Investing in LIC? Congratulations, You’re Officially Stuck in 1995!

I know we’ve all ranted about LIC a million times in this sub, but I’m going to leave this post here for the new year 2025. If you’re a newbie trying to invest or you’re getting advice from an uncle or auntie who’s an LIC agent, let this post pop up before you make any decisions. Trust me, you’ll thank me later.

So here’s the scoop: LIC is not the golden ticket to wealth. If someone’s telling you it’s the best thing since sliced bread, you might want to take a step back and ask yourself, “Why is my money being locked up in a policy where I’ll see returns after what feels like the end of the world?”

Yes, LIC gives you life insurance, but if you’re looking for actual wealth creation, it’s not the way to go.

Here’s why:

Returns: They’ll tell you about guaranteed returns, but the reality is, those returns are about as thrilling as watching paint dry. The inflation rate will probably eat up whatever tiny gains you make, leaving you with…well, nothing much to show for the decade-long commitment.

Tax Benefits: Sure, you might save a bit on taxes right now, but when you eventually pull that money out, the taxman’s still going to show up at your doorstep like that friend you didn’t invite to the party but somehow always shows up anyway.

Your Uncle’s Advice: Bless your uncle’s heart, but if he’s recommending LIC, you have to wonder what he’s been smoking. LIC is stuck in the past, and you don’t need to follow outdated advice that’s been passed down like some family heirloom. Trust me, he’s doing more harm than good, and it’s time to tell him that 2025 is here and there are better ways to invest than an LIC policy.

Pro Tip: If you actually want to grow your wealth, try stocks, mutual funds, ETFs, crypto or maybe even real estate. These options will give you a return that’s more “wow” and less “meh.”

Bottom line: If you’re thinking of putting your money into an LIC policy because your family says so, do yourself a favor and walk the other way.

Take a breather, do some research, and find an investment that actually makes your money work for you. LIC? Not it.

So, yeah, let’s just keep this post floating around for those who think 1995 was the golden age of investing. Spoiler alert: it wasn’t.