What are the advantages of Investing in LIC of India?
LIC of India is India’s premier corporation that grants life insurance services to masses at an affordable rate. The Life Insurance Corporation is fully managed by the Government of India and all the new plan launches are regulated by the government.
LIC of India covers every kind of individuals like senior citizens, children, adults, a person with a disability, retired employees, etc. This is the reason why LIC of India maintained a record of 29 crores satisfied policyholders.
LIC provides 8 kinds of life insurance plans-
- Term insurance
- Endowment Plans
- Whole Life insurance
- Pension Plans
- ULIP (Unit Linked Insurance plans)
- Money-Back Plans
- Health Plans
- Micro Insurance plan
Important Information about LIC of India
|Formation Of LIC||1956|
|Number of Products||30 Insurance Plans (Active)|
|Claim settlement Ratio||98%|
|Number of Branches||2,048|
What is eligibility for buying LIC policies?
- Age of the Policyholder: The factor of age depends on the type of LIC plan you are opting for. Like for term insurance, you need to be 18 years or above. While in LIC Children’s Money Back Policy there is no minimum age. A newborn baby is eligible to buy this policy.
- Document Proofs: To purchase LIC policies you need a set of basic documents like ID proof, residence proof, DOB proof, income evidence, and photographs. After submitting these documents, LIC will approve it and issue the policy.
How LIC policies can be purchased?
LIC of India gives you two options to buy a policy, that are
- Offline Method: Some of the LIC policies are only available offline. There is no option to buy online. Such policies include- LIC Jeevan Arogya, LIC Jeevan Amar, LIC Anmol Jeevan, LIC Jeevan Lakshya, LIC Jeevan Nidhi and many more.
- Online Method: LIC also gives you the option to buy their policies online to make the process of buying faster, cheaper, and secure. Some online policies are LIC Tech term, LIC cancer cover, LIC Jeevan Shanti.
Now let’s come to the types of policies offered by LIC of India.
The insurance policies have been categorized into various kinds of insurance. So, let’s jump into these depths.
Under LIC Term Insurance Policies
- LIC Anmol Jeevan II Plan: The policyholder age must be 18 years to 55 years to get coverage under the plan. The family after the death of the life assured will get lumpsum payment of sum assured.
- LIC e-Term Plan: Online LIC plan that focuses on providing high coverage against the death of the policyholder. Age must be between 18 years to 60 years. Sum insured available is Rs 25 lakhs to unlimited.
- LIC Jeevan Amar: On purchasing this plan, you can financially protect your family for a maximum of 40 years. A whole sum assured is paid in one go on the demise of the life assured.
Under LIC Endowment Plans
- LIC Jeevan Anand Plan: A combination of term plan and endowment plan. Both life assured and his family can churn benefit from the plan. Life Assured is required to choose the sum assured (minimum 1 lakhs) and policy term (15 to 35 years) to become eligible for taking policy.
- LIC Jeevan Pragati Plan: A profit-generating plan by LIC that promises to give you bonuses with basic sum assured on your death during the policy term. In simple terms, you will get an increased sum assured on maturity or death.
- LIC Single Premium Endowment Plan: The plan provides maturity benefit or death benefit through the payment of sum assured and additional bonuses. The plan can be acquired with a minimum investment of Rs 50,000. You have to pay a single premium for the entire policy term. There is no Entry Age limit as a 3 months child is also eligible to enjoy its features.
- LIC New Endowment Plan: Covers all the benefits under LIC Single Premium Endowment Plan, plus an option to enhance the coverage by adding riders. The age of life assured must fall in between 8 to 55 years.
- LIC Jeevan Rakshak Plan: The plan will benefit your family after your death by giving sum assured plus loyalty additions. Even if death does not occur within the policy period, a maturity benefit is always reserved for the life assured. Sum assured options range between Rs. 75,000 to Rs. 2 lakhs.
- LIC Limited Premium Endowment Plan: This plan is just a replica of single premium endowment plan in the aspect of benefits. However, the policy terms are flexible i.e. 12, 16 & 21 years. Also, the minimum sum assured should be 3 lakhs.
- LIC Aadhaar Stambh: Under this policy, if the life assured dies before the completion of 5 policy years, the nominee will get the whole sum assured. In case the death happens after 5 policy years, the nominee will receive the sum assured with loyalty additions.
- LIC Jeevan Lakshya Plan: This plan involves death benefit, optional rider benefit, and maturity benefit. The payment of sum assured will be made on either death of life assured or on the maturity date of the policy.
- LIC Jeevan Labh: The plan will bestow increased sum assured in the event of death or maturity of the policy. Increased sum assured is calculated by adding basic sum assured, profits earned and final additional bonuses. The minimum coverage option available is Rs 2 lakhs.
LIC Health Plans
- LIC Jeevan Arogya: A health insurance plan that gives hospital cash benefit, access to daycare procedures, surgical benefit, emergency ambulance facility and many more.
- LIC Cancer Cover: Anybody who has the probability of having cancer can take this cover for financial assistance. A lump sum payment of sum assured is payable if cancer is at a major stage. This policy also includes income benefits to the family if cancer is at end-stage.
LIC Money Back Policies
- LIC Bima Shree: A dual-purpose plan that serves the benefit of a protection plan and saving plan. How? As it promises to pay your family death benefit with guaranteed profits and final additions. In case of survival of the life assured or maturity of the policy, a fixed percentage of sum assured is paid.
- LICJeevan Shiromani: This plan is just a reflection of Bima Shree. IT constitutes payment of death benefit on death or maturity benefit in case of survival. Additionally, the life assured also receive lumpsum payment of sum assured if any critical illness is diagnosed.
- LIC New Money Back Plan - 20 Years: This includes the benefits of term insurance and also guarantees payment of additional bonuses on death or survival of the life assured within the policy period. The policy term is 20 years and age must fall under 13 years to 45 years
- LICNew Money Back Plan - 25 Years: Similar to the above plan, this also provides a death benefit to the family/nominees of life assured. Plus, maturity or survival benefit if no death occurs. The difference is of policy term i.e. 25 years.
- LIC New Bima Bachat: Policyholder has to submit single premium for the entire policy term to enjoy benefits for a maximum of 15 years. After the death of the life assured, the nominee will receive the entire sum assured with loyalty additions.
- LIC New Children’s Money Back Plan: As you can guess by the name, this policy is dedicated to the children up to the age of 12 years(maximum). This policy gives maturity benefit or death benefits as per the conditions during the policy period.
- LIC's Jeevan Tarun: If someone is looking for a lesser sum assured and lesser premiums, then this policy is perfect. Here the minimum sum assured is Rs. 75,000 and maximum have no boundaries. The benefits are same as the LIC New Money Back policy.
LIC Whole Life Plans
- LIC Jeevan Umang: The plan promises to pay a valuable amount of income and financial protection to the family of the life assured after his/her death. Also, optional riders such as LIC Accident Benefit Rider, LIC Accidental Death & Disability Benefit Rider, LIC New Critical Illness Benefit Rider, can be brought for extra protection.
LIC Social Security Scheme
- Aam Admi Bima Yojana (For BPL): This plan is introduced with the motive to serve the poor section of the society. There is one sum assured i.e. Rs 30,000 and an annual premium payment equal to Rs 200.
LIC Pension Plans
- LIC Jeevan Shanti Plan: The person who is above the age of 30 years is eligible to buy this LIC policy. This plan will provide immediate or deferred annuity during the policy tenure. The minimum price at which this policy is available rs 1.5 lakhs.
- LIC Jeevan Nidhi Plan: the policy can be bought with minimum purchase price of Rs 1 lakh. What do you get? Death benefit, final additional bonus, reversionary bonus, guaranteed addition is what the policyholder can get.
- Pradhan Mantri Vaya Vandana Yojana: A person who is 60 years or above can propose to buy this policy, Life assured as well as his nominees can reap pension benefit for 10 years maximum. The loan option is also available after 3 policy years.
LIC Micro Insurance Plan
- LIC Micro Bachat Plan: You will receive assured payout either on death (for family) or on the maturity date, whichever falls earlier. Sum Assured can be selected between Rs 50,000 to 2 lakhs. Minimum age for entry should be 18 years and maximum is 55 years
- LIC Bhagaya Lakshmi Plan: This policy will financially assist the family on assured’s death with payment of sum assured. The premium payment term is limited i.e. 5 years and 13 years. The benefits can be enjoyed for a maximum of 15 years.
- LIC Jeevan Mangal Plan: Recommended for people between 18 years to 55 years and who have a small budget. The minimum sum assured starts from Rs. 10,000 to Rs. 50,000 maximum.
What Facilities and Benefits do you get under LIC Insurance Policies?
There is a number of facilities that you can avail, after and before purchasing LIC Policies. They are-
- Active and Fast Customer Care Service
- 98% of Claims are settled in 2018-19
- Online Payment of Premium
- Facility to check claim Status Online.
- Flexibility Sum Insured and policy term Option under various policies.
- Intimation of Claim by calling on the toll-free number.
- Online premium acceptance through credit cards, debit cards, net banking, merchants, or authorized banks.
- Loans Facility under some of the LIC Plans.
- LIC Premium Calculator to calculate your premium online valid to all LIC plans.
Critical Analysis of LIC of India
After we have learned extremely about LIC in this article, we came to the conclusion that the brand is credible, affordable and dynamic. LIC considers all classes, ages, income groups, and sections while designing their insurance plans. They give multiple options to different generations that provide complete freedom and flexibility to the customers.
With their current claim settlement ratio i.e. 98% proves how beneficial it is to a customer in terms of claim payments.