The Life Insurance Corporation of India (LIC) is a state-owned insurance group and investment company. It is the largest insurance company in India with an estimated asset value of Rs 1,560,482 crore.
Established in 1956, The Life Insurance Corporation of India offers a variety of insurance products to its customers such as insurance plans, pension plans, Unit Linked plans, special plans and group schemes as well as online child insurance plans
The LIC currently has a network of close to 2,048 branches and 1,337,064 agents operating in different cities and towns all over the country.
Key Highlights of LIC Life Insurance
Claim Settlement Ratio
Claim-settlement ratio of 98.19% for year 2014-2015
100% Grievances Settled for year 2014-2015
To be eligible for LIC Life Insurance
You should be at least 18 years old
You should be less than 60 years old
You should be either Salaried, Self- employed, a professional or have your own business
LIC Life Insurance at a Glance
A maximum tenure of 35 years
Min Sum Assured: Rs 25 Lakhs
Max Sum Assured: No limit subject to underwriting
Specific exclusions: Suicide within the first 12 months
Documentation needed to apply for an LIC Life Insurance
- 1. Identity Proof
- 2. Age Proof
- 3. Income Proof
- 4. Address Proof
- 5. PAN Number
LIC Life Insurance Plans Details
- LIC Endowment Plans:
- Single Premium Endowment Plan: Single Premium Endowment Plan is a participating non linked savings and protection plan. The premium is paid in lump sum when the policy is drawn.
- New Endowment Plan:The New Endowment Plan provides a lump sum amount to the policyholder at the time of maturity and offers financial protection to the family members of the policyholder in case of the death of policyholder.
- New Jeevan Anand:The New Jeevan Anand policy offers a lump sum amount to the insured at the end of the policy term in case of their survival and also takes care of liquidity needs.
- LIC’s Jeevan Rakshak:The LIC’s Jeevan Rakshak pays the policyholder the basic sum assures along with loyalty addition at the end of the policy term.
- LIC’s Limited Premium Endowment Plan: In case of the death of the insured during the policy term, the death benefit (Basic Sum assured) along with reversionary bonuses will be paid considering that all the premiums have been paid up until then.
- LIC’s Jeevan Sangam: In LIC’s Jeevan Sangam plan, the proposer will have the option of choosing the maturity sum assured and the premium to be paid will be decided on the maturity sum.
- LIC Money Back Plans:
- LIC’s Money Back Plan 20 years: In case the insured survives by the end of the specified duration 20% of the basic sum assured at the end of each 5th, 10th and 15th policy year.
- LIC’s Money Back Plan 25 years: In case the insured survives by the end of the specified duration 15% of the basic sum assured at the end of each 5th, 10th, 15th and 20th policy year.
- LIC’s New Bachat Plan: A money bank plan that offers financial protection against death along with the provision of payment of survival benefits at specified durations during the policy term.
- LIC Pension Plans:
LIC’s Pension Plans assures financial security in your old age. These policies are tailor-made for senior citizens planning a secure future.
- Jeevan Akshay: The Jeevan Akshay plan is an immediate annuity plan where annuity payments of a stated amount will be made throughout the lifetime of the annuitant.
- LIC’s New Jeevan Nidhi: The LIC’s New Jeevan Nidhi plan provides death cover during the postponement period and offers annuity on survival to the date of vesting.
- LIC Term Insurance Plans:
- LIC’s Anmol Jeevan: A protection plan that offers fiscal protection to the family of the insured in case of his/ her unfortunate demise.
- LIC’s Amulya Jeevan A protection plan with no maturity benefits.It offers 1 crore life cover and above.
- LIC’s e-Term: An online pure term plan with different premium rates for tobacco users and non-tobacco users.
- LIC’s New Term Assurance Rider: LIC’s New Term Assurance Rider is a life insurance plan which can be combined with a basic policy with add on benefit at a nominal cost.
- LIC ULIP Plans:
The Life Insurance Corporation of India (LIC) offers Unit Linked Insurance Plans (ULIPs) designed to help their clients achieve substantial returns on their investments as well as help them save tax even if they don’t draw a consistent income. LIC ULIP Plans offer protection and flexibility in investment, where the premium paid is used to purchase units in investment assets chosen by the policyholder. The Life Insurance Corporation of India provides its customers with Unit Linked Plans which assure the policyholder of good returns through market linked growth along with the added facility of life insurance coverage.
- LIC Child Plans:>
The Life Insurance Corporation of India (LIC) offers a range of child plans, available in both conventional and ULIPs form, to meet the needs of growing children. LIC Child Plans are designed with special features to meet the marital, educational and other requirements of children through survival benefits. LIC Child Plans also provide risk cover on the insured child over the course of the policy term. The Life Insurance Corporation of India provides different child plans such as LIC Jeevan Tarang, LIC Child plan Komal Jeevan, LIC Plan no 184 and LIC Jeevan Ankur to cover all the needs of the children.
- LIC Group Plans:
Group Insurance schemes offer protection and stability to a group of a people.
- LIC’s New Group Leave Encashment Plan: It is a fund-based Insurance plan that helps the employer in providing leave encashment to their employees.
- LIC’s New Group Superannuation Cash Accumulation Plan: It is tailor-made to the employer who has a defined superannuation scheme for their employers.
- LIC’s New One Year Renewable Group Term Assurance Plan 1: This plan offers the option of renewing premium rates at each Annual Renewal Date.
- LIC’s New One Year Renewable Group Term Assurance Plan 2: Under this, premiums can be renewed through profit sharing arrangement.
- LIC’s New Group Gratuity Cash Accumulation Plan: This scheme meets the employer’s obligation for statutory gratuity benefit to their employers.
- LIC’s Group Credit Life Insurance - An insurance scheme that protects banks and other financial institutions against a risk of outstanding loan in the case of the unfortunate death of the loanee before complete repayment of the loan.
Some Other Plans from LIC:
- LIC Micro Insurance Products:
This is an insurance and investment plan.
- LIC’s New Jeevan Mangal: This is a protection plan which also has inbuilt accident benefits that act as a double-risk cover in case of accidents.
- LIC’s Bhagya Lakshmi Plan: This plan is a limited payment protection scheme where the policy term is always higher by two years than the premium payment term.
- Jeevan Lakshya Life Insurance:
Jeevan Lakshya Life Insurance from Life Insurance Corporation of India is a plan focused at providing insurance cover to your loved ones in case of any unforeseen sudden events. Securing your family’s future is top priority for most people. This plans aim to ease your stress regarding your responsibilities towards your family.
Key features of Jeevan Lakshya Life Insurance Plan
- Minimum basic sum assured is Rs.1 Lac
- There is no limit on the maximum sum assured
- Minimum and Maximum entry ages are 18 and 50 respectively
- Maximum maturity age for this policy is 65 years
- Policy term offered is between 13-25 years
- Choice of premium payment interval, that is, monthly, half-yearly, quarterly or yearly
- Grace period of 30 days for premium payment
- Policy doesn’t lapse if regular premiums are paid for 3 continuous policy years. The policy subsists on a reduced paid-up basis
Key benefits of Jeevan Lakshya Life Insurance Plan
- Death Benefit: In the event of death of the policy holder a sum assured equaling 105% of the premiums paid will be given to the nominee
- Maturity Benefit:Sum assured on maturity plus all accrued bonuses shall be paid to the policyholder if he survives even after the completion of policy period
- Optional Benefits:Option to avail any of the following two riders with this insurance scheme
- LIC’s Accidental Death and Disability Benefit Rider
- LIC’s New Term Assurance Rider
- Social Security Scheme
- Aam Admi Bima Yojana: A combination of two social security schemes, Aam Admi Bima Yojana and Janashree Bima Yojana.
Life Insurance Corporation of India’s most important objective is to spread the life insurance to the rural areas and to the economically backward classes. LIC’s claim settlement ratio is better than the private life insurers. The average claim settlement rate has been 97 percent for the last couple of years.
The procedure to claim life insurance with Life Insurance Corporation is as follows:
If you have chosen Endowment type of policy, the amount will be payable at the end of the policy term. In that case;
- The Branch office sends out a letter at least 2 months before the due date, informing the date on which the amount will be payable to the policyholder.
- The policy holder must return the duly filled Discharge Form with the Policy Document.
- The Branch office will then sent a post-dated cheque to the policyholder before the policy due date.
If you have chosen Money Back Policy, where the amount will be provided in periodical payments to the policyholder. The premium are paid for the Survival Benefit up to the anniversary due.
LIC India pays death claims when the policyholder has paid all the premiums or if the death occurs within the grace period. On the intimation of death of the life assured, the Branch office calls for the necessary claim forms that the claimant must fill. The claims are settled in 30-60 days from the receipt of the documents. However,
- The claims that arise after a period of 3 years are treated as non-early claims and are settled within 30 days from the date of receipt of all the required documents.
- Claims that arise within 2 years of the commencement of the policy, the claims are treated as early claims and is subject to investigation.
- The claims are usually paid to the nominee or the legal heirs, if the deceased policy holder has made no such arrangement, the amount will be payable to the holder of the Succession Certificate provided by the Court of Law.
- LIC grants concessions for certain Plans where the payment of full sum assured is made. It is subject to the deduction of unpaid premiums and interest till the date of death. That is when the policyholder has been paying premiums for at least 2 years and 5 years respectively.
Double Accident Benefit Claims:
The benefit is provided to the policyholder for a premium of 1 rupee per Rs.1,000. The claimant will have to produce the proof to satisfy the LIC that the accident is defined as per the policy conditions.
Disability Benefit Claims:
This benefit consists of waiver of future premiums under the policy and extends to benefit the disabled and making monthly payments as per the conditions of the policy. To claim for this benefit, one must be prove that the disability caused by the accident is total and permanent and the disability is preventing him from earning any type of income.
Documents required:Documents for Death Claims:
When the death occurs in the grace period, the following documents are to be submitted:
- Claim Form A, where the claimant stated the details of the deceased.
- Certificate from the Death Register.
- If age was not admitted, documentary proof of age must be provided.
- If the deceased policyholder has not nominated anyone, the evidence of title to the deceased’s estate issued under M.W.P. Act must be provided.
- Original policy document.
When the death occurs within 3 years from the date of commencement of the policy, the following documents are to be produced:
- Claim Form B, which is the Medical Attendant’s Certificate.
- Claim Form B1 which is to be produced if the deceased policyholder received treatment in a hospital.
- Claim Form B2 which is to be completed by the Medical attendant who treated the deceased policyholder prior to his last illness.
- Claim Form C which is a Certificate of Identity and burial or cremation. This has to be signed by a person of responsibility and known character.
- Claim Form E is a Certificate by Employer assured that the assured was employed.
- Certified copy of First Information Report, Post-mortem report and Police Investigation Report is to be submitted in case of death due to accident or unnatural cause.
The additional forms are to be filled to ensure that the claim is not a hoax and is genuine. The information helps the officials of the LIC to investigate and further release the claim amount.Documents for Maturity Claims:
- Discharge Form with the Policy Document.
Money Back Policy:
- Discharge Receipt.
- Policy Document.
LIC Life Insurance FAQs
- Q. What are the non-term life insurance policies that LIC offers?
A. LIC offers the following life insurance policies:
- Single Premium Endowment Plan
- New Endowment Plan
- New Jeevan Anand
- Jeevan Rakshak
- Limited Premium Endowment Plan
- Jeevan Lakshya
- New Money Back Plan – 20 years
- New Money Back Plan – 25 years
- New Bima Bachat
- New Children’s Money Back Plan
- Jeevan Tarun
- Q. What are the methods through which you can pay the LIC premiums?
A. You can opt to pay the LIC Premium through net banking or phone banking.
- Q. What are the documents that should be submitted at the time of applying for the policy?
A. You must submit age proof, identity proof, address proof, PAN card and income proof documents.
- Q. Are there any organisations authorised to collect LIC premium through net banking and phone banking?
A. The authorised banks that are authorised to collect the LIC premiums are:
- HDFC Bank
- ICICI Bank
- Bank of Punjab
- UTI bank
- Federal Bank
- Corporation Bank
- Q. What are the authorised service providers of LIC? Which cities do the service providers operate from?
A. BillJunction.com- Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad and Pune.Timesofmoney.com – Mumbai, Delhi and Bangalore.BillDesk.com – Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad, Pune, Baroda and Surat.
- Q. What happens if I miss paying my premium?
A. Usually banks give a 30 day grace period to make your payment. If you don’t pay the premium in the grace period, the policy will get lapsed. If you have the choice to make it a paid up policy take it or you can revive it within a certain period. Please refer your policy document to know more on how to go about reviving your policy.
- Q. Will I get a full refund if I cancel my policy in the free look period?
A. Yes, you will get the full refund if you are cancelling the policy in the free look period.
- Q. How safe is it to pay premiums through the agent?
A. If you wish to pay the premiums through the agent, ensure that you are drawing a cheque in the name of the company and also make sure that you receive the receipt from the insurance company.
- Q. How can I make a claim?
A. You will have to fill in a claim form and contact the financial adviser from whom you got the policy. You will have to submit the relevant documents to support your claim. If the claim application is accepted, you will get a cheque in 7 working days. If the claim is rejected, then you will be receiving a letter explaining the reason for rejection.
- Q. Will I be getting maturity benefits with my life insurance policies?
A. Yes, you will get maturity benefits as defined in your plan. Refer the policy document to know
News About LIC Life Insurance
‘Bima Diamond’ Launched to Commemorate LIC’s Diamond Jubilee
LIC has launched a money-back plan to commemorate their diamond jubilee. Called ‘Bima Diamond’, the plan comes with a 16, 20 and 24 year policy term and is available for purchase up till 31st August, 2017.
The plan will provide policyholders with a fixed amount of money every 4th year during the policy term.
The plan comes with a full Sum Assured amount during the policy tenure and half the Sum Assured amount beyond the policy term.
Auto coverage will also be available after the third policy year onwards. Personal accidental death rider and disability riders are available with this plan.
23rd September 2016
LIC Eyes Bonanza Earnings From Eastern States
The Life Insurance Corporation of India (LIC) is looking at making Rs.5,000 crore from premium earnings from the eastern parts of India for the current financial year. The company has already amassed close to Rs.2,000 crore in premiums up to August, posting 100% growth.
The company is now targeting reaching Rs.5,000 crore by the end of the financial year.
LIC’s pension and group schemes have contributed significantly to their earnings as well, with Rs.2,616 crore amassed through them so far.
The spurt in revenue has also fuelled a recruitment drive to keep up with demand, with LIC adding over 40,000 new agents in the eastern sector.
9th September 2016
LIC sells 2% stake in GNVFCL
Life Insurance Corporation of India (LIC) has reduced its stake in the Gujarat Narmada Valley Fertilisers and Chemicals Ltd (GNVFCL) by selling off 2% of its stake. LIC had a total of 9.81% share in the company. After selling off 2% through an open market transaction, LIC now has a total of 7.80% stake in the company. According to a BSE filing, LIC had 31,20,693 shares of GNVFCL amounting to 2%. Taking the closing price of Wednesday, Rs.153.85 per share, the total value of the sale amounts to Rs.48 crore.
1st September 2016
LIC To Soon Give A Green Signal For Aditya Birla Nuvo-Grasim Merger
The Aditya Birla Nuvo-Grasim merger nears completion as it awaits the go to signal from the nation’s most prominent investment institution, Life Insurance corporation. While private equity investor, Ashish Dhawan, is not quite in favour of the merger, Kumar Mangalam Birla already has the support of LIC for the merger.
On Aug 11, management of the Aditya Birla Group announced plans for restructuring of two of its listed group entities, Aditya Birla Nuvo and Grasim Industries, both of which have undergone a dip in market shares since the deal was announced. LIC’s stake stands at 4.66% in Aditya Birla Nuvo and at 6% in Grasim.
29th August 2016
Criteria to Be Relaxed For New LIC Chief’s Appointment
With the impending departure of the LIC’s new Chairman approaching, the government has announced a relaxation of the selection criteria for the post. Sources say the government could interview as many as 5 candidates for the post at India’s leading life insurance company.
At present, the interview panel and selection criteria are being finalised, with the panel slated to include a representative from the insurance regulatory board (the IRDA) as well.
The scramble to find a successor is due to the current Chairman tendering his resignation notice unexpectedly in June, 2 years before the end of his term.
With the selection process expected to take a while, senior management at LIC would take over the reins until a successor is appointed.
22nd August 2016
LIC and Shivalik Bank Set Up Insurance Partnership
The Life Insurance Corporation (LIC) and the Shivalik Mercantile Co-operative bank have announced a partnership with the aim to distribute insurance products to a wide base of customers across central India.
The bank is one of several that LIC has tied up since 2000 in an effort to expand their reach and target new customers.
As of now, India’s biggest insurer has signed Memorandums of Understanding with 11 public sector banks, 32 co-operative banks as well as 3 private banks.
The move will benefit Shivalik Bank, which will be expanding its Information Technology infrastructure and ground operations as part of the deal.
The bank will be selling a number of insurance products such as car insurance, life insurance etc.
17th August 2016
Insurance sector witnesses an open architecture of bancassurance
Life Insurance Corporation of India (LIC) has entered into a contract Axis Bank as its bancassurance associate recently. This was one of the largest partnerships after 1st April when the new corporate norms came into effect. Now this is also part of the numerous partnerships made by lenders with insurance companies. Many such tie-ups have happened before, such as the one between Tata AIG General Insurance and Bank of Baroda and that between Star Health Insurance and BoB.
16th August 2016
LIC Chairman SK Roy Resigns Two Years before his Term Completion
The Chairman of Life Insurance Corporation of India, SK Roy has resigned from his post two year prior to his term completion with the company. According to a senior official at LIC, Mr.Roy had been requesting for the same for quite some time because of personal reasons.
This is one of the rare instances in which an LIC Chairman resigned before due term end. Roy was appointed chairman in June 2013. His focus was mainly on reacquiring market share that was lost to private insurers, who assure better returns and customer care. LIC’s share returned to 71% after dropping to around 65%.
28th June 2016
LIC To Pay Rs 1.68L As Compensation
Life Insurance Corporation (LIC) was recently asked to pay Rs 1.68 lakh to a complainant by the Madhya Pradesh State Consumer Dispute Redressal Commission. The insurance company was pulled up by the Dispute Redressal Commission as it refused to accept the complainant as the lawfully wedded wife of a deceased policy holder who passed away following an accident. LIC had refused to accept the complainant, Sangeeta Bai, as the legal wife of Umesh Yuvnati, who was an LIC policy holder. Following the decision passed by the Commission, LIC will be making a payment of Rs Rs1,57,071 to the complainant, along with interest at the rate of 8% per annum, beginning from November 2, 2010. In addition, the insurer will also pay Rs 10,000 towards compensation for mental agony caused and Rs 1,000 towards the costs borne by the complainant.
25th June 2016
LIC All Set To Invest In National Investment & Infrastructure Fund
In an effort to highlight its primary focus of infrastructure investment, Life Insurance Corporation (LIC) will be partnering in India's first sovereign wealth fund which has been especially reserved for infrastructure sector. Valued at Rs. 40,000-crore, the National Investment and Infrastructure Fund (NIIF) will be owned in a ratio of 49:51 by the government and other partners.
Global independent wealth funds like Abu Dhabi Infrastructure Authority (ADIA), Russia's Rusnano and Qatar Investment Authority (QIA) have already signed the MoU with the NIIF.
Headed by the Union Finance minister, the NIIF Governing Council met last week to approve certain changes in its investment model. Keeping in mind the interests of possible investors, the council proposed that the government allow investments in individual projects. The meeting also emphasized that the global independent wealth funds are mainly long-term funds where the government will be required to be a facilitator and partner.
15th June 2016