Investors looking for safe and regular monthly income in 2026 are showing growing interest in the LIC FD-style investment option, where an investment of ₹3 lakh can generate around ₹6,566 per month. Backed by the trust and stability of Life Insurance Corporation of India, this income-focused plan is attracting retirees, senior citizens, and conservative investors who prefer predictable returns over market volatility.
With uncertainty in equity markets and rising living costs, such assured-income schemes are gaining renewed attention.
What Is the LIC FD Scheme Being Discussed in 2026
LIC does not offer traditional bank fixed deposits, but it provides guaranteed income insurance and annuity-based plans that work similarly to FDs by offering fixed, predictable payouts. These plans allow investors to deposit a lump sum amount and receive regular monthly income for a defined period or for life, depending on the chosen option.
The ₹6,566 monthly income figure is based on specific LIC plans, tenure, age at entry, and payout structure.
How ₹3 Lakh Can Generate ₹6,566 Per Month
Under certain LIC guaranteed income or immediate annuity options, a one-time investment of ₹3 lakh can be structured to provide monthly payouts. The monthly income is calculated based on actuarial assumptions, payout frequency, and policy terms.
While the income may vary slightly based on age and plan variant, the core benefit is income certainty, which is why many retirees prefer LIC over bank interest products.
Who Should Consider This LIC Income Plan
This type of LIC scheme is ideal for individuals who want:
- Stable monthly income without market risk
- Protection of capital through a trusted institution
- Simple financial planning after retirement
Senior citizens, pensioners, and individuals nearing retirement often use such plans to supplement pension or other fixed income sources.
Monthly Income vs Bank FD Returns
Compared to traditional bank FDs, LIC income plans may offer better predictability and, in some cases, higher effective monthly payouts when structured correctly. While bank FDs depend on fluctuating interest rates, LIC payouts remain fixed as per policy terms.
However, liquidity in LIC plans is usually lower than bank FDs, making them more suitable for long-term income planning rather than short-term parking of funds.
Is the Income Guaranteed
Yes, the monthly income under these LIC plans is guaranteed as per policy conditions, provided premiums are paid and the policy remains active. This assurance is one of the biggest reasons investors trust LIC for retirement income planning.
The guarantee is backed by LIC’s financial strength and government ownership.
Tax Treatment Investors Should Understand
Taxation depends on the specific LIC plan. In many cases, the monthly income is taxable as per income tax rules, while maturity benefits or death benefits may enjoy exemptions under certain sections.
Investors should evaluate post-tax income and consult a financial advisor for clarity before investing.
Things to Check Before Investing
Before choosing this LIC scheme, investors should check:
- Lock-in period and surrender conditions
- Total return over the policy term
- Tax implications on monthly payouts
- Suitability based on age and income needs
Understanding these factors helps align the plan with long-term financial goals.
Why LIC Income Schemes Are Popular in 2026
With increasing life expectancy and rising healthcare costs, guaranteed monthly income has become more important than ever. LIC’s reputation, government backing, and predictable payouts make these schemes a preferred choice for risk-averse investors in 2026.
The ability to convert a lump sum into lifelong or long-term income adds significant financial peace of mind.
Conclusion
The LIC FD-style scheme in 2026 offering around ₹6,566 monthly income on a ₹3 lakh investment presents a reliable option for investors seeking safety and regular cash flow. While it may not offer high growth like equities, it excels in stability, predictability, and trust. For retirees and conservative investors, LIC income plans remain a strong pillar of long-term financial security.
Disclaimer: Monthly income amounts depend on the specific LIC plan, age of the investor, and policy terms. Returns and tax treatment are subject to official LIC policy conditions and prevailing tax laws. Investors should verify details with LIC or a certified financial advisor before investing.
