Life Insurance Corporation of India (LIC) has always been LIC New Income Scheme a trusted name for Indians looking for safe, long-term, and government-backed investment options. In 2026, LIC’s income-focused plans are once again in the spotlight as investors search for fixed monthly income without market risk. One such discussion gaining traction is around an LIC income scheme where an investment of ₹2 lakh can generate a regular monthly payout of up to ₹13,000, depending on the plan structure and payout option selected.
It is important to understand that LIC does not offer traditional bank-style fixed deposits. Instead, LIC provides guaranteed income, annuity, and money-back–type schemes that work like FD alternatives, offering predictable income along with life cover.
Why LIC Income Schemes Are So Popular in 2026
In a time when stock markets are volatile and mutual funds carry risk, many investors—especially senior citizens and middle-class families—prefer certainty over high returns. LIC income schemes are popular because they offer capital protection, guaranteed payouts, and long-term financial stability.
Since LIC is owned by the Government of India, the trust factor is extremely high. Investors feel confident knowing their money is placed in an institution with decades of credibility and strong financial backing.
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How ₹2 Lakh Can Generate ₹13,000 Per Month
The idea of earning ₹13,000 every month from a ₹2 lakh investment comes from structured payout calculations in certain LIC income or annuity plans. In these schemes, LIC converts the invested amount into a regular income stream, which can be paid monthly, quarterly, half-yearly, or annually.
The actual monthly income depends on factors such as the type of LIC plan, policy term, investor’s age, payout duration, and selected options. In some plans, when returns are calculated annually and averaged monthly, the payout can be illustrated as up to ₹13,000 per month over a defined period. These figures are generally indicative illustrations, not universal guarantees, and vary from policy to policy.
Key Features of LIC’s New Income-Oriented Plans
One of the biggest strengths of LIC income schemes is guaranteed returns, which means investors know in advance how much income they will receive. These plans are not linked to the stock market, so returns remain stable regardless of market conditions.
Another major advantage is life insurance coverage. Unlike bank FDs, LIC plans usually include a sum assured that provides financial protection to the nominee in case of the policyholder’s death. This dual benefit of income plus insurance makes LIC schemes especially attractive for family-oriented investors.
LIC also offers flexible payout options, allowing investors to choose how frequently they want to receive income. This flexibility helps people align payouts with their monthly expenses.
Illustrative Overview of LIC Income Scheme
| Investment Amount | Plan Category | Income Type | Approx. Monthly Income |
|---|---|---|---|
| ₹2,00,000 | Income / Annuity Plan | Regular Payout | Up to ₹13,000 (illustrative) |
| ₹2,00,000 | Guaranteed Income Plan | Monthly / Annual | Depends on tenure & age |
| ₹2,00,000 | Money-Back Style Plan | Periodic Returns | Fixed intervals |
Note: Income figures are indicative illustrations and depend on policy conditions.
Tax Benefits That Add Extra Value
Another reason LIC schemes remain attractive is tax efficiency. Premiums paid toward eligible LIC policies qualify for deduction under Section 80C of the Income Tax Act, within prescribed limits. In many cases, maturity or income benefits may be tax-free under Section 10(10D), provided policy conditions are met.
This tax advantage often makes LIC income schemes more rewarding than bank fixed deposits, where interest is fully taxable.
Who Should Consider LIC’s Income Scheme
LIC’s new income schemes are best suited for senior citizens, retirees, and risk-averse investors who want a steady monthly income to manage daily expenses. Salaried individuals planning for retirement can also use these plans to create a future income source.
People who value safety, predictable cash flow, and long-term planning over aggressive growth find LIC schemes especially beneficial.
Things to Keep in Mind Before Investing
While LIC income schemes are safe, investors should clearly understand the lock-in period, surrender value rules, and payout structure. These plans are designed for long-term commitment, so they may not be suitable for those who need quick liquidity.
It is always advisable to read the policy brochure carefully or consult an LIC advisor before investing, to ensure the plan aligns with your financial goals.
Is LIC offering a fixed deposit scheme in 2026?
No, LIC does not offer traditional FDs, but its income and annuity plans work as FD alternatives.
Is ₹13,000 monthly income guaranteed on ₹2 lakh investment?
The amount is illustrative and depends on the specific LIC plan, age, and payout structure.
Is LIC investment safe?
Yes, LIC is government-owned and considered one of the safest financial institutions in India.
Are LIC returns taxable?
Tax benefits depend on the policy. Many LIC plans qualify under Section 80C and Section 10(10D).
Final Conclusion
LIC’s New Income Scheme 2026 highlights why LIC continues to be a preferred choice for investors seeking safe, guaranteed, and regular income. While LIC does not provide a traditional FD, its income and annuity-based plans can help convert a ₹2 lakh investment into a steady monthly income, often illustrated as up to ₹13,000 per month.