LIC Turns 68: Is Your Policy Still Worth It?

LIC is India's oldest and largest life insurer, but with newer private players offering better returns and lower premiums, it is worth asking if your LIC policy is still the best choice for your money.

Here's what happened: LIC was founded in 1956 by merging 245 Indian and foreign insurers, with just ₹5 crore in government capital.. LIC now manages over ₹50 lakh crore in assets and insures hundreds of millions of Indian lives.. Private insurers have grown rapidly, now holding over 35% of new business premium in the life insurance market..

What you should do: Review your existing LIC policies — check if the returns (usually 5-6% IRR on endowment plans) beat inflation or a simple PPF/term+MF combo.. Compare your current LIC premium with a pure term plan online — same cover often costs 40-60% less from private insurers.. If you hold LIC endowment or money-back policies, calculate the surrender value and consider whether reinvesting in mutual funds makes more sense for your goals..

A ₹1 crore term plan from LIC or a private insurer costs roughly ₹10,000-₹15,000/year if you buy before age 35 — the premium nearly doubles if you wait until 45.