Best LIC Plan for 5 Years
Pay for only 5 years, a 5-year lock-in, or a goal 5 years away – what LIC really offers, explained simply by the LIC office, Manimajra.
“Is there a 5-year LIC plan?” is one of the most common questions we get at the LIC office. People usually mean one of three different things, and the right answer is different for each:
- “I want to pay premium for only 5 years.” – Yes, LIC has plans for this.
- “I want my money back after 5 years.” – LIC’s regular savings plans run for 10 years or more, but ULIPs have a lock-in of 5 years.
- “My goal is 5 years away.” – For a short goal, life insurance is not the main tool; use LIC for cover and long-term savings.
This guide explains each case with current LIC plans, so you can pick the one that matches what you actually want. Plan facts below are taken from LIC’s official sales brochures; always check the latest brochure and the benefit illustration before you sign.
1. Pay premium for only 5 years
LIC Jeevan Utsav – pay 5 years, income for life
Jeevan Utsav is a whole-life plan with a premium paying term you can choose anywhere from 5 to 16 years. With the 5-year option you pay premiums for just five years. After a waiting period, LIC pays an income of 10% of the basic sum assured every year – with a 5-year paying term it starts from the end of the 11th policy year and continues for the whole of life. You can take it as a yearly income (Regular Income Benefit) or leave it with LIC to accumulate (Flexi Income Benefit). Entry age for the 5-year paying term is from 8 to 65 years.
This suits people who have 5 good earning years ahead – a business owner, someone close to retirement, or parents who want to finish paying before their child’s college years – and want a lifelong guaranteed income afterwards. Check it on our Jeevan Utsav calculator.
LIC New Tech-Term – finish term insurance payments early
New Tech-Term is LIC’s online term plan with a policy term of 10 to 40 years. Besides regular premium, it has a limited premium option of policy term minus 5 years or minus 10 years. For example, a 10-year term policy can be paid off in 5 years. Entry age is 18 to 65 years and the minimum basic sum assured is ₹50 lakh. It gives pure protection – there is no maturity amount – but it is the most cover per rupee.
2. Money back after 5 years – the lock-in plans
If you want flexibility after five years, the options are LIC’s unit linked plans (ULIPs). Both have a 5-year lock-in: no surrender or withdrawal is allowed in the first five years, and after that partial withdrawals are allowed as per policy conditions.
- LIC Index Plus – regular premium ULIP. Policy term is 10 to 25 years when the yearly premium is ₹48,000 or more, and 15 to 25 years below that. LIC adds guaranteed additions (a percentage of one year’s premium) to the fund at the end of the 6th, 10th, 15th, 20th and 25th years.
- LIC Nivesh Plus – single premium ULIP. You invest once (minimum ₹1,25,000), with a policy term of 10 to 25 years, and guaranteed additions are added at the end of the 6th, 10th, 15th, 20th and 25th years.
Remember that ULIP values move with the market. Money you will need exactly in year 5 should not be put at market risk. Compare a ULIP with a regular SIP on our LIC SIP calculator.
3. Goal 5 years away – the honest advice
Life insurance savings plans give their best value over 10 years or more, because the early years carry the cost of life cover. Surrendering a traditional plan in the first few years usually returns less than you paid. So if a wedding, a car or a house down-payment is only 5 years away:
- keep that money in safe short-term savings, and
- use LIC for what it does best – a term plan so your family is protected while you save, and a long-term plan for goals like retirement or your child’s education.
If you can stretch the horizon a little, see our guide to the best LIC plan for 10 years – there are many more choices at 10 years, including single premium plans that mature in exactly 10 years.
Quick comparison
| What you want | LIC plan | Key 5-year feature | Return type |
|---|---|---|---|
| Pay 5 years, income for life | LIC Jeevan Utsav | Premium paying term from 5 years | Guaranteed (10% of basic sum assured yearly) |
| Pay off term cover early | LIC New Tech-Term | Limited pay: term minus 5 years | Pure protection, no maturity |
| Market-linked, regular premium | LIC Index Plus | 5-year lock-in | Market linked + guaranteed additions |
| Market-linked, one-time investment | LIC Nivesh Plus | 5-year lock-in | Market linked + guaranteed additions |
How we help you choose
Tell us your age, your goal and how much you can pay each year. Vedpal Singh, Development Officer, LIC of India, and our team compare 2–3 suitable plans and send you LIC’s official benefit illustration on WhatsApp – no guesswork. We serve customers in Chandigarh, Mohali, Panchkula and Zirakpur in person, and every other city online. You can also visit the LIC office in Manimajra or find the LIC office near you.
FAQs
Related
Get the right 5-year LIC plan
Apni details bhejiye – Vedpal Singh aapko call karke sahi plan batayenge.