There is no legal limit on the number of LIC policies a single person can hold. You can have 3, 5, or even 10 policies simultaneously. However, LIC applies income-based limits on the total sum assured across all your policies combined.
Income-Based Limit on Sum Assured
LIC follows IRDAI guidelines that cap total sum assured based on your annual income. The general rule: total SA across all policies should not exceed 20 to 25 times your annual income. So a person earning Rs 8 lakh per year can typically get up to Rs 1.6 to 2 crore in total LIC coverage.
If your existing policies already cover Rs 1 crore and you want more, LIC will request income proof (ITR, salary slips, or business financials) to justify the additional coverage.
Why People Take Multiple LIC Policies
- ▸Different maturity dates - one policy for education (15 yr), one for retirement (25 yr)
- ▸Different purposes - term plan for pure life cover, endowment for savings
- ▸Maximising 80C benefit across different financial years
- ▸Nominee-specific policies - one for spouse, one for each child
- ▸Staggered premium commitment - smaller amounts across multiple policies
80C Benefit With Multiple Policies
The 80C deduction limit is Rs 1.5 lakh per year total (across all investments - ELSS, PPF, LIC, EPF etc.). Having multiple LIC policies does not increase this limit. However, you can claim premium paid for policies held for yourself, your spouse, and your dependent children.
Things to Watch Out for With Multiple Policies
- ▸Premium burden - make sure total annual premium fits your income comfortably (typically under 10-15% of income)
- ▸Medical examination - higher total SA triggers more detailed health tests
- ▸Policy tracking - keep all policy documents and due dates organised
- ▸Nominee declarations - update nominees correctly on each policy
Having 2 to 3 well-planned LIC policies is usually more beneficial than a single large policy. Call Ajay Kumar Poddar at 9415313434 to design a multi-policy portfolio that fits your income and goals.
