LIC Plan 770: Benefit Bases, Premium Deduction, Maturity Exemption, TDS and GST Explained

This article explains how the benefits of Life Insurance Corporation of India's Plan 770 (UIN 512N397V01) are calculated and how its premium and receipts are treated for income tax, TDS, GST and policyholder protection.

The plan was launched on 1 September 2026 and has been available from 7 September 2026. The product and regulatory position described here is as on 7 October 2026. Clients are likely to ask whether the percentages in the plan's literature are returns and whether the receipts are tax-free. Both questions need answers drawn from the policy documents and the tax rules, not from the headline numbers.

Question 1: What kind of plan is this?

Plan 770 is a non-participating, non-linked, individual, limited-premium savings and protection plan. Non-linked means that benefits are not tied to units of a fund. Non-participating means that the policyholder does not share in divisible surplus through discretionary bonuses; the benefits are those the contract states.

The main parameters are:

• premium-paying term options of 7, 10, 12, 15 or 18 years;
• minimum Basic Sum Assured of Rs 3,00,000, in multiples of Rs 10,000, with no fixed maximum but subject to LIC's underwriting;
• entry age from 30 days completed to a maximum of 55 years, varying with the premium-paying term;
• maturity age from a minimum of 28 years completed to a maximum of 75 years near birthday.

The plan is sold offline through permitted channels and online through LIC. Rebates are available to existing LIC policyholders and to nominees or beneficiaries of deceased policyholders. Optional riders are available, each with its own eligibility, premium, exclusions and claim terms.

Question 2: What do the three headline percentages mean?

The three figures use different bases and are not interchangeable.