In recent months, social media and messaging platforms have been flooded with eye-catching headlines claiming that you can invest ₹1.5 lakh in an LIC FD scheme and receive a guaranteed ₹9,750 every month. Such offers naturally grab attention—after all, who wouldn’t want a steady monthly income from a one-time investment? But before making any financial decision, it is important to understand the facts, evaluate the numbers, and know how LIC’s fixed-income products actually work.
Let’s break down this scheme update, analyze the returns being claimed, and understand what investors should realistically expect from LIC’s savings and fixed-income plans.
Understanding LIC and Its Investment Products
The Life Insurance Corporation of India (LIC) is one of India’s most trusted and largest insurance providers. Established in 1956, LIC primarily offers life insurance policies, pension plans, endowment plans, and annuity-based products. Unlike banks, LIC does not directly offer traditional fixed deposits (FDs) like those provided by commercial banks. Instead, it offers insurance-cum-investment products that may provide maturity benefits or periodic payouts.
Many people often refer to LIC’s guaranteed return or annuity plans as “LIC FD schemes,” but technically, these are not fixed deposits. They are insurance-based savings instruments designed to provide either lump-sum maturity amounts or regular income after a certain period.
The Claim: ₹1.5 Lakh Investment = ₹9,750 Monthly Income
The viral claim suggests that investing ₹1.5 lakh in an LIC scheme can generate ₹9,750 every month, which amounts to ₹1,17,000 per year.
Let’s do some basic math:
- Total investment: ₹1,50,000
- Claimed monthly return: ₹9,750
- Annual return: ₹1,17,000
- Implied annual return rate: Nearly 78% per year
This raises an immediate red flag. A 78% annual guaranteed return from any regulated financial institution is practically impossible in India’s current financial environment. Even high-risk equity investments do not guarantee such returns—let alone government-backed insurance providers.
What LIC Actually Offers: Guaranteed & Annuity Plans
LIC does provide schemes that offer regular income, particularly through its annuity and pension plans. One such example is:
- LIC Jeevan Akshay VII
This is a single-premium immediate annuity plan where you invest a lump sum and start receiving regular income (monthly, quarterly, half-yearly, or yearly). However, the payout depends on:
- The investor’s age
- The annuity option chosen
- Prevailing annuity rates
- Policy terms
For example, if someone invests ₹1.5 lakh in an annuity plan, the monthly payout would typically be much lower—often in the range of ₹800 to ₹1,200 per month, depending on age and conditions. The returns are steady and guaranteed, but they are aligned with prevailing interest rates, not exaggerated figures.
Why the Viral Numbers Don’t Add Up
To generate ₹9,750 monthly from ₹1.5 lakh, the scheme would need to produce extraordinary returns far beyond any regulated financial instrument in India. For comparison:
- Bank Fixed Deposits typically offer 6%–8% annually.
- Senior citizen FDs may offer 7%–9% annually.
- Government bonds offer around 7% annually.
- LIC’s annuity plans usually provide returns comparable to long-term debt instruments.
At an 8% annual return, ₹1.5 lakh would generate roughly ₹12,000 per year—about ₹1,000 per month. This is far from ₹9,750 per month.
Therefore, the viral claim is either misleading, misinterpreted, or intentionally exaggerated.
Common Misunderstandings About LIC “FD” Schemes
There are several reasons why such claims circulate:
- Confusion Between Maturity and Monthly Income
Some plans offer maturity benefits after long tenures. A lump sum received after 20 years may be misunderstood as monthly income. - Marketing Miscommunication
Unauthorized agents or social media posts may exaggerate benefits to attract investors. - Combination of Bonus + Sum Assured
LIC policies often include bonuses that accumulate over time, but they are not equivalent to fixed monthly payouts. - Misinterpretation of Long-Term Total Returns
Sometimes total payout over many years is divided incorrectly to make it appear like a high monthly return.
Safe Alternatives for Monthly Income
If your goal is steady monthly income, here are realistic options to consider:
1. Annuity Plans from LIC
Guaranteed lifelong income, but moderate returns.
2. Bank Fixed Deposits with Monthly Interest
Most banks offer monthly interest payout options.
3. Senior Citizen Savings Scheme (SCSS)
Government-backed scheme with attractive interest rates.
4. Post Office Monthly Income Scheme (POMIS)
A stable option for conservative investors.
Each of these options offers security and predictable returns—but none promise unrealistic high monthly payouts from small investments.
Important Tips Before Investing
- Always verify information directly from LIC’s official website or branch.
- Avoid investment decisions based on WhatsApp forwards or viral social media posts.
- Understand whether the product is insurance, annuity, or deposit.
- Check the internal rate of return (IRR).
- Compare with alternative low-risk investment options.
Financial literacy is essential in avoiding misleading claims.
Can You Really Get High Monthly Income from ₹1.5 Lakh?
If someone truly wants ₹9,750 per month (₹1,17,000 annually), and assuming a realistic return of 8% per year, they would need to invest approximately ₹14–15 lakh—not ₹1.5 lakh.
This calculation alone shows why the viral scheme claim does not reflect practical financial reality.
Final Verdict on LIC FD Scheme Update
The claim that investing ₹1.5 lakh in an LIC FD scheme guarantees ₹9,750 monthly returns is not financially feasible under current market conditions. LIC offers secure and reliable products, but they are designed for steady growth and long-term financial protection—not extraordinary high guaranteed returns.
Investors should approach such claims with caution and rely only on official product details. LIC remains a trusted institution for insurance and retirement planning, but no regulated financial product can multiply money at the rate implied in the viral claim.
Before investing, consult a certified financial advisor and make decisions aligned with your risk tolerance, financial goals, and investment horizon.
Smart investing is not about chasing high returns—it is about balancing safety, stability, and sustainable growth.
