When share markets turn volatile, investors often move away from equities. At the same time, traditional savings options like fixed deposits fail to generate attractive returns. In such a scenario, many people start looking for safer yet rewarding alternatives to build a substantial corpus over time. One such option is investing in schemes offered by the Life Insurance Corporation of India (LIC). With a relatively small starting investment, sometimes as low as around Rs 166 per day, you can gradually build a large fund for long-term goals like retirement.
What is the scheme
This LIC policy is called the Jeevan Labh Scheme, one of LIC’s most popular offerings. It not only provides tax benefits on your investment but also carries minimal risk, as it is backed by the government. The scheme comes with a ‘limited premium’ feature, which means you do not have to pay premiums for the entire policy term.
How much you need to invest
Under this scheme, you would need to invest around Rs 166 per day, which comes to approximately Rs 60,590 per year. If you continue this investment for 16 years, your total contribution would amount to nearly Rs 9.69 lakh, helping you build a substantial corpus over time.
The corpus
If you are 30 years old and opt for this policy with a 25-year term, you would need to pay the premium for only about 16 years. Under this plan, the sum assured would be around Rs 10 lakh, while the annual premium would be approximately Rs 60,000 to Rs 65,000.
How will you get Rs 20 lakh
Under this policy, the guaranteed sum assured is Rs 10 lakh. In addition to this, the company offers a bonus component, which can range between Rs 8 lakh to Rs 10 lakh over the policy term. When you combine the guaranteed amount with the accumulated bonus, the total maturity amount comes to around Rs 20 lakh.
Guaranteed returns
One of the biggest benefits of having an LIC policy is that the returns are guaranteed, as they are backed by the government. LIC is a reputed player in the savings and investment space. However, if you are planning to buy or invest in any scheme, it is advisable to consult a certified financial planner or an expert.