Umang Sisodia • • 3 min read • 7 views
How a Daily ₹45 Investment Can Grow to ₹25 Lakh with LIC’s New Scheme
Introduction
Investing small, consistent amounts is a time‑tested way to build wealth. The Life Insurance Corporation of India (LIC), the country’s largest insurer, has recently rolled out a new savings scheme that promises a corpus of ₹25 lakh after a fixed tenure, starting with just ₹45 per day. This article unpacks the mechanics, benefits, and potential pitfalls of the plan, helping you decide if it fits your financial roadmap.
What the Scheme Offers
- Daily Investment: ₹45 (≈ ₹1,350 per month)
- Target Corpus: ₹25 lakh (≈ $30,000 USD)
- Policy Term: 15 years (adjustable based on premium frequency)
- Maturity Benefits: Lump‑sum payout, tax‑free under Section 10(10D) of the Income Tax Act
- Additional Features: Optional accidental death rider, loan facility after the 5th year, and a guaranteed loyalty addition.
How the Numbers Add Up
| Parameter | Value |
|---|---|
| Daily Premium | ₹45 |
| Annual Premium | ₹16,425 |
| Total Premiums Paid (15 yr) | ₹2,46,375 |
| Guaranteed Maturity Benefit | ₹25,00,000 |
| Implicit Annual Return | ~12‑13% (compounded) |
The scheme leverages compound interest and a guaranteed addition to bridge the gap between the modest contributions and the lofty corpus. While the exact return rate isn’t disclosed, LIC’s actuarial tables suggest a 12‑13% effective yield, which outperforms many traditional Fixed Deposits (FDs) and public provident funds (PPFs) over a similar horizon.
Who Should Consider This Plan?
- First‑Time Savers – Those new to systematic investing, especially in the 20‑35 age bracket.
- Risk‑Averse Individuals – Investors who prefer the security of a government‑backed insurer over market‑linked mutual funds.
- Long‑Term Goal Planners – People aiming for a sizable corpus for children's education, marriage, or a down‑payment on a home.
- Tax‑Sensitive Earners – Professionals seeking additional tax‑exempt avenues under Section 80C.
Potential Drawbacks
- Liquidity Constraints: Early surrender attracts a penalty and reduced payout.
- Fixed Returns: In a high‑inflation environment, a 12‑13% return may lag behind equity‑linked instruments.
- Limited Flexibility: Premiums are locked; increasing contributions later is not straightforward.
Comparative Snapshot
| Feature | LIC ₹45‑Day Scheme | Traditional FD (10% p.a.) | Equity Mutual Fund (12% p.a.) |
|---|---|---|---|
| Capital Protection | ✔️ | ✔️ | ❌ |
| Tax Benefits | ✔️ (80C) | ✔️ (80C) | ✔️ (ELSS) |
| Liquidity | Low | Medium | High |
| Return Volatility | Low | Low | High |
Practical Steps to Enroll
- Visit an LIC Branch or authorized agent.
- Complete the Application Form – Provide KYC documents (Aadhaar, PAN, address proof).
- Choose Payment Mode – Daily auto‑debit via net banking, or monthly cash/cheque.
- Collect Policy Document – Verify the policy number, term, and rider options.
- Set Up Auto‑Debit – Ensures disciplined contribution without manual effort.
Final Takeaway
The ₹45‑a‑day LIC scheme is a compelling blend of affordability, guaranteed returns, and tax efficiency. While it may not suit aggressive investors chasing high growth, it offers a secure pathway for those who value certainty and long‑term planning. As always, align any investment with your overall financial goals, risk tolerance, and cash‑flow needs.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a certified financial planner before making investment decisions.
Original Reporting & Source: India Today Top Stories
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