Choosing an LIC policy is a 15-25 year commitment. With so many plan options — Endowment, Jeevan Anand, Money Back, Jeevan Labh, Jeevan Umang, single premium, limited premium, regular premium — it's easy to feel overwhelmed. This guide gives you a plain-English, side-by-side comparison of every major LIC plan available in 2026, so you can confidently pick the one that actually fits your goal.
Quick Summary: Which LIC Plan Is Best For You?
| Your Goal | Recommended LIC Plan | Plan Number |
|---|---|---|
| Long-term wealth + life cover | LIC New Jeevan Anand | 715 |
| Simple endowment with savings | LIC New Endowment Plan | 714 |
| Periodic income (every 5 yrs) + maturity | LIC New Money Back (20 yr) | 720 |
| Long-term periodic income (every 5 yrs for 20 yrs) | LIC New Money Back (25 yr) | 721 |
| Family income benefit on death | LIC Jeevan Lakshya | 733 |
| Limited premium + large maturity | LIC Jeevan Labh | 736 |
| Annual income + whole life | LIC Jeevan Umang | 745 |
| One-time investment + lifelong cover | LIC Jeevan Utsav SP | 883 |
| Pure protection (lowest premium) | LIC term plans (Digi Term, Yuva Term) | 875, 876 |
1. LIC New Jeevan Anand (Plan 715) — Best Overall for Most People
What it is: An endowment + whole life plan. You pay premiums for the policy term (say 20 years), get a maturity benefit at the end, AND your family continues to receive the Sum Assured if you die after maturity — up to age 100.
Best for: People who want lifelong life cover and don't want to buy a separate term plan later.
Pros:
- Maturity benefit + lifelong cover in one plan.
- Bonus + FAB added every year.
- Loan facility after 3 years.
- Tax-free maturity under 10(10D).
Cons:
- Returns (CAGR) typically 3.5-4.5% — below equity mutual funds.
- Higher premium than pure endowment (because of the lifelong cover feature).
👉 Full review of LIC Plan 715 →
2. LIC New Endowment Plan (Plan 714) — Best for Simple Savings + Cover
What it is: A classic endowment plan. You pay premiums for the term, get Sum Assured + bonus on maturity, and full Sum Assured + bonus to family on death during the term.
Best for: People who only need cover for the policy term and want the lowest premium among endowment plans.
Pros: Lower premium than 715, simple structure, no lifelong cover commitment.
Cons: No life cover after maturity, low returns.
👉 Full review of LIC Plan 714 →
3. LIC New Money Back Plan 20 Years (Plan 720) — Best for Periodic Income
What it is: A money-back plan that returns 20% of Sum Assured at years 5, 10 and 15, with the remaining 40% + bonus paid at maturity (year 20).
Best for: Parents saving for children's education or marriage (the 5/10/15-year payouts align with major milestones).
Pros: Regular liquidity, limited premium (PPT = 15 years), tax-free payouts.
Cons: Survival benefits reduce the Sum Assured component at maturity. Final maturity is lower than Plan 714 for the same SA and premium.
👉 Full review of LIC Plan 720 →
4. LIC Jeevan Labh (Plan 736) — Best for Limited Premium + Large Maturity
What it is: A limited-premium endowment plan. Pay for 10, 15 or 16 years, but enjoy a 16, 21 or 25-year policy term respectively. The maturity value is significantly higher than a regular endowment because you pay premiums for a shorter period.
Best for: People with limited earning years left (e.g., age 40+ who want to retire debt-free) or those who want to front-load their premiums.
Pros:
- Significantly lower total premium outflow than regular endowment.
- Larger maturity due to shorter PPT.
- Bonus and FAB applicable.
Cons: Annual premium is higher (because you pay it for fewer years). Limited flexibility.
5. LIC Jeevan Umang (Plan 745) — Best for Annual Income + Whole Life
What it is: A money-back plus whole-life plan. Get 8% of Sum Assured as annual income from the end of premium paying term till maturity, plus full Sum Assured + bonus on maturity, plus life cover up to age 100.
Best for: People who want regular annual income during retirement while keeping life cover alive.
Pros: Annual income, lifelong cover, bonus on top.
Cons: Premium is on the higher side; the maturity payout is the remaining SA (not the full SA).
6. LIC Jeevan Utsav Single Premium (Plan 883) — Best for One-Time Investment
What it is: A single-premium endowment + whole-life plan. Pay once, get guaranteed additions every year, plus Sum Assured + bonus + FAB at maturity, plus life cover up to age 100.
Best for: People with a lump sum (e.g., retirement benefits, property sale) who want guaranteed returns with life cover.
Pros: One-time payment, guaranteed additions, lifelong cover.
Cons: Returns are usually lower than what you could earn by investing the lump sum in a balanced mutual fund portfolio.
How to Pick the Right Plan: A 4-Step Framework
- Define your goal — what is the money for? (retirement, child's education, marriage, family protection)
- Set the time horizon — when do you need the money? (10, 15, 20, 25 years)
- Decide on liquidity needs — do you need periodic payouts or just a lump sum at the end?
- Check the premium-to-income ratio — your total LIC premium should not exceed 10-15% of your annual income.
Common Mistakes to Avoid
- ❌ Buying LIC as an "investment" — it is primarily insurance, not an investment. Equity mutual funds are better for wealth creation.
- ❌ Choosing the wrong Sum Assured — most people under-insure. Use our HLV Calculator to find the right cover.
- ❌ Ignoring riders — AD&DB and Term Rider add real value for a small extra premium.
- ❌ Not reviewing after 5-10 years — your income, family size and goals change. Review your cover every 5 years.
Conclusion
There is no single "best" LIC plan — the best plan is the one that fits your goal, time horizon and risk profile. For most people looking for lifelong cover, LIC New Jeevan Anand (715) is a strong all-rounder. For those who only need cover for the term and want a lower premium, Plan 714 works. And for parents saving for kids, Plan 720 is hard to beat.
Use our LIC Premium Calculator to get a free instant estimate for any of these plans.