
Here’s how LIC’s plans stand up against regular fixed deposits:
| Feature | LIC FD-Like Plans | Bank Fixed Deposits |
|---|---|---|
| Returns | Moderate to high (4%-6.5%) | Moderate (3.5%-6%) |
| Safety | High (Govt. backed LIC) | High (DICGC up to ₹5L) |
| Tax Benefits | Yes | Partial (interest taxable) |
| Liquidity | Low | High (with premature penalty) |
| Life Cover | Yes | No |
| Monthly Income Option | Yes | Limited |
Benefits of Getting ₹10,000 Monthly from LIC Plan
- Predictable income source
- Safe and secure investment for long-term peace of mind
- Protects against market volatility
- Encourages disciplined saving
- Ideal for retirement and non-working dependents
Things to Consider Before Investing
Before locking in your money, consider these points:
- Entry age and tenure of the policy
- Fixed vs deferred annuity payouts
- Tax implications on maturity proceeds
- Surrender value and withdrawal options
- Inflation impact on long-term fixed income
- Rider options for enhanced protection
Real-Life Example
Let’s assume Mr. Sharma, aged 60, invests ₹18,00,000 in LIC Jeevan Akshay VII. Based on the annuity rates, he gets ₹10,000 monthly for life. He doesn’t need to worry about managing market-linked returns or stock performance. This makes it a hassle-free and guaranteed source of income.
How to Invest in LIC’s Monthly Income Plans
- Visit the nearest LIC branch or meet a certified LIC agent
- Compare plan options with detailed projections
- Choose annuity type (immediate or deferred)
- Submit documents: KYC, age proof, PAN, and address proof
- Make payment (single premium or regular)
- Receive annuity schedule and policy documents
LIC’s FD-type monthly income plans provide a unique combination of security, guaranteed returns, and life cover. For anyone seeking a stable monthly income, especially after retirement, these plans are a worthy consideration. Compared to traditional FDs, they offer the added advantage of tax benefits and life protection, making them a holistic financial planning tool.
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