Premiums paid under LIC EFAP are eligible for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year. The maturity proceeds are generally tax-free under Section 10(10D), subject to the premium-to-sum-assured ratio being within limits (premium ≤ 10% of SA for policies issued after 01/04/2012).


Assumptions:

Scenario A (Maturity):

Scenario B (Death in year 15):

(Note: All bonus rates are illustrative only; actual bonuses depend on LIC’s annual declarations.)

No product is perfect. Consider these points before investing:


  • Scope
  • Services
  • Access channels
  • Confidentiality
  • Provider network
  • Training
  • Promotion
  • Measurement
  • Budgeting