Life Insurance Corporation of India, popularly known as LIC, is one of the most trusted financial institutions in the country. Whenever a new LIC scheme or FD-related plan is discussed, it quickly gains attention among investors. Recently, many people have been searching for information about the LIC New FD Scheme Rule 2026.
In this detailed article, we will explain what LIC FD schemes actually mean, whether LIC offers fixed deposit plans, the latest rules, benefits, interest structure, eligibility, risks, and important points every investor should know before investing.
Does LIC Offer a Fixed Deposit Scheme
First, it is important to clarify that LIC is primarily an insurance company. It does not operate like a bank and does not provide traditional fixed deposit accounts in the same way banks do.
However, LIC offers several investment and savings-based insurance plans that function similarly to fixed deposits in terms of guaranteed returns and fixed tenure. These include:
Endowment plans
Money-back policies
Annuity plans
Pension schemes
Single premium savings plans
Many people informally refer to these as LIC FD schemes because they offer relatively stable and predictable returns.
LIC New FD Scheme Rule 2026 Overview
Under the new rules in 2026, LIC savings and guaranteed return plans are expected to follow updated regulatory guidelines issued by IRDAI. These rules focus on transparency, customer protection, and clear benefit illustrations.
Some key expected rules include:
Clear disclosure of guaranteed and non-guaranteed benefits
Transparent bonus declaration structure
Digital policy management
Faster claim settlement process
Updated surrender value rules
These changes aim to increase customer trust and simplify investment decisions.
Types of LIC Plans Similar to FD
Although LIC does not provide traditional FD accounts, certain plans are considered alternatives to fixed deposits.
Single Premium Endowment Plan
In this plan, you invest a lump sum amount once and receive maturity benefits after a fixed period.
LIC Jeevan Akshay
This is an annuity plan where you invest a lump sum and receive regular income for life.
LIC New Jeevan Shanti
This plan provides deferred annuity benefits, allowing you to receive income after a selected period.
These plans are often preferred by conservative investors seeking stable returns.
Interest Rate and Return Structure
Unlike bank fixed deposits that offer a fixed interest rate, LIC plans provide a combination of guaranteed benefits and bonuses.
Guaranteed returns depend on:
Policy term
Premium amount
Age of investor
Type of plan
Bonuses are declared annually depending on LIC’s performance.
Generally, returns from LIC savings plans may range between 5 percent to 7 percent annually, depending on the policy structure.
It is important to understand that LIC does not advertise returns in the same way banks advertise FD interest rates.
Investment Amount and Tenure
Investment in LIC savings plans can start from a minimum amount depending on the chosen scheme.
Tenure options may range from:
5 years
10 years
15 years
20 years or more
Longer tenures often provide better maturity benefits due to bonus accumulation.
Tax Benefits
One of the biggest advantages of investing in LIC plans is tax benefit.
Under Section 80C of the Income Tax Act, premium paid may qualify for tax deduction up to the prescribed limit.
Maturity benefits may also be tax-free under Section 10(10D), subject to prevailing tax rules.
This makes LIC plans attractive for individuals looking to save tax while investing.
New Digital Rules and Online Policy Purchase
In 2026, LIC is expected to strengthen its digital services.
Customers can:
Purchase policies online
Track policy status
Download premium receipts
Pay premiums digitally
Update nominee details
Digital transformation makes investment more convenient and transparent.
Surrender and Loan Rules
Under updated rules, surrender value may become more transparent.
If you want to close the policy before maturity, surrender value will depend on:
Number of premiums paid
Policy duration
Bonus accumulated
Many LIC policies also allow policyholders to take loans against the policy after a certain period.
This provides liquidity in case of financial emergencies.
Who Should Invest in LIC FD Type Plans
LIC savings and guaranteed plans are ideal for:
Risk-averse investors
Senior citizens seeking stable income
Individuals planning for retirement
Parents planning for children’s future
People looking for tax-saving investment options
These plans are not suitable for investors seeking high returns like equity mutual funds.
Comparison with Bank Fixed Deposits
It is important to compare LIC plans with bank FDs before investing.
Bank FD
Fixed interest rate
Short to medium tenure
High liquidity
Lower lock-in period
LIC Savings Plan
Insurance cover included
Long-term investment
Bonus-based returns
Tax benefits
LIC plans combine insurance protection with investment, while bank FDs are purely investment products.
Risks and Considerations
Although LIC is a government-backed institution, every investment has certain considerations.
Long lock-in period
Lower liquidity compared to bank FD
Returns not always fixed due to bonus component
Investors should read the policy brochure carefully before investing.
Senior Citizen Benefits
Senior citizens often prefer LIC annuity plans because they provide regular income.
Under new rules, payout options may include:
Monthly income
Quarterly income
Half-yearly income
Annual income
This flexibility makes retirement planning easier.
Claim Settlement Process
LIC has one of the highest claim settlement ratios in India.
Under new guidelines, the claim process may become faster with digital documentation and online tracking.
Nominees should keep all required documents ready for smooth processing.
Transparency and Regulatory Compliance
IRDAI has introduced strict rules to ensure transparency in benefit illustrations.
Before purchasing a policy, customers must receive:
Guaranteed benefit statement
Non-guaranteed bonus projection
Premium payment schedule
Surrender value details
This ensures that investors fully understand the product.
Is LIC FD Scheme Safe
LIC is owned by the Government of India and has a strong financial foundation.
Although market-linked components may affect bonuses, guaranteed benefits remain secure according to policy terms.
Therefore, LIC savings-type plans are considered relatively safe compared to market-based investments.
Final Conclusion
LIC New FD Scheme Rule 2026 mainly refers to updated regulations and improved transparency in LIC’s savings and guaranteed return plans. While LIC does not offer traditional fixed deposits like banks, it provides long-term savings plans that offer stable returns, insurance coverage, and tax benefits.
Before investing, individuals should carefully compare returns, lock-in periods, and financial goals. Reading official policy documents and consulting authorized LIC agents or financial advisors is always recommended.
LIC remains a trusted institution for conservative investors who prioritize safety and long-term financial planning over high-risk, high-return investments.