Life Insurance Corporation of India (LIC) is trusted by millions for its reliable insurance and investment options. However, most people do not optimize their LIC policies to the fullest potential. In this blog, we share expert tips and techniques on how to get maximum returns from LIC policies and build long-term wealth.

 Why Focus on LIC Returns?

LIC offers a wide range of policies — endowment, ULIPs, money-back, pension, and term plans. While the primary goal is insurance, many policies offer investment benefits. With a strategic approach, you can increase your returns significantly.

Expert Tips to Maximize LIC Policy Returns

Let’s break down the top strategies experts recommend to boost your returns from LIC policies.

1. Choose the Right Policy Based on Your Goal

 Match Policy with Purpose

• • If your goal is long-term wealth, go for endowment or ULIP plans.

• • For pure protection, choose term insurance (though it doesn’t give returns).

• • For retirement planning, go with pension policies like Jeevan Akshay.

Example:

A 30-year-old investor planning for retirement at 60 may benefit more from LIC Jeevan Labh than from a short-term policy.

 2. Start Early and Stay Consistent

The earlier you start your LIC investment, the higher your returns, due to compounding. Also, consistent premium payment ensures uninterrupted bonus accrual and maturity benefits.

 Expert Advice:

Start your LIC policy in your 20s or early 30s. You’ll benefit from lower premiums and longer policy terms.

 3. Opt for Long-Term Policies

Why Long-Term Pays More?

Longer policy terms often result in higher loyalty additions, final bonuses, and accumulated returns. LIC rewards long-term policyholders more generously.

 4. Choose Participating Policies

Participating (with-profit) policies are eligible for annual bonuses declared by LIC, which add to your corpus. Non-participating policies don’t offer this benefit.

 Bonus Types Include:

• • Reversionary Bonus

• • Final Addition Bonus

• • Loyalty Additions
    
    

 5. Consider Riders for Extra Protection

While riders like accidental death benefit or critical illness rider may not directly boost returns, they protect your investment by safeguarding your family against uncertainties.

 6. Avoid Policy Surrender or Early Withdrawal

Surrendering your LIC policy early may result in low surrender value and loss of accumulated bonuses.

Pro Tip:

Stick to the full tenure. Use policy loans or partial withdrawal options in emergencies instead of surrendering.

 7. Diversify with ULIP Plans

ULIP plans like LIC’s New Endowment Plus allow investment in equity or debt markets. They offer market-linked returns with insurance coverage.

 ULIP Strategy

• • Choose equity funds if you are young and can take risks

• • Shift to debt funds as you near maturity
    
    

8. Review Your Policies Periodically

Review your LIC policies every 2–3 years to track performance, bonus rates, and alignment with your current goals.

9. Invest During High Bonus Years

Keep track of LIC’s annual bonus declarations. Some years LIC declares higher reversionary bonuses. Buying policies during such periods can lock in higher bonuses.

10. Use Online Services to Monitor and Manage

LIC’s digital platforms help you track your premiums, bonus status, and maturity details. Use apps like LIC Customer App to avoid missing payments.

LIC Policies Offering High Returns

1. LIC Jeevan Labh

Combination of savings and protection, with loyalty addition on maturity.

2. LIC New Endowment Plan

Offers regular bonuses and good long-term returns.

3. LIC Jeevan Umang

Lifelong income benefit with survival benefits and maturity payout.

4. LIC’s New Endowment Plus (ULIP)

Investment-cum-insurance product with market returns.

FAQ – Frequently Asked Questions

Q1. Can I get high returns from LIC like mutual funds?

A: LIC policies are low-risk with moderate returns. For high returns, ULIPs may offer market-linked growth, but not at mutual fund levels.

Q2. Is LIC better than FD?

A: LIC offers insurance + returns, while FDs offer only interest. LIC can provide better long-term benefits when you factor in bonuses and protection.

Q3. Can I switch LIC policies for better returns?

A: Instead of switching, consider adding a new policy aligned with your goals. Surrendering may result in losses.

Q4. How are LIC bonuses calculated?

A: Bonuses are based on LIC’s profits and your sum assured. They are declared annually and added to your policy if it’s a participating one.

 Q5. Are LIC ULIPs risky?

A: ULIPs carry market risk. However, LIC offers options to switch between funds to manage your risk appetite.

Conclusion

Maximizing returns from LIC policies isn’t about luck — it’s about strategy. Choose the right policy, start early, go long-term, and avoid premature exits. Track bonuses and use LIC’s online tools for active management. With these expert-backed tips, you can secure your family’s future and enjoy healthy returns on your LIC investments.

Need Guidance?

For a free LIC policy review or investment planning session, feel free to call +91 8428695209