What are Tax Benefits Offered by LIC Policy?
.png)
LIC, or the Life Insurance Corporation of India, is one of the leading insurance providers in the country. Along with offering a wide range of policies, the insurer also presents a great deal of tax-saving options for the policyholders.
.png)
LIC of India is one of the country’s most trusted and prominent insurers, offering a range of life insurance plans. Along with a host of plans on offer, LIC also serves its policyholders with a range of options for tax exemption. Thus, numerous plans that LIC offers allow tax benefits under varied sections of the Income Tax Act of 1961. In this post, we will discuss and understand the various LIC saving schemes offered by the insurer in India.
Tax Benefits Offered under LIC Policies
Here is a list of tax benefits offered under the different sections of LIC policies:
1. Section 80C :
Several LIC plans offer tax benefits under Section 80C of the Income Tax Act, 1961. As per this section, the LIC premium under 80C paid towards LIC policies is eligible for tax exemption. However, the policy should be in the name of the policy buyer, their spouse, parents, or children. Also, any payment made towards deferred annuity plans is eligible to receive tax benefits.
LIC New Jeevan Dhara and LIC Jeevan Akshaya are some LIC plans eligible for tax benefits under Section 80C.
2. Section 80D:
Section 80D of Income Tax offers policyholders the option to get tax exemption if the policy is purchased to secure the life of a disabled person. INR 50,000 is the minimum deduction allowed under this section, while the maximum tax exemption that can be availed under it is up to INR 1,00,000. One such LIC tax saver policy that offers such exemption is the LIC Jeevan Aadhar plan.
3. Section 10 (10D)
As per section 10(10D) of the Income Tax, tax -an individual can avail benefits if it is received as a death benefit or as a maturity benefit on a selected LIC plan. In this case, the maximum tax exemption can go up to INR 1,50,000.
4. Section 10(10A)
A policyholder can avail tax benefits if the person pays a premium towards pension or retirement plans under section 10(10A). LIC Jeevan Nidhi Annuity plans and LIC Jeevan Suraksha are some such plans which allow LIC tax exemption under section 10(10A) of the Income Tax.
LIC Plans with Tax Benefits
Several LIC tax saving plans are available with tax benefits, as mentioned in the table below:
LIC Policy |
Tax Benefits |
LIC Jeevan Umang |
Section 10(10D) of income tax offers many assured tax exemptions on death benefits, maturity benefits, and survival benefits, among others, which can be availed under the LIC Jeevan Umang Plan |
LIC Jeevan Labh |
Under this plan, tax exemption is available on the premiums paid towards the LIC Jeevan Labh. Further, the maturity amount received at the end of the policy term is also exempted from tax under Section 80C of Income Tax |
LIC New Jeevan Anand |
Section 10(10D) of the Income Tax Act offer tax benefits on both the premiums paid as well as the maturity amount or the death benefit of LIC New Jeevan Anand plan |
LIC Jeevan Lakshya |
As per Section 80C, the insured can get tax exemptions on the premium paid towards LIC Jeevan Lakshya. Also, the maturity amount received is free from tax as per Section 80D |
Apart from the policies mentioned above, other plans of LIC come with tax benefits too. So, you can pick a plan depending on your requirement to reduce your tax liabilities.
Tax Benefits Offered by LIC Policy In India 2025
LIC allows the maximum limit of INR 1.5 lakhs as an exemption under various sections, namely 80C, 80CC, and 80CCE. The exemption is also available if the premium of your policy is more than 20% of the actual sum assured.
Yes, you can get an exemption for the premiums paid for LIC policies under Section 80C. However, you can get the deductions only if you buy the policy for yourself, your children, or your spouse.
In most LIC plans, the LIC maturity amount is completely tax-exempt under Section 10(10D) unless the premium exceeds 10% (20% in the case of policies issued after April 1, 2003) of the sum assured.
Section 10D allows tax exemption for the premiums paid for a LIC life insurance policy. In addition, if the premium paid on the policy is not more than 10% of the sum assured, the policyholder can enjoy a tax deduction on the maturity amount.
Yes, 80C can be deducted from the LIC premium with or without GST, provided the overall limit available under Section 80C is INR 1.5 lakh.
LIC Jeevan Labh premium calculator works like any other premium calculator. All you need to do is enter details like the age, policy term, sum assured, the premium payment term, etc., to find the premium amount you need to pay.
LIC offers many good policies that are best for tax benefits, such as LIC Jeevan Lakshya, LIC Jeevan Umang, LIC New Jeevan Anand, LIC Jeevan Labh, etc.

Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Other Life Insurance Products
Latest Post

Let’s be honest – life insurance planning isn’t exactly someone’s weekend hobby. It is the financial equivalent of flossing: we understand its importance, but we tend to put it off. But somewhere between balancing work and life, you might realise you need to have a solid plan in place – just in case.

If you think of life insurance, chances are you are picturing something people buy in their 30s or 40s. But what if you are 65 or older and just getting started? The good news is that you are never too late. Whether you are thinking of easing the financial burden on your family, covering final expenses, or simply leaving behind a legacy, there are life insurance options tailored just for you.
This article will be a guide to life insurance for senior citizens above 65 years, explaining why it is important, the type of insurance options, and how to get the right policy for you.

Health insurance plans are purchased with the hope of medical protection in times of need. However, sometimes it ends up being a source of surprise and disappointment. This mostly happens when people rush to buy health insurance plans, often overlooking essential aspects. Ignoring waiting period clauses, misunderstanding exclusions, and being unaware of sub-limits can lead to unwanted problems in the future.

If you are looking at investment policies offering INR 1 Crore in 5 years, we talk about some excellent plans in this post to help you choose the best one and reach your goal. However, it is important not to get swayed. Doing proper research and taking advice from financial or insurance advisors is important. Learn about such investment plan in this post.
The last few years have made it very clear that having health insurance is essential for everyone. Whether you are a young professional or a senior citizen, are single or have a family to support, health insurance cannot be ignored. Keeping this in mind, health insurance companies offer comprehensive plans that suit people with varied insurance needs.