LIC New Plans list 2016-17 : Features, Review & Snapshot of all the Plans

LIC has launched 4 new plans in 2016. In this post I have tried to list down the important features, details and my recommendations on all LIC New Plans that are launched in 2016-17.

From January 2016 to December 2016, LIC has launched three Endowment plans and one Money-back plan. Out of the three Endowment plans, one is a Limited Premium Payment Endowment scheme. The new plans are namely; LIC Bima Diamond Plan, LIC Jeevan Pragati, LIC Jeevan Shikhar & Jeevan Labh

Before discussing more on these plans, let us understand what are Endowment & Money-back plans.

What is an Endowment plan?  – It  is a combination of insurance and investment. The insured will get a lump sum along with bonuses (if any) on policy maturity (or) on death event. 

What are Money-back policies? – They provides life coverage during the term of the policy and the maturity benefits are paid in installments by way of Survival Benefits (money-back payments).

What are Limited Premium Payment Insurance Plans? – A limited premium payment plan is a plan where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time.

LIC New Plans list – Launched in 2016 – Snapshot

I have listed down the important features of LIC of India’s new plans that are launched in 2016 along with my recommendations (whether to ignore a plan or to buy).

latest-lic new plans-list-chart-table-lic-all-plans-list-features-returns-details

(Click on the image to open it new browser window)

  • Latest LIC policy : LIC Bima Diamond Plan
    • Bima Diamond plan was launched in September, 2016 and is available for purchase till 31st August, 2017.
    • This is a non-linked, traditional Money Back policy. Survival benefit is payable at an interval of every 4th year.
    • It is a limited premium payment plan.
    • Maximum Basic Sum Assured that is offered under this policy is Rs 5 Lakh only. So, this is surely not enough if you are looking for high life insurance cover.
    • There are no simple and annual bonuses under Bima Diamond Plan. Loyalty Additions (if any) alone are paid on policy maturity.
    • This plan can offer you returns of around 4% to 5% only.
    • If you are planning to buy this plan, advisable to ignore it. This plan neither offers you high life cover nor gives you decent investment returns.
    • If you have already invested in this policy, you may let it lapse.
    • For complete details on this plan, kindly read : LIC Bima Diamond Plan – Review & Returns Calculation. 
  • LIC Jeevan Pragati
    • This plan is available for purchase from February, 2016.
    • It is a non-linked, with-profits and savings cum protection plan.
    • The main feature of Jeevan Pragathi plan is the ‘sum assured on death’ (part of death benefit) automatically increases after every five years during the term of the policy.
    • The Death Benefit under this plan is ‘Sum Assured on Death + Vested Simple Reversionary Bonuses + Final additional bonus’, if any, shall be payable to the nominee.
    •  On survival to the end of the policy term, the maturity benefit which is ‘Sum Assured on Maturity + Simple Reversionary Bonuses + Final Additional bonus (FAB)’ if any, shall be payable to the policy.
    • Final Additional Bonus is not payable on PAID-UP policies.
    • If you are planning to buy this plan, you may ignore it.
    • The expected returns on this plan can be around 7%. But do remember that the returns are highly dependent on the bonus rates that LIC declares every year. (Read : ‘LIC’s latest Bonus rates 2016-17‘)
    • For complete details on this plan, kindly read : Review of LIC Jeevan Pragati plan with an illustration.
  • LIC Jeevan Shikhar Plan
    • This is an endowment plan. It’s a participating, non-linked, with profit, savings cum protection plan.
    • This was available for purchase till March 2016 only.
    • Its a singe premium plan wherein the proposer can choose the Maturity Sum Assured (MSA).
    • On policy maturity, the Maturity Sum Assured along with Loyalty Addition (if any) shall be payable.
    • The expected returns from this plan are around 6%.
    • In case, you have already bought this plan, you can consider surrendering it. The policy can be surrendered at any time during the policy year.  The Guaranteed Surrender Value allowable shall be as under:
      • First year (after 3 months) : 70% of the Single premium paid.
      • Thereafter : 90% of the Single premium paid.
    • For complete details on this plan, kindly read : Jeevan Shikhar plan – Review & Calculation.
  • LIC’s Jeevan Labh Plan
    • Jeevan Labh is a Limited Premium, non-linked, with profit Endowment Plan
    • The death benefit under this plan is : Sum Assured + Bonus + Final Additional Bonus (if any).
    • The maturity benefit under this plan is  : Sum Assured + Bonus + Final Additional Bonus (if any).
    • The expected returns can be in the range of 5 to 7% depending on the premium payment term.
    • If you are planning to buy, you can ignore it.
    • If you have already invested in this plan, you may let it lapse. (Read : ‘How to get rid-off unwanted life insurance policy?‘)
    • The detailed review on this plan is available @ LIC Jeevan Labh Plan – Review, illustration & Returns Calculation.

My standard suggestions :

  • Returns : Are you investing in these kind of plans for maturity returns? – The traditional life insurance plans can offer returns in the range of 4 to 7%. Personally, I believe that this is a very low return on investment, considering the fact that one has to remain invested for 10+ years. So, unless you are content with low returns, these kind of conventional insurance plans may not be for you. (Read : ‘Traditional life insurance plan – a terrible investment option?‘)
  • Life insurance cover : Are you investing in these kind of plans for insurance cover? – The main point to note here is, ‘quantum of life cover’. These kind of plans are very costly to get high sum assured. So, if your requirement is to get adequate life cover, affordable Term insurance plans are the right choice.
  • Tax Saving : Are you investing in these kind of plans for tax saving under section 80c? – if that’s the case, even a long term Small Savings Scheme like PPF (Public Provident Fund) can be a better choice than traditional life insurance plan. (Read: ‘PPF + Term plan Vs Traditional life insurance plan‘). You can also look into ELSS tax saving mutual funds for long-term goals.

Generally, December to March is the peak season for the life insurance companies in India. Most of the life insurance plans are offered as ‘tax-saving cum investment’ schemes. So, kindly be aware of the pros & cons of the financial products before you buy.

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(Featured Image courtesy of bplanet at (Post published on : 7-December-2016)

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  • VIRAT says:


  • Rohit Singh says:


    Can you please suggest any LIC plans for best investment return purpose for myself.

  • Tanusree says:


    Your articales are always good . ☺

    I was wondering if there is any review for SBI smart shield plan from you.

  • basu says:

    hi, sreekanth sir can u tell what is best plan in lic in 2017 and best return


  • Shilpa Shelatkar says:

    I am 41 years and looking for Mutual fund or any saving plan with Medium returns.

    Please suggest.

  • r.chelladurai says:

    my son age 22 monthly earn 15000/- what plan to take kindly advice

  • Ramya says:

    Hi Sreekanth,

    When is a good time to buy a Term Insurance? Please advise.


  • Ramya says:


    I have been investing in ELSS for 1 year and planning to stay invested for 10-15 years. My company provides decent health insurance. I do not have any life insurance. How important is it to invest in LIC for tax/ life/ investment purposes?

    My monthly contributions are:
    ELSS – 4500/-
    NPS- 3000/-
    PF – 6000/-
    Monthly take home – 70k

    If i should, how much should i invest for LIC per year? What abt PPF? Please advise.


  • Avinash Anand says:

    Dear Shreekanth,

    I need suggestion for one of my friend as she is 25 years and getting CTC 325000/ annum and could invest 5-7 k /month. She asked me to suggest for investment/ insurance.
    I have already suggested her not to invest in LIC rather she can opt for term plan later around reaching the age of 30.

    And for savings/investment with better returns she could go for PPF & mutual fund investment.

    By opting for PPF she can also show investment for tax saving later on.

    Please suggest what I suggested is well enough or not ?

    And also suggest better option for PPF investment, by bank ICICI/HDFC/Post Office ?

  • Gopi says:

    Hi Sir,

    Im Gopi 32 years and im looking for high Return plans with sum assured of Rs. 10lakhs..

    please suggest

    • Sreekanth Reddy says:

      Dear Gopi,
      If you are looking for high returns then better not to invest in Insurance plans.
      Kindly do not mix insurance and investment.
      May I know your investment time-frame? Do you have any dependents? Do you have adequate life cover?

  • mukund says:

    my daughter is 21 years joined MNC co last 5 months. her projected income for this year is 630000/- upto 31.3.2017. we need to plan for her investment for all possible tax savings & investment growth. so far she has invested Rs50000 in PPF . pls guide the best possible investment for her. she can invest monthly Rs30000 in future.

  • Rajesh says:

    Hi Srikanth,

    Well explained.
    I am 30 years old & want to take one term policy for 50 Lakhs with Critical illness rider.
    Is it good idea to add critical illness rider with term policy or better to take separate policy for critical illness.

    Please suggest some policies which will be good in your opinion.

  • Dilip says:

    Dear Srikanth, why at later stage, not right now? Health insurance provided by company. For accident, I’ve chosen National Insurance Personal Accident, premium 1118 pa for 10Lac SA.
    Please suggest best Life Insurance plan. And better accident insurance plan, than my one, if there.

    • Dear Dilip,
      My previous comment is a suggestion..If you believe that life cover is a must to you at this point of your life-stage, kindly go ahead.
      Buy a term plan from any insurer of your choice. Kindly disclose the required info in proposal form honestly.
      Suggest you to buy a health insurance plan and advisable not to depend entirely on Employer’s group cover alone.

  • Dilip says:

    Dear Srikanth, I’m 27, unmarried male from Kolkata, working in private sector company. CTC is 2.8 LPA. I want to purchase a life insurance for me. Please suggest best plan in market.

    • Dear Dilip,
      In case, you do not have dependents and also do not have financial liabilities, you may buy a term plan at a later stage of your life.
      Do you have adequate health and personal accident insurance coverage?

  • Raghul Gurusamy says:

    Nice explanation. Keep rocking

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