LIC ₹5,00,000 Per Year Policy 2026: Best Plans & Returns

Find the best LIC policies for a premium budget of ₹5,00,000 per year (₹5,00,000 annually). Compare Sum Assured, maturity benefits, and XIRR yields.

Plan Comparison for ₹5,00,000 Year Budget (30 Yr Proposer)

LIC Policy Plan	Policy/Pay Term	Sum Assured	Total Premium Paid	Est. Maturity Payout	Est. XIRR
LIC Jeevan Labh (736)	21 Yrs / 15 Yrs	₹80.00 Lakh	₹75,00,000	₹1.91 Crore	5.14%
LIC Jeevan Anand (715)	20 Yrs / 20 Yrs	₹98.80 Lakh	₹99,98,560	₹2.06 Crore	6.45%
LIC Jeevan Lakshya (733)	21 Yrs / 18 Yrs	₹1.12 Crore	₹89,99,244	₹2.33 Crore	6.76%

⚠️ Section 10(10D) Tax Alert

Because your annual premium is ₹5,00,000, which exceeds the statutory ₹5 Lakh limit for policies purchased after April 1, 2023, the maturity proceeds of this policy will be taxable at your prevailing slab rate. Consider splitting the budget across multiple family members' names to keep each individual threshold under ₹5 Lakhs per annum to retain tax-free benefits.

💡 Coverage vs. Returns Trade-Off

Note that while plans like Jeevan Anand (yielding 6.45%) and Jeevan Lakshya (yielding 6.76%) yield slightly below the 7.1% offered by PPF, they include integrated high-value life protection. If your primary goal is maximizing returns and you already have sufficient term cover, Jeevan Labh (yielding 5.14%) is the superior wealth-building instrument.

How to Choose the Best LIC Policy for ₹5,00,000/year

With a annual savings capacity of ₹5,00,000, you are investing a total of ₹5,00,000 annually. Over a typical 15 to 21-year period, this translates to a substantial retirement or endowment fund. Please note that because your annual investment exceeds the ₹5 Lakh limit under Section 10(10D), the maturity proceeds will be subject to tax at your prevailing slab rates. To keep returns tax-free, consider splitting the premium across multiple policies under family members' names. Consider these three primary options:

LIC Jeevan Labh (Plan 736) — Best for Returns: Features the highest reversionary bonus rates (₹54 per ₹1,000 SA in 2026). Under your budget, it will yield an estimated maturity amount of ₹1.91 Crore against a total premium of ₹75,00,000 paid over 15 years, giving a compound return (XIRR) of 5.14%.
LIC New Jeevan Anand (Plan 715) — Best for Life Cover: Gives a maturity payout of ₹2.06 Crore against a total premium of ₹99,98,560 paid over 20 years, yielding an XIRR of 6.45%. In addition, you get a lifetime basic cover continuation of ₹98.80 Lakh even after maturity.
LIC Jeevan Lakshya (Plan 733) — Best for Child Protection: Gives an estimated maturity amount of ₹2.33 Crore against a total premium of ₹89,99,244 paid over 18 years, yielding an XIRR of 6.76%. In case of proposer's demise, all future premiums are waived and 10% of SA is paid annually to the family.

हिं

एलआईसी ₹5,00,000 प्रति माह पॉलिसी — LIC Plan in Hindi

यदि आपका बजट ₹5,00,000 प्रति वर्ष है, तो आपके पास निवेश के लिए 3 बेहतरीन विकल्प हैं: 1. जीवन लाभ (प्लान 736): सबसे अधिक रिटर्न के लिए। ₹₹80.00 Lakh की पॉलिसी पर करीब ₹1.91 Crore का मैच्युरिटी फंड मिलेगा। 2. जीवन आनंद (प्लान 715): सुरक्षा और जीवन भर के लाइफ कवर के लिए। 3. जीवन लक्ष्य (प्लान 733): बच्चों की उच्च शिक्षा और संरक्षण के लिए।

•बजट: ₹5,00,000 प्रति साल
•कर लाभ: धारा 80C और 10(10D) के तहत पूर्ण टैक्स छूट

Frequently Asked Questions

With a budget of ₹5,00,000 per year, Jeevan Labh (Plan 736) stands out as the best plan for pure maturity returns, yielding an estimated 5.14% XIRR. If you prioritize securing your family with lifelong protection, Jeevan Anand (Plan 715) with an estimated 6.45% XIRR is the most popular choice. For child education security, Jeevan Lakshya (Plan 733) is recommended.

For a healthy 30-year-old proposing a premium of ₹5,00,000/year, the Sum Assured is approximately ₹80.00 Lakh for Jeevan Labh, ₹98.80 Lakh for Jeevan Anand, and ₹1.12 Crore for Jeevan Lakshya.

No. Under the current tax rules for policies issued after April 1, 2023, if your aggregate annual premium exceeds ₹5,00,000, the maturity returns are NOT tax-exempt. Since your annual premium of ₹5,00,000 meets or exceeds this threshold, the maturity payout will be taxable under the head "Income from Other Sources". The taxable portion will be the maturity amount minus total premiums paid. Consider splitting this budget across multiple family members' names to keep each individual premium below ₹5 Lakhs per year.