Why Should Students Buy LIC Policy in 2026?
Buying a LIC policy as a student or young professional is one of the smartest financial decisions you can make. Here's why:
The younger you are, the lower your premium. A 20-year-old pays almost 40% less premium than a 35-year-old for the same cover.
In case of an unfortunate event, your family receives the sum assured — protecting them from financial hardship.
Premium paid is eligible for tax deduction up to ₹1.5 lakh per year under Section 80C of Income Tax Act.
After 3 years, you can take a loan against your LIC policy — useful for education fees or emergencies.
📊 Best LIC Policies for Students 2026 – Comparison
| LIC Plan | Type | Min Age | Min Premium | Policy Term | Best For |
|---|---|---|---|---|---|
| LIC New Jeevan Anand | Endowment | 18 years | ~₹200/mo | 15–35 yrs | Low Budget |
| LIC Jeevan Lakshya | Endowment | 18 years | ~₹500/mo | 13–25 yrs | Savings + Income |
| LIC Tech Term | Term Plan | 18 years | ~₹150/mo | 10–40 yrs | Pure Protection |
| LIC SIIP | ULIP | 18 years | ₹4,000/mo | 10–25 yrs | Market Returns |
| LIC Jeevan Umang | Whole Life | 18 years | ~₹800/mo | 100 yrs | Long-term Cover |
| LIC New Endowment | Endowment | 18 years | ~₹300/mo | 12–35 yrs | Safe Returns |
LIC New Jeevan Anand (Plan 915)
This is the most popular LIC plan for students and young professionals. You get both a savings plan AND lifelong insurance cover. Even after the policy matures, the life cover continues. Start with just ₹200/month and build a strong financial foundation.
✅ Eligibility to Buy LIC Policy as a Student
- Age: 18–35 years (most plans)
- Indian citizen
- Valid ID proof (Aadhaar/PAN)
- Address proof
- Bank account
- Aadhaar Card
- PAN Card
- Passport-size photo
- Income proof (if employed)
- Date of birth proof
- Students under 18 need parent as proposer
- Medical test may be required for high sum assured
- Premium must be paid regularly to keep policy active
🛒 How to Buy LIC Policy Online in 2026
Go to the official LIC India website and click "Buy Online Policy".
Select the plan that suits your budget and goals from the list above.
Enter personal details, sum assured, policy term and nominee name.
Upload Aadhaar, PAN and photograph in the portal.
Pay via UPI, Net Banking or Credit/Debit Card. Policy document issued within 7 days by email.
💡 Tip: Buying online is cheaper than buying through an agent — you save 2–5% on premium as there is no agent commission in online plans like LIC Tech Term.
❓ Frequently Asked Questions
Can a student buy LIC policy without income proof?
Yes. Students can buy LIC policies without income proof for smaller sum assured amounts (typically up to ₹5 lakh). For higher cover, a guarantor or parent's income proof may be needed.
What is the minimum age to buy LIC policy?
Most LIC plans start at 18 years. Some child plans allow parents to buy policies for children from birth. Students under 18 need a parent or guardian as the proposer.
Which LIC policy gives the best returns for students?
LIC SIIP (ULIP) gives market-linked returns which can be 10–12% over a long term. However, for guaranteed returns with safety, LIC New Jeevan Anand gives ~6–7% effective returns with life cover.
Can I surrender my LIC policy if I need money urgently?
Yes, after paying premiums for at least 3 years you can surrender the policy. You will receive the Surrender Value. However, taking a loan against the policy is better as you avoid losing future benefits.
Is LIC better than private insurance for students?
LIC is government-backed and has a claim settlement ratio of 98.6% (2024–25) — the highest in India. For first-time buyers and students, LIC is generally the safest choice due to trust and reliability.
Disclaimer: This article is for informational purposes only. Please verify details with official LIC India website at licindia.in before purchasing any policy.