LIC Policy of ₹500 Monthly Premium for 5 Years – Plans, Features & Benefits

Over the years, LIC has introduced several low-premium life insurance plans that combine affordability with long-term financial security.

If you are looking for an LIC policy with a monthly premium of around ₹500 for a 5-year or limited premium period, there are multiple options that can help you meet goals such as child education, savings, life cover, and wealth creation.

LIC Plans with a Monthly Premium of INR 500

LIC is a public sector insurance company that offers low-premium insurance plans. Here are some LIC 500 per month plans that you can avail of to secure your future:

1. LIC Jeevan Tarun:

Jeevan Tarun is a participating and non-linked LIC plan crafted to offer dual protection of life coverage and savings for your child. Your children can avail the benefits under the Jeevan Tarun plan for the purpose of higher education and other costs. The children under this plan are entitled to receive annual survival benefits from the age of 20 to 24 years, while the maturity benefit under the plan is paid on completing the policy duration of 25 years.

Here are some key features of LIC Jeevan Tarun Plan:

• Annual survival benefits payable between ages 20 to 24

• Maturity benefit paid at the end of 25 years

• Death benefit is 10 times the annual premium or 125% of sum assured, whichever is higher

• Eligible for simple reversionary bonuses

• Loan facility available during the policy term

2. LIC Jeevan Labh Policy:

The Jeevan Labh policy of LIC is a highly profitable policy. It is a non-linked endowment plan that provides protection while maximizing your savings. This is a limited premium paying plan that allows the customers to gain monetary support for their families in the event of the death of the insured. The policyholders under this plan will likely gain from a lump sum payout if the person survives the policy till maturity or outlives the plan.

Here are some key features of LIC Jeevan Labh Policy:

• Death benefit is 7 times the annualised premium plus applicable bonuses

• Maturity benefit includes sum assured + vested bonuses

• Limited premium payment period makes it easier to manage finances

• Optional riders like Accidental Death & Disability Benefit Rider

• Can estimate returns using the LIC Jeevan Labh maturity calculator

Interested customers can use the LIC Jeevan Labh calculator to evaluate the LIC Jeevan Labh premium chart. You may note that using the LIC Jeevan Labh maturity calculator, one can estimate the maturity amount likely to be received by the life assured on surviving the plan beyond the policy term.

3. LIC’s New Jeevan Anand:

Another beneficial policy from LIC is the New Jeevan Anand policy, which is a participating and non-linked plan. This policy allows customers the dual benefit of savings and life coverage.

The New Jeevan Anand plan from LIC offers financial support to the family of the insured in the event of the death of the policyholder. In addition, it also pays the life assured a lump-sum amount at the end of the policy term if the insured survives the policy.

Here are some key features of LIC New Jeevan Anand policy: 

• Death benefit of 7 times the annual premium or 125% of sum assured

• Maturity benefit includes sum assured + bonuses

• Continued life cover even after policy maturity

• Flexible premium payment options – monthly, quarterly, half-yearly, yearly

• Optional riders for enhanced protection

4. LIC’s New Endowment Plan:

The New Endowment Policy from LIC is an individual life insurance policy that is available with the benefits of protective life cover and savings.

The plan offers financial support to the beneficiary of the policy if the policyholder dies during the term of the plan. If the insured outlives the plan, the person can avail of a large sum assured refund together with guaranteed bonuses

Here are some key features of LIC New Endowment Plan:

1. Death benefit includes sum assured + final additional bonus

2. Maturity benefit includes basic sum assured + vested bonuses

3. Multiple rider options such as:

   • Accidental Death & Disability Benefit Rider

   • New Term Assurance Rider

   • Critical Illness Benefit Rider

4. Option to receive death benefit in installments over 5, 10, or 15 years

Quick Comparison: Which LIC ₹500 Plan Suits Your Goal?

Who Should Consider an LIC ₹500 Monthly Premium Plan?

• First-time insurance buyers

• Young professionals with limited income

• Parents planning for children’s education

• Individuals looking for safe, long-term savings

• People preferring government-backed insurance schemes