In recent headlines, there’s been a buzz around LIC’s new 5-year plan that claims to offer a return of Rs 75,000 on an investment of just ₹12,000. Sounds too good to be true? Let’s break it down and explore whether this is a genuine opportunity for investors or simply a misunderstood claim.
LIC (Life Insurance Corporation of India) is one of the most trusted names when it comes to savings-cum-insurance plans in India. Over the years, LIC has offered reliable schemes that combine security, decent returns, and insurance benefits. However, when numbers like “₹12,000 turns into ₹75,000 in 5 years” start circulating, it’s important to look deeper.
LIC’s New 5 Year Plan
| Feature | Details |
|---|---|
| Plan | LIC 5-Year Short-Term Investment cum Insurance Plan |
| Investment Amount | Rs 12,000 (Rs 2,400 per year or Rs 200 per month) |
| Maturity Amount Claimed | Rs 75,000 |
| Maturity Period | 5 Years |
| Estimated Return Rate | Implied ~35% CAGR (unlikely for LIC traditional plans) |
| Reality Check | No official plan offers this return on this investment |
The idea that you can invest just Rs 12,000 and receive Rs 75,000 in 5 years sounds attractive, but it simply doesn’t hold up against the math or LIC’s official offerings. LIC remains a trusted institution for life insurance and stable returns, but not a source for ultra-high returns. For smart investment, always cross-check viral claims and rely on verified data, official websites, and financial advisors.
What Is This LIC 5-Year Plan About?
Several social media posts and forwarded messages claim that a new LIC plan allows an investor to deposit just Rs 12,000 over five years and receive Rs 75,000 at maturity. On the surface, this suggests an incredible return of over 525% in just five years. But is it financially and practically feasible?
Let’s Do the Math
If you invest Rs 2,400 annually for 5 years, your total investment is Rs 12,000. To get Rs 75,000 at maturity, LIC would need to offer an annual return (Compound Annual Growth Rate or CAGR) of over 35%, which is far beyond the scope of traditional insurance-cum-savings plans.
To put this in perspective:
- LIC’s Jeevan Labh, a popular endowment plan, offers returns in the range of 6% to 7% CAGR.
- PPF (Public Provident Fund) offers 7.1% interest as of April 2025
- Mutual funds might deliver 12% CAGR on average but come with market risks.
So, a guaranteed return of 35% CAGR from LIC is not realistic.
see also: Post Office PPF Scheme: become a millionaire in 25 years
What LIC Plans Actually Offer
1. LIC Jeevan Labh (Plan 936)
- Policy Term: 16 to 25 years
- Premium Paying Term: Shorter than policy term
- Maturity Benefit: Sum assured + bonus + final additional bonus
- Returns: Around 6-7% CAGR
2. LIC New Jeevan Anand (Plan 915)
- Provides both maturity and whole life insurance benefits
- Returns range from 5.5% to 6.5% CAGR over a long horizon
3. LIC Bima Jyoti
- Offers guaranteed additions of Rs 50 per Rs 1,000 sum assured
- Returns closer to 5.5%-6%
These are safe, long-term plans. LIC focuses on capital protection and life cover, not high-returns like mutual funds.
Could the Rs 75,000 Return Be Misunderstood?
Yes. The confusion might come from misinterpreting maturity benefits that include bonuses, or from child plans or pension schemes where the maturity amount is quoted but the premium is much higher than Rs 12,000.
Another possibility is group micro-insurance schemes, where nominal premiums are paid annually but the insurance coverage (not guaranteed return) is Rs 75,000. These include:
- LIC Bhagya Lakshmi
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
These do not give back Rs 75,000 but rather provide insurance cover of Rs 75,000 or Rs 2 lakh upon death.
How to Verify LIC Plans and Returns
It is important to:
- Visit the official LIC website
- Consult with authorized LIC agents
- Use LIC premium and maturity calculators available on the official portal
- Stay away from viral messages or unverified social media claims
Practical Advice for Investors
If You Want Safety + Moderate Returns:
- Consider LIC Jeevan Labh or Jeevan Anand
- Post Office Time Deposit (TD) or National Savings Certificate (NSC) are also good alternatives
If You Want High Returns:
- Look at Mutual Funds via SIPs for long-term goals
- Start with Rs 1,000 per month in an equity mutual fund
If You Want Short-Term Insurance:
- Use PMJJBY or PMSBY for insurance cover at low cost
see also: How Much Interest Will You Get on Deposits of ₹10,000 to ₹50,000?
LIC’s New 5 Year Plan FAQs
1. Does LIC have a plan that gives Rs 75,000 on Rs 12,000 investment?
No, LIC does not officially offer such a plan. The return rate implied is far higher than any traditional LIC plan.
2. What are the best 5-year LIC plans?
LIC doesn’t usually offer 5-year maturity plans. Most plans are for longer terms (10-25 years), such as Jeevan Labh and Bima Jyoti.
3. Is there any guaranteed return plan in LIC?
Yes, plans like LIC Bima Jyoti and Dhan Vriddhi offer guaranteed additions but returns are around 5-6% CAGR.
4. What if I want high returns in 5 years?
Explore mutual funds, RBI bonds, or small-cap SIPs. LIC is not designed for aggressive wealth building in short spans.
5. Where can I find LIC’s verified information?
Always refer to the official LIC website or speak to a certified LIC agent.
