LIC’s Assured Income Plan 2025 offers a structured way to turn a lump sum investment into a steady monthly income, targeting conservative investors who prefer safety and predictability over high returns. The plan functions as a non-linked, non-participating individual savings life insurance plan. While the name may suggest it’s a traditional fixed deposit, it’s technically a guaranteed return insurance product that mimics the behavior of fixed income investments.
Aimed at those looking to secure a fixed income stream—like retirees, homemakers, or risk-averse individuals—this plan provides guaranteed monthly payouts for a set period, with the added benefit of life cover. Here’s a breakdown of how you can invest a fixed amount and receive ₹10,000 per month through this policy structure.
LIC’s Assured Income Plan 2025
| Feature | Details |
|---|---|
| Plan Name | LIC’s Dhan Vriddhi or LIC’s New Guaranteed Pension Plan (2025 Variant) |
| Investment Type | Guaranteed Income Insurance Plan |
| Investment Amount Required | Approx ₹10–12 lakh (one-time) |
| Monthly Payout | ₹10,000 for 10–25 years depending on the plan term |
| Maturity Benefit | Lump sum return or extended payout options |
| Life Cover | Included |
| Policy Terms | Varies: 10, 15, 20, or 25 years |
| Tax Benefits | Under Section 80C & 10(10D) |
| Best For | Retirees, homemakers, conservative investors |
| Official Link | LIC India |
How the Plan Works
LIC’s Assured Income Plans function by accepting a lump sum amount up front, which then triggers a guaranteed monthly return after a certain deferment period. In most cases, a customer invests around ₹10–12 lakh and begins receiving ₹10,000/month after a 1–5 year waiting period, depending on the policy.
You do not need to manage market risks or worry about interest rate fluctuations. Unlike regular FDs that pay interest quarterly or annually, this plan locks in a fixed payout schedule, allowing you to receive consistent monthly income.
Example Calculation: Earning ₹10,000/Month
If you wish to receive ₹10,000/month for 20 years, here’s how it typically looks:
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Investment Amount: ₹11,00,000 (approx)
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Deferment Period: 5 years (no income during this time)
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Payout Period: 20 years
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Monthly Income: ₹10,000
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Total Return: ₹24,00,000 over 20 years
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Effective Annual Return (IRR): ~6.5–7%
While not a high-yield investment, it ensures stability, predictable income, and peace of mind.
Benefits of LIC Assured Income Plan 2025
Guaranteed Returns
The biggest appeal is the fixed and guaranteed payout regardless of market conditions. The income is not affected by inflation, interest rate cycles, or stock market trends.
Life Cover
The plan includes an insurance component, offering financial security to the nominee in case of the policyholder’s death.
Tax Efficiency
Premiums paid are eligible for deduction under Section 80C, and the returns may be tax-free under Section 10(10D), provided conditions are met.
Ideal for Fixed Expenses
This scheme suits people who want to meet regular obligations like medical expenses, rent, or basic monthly costs without dipping into savings.
Things to Consider Before Investing
Long Lock-in
Your money is tied up for the long haul. Once invested, you cannot withdraw or break the plan mid-term like an FD.
Inflation Impact
Though the monthly payout is fixed, it doesn’t account for inflation. ₹10,000 today may not have the same purchasing power 15 years later.
Returns Are Modest
When compared to equity mutual funds or even senior citizen schemes, the overall returns are on the lower side.
Not a Traditional FD
Even though it’s marketed similarly to FDs, it’s technically an insurance product. Surrender rules, lock-in periods, and tax treatments differ.
Who Should Consider This Plan
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Retirees looking for predictable monthly cash flow
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Homemakers who want assured returns with life cover
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People with large one-time cash flows (inheritance, sale of property)
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Investors seeking tax benefits with minimal risk
How to Apply
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Visit LIC’s official website or nearest branch
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Choose the preferred policy term and payout option
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Submit KYC documents and medical declaration if needed
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Pay the lump sum premium and receive policy documents
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Start receiving monthly income as per the chosen deferment and payout schedule
Comparison with Fixed Deposits
| Feature | LIC Assured Income Plan | Fixed Deposit |
|---|---|---|
| Returns | 6.5–7% (guaranteed) | 6–7.5% (varies by bank) |
| Tenure | Long-term (10–25 years) | Short to medium (1–10 years) |
| Payouts | Monthly guaranteed | Quarterly/Annual |
| Liquidity | Low | High |
| Life Cover | Yes | No |
| Tax Benefit | Yes | Partial |
FAQs
What is the minimum amount to invest in LIC’s Assured Income Plan?
Typically, to earn ₹10,000 per month, you need to invest between ₹10–12 lakh depending on the policy term and age.
Is this better than a fixed deposit?
It depends on your goal. If monthly income with life cover and tax benefits is your priority, this is better. If you need flexibility and higher liquidity, FDs may suit you more.
Are returns guaranteed under all conditions?
Yes, once the policy is issued, returns are fixed and guaranteed as per LIC’s commitment.
Can I withdraw the money early?
Not easily. LIC plans usually come with lock-in periods and surrender charges. Partial withdrawal is typically not allowed.
Is the income taxable?
It can be tax-free under Section 10(10D), provided the annual premium is less than 10% of the sum assured. Otherwise, it’s taxed as income.
How do I receive the monthly income?
The amount is directly credited to your bank account via NEFT on a fixed date each month.
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