LIC's Non-Par Push: Is Your Policy Worth It?

LIC is pushing non-participating (non-par) guaranteed return plans to grow profits in FY27. These products promise fixed returns but often give 4-6% annually — below FD rates. Here's what this shift means for your insurance and savings decisions.

Here's what happened: LIC is targeting early double-digit premium growth in FY27, driven largely by non-participating (non-par) guaranteed return products that improve the insurer's profit margins.. Non-par plans — where policyholders get fixed, pre-decided payouts and do not share in LIC's investment profits — are being expanded as a core part of LIC's product mix.. LIC is also working to revive ULIP (Unit Linked Insurance Plan) sales alongside guaranteed plans, aiming to balance its portfolio between market-linked and fixed-return products..

What you should do: Calculate the IRR (internal rate of return) of any non-par plan you're offered using a free online IRR calculator — if it's below 6%, compare it with PPF or a Post Office Time Deposit first.. Avoid mixing insurance and investment in a single policy — buy a pure term plan for life cover (₹1 crore cover for under ₹15,000/year for a 30-year-old) and invest separately in mutual funds.. If you already hold a LIC endowment or money-back plan, check the surrender value after the lock-in period and evaluate whether redirecting those premiums to an SIP gives you better long-term wealth..

Pro tip: Ask your LIC agent for the 'Benefit Illustration' document showing the IRR at 4% and 8% scenarios — IRDAI mandates this for every policy, but most agents skip showing it.

If this affects your borrowing choices, compare current personal loan options from 100+ lenders on GoCredit.