Individual life insurance premiums, including all LIC individual plans, are GST-free from 22 September 2025. Here is what changed and what you save.
Quick answer
The best LIC plan depends on your goal. For pure protection, look at New Tech Term 954, Bima Kavach 887 or Jeevan Raksha 894. For savings, New Endowment 714 or Jeevan Labh 736. For a child, Amritbaal 774 or Jeevan Tarun 734. For income, Jeevan Utsav 771 or Bima Platinum 770. For pension, Jeevan Akshay VII 857 or New Jeevan Shanti 758. For market-linked growth, SIIP 752.
The best LIC plan in 2026 is the one that matches your goal, not the one with the biggest brochure. If you need to protect a family, a pure term plan comes first. If you want low-risk savings, an endowment or guaranteed income plan may fit. This guide groups the LIC plans on sale today by goal, explains who each one suits, and shows real premium numbers from our calculators.
Independent guide: we are not LIC or an LIC agent, and we earn nothing from any plan named here. Every plan below was listed on LIC’s website as on 30 September 2026. Premiums are estimates from our calculators, with no GST, because individual life insurance premiums are GST-exempt from 22 September 2025.
How to pick the best LIC policy for you
Before looking at plan names, answer three questions:
- Does anyone depend on your income? If yes, you need life cover of roughly 10 to 15 times your yearly income. Only a term plan gives that at an affordable premium.
- What is the money for, and when? A child’s college fee in 15 years, a pension from age 60 and a regular income stream are different goals. They suit different plans.
- How much risk can you take? Traditional LIC plans are low risk but typically return about 4–6% a year. Market-linked plans can do better over long periods but can also fall.
A common and sensible approach is to buy term cover first, then choose a savings plan or a separate investment for the rest. Keeping insurance and investment apart usually gives more cover and better long-term returns than one large endowment policy. We compare the two with real numbers in LIC term plan vs endowment plan.
Best LIC term plans (pure protection)
Term plans pay your family the sum assured if you die during the term. There is no maturity payout, which is why the premium is so low.
- New Tech Term 954: online-only term plan with cover from ₹50 lakh, entry age 18 to 65 and cover up to age 80. It suits salaried buyers who are comfortable buying online and want ₹50 lakh to a few crore of cover.
- Bima Kavach 887: launched in December 2025 for high covers, with a minimum basic sum assured of ₹2 crore and cover that can run to age 100. It suits high earners who want a large cover or protection deep into old age.
- Jeevan Raksha 894: on sale from 7 September 2026, with cover from ₹5 lakh to ₹24 lakh and entry age 18 to 45. It suits first-time buyers, smaller incomes and anyone who wants modest cover without a ₹50 lakh minimum.
Best LIC savings and endowment plans
Endowment plans combine life cover with a lump sum at maturity. They suit people who value discipline and safety over high returns.
- New Endowment Plan 714: a with-profit plan with terms of 12 to 35 years, premiums for the whole term, and sum assured plus bonuses at maturity. It suits steady earners who want a simple, long-term savings habit.
- Jeevan Labh 736: limited premium version, where you pay for 10, 15 or 16 years on a 16, 21 or 25-year policy. It suits people who want to finish paying early, for example before retirement.
- New Bima Jyoti 890: launched in August 2026, a non-par plan where the returns are fixed as guaranteed additions rather than bonuses. It suits buyers who want certainty and do not want to depend on future bonus declarations.
Best LIC child plans
Child plans build a fund for education or marriage and are usually taken in the parent’s name for the child’s future.
- Amritbaal 774: non-par child plan for children aged 30 days to 13 years. It adds a guaranteed ₹80 per ₹1,000 sum assured each policy year and pays out when the child is 18 to 25. It suits parents who want a known amount at a known age.
- Jeevan Tarun 734: with-profit plan for children up to 12, with cover until age 25 and a choice of yearly payouts from age 20 to 24. It suits parents who want money spread across college years.
- New Children’s Money Back 732: pays 20% of the sum assured at ages 18, 20 and 22, and the rest plus bonuses at 25. It suits parents planning for staged expenses.
Best LIC guaranteed income plans
These plans pay a regular income after a short premium-paying period.
- Jeevan Utsav 771: pay for 5 to 16 years, then receive 10% of the sum assured every year for life. It suits people who want a lifelong income stream and cover for life.
- Bima Platinum 770: new in September 2026, a limited premium savings plan with guaranteed additions and income payouts. It suits buyers who want fixed, predictable benefits over a medium term.
- Jeevan Umang 745: a with-profit whole life plan that pays 8% of the sum assured every year after the premium term until age 99, plus a lump sum at 100. It suits long-term planners who also want to leave money to heirs.
Best LIC pension plans
- Jeevan Akshay VII 857: an immediate annuity. You pay a lump sum once (minimum ₹1 lakh) and the pension starts straight away. It suits retirees with a lump sum, such as a gratuity or PF payout.
- New Jeevan Shanti 758: a deferred annuity. You pay once, wait 1 to 5 years, then receive a guaranteed pension for life. It suits people in their 40s and 50s who want to lock in a pension rate now.
Best LIC market-linked plans (ULIPs)
- SIIP 752: a regular premium ULIP with four fund choices, cover of 10 times the yearly premium and guaranteed additions from year 6. It suits disciplined investors with a horizon of 15 years or more.
- Nivesh Plus 749: a single premium ULIP for a lump sum. It suits someone who wants to invest a bonus or maturity amount in one go and stay invested for at least 10 years.
ULIPs have a 5-year lock-in, and fund value can fall as well as rise. Charges also reduce returns in the early years.
LIC plans compared at a glance
| Goal | Plan (no.) | Type | Premium payment | Main benefit |
|---|---|---|---|---|
| Protection | New Tech Term (954) | Pure term, online | Regular, limited or single | Sum assured on death, from ₹50 lakh |
| Protection | Bima Kavach (887) | Pure term | Regular, limited or single | Cover from ₹2 crore, up to age 100 |
| Protection | Jeevan Raksha (894) | Pure term | Regular, limited or single | Cover of ₹5 lakh to ₹24 lakh |
| Savings | New Endowment (714) | Endowment, with profit | Full term | Sum assured + bonuses at maturity |
| Savings | Jeevan Labh (736) | Endowment, with profit | 10, 15 or 16 years | Sum assured + bonuses at maturity |
| Savings | New Bima Jyoti (890) | Savings, non-par | Term minus 5 years | Sum assured + guaranteed additions |
| Child | Amritbaal (774) | Child, non-par | Limited or single | Guaranteed additions, payout at 18–25 |
| Child | Jeevan Tarun (734) | Child, with profit | Until child is 20 | Payouts from age 20 to 25 |
| Income | Jeevan Utsav (771) | Whole life, non-par | 5 to 16 years | 10% of sum assured yearly for life |
| Income | Jeevan Umang (745) | Whole life, with profit | 15 to 30 years | 8% of sum assured yearly to age 99 |
| Pension | Jeevan Akshay VII (857) | Immediate annuity | Single | Pension starts right away |
| Pension | New Jeevan Shanti (758) | Deferred annuity | Single | Pension after 1–5 years |
| Market-linked | SIIP (752) | ULIP | Regular | Fund value + guaranteed additions |
Worked example: what a 30-year-old gets for the money
Here is what our calculators show for a 30-year-old man (non-smoker for the term plans), paying yearly:
| Plan and choice | Yearly premium | What it buys |
|---|---|---|
| New Tech Term 954, ₹1 crore, 30 years | ₹11,837 | ₹1 crore cover to age 60, no maturity |
| Jeevan Raksha 894, ₹10 lakh, 20 years | ₹4,914 | ₹10 lakh cover to age 50, no maturity |
| New Endowment 714, ₹10 lakh, 20 years | ₹49,913 | About ₹18.20 lakh at 50 (assumed bonuses), about 5.4% a year |
| Jeevan Umang 745, ₹10 lakh, 20-year premium | ₹53,535 | ₹80,000 a year from age 50, about 4.9% a year |
| Jeevan Utsav 771, ₹10 lakh, 10-year premium | ₹1,10,761 | ₹1 lakh a year for life, from age 43 |
The contrast is clear. About ₹12,000 a year buys ₹1 crore of term cover, while ₹50,000 a year buys only ₹10 lakh of endowment cover. The endowment does return money at the end, but at roughly 5–6% a year, and the Plan 714 maturity figure assumes bonus rates of ₹40 per ₹1,000 a year plus a small final bonus, which LIC does not guarantee.
This is why “best” depends on the buyer. A young parent with a home loan needs the term plan first. A 45-year-old with enough cover and a low appetite for risk may be happy with Jeevan Labh 736 or Jeevan Utsav 771.
Mistakes to avoid
- Buying an endowment plan for life cover. ₹10 lakh of cover is rarely enough for a family. Get adequate term cover first.
- Chasing the “highest return” plan. Traditional plans are built for safety. If returns are the goal, look at market-linked options or keep insurance and investment separate.
- Ignoring tax rules. Premiums qualify for deduction under Section 80C (Section 123 under the Income-tax Act, 2025, from April 2026) only in the old tax regime. For non-ULIP policies issued from 1 April 2023, maturity proceeds are taxable if total yearly premiums across such policies exceed ₹5 lakh.
- Stopping premiums early. Surrendering a traditional plan in the first few years usually returns far less than you paid. Check the surrender value calculator before you decide.
Key takeaways
- There is no single best LIC policy. Choose by goal: protection, savings, child, income, pension or growth.
- For protection, New Tech Term 954, Bima Kavach 887 and Jeevan Raksha 894 give the most cover per rupee.
- For low-risk savings, New Endowment 714, Jeevan Labh 736 and New Bima Jyoti 890 are the core options.
- For retirement income, Jeevan Akshay VII 857 pays immediately and New Jeevan Shanti 758 pays after a deferment period.
- For pure returns, term cover plus a separate investment usually beats an endowment policy.
- Check that the plan number is still on sale and run your own numbers in our calculators before you buy.
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Frequently asked questions
Which is the best LIC plan in 2026?
No single plan is best for everyone. A pure term plan such as New Tech Term 954 gives the most cover per rupee. New Endowment 714 or Jeevan Labh 736 suit people who want guaranteed-style savings, and Jeevan Akshay VII 857 suits retirees who need a pension right away. Start from your goal, then compare premiums.
Which LIC policy is best for investment?
If returns matter most, a term plan plus a separate investment (PPF, mutual funds, NPS) usually beats an LIC endowment policy. Within LIC, SIIP 752 is the market-linked choice for long horizons, while New Endowment 714 or New Bima Jyoti 890 suit people who want low risk and accept returns of roughly 4–5.5% a year.
Which LIC policy is best for a child's education?
Amritbaal 774 adds guaranteed additions of ₹80 per ₹1,000 sum assured each year and pays out when the child is 18 to 25. Jeevan Tarun 734 and New Children's Money Back 732 are with-profit plans that pay part of the money in instalments during the college years. Add a premium waiver benefit rider where it is offered.
Which LIC plan gives the highest return?
Traditional LIC plans usually return about 4–6% a year on our calculator estimates; for example, New Endowment 714 works out to about 5.4% for a 30-year-old over 20 years at assumed bonus rates. Unit-linked plans like SIIP 752 can earn more over long periods but carry market risk and no guarantee.
Is LIC term insurance better than an endowment plan?
For protecting your family, yes. A 30-year-old man can get ₹1 crore of cover under New Tech Term 954 for about ₹11,837 a year by our estimate, while ₹10 lakh of endowment cover under Plan 714 costs about ₹49,913 a year. Endowment plans make sense only if you also want forced, low-risk savings.
Which LIC pension plan is best for retirement?
If you are retiring now and want income immediately, Jeevan Akshay VII 857 pays a pension from the next period after you invest. If retirement is a few years away, New Jeevan Shanti 758 lets you defer the pension by 1 to 5 years and locks in a guaranteed rate today.
Are these LIC plans still available?
Every plan in this guide was listed on LIC's website as on 30 September 2026. LIC withdraws and relaunches plans from time to time, so check the plan number with LIC or your agent before you sign the proposal form.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.