Life Insurance Corporation: Understanding the Benefits and Features

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If you’re looking to secure your family’s financial future, life insurance is a must-have investment. The Life Insurance Corporation (LIC) is the largest and one of the oldest life insurance companies in India. Established in 1956, it has been providing life insurance solutions to millions of customers for over six decades.

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What is Life Insurance Corporation?

Life Insurance Corporation, commonly known as LIC, is a state-owned insurance company in India. It offers a wide range of life insurance products, including term insurance, endowment plans, money-back policies, and ULIPs (Unit-Linked Insurance Plans).

The company’s primary objective is to provide financial security to its customers and their families in the event of unexpected demise or illness of the policyholder. LIC also aims to promote the habit of regular saving and investment among Indians.

History of LIC

LIC was formed by the merger of more than 245 insurance companies and provident societies. It was nationalized in 1956 to carry out the goal of providing affordable life insurance coverage to every citizen of India.

Since then, the company has grown exponentially, and today it has a vast network of over 3,000 branches and more than 1 lakh employees serving its customers.

Why Choose LIC?

LIC is a trustworthy and reliable insurer that has been serving its customers for over six decades. Here are some reasons why you should choose LIC:

  1. Wide range of insurance products
  2. Affordable premiums
  3. Flexible policies to suit individual needs
  4. Online policy purchase and renewal facility
  5. High claim settlement ratio
  6. Excellent customer service

Types of Insurance Products Offered by LIC

LIC offers a wide range of insurance products to suit the various needs of its customers. Here are the different types of policies available:

Term Insurance

Term insurance is a type of life insurance policy that provides coverage for a specific period. It is the most affordable and straightforward life insurance product offered by LIC.

The policyholder pays a premium for the chosen term, and if the insured dies during the policy term, the beneficiary receives the sum assured.

Endowment Plans

Endowment plans are life insurance policies that provide both savings and life insurance coverage. The policyholder pays a regular premium for a specific period, and at the end of the policy term, the insured receives the sum assured along with bonuses, if any.

If the policyholder dies during the policy term, the beneficiary receives the sum assured along with bonuses.

Money-Back Policies

Money-back policies are life insurance policies that provide regular returns in the form of periodic payments during the policy term. The policyholder receives a percentage of the sum assured at specific intervals during the policy term.

At the end of the policy term, the policyholder receives the balance sum assured along with any bonuses.

Unit-Linked Insurance Plans (ULIPs)

ULIPs are life insurance policies that provide both insurance coverage and investment opportunities. The policyholder can opt for different types of investment funds, and the returns depend on the market performance of these funds.

If the policyholder dies during the policy term, the beneficiary receives the sum assured along with the investment returns.

FAQs

Question
Answer
What is the eligibility criteria for buying a LIC policy?
Anyone above the age of 18 years and below the age of 65 years can buy a LIC policy.
What documents are required to buy a LIC policy?
You need to submit your identity proof, address proof, and age proof documents to buy a LIC policy.
How can I buy a LIC policy?
You can buy a LIC policy online or by visiting the nearest LIC branch.
What is the claim settlement ratio of LIC?
The claim settlement ratio of LIC is 97.79% for the financial year 2019-20.
What is the minimum sum assured for a LIC policy?
The minimum sum assured for a LIC policy is Rs. 50,000.
Can I surrender my LIC policy?
Yes, you can surrender your LIC policy, but you may lose some of the benefits if you do it before the end of the policy term.
Can I revive a lapsed LIC policy?
Yes, you can revive a lapsed LIC policy within the specified period by paying the outstanding premiums.
Can I take a loan against my LIC policy?
Yes, you can take a loan against your LIC policy if it has acquired a surrender value.

Conclusion

Life Insurance Corporation is a reliable and trustworthy insurer that offers a wide range of life insurance products to suit the various needs of its customers. Whether you’re looking for a simple term policy or a ULIP that offers both insurance coverage and investment opportunities, LIC has something for everyone.

With LIC, you can be assured of affordable premiums, flexible policies, and excellent customer service. So, secure your family’s financial future with LIC today!

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