Creating multiple sources of income with LIC (Life Insurance Corporation of India) can be a smart financial strategy, especially when combined with other investments or side businesses. LIC itself offers several products that can generate regular or lump sum income. Here’s a breakdown of how you can create multiple income sources through LIC and related strategies:
✅ 1. LIC Pension Plans (Annuity Income)
These give you regular monthly/quarterly income after retirement.
- LIC Jeevan Akshay VII – Immediate annuity plan, start receiving pension right after paying a lump sum.
- LIC Saral Pension – Simple annuity plan with monthly income options.
🔁 Income Source Type: Passive | Regular | Lifetime
✅ 2. LIC Endowment and Money-Back Plans
These policies give periodic payouts and a lump sum at maturity.
- LIC Bima Shree / LIC Jeevan Shiromani – High-endurance plans with regular payouts every few years.
- LIC Money Back Plans (20/25 years) – Periodic payments every 5 years + maturity bonus.
🔁 Income Source Type: Semi-Passive | Periodic | Tax-Saving
✅ 3. LIC ULIPs (Unit Linked Insurance Plans)
Investment + Insurance. Part of your premium is invested in market-linked funds.
- LIC SIIP (Systematic Investment Insurance Plan)
- LIC New Endowment Plus
🔁 Income Source Type: Market-Linked | Growth-Oriented | Can generate income if withdrawn partially.
✅ 4. LIC Agent or Advisor Income
You can earn commission-based income by becoming a licensed LIC agent.
- Commission on each policy sold (up to 35% first year + renewal bonus).
- Bonus, incentives, and club memberships.
🔁 Income Source Type: Active | Commission-Based | Scalable
✅ 5. Loan Against LIC Policies
Use your LIC policies as collateral for loans and invest the borrowed funds elsewhere (risky but can work).
- Helps unlock liquidity.
- Invest borrowed money into mutual funds or businesses to generate returns.
🔁 Income Source Type: Strategic | Leverage-Based | Moderate Risk
✅ 6. Referral or Sub-Agent Network (If You’re an Agent)
Build a network of sub-agents under you and earn override commissions.
🔁 Income Source Type: Residual Income | Semi-Passive
✅ Combining LIC with Other Income Sources
To truly build multiple streams, combine LIC with:
- Mutual Funds & SIPs – For market returns.
- Fixed Deposits / Bonds – Safe, predictable income.
- Side Business / Freelancing – Active income.
- Real Estate / Rent – Passive monthly income.
Final Tips:
- Diversify: Don’t rely only on LIC; use it as a safe, tax-efficient base.
- Review Regularly: Policies and plans should align with your age and goals.
- Tax Benefits: Many LIC policies qualify under Section 80C and 10(10D).
