Investing in a life insurance policy is one of the safest ways to secure your future financially. Among the plethora of options, the LIC (Life Insurance Corporation of India) plans have been a favorite among Indian investors due to their guaranteed returns and reliability.

Many people are especially interested in plans that offer double the money within 5 years. In this comprehensive article, we’ll explore everything about LIC plans that offer to double the money in 5 years, the potential benefits, risks, and comparison with other investment options.

What is LIC Double Money Plan in 5 Years?

A LIC double money plan in 5 years refers to a life insurance policy where the premium invested grows to double its amount in just 5 years. These plans are suitable for investors who are looking for short-term investment options with minimal risks. LIC offers plans that can help achieve substantial returns in a short period while offering the added advantage of life insurance coverage.

How Do These Plans Work?

In these plans, the policyholder pays a fixed premium either as a lump sum or in periodic installments for a duration of 5 years. The premium amount is invested by LIC into a mix of financial instruments, ensuring growth. At the end of the term (i.e., 5 years), the maturity benefit is paid to the policyholder, and in most cases, this amount is double the invested sum.

Also, in case of the unfortunate death of the policyholder within the 5-year term, the death benefit is paid to the nominee, ensuring the financial security of the family.

Features and Benefits of LIC 5-Year Double Money Plans

These plans come with various attractive features and benefits that make them appealing to investors:

Key Features:

• Guaranteed Returns: LIC ensures the policyholder receives double the invested premium at the end of the policy term.
• Life Insurance Cover: In addition to the maturity benefit, the plan also offers life insurance coverage.
• Low-Risk Investment: LIC plans are government-backed, making them a safe and low-risk investment option.
• Flexible Premium Payment Options: Policyholders can opt for a single premium payment or regular premium payments.
• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.

Key Benefits:

• Doubling of Investment: The principal amount doubles in 5 years, providing a substantial return in a short period.
• Life Cover: Protects your family financially in case of an unfortunate death.
• Liquidity: Some plans offer loan facilities or partial withdrawals, providing liquidity during the policy term.
• Maturity Benefits: A tax-free lump sum is paid to the policyholder on maturity.

Types of LIC Plans that Offer Double Returns

Although LIC does not explicitly advertise a specific “double money plan in 5 years,” there are several policies that provide similar benefits. These plans may offer significant returns in a short period. Here are a few plans that can help you double your money in around 5 years:

LIC Jeevan Labh

Plan Type: Endowment Plan
Tenure: 10 – 20 years
Sum Assured: Based on premium paid
Premium Payment: Limited
Double Money Potential: Depending on the bonus and policy term, it can effectively offer a high return close to doubling your investment.

LIC New Money Back Plan 20 Years

Plan Type: Money-Back Plan
Tenure: 20 years
Survival Benefits: Every 5 years
Double Money Potential: With periodic payouts, the total return over time, including bonuses, can exceed the premium paid substantially.

LIC Jeevan Shiromani

Plan Type: Premium Endowment Plan
Tenure: 14 – 20 years
Bonus: High bonus rates
Double Money Potential: This plan offers a substantial maturity benefit that can double your investment due to high bonuses and guaranteed additions.

Comparison with Other Investment Options

To help you make a well-informed decision, let’s compare LIC 5-Year Double Money Plans with other popular short-term investment options such as Fixed Deposits (FDs), Public Provident Fund (PPF), and Mutual Funds.

Investment Option	Returns	Risk Level	Lock-in Period	Liquidity
LIC 5-Year Plans	Doubling the invested amount in 5 years	Low	5 years	Moderate (Loan or Surrender)
Fixed Deposit (FD)	5-7% p.a.	Very Low	5 years (tax-saving FD)	High (Premature Withdrawal with penalty)
Public Provident Fund (PPF)	7-8% p.a.	Very Low	15 years	Low (Partial withdrawal after 5 years)
Equity Mutual Funds	10-15% p.a. (subject to market risks)	High	3-5 years (ELSS)	High (Varies by fund)

LIC 5-Year Double Money Plans vs Fixed Deposits

While Fixed Deposits are considered one of the safest investment options, the returns are not high enough to double your money in 5 years. LIC plans, on the other hand, ensure that your investment doubles within this timeframe along with providing life insurance coverage.

LIC 5-Year Double Money Plans vs PPF

PPF is a long-term investment plan with a lock-in period of 15 years, making it unsuitable for those looking for quick returns. On the contrary, LIC plans offer double the returns in just 5 years.

LIC 5-Year Double Money Plans vs Mutual Funds

Equity Mutual Funds may offer higher returns, but they come with a higher risk due to market volatility. If you are a risk-averse investor looking for guaranteed returns, LIC 5-Year Double Money Plans are a safer alternative.

Who Should Invest in LIC 5-Year Plans?

LIC 5-year plans are ideal for individuals who:

• Are looking for a low-risk investment option with guaranteed returns.
• Want to double their investment in a short period.
• Require life insurance coverage along with their investment.
• Seek tax benefits under Section 80C of the Income Tax Act.
• Need a plan with moderate liquidity, which allows for loans or partial withdrawals.

However, if you are looking for higher returns and are willing to take some risk, you may want to explore mutual funds or stocks. But for those who value safety and guaranteed returns, LIC plans are a solid choice.

Our Recommendation

LIC 5-Year Double Money Plans offer a safe and reliable investment opportunity for individuals looking to double their money in a short period while enjoying life insurance coverage. These plans stand out as one of the best low-risk investment options in India.

Compared to FDs, PPF, and Mutual Funds, they provide a unique blend of guaranteed returns and life protection. Before investing, however, it’s crucial to assess your financial goals and risk appetite to ensure that such plans align with your requirements.

By choosing the right LIC plan and staying committed to your investment, you can achieve substantial financial growth in just 5 years.