Life Insurance Corporation (LIC): A Closer Look
by Yuvi K - December 16, 2023
What Is Life Insurance Corporation (LIC)?
Life Insurance Corporation (LIC) is a company created to provide financial protection and security for individuals, families, and businesses. LIC is the largest public sector life insurance company in India with a large network of offices and customers covering all corners of the country. It provides a wide range of insurance policies for life, health, and investment, special policy packages, and retirement plans that help individuals and families secure their future.
The History Of LIC
The Life Insurance Corporation of India was established in 1956 to provide life insurance services to the general public. It was formed when the government of India decided to nationalise all the private life insurance companies in the country. The famous All India Life Insurance Act in the same year gave power to the government to nationalise the companies.
Services Offered By LIC
1. Investment Plan: LIC offers a wide range of investment plans to suit all life stages and budget. Some of the popular plans are:
- LIC Jeevan Labh – A pure endowment plan that provides financial security to the policyholder’s family in case of unexpected demise.
- LIC Jeevan Anand – A participating whole life endowment plan with an inbuilt feature of add-on benefits.
- LIC Tech Term – Pure Term Insurance Plan which provides financial security to the nominee in case of unexpedted demise.
- LIC Sukanya Samriddhi Yojana – A 10-year plan for eligible girl child which provides for economic security and helps build corpus to meet future household expenditures.
2. Risk Cover Plan: LIC provides financial security for individuals and family in the event of unforeseen demise or disablement of the policyholder. Some of the popular Risk Cover Plans are:
- LIC’s New Jeevan Anand – A combined endowment and term plan which provides an accidental rider on payment of an additional premium.
- LIC’s New term- A pure term plan which provides lump sum amount on the death of the policy holder.
- LIC’s New Money Back – A non-linked endowment savings plan which provides periodic payments of money back.
- LIC’s Jeevan Lakshya – An immediate annuity plan which provides regular and guaranteed income for life.
3. Pension Plan: LIC’s pension plans are designed to help people build retirement fund, meet financial goals, and plan for a secure and comfortable retirement life. These plans also provide an additional financial shield to the family members of the policyholder in case of unexpected demise. Some of the popular pension plans are:
- LIC’s Jeevan Akshay VI – A single premium pension plan that provides a regular stream of income for the rest of the policyholder’s life.
- LIC’s Jeevan Shanti – A single premium deferred pension plan that can be availed by the policyholder whenever required.
- LIC’s New Jeevan Nidhi – Deferred non-linked with-profit savings plan which provides maturity benefits, death benefits, and bonus.
- LIC’s Jeevan Akshay – A policy with a single premium payment that ensures regular income in the form of a pension to the policyholder after retirement.
Benefits Of LIC Policies
1. Low Premium: LIC policies usually have a low premium rate, making them affordable and attractive for a wide range of individuals and families.
2. Tax Benefits: Many of LIC’s policies, especially pension plans, offer attractive tax benefits.
3. Flexibility: LIC offers a wide range of policies and riders that can be tailored to suit the policyholder’s individual needs and circumstances.
4. Assurance: LIC policies come with a high degree of assurance about policy benefits and payouts in case of certain events.
5. Loyalty benefits: LIC provides various loyalty benefits for loyal policyholders such as reduced premium rates and bonus payouts.
Conclusion
Life Insurance Corporation of India is a well-established and reliable company that offers superior life insurance services. It provides a wide range of policies and riders that can be tailored to suit individual needs and goals. It is one of the leading providers of life insurance in the country and is known for its commitment to customer service and assurance in policy payouts.
