Lic policy Life Insurance Corporation of India (LIC of India)

Life Insurance Corporation of India (LIC of India)

LIC of India or Life Insurance Corporation of India is a government-backed life insurance provider in India. It was established in 1956 after the merger of 245 provident societies and insurance companies. It currently offers a wide range of insurance and investment products. Headquartered in Mumbai, its presence today spans urban and rural India across 2048 branches. 

Why Opt for LIC Life Insurance Plans?

LIC is one of the largest insurance companies with 23 Crore clients and offers a comprehensive range of life insurance plans. LIC offers term plans with affordable premiums and high coverages, irrespective of one’s occupation. There are other reasons also to choose LIC as a life insurance company. Let’s discuss them in detail:

  • Over 66 Years of Trust: As per IRDAI annual report 2020-21, LIC has successfully paid over 98% of the LIC policy claims filed by nominees. It is also the oldest life insurer in the country. This can be why nearly 75% of Indians consider the LIC of India trustworthy.

  • Backing of the Central Government: All policy buyers want to invest their hard-earned money in a safe place. As per section 37 of the LIC Act, 1956, all the LIC policies are guaranteed by the Central Government. This gives LIC policy buyers a sense of security.

  • Going Abroad: LIC has operational offices in Sri Lanka, Nepal, and other regions. Bahrain and Saudi Arabia are 2 other countries in the Middle East that also has LIC offices. The company is also planning to start its offices in Canada, the United States, and Australia.

  • PAN India Network: With over 150 satellite branches and 2000 branch offices, LIC has been a top insurer in the market. It offers efficient and innovative services to its customers. In terms of insurance documentation, the company uses technology like LAN, WAN, IVRS, and EDMS, which helps customers to opt for paperless documentation.

  • A comprehensive range of products: The company offers a wide range of products in the life insurance market. The plans are quite affordable and offer high coverage at low premium rates. Apart from a vast range of insurance and investment products, LIC India is preferred for its variety of features. There is something for everyone starting from LIC savings plans, ULIPs, and endowment plans to pension plans.

  • Introducing new innovations in the industry: In every quarter, LIC introduces new products which are specifically designed for the well-being of society. It is the first to introduce micro-insurance plans in India, helping those individuals who are living below the poverty line to get insurance at a low cost.

  • High Claim Settlement Ratio: CSR is the number of claims that are paid to customers by the insurer to the total number of claims received by the insurer. The CSR of LIC is 98.62% for FY 2020-21, indicating fast settlement of claims.

  • Simple Policy Purchase: Whether you purchase a LIC policy online or offline, the process is simple. If you choose to buy a LIC policy online, you also get special discounts and other benefits.

  • 24X7 Customer Support: LIC of India has unparalleled customer support. For helping their customers, the customer support of LIC is available 24X7.

  • Tax Benefits of LIC Policy: With every LIC policy, you also get tax benefits

     under the following sections of the Income Tax Act:

    • Section 80C

    • Section 80CCC

    • Section 80D

    • Section 80DD

    • Section 10(10D)

    Types of LIC Plans

    The LIC of India offers an array of insurance and investment products to cater to the needs of a diverse range of customers. Let us take a look at the various types of plans offered by LIC:

    1. LIC Unit-Linked Plans

      These plans allow customers to invest in the equity market to grow their wealth through market-linked returns. A part of the premiums paid towards the policy goes towards this investment and the remaining is used to secure a life cover that protects the financial future of dependents.

      Unit-linked insurance plans (ULIP) offered by LIC are –

    2. LIC Endowment Plans

      The LIC of India endowment plans promises a life cover for the insured and increased savings opportunities. These plans offer a guaranteed maturity benefit on surviving the whole policy term, and therefore, can be used to save for the future.

      These are the endowment plans that LIC of India offers:

    3. LIC Pension Plans

      Everyone should save enough to live a financially protected retirement life. LIC of India offers several pension plans to guarantee financial stability in old age. One of the Latest LIC Pension Plan is the LIC New Pension Plus Plan, which offers market-linked returns and a regular pension source.

      These are the four other pension plans that LIC of India offers:

    4. LIC Whole Life Plans

      LIC of India also offers a whole life plan that offers insurance coverage throughout the lifetime of the insured.

      The following whole life insurance plan is offered by LIC of India:

    5. LIC Money Back Plans

      Money-Back Plans are life insurance policies that provide life cover during the policy term. Such LIC plans offer a fixed percentage of the sum assured on maturity on surviving certain policy years. These are called survival benefits in LIC.

    6. LIC Term Insurance Plans

      LIC term plans protect the family of the insured against his/her death at affordable costs. These LIC insurance plans assure financial benefit on the death of the policyholder during the policy term. The LIC of India usually does not pay maturity value under term plans if the individual survives until the end of the policy tenure.

      The term plans offered by the Life Insurance Corporation of India are as under:

    7. Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

      LIC Riders

      Riders or add-on benefits are optional or sometimes in-built additional protections that you can attach to your base LIC policy to enhance its coverage. You have to pay an additional premium to purchase a rider on top of your base LIC policy.

      Here is the list of riders that LIC offers with its insurance policies:

       

Be the first to comment

Leave a Reply

Your email address will not be published.


*