Did you know you can save up to Rs 46,800 in taxes every year simply by investing in LIC plans? All LIC premiums qualify for deduction under Section 80C of the Income Tax Act.

How Much Tax Can You Save?

Section 80C Limit: Rs 1,50,000 per year
Tax Saved (30 percent bracket): Rs 46,800
Tax Saved (20 percent bracket): Rs 31,200
Tax Saved (5 percent bracket): Rs 7,800

Best LIC Plans for Tax Saving in 2026

1. LIC Tech Term — Save Tax, Get Rs 1 Crore Cover

Premium Rs 6,000-8,000 per year. Full premium deductible under 80C. You save tax AND get Rs 1 Crore life cover. Best for those who have already maxed out EPF/PPF.

2. LIC Jeevan Anand — Save Tax + Grow Wealth

Premium Rs 30,000-50,000 per year deductible. At maturity, the entire amount received is also tax-free under Section 10(10D). Double tax benefit.

3. LIC Jeevan Labh — Save Tax with Limited Payments

Pay higher premium for fewer years. Each year premium is 80C deductible. After premium payment term ends, you stop paying but policy and tax-free maturity continue.

4. LIC Saral Pension — Section 80CCC

Pension plan premiums qualify under Section 80CCC within the overall 80C limit of Rs 1.5 Lakh. Build retirement corpus while saving tax today.

5. LIC Child Plans — Section 80C

Premium for child plans like Jeevan Tarun and Childrens Money Back qualify for 80C deduction. Secure your child future while reducing current tax liability.

Tax-Free Maturity — Section 10(10D)

For policies where annual premium is less than 10 percent of Sum Assured, the entire maturity amount is 100 percent tax-free. This makes LIC plans one of the few investments where both the investment and the return are tax-free.

80C Tax Planning Strategy

Maximize your Rs 1.5 Lakh limit smartly:

EPF: Rs 50,000 (auto-deducted from salary)
PPF: Rs 50,000 (guaranteed 7.1 percent)
LIC Premium: Rs 50,000 (life cover + savings)

This combination gives you safety (EPF), guaranteed returns (PPF), and life protection (LIC).

Save Tax This Year — Get Expert Help FREE

The financial year is passing. Every month you delay, you lose tax-saving opportunity. Book a FREE consultation today and we will create your complete tax-saving plan.

Use our Tax Calculator to see exactly how much you can save.