This article delves deep into the realm of holding multiple term insurance policies, highlighting the benefits and answering your pressing queries regarding this facet of financial planning.
Life Insurance Corporation of India (LIC) is a prominent state-owned insurance and investment corporation known for its extensive range of insurance products and services tailored to cater to the diverse needs of the Indian population.
LIC offers a wide spectrum of insurance solutions, including life insurance, health insurance, pension plans, and investment options to ensure comprehensive coverage for its customers. Established in 1956, the company has gained immense popularity in India due to its long-standing history, unwavering trust, and affordable policies encompassing various financial needs.
This article aims to serve as a comprehensive guide for all those interested in learning more about LIC of India, delving into the core aspects of the corporation, its offerings, and its impact on the lives of millions of Indians.
Let’s have a look at some quick facts about LIC of India below:
Life Insurance Corporation of India, as the oldest and one of the most trusted life insurance providers in the country, offers a wide variety of insurance plans. Opting for LIC insurance plans offers several advantages.
Firstly, LIC has a robust claim settlement ratio, indicating high reliability in settling insurance claims. Secondly, the range of insurance products offered by LIC—from term plans, endowment plans, and money back policies to whole life policies — ensures that there's a plan suitable for every individual's financial goals, be it protection, savings, investment, or retirement. Additionally, LIC offers the flexibility of adding riders to enhance policy coverage based on specific needs.
The company's extensive network across India and user-friendly digital services make policy purchases and maintenance convenient for customers. LIC's reputation, built over decades of customer service, further assures policyholders of their financial security.
Life Insurance Corporation of India has a wide range of insurance policies suitable for different life stages and financial goals. Here's who should consider buying a LIC policy:
By offering a multitude of insurance products, LIC has become a one-stop destination for millions of Indians seeking financial security and growth. Among the extensive array of options, several LIC offerings have gained significant popularity in India.
Some of them are listed below -
Unit-linked insurance plans (ULIPs) represent a unique blend of insurance and investment, offering policyholders both life coverage and the opportunity to invest in market-linked instruments such as equities, bonds, or a combination of both. With these plans, individuals can easily diversify their investments while securing their financial future.
For instance, a policyholder might opt for a ULIP that allocates a certain portion of their premium towards life insurance and the remaining towards investments in market-linked funds. This enables them to enjoy the dual benefits of financial protection for their loved ones and potential wealth accumulation over time.
Life Insurance Corporation of India plays a significant role by providing an extensive range of ULIP options catering to different risk profiles and investment objectives. These plans offer various fund choices and flexibility in premium payments, enabling policyholders to customise their investment strategies and maximise returns while maintaining a life insurance coverage safety net.
Some of the popular LIC ULIP plans are given below:
Whole life plans are one of the types of permanent life insurance plans, offering coverage for the entire lifetime of the policyholder. Unlike term insurance plans that offer coverage for a fixed duration, whole life insurance remains in effect as long as the premiums are paid. It has a unique feature where a portion of the premiums accumulates as a cash value, which can be borrowed against or used to pay premiums or even be withdrawn (subject to the terms and conditions of the policy).
Life Insurance Corporation of India, one of the largest insurers in the country, offers a variety of whole life plans catering to different market segments with diverse requirements. These plans vary in premium amounts, coverage, maturity benefits, and other features, helping you choose a plan that best fits your financial goals and risk tolerance. One of the notable LIC whole life plans is LIC Jeevan Umang.
Endowment plans are a type of life insurance policy combining insurance coverage with savings. Under an endowment plan, the policyholder pays regular premiums for a specified term, with the policy offering a lump sum payout upon its maturity or in case of the insured's untimely demise during the policy term.
For example, an individual may purchase a 20-year endowment plan with a sum assured of INR 10 lakhs. If the said person survives the term, they will receive the sum assured along with any accumulated bonuses, providing a considerable corpus for financial goals such as retirement, children's education, or marriage. In case of the policyholder's death during the policy term, the sum assured and accrued bonuses (if any) would be paid to their beneficiaries, ensuring financial protection for their loved ones.
Life Insurance Corporation of India's endowment plans make for a popular choice for individuals seeking these combined benefits. With a strong reputation for trust and reliability, competitive bonus rates, and various riders to enhance coverage, LIC endowment plans provide policyholders with both financial security and the opportunity for long-term savings.
Here are some of the prominent LIC endowment plans -
Money-back plans provide periodic payouts during the policy term. They are designed to meet your liquidity needs at various stages of life. If the insured individual survives the entire policy term, they receive the balance sum assured. In case of the insured's demise during the policy term, the full sum assured is paid to the beneficiaries - irrespective of the payouts already made.
The Life Insurance Corporation of India has several money-back plans, each one catering to different needs and financial goals.
Let’s take a look at the list -
Term insurance plans, as we saw earlier, provide coverage for a specified "term" or period. If the policyholder dies during this term, a death benefit is paid out to the beneficiaries. However, if the insured survives the term, no benefits are generally payable. Term insurance plans are typically the most affordable type of life insurance as they purely offer a death benefit and do not contain any savings or investment component.
The Life Insurance Corporation of India, the largest life insurance company in the country, plays a significant role in offering term insurance plans.
It provides a variety of plans as listed below -
Riders are optional add-ons or benefits that you can attach to your basic insurance policy to enhance the coverage, typically at an additional premium cost. Life Insurance Corporation of India offers various riders that policyholders can use to customise the plan as per their requirements -
Keep the following points in mind to choose a suitable LIC insurance policy –
Ans: Yes, users have the option to increase or decrease the sum assured at any time during the policy term in most LIC policies. However, the change may be subject to certain conditions and additional premiums.
Ans: Yes, most LIC policies have a surrender value that can be availed by policyholders who wish to surrender their policy before maturity. However, as the surrender value may be subject to certain deductions and conditions, policyholders should carefully evaluate the impact of surrendering their policy before making a decision.
Ans: Life Insurance Corporation of India offers a wide array of products including endowment plans, term insurance plans, ULIPs, money-back plans, whole life plans, and more.
Ans: Life Insurance Corporation of India's claim settlement ratio is the percentage of claims paid out by the company in a financial year against the total claims. For the financial year 2021-22, LIC's claim settlement ratio was around 98.62%, which indicates high reliability in settling insurance claims.
Ans: An LIC term insurance plan provides coverage for a specified term and pays a death benefit to the beneficiaries in case of the policyholder's death during the term. An LIC endowment plan, on the other hand, provides both insurance coverage and savings or investment benefits with a lump-sum payout at the end of the policy term.
Ans: The maximum age limit for purchasing most LIC policies is 65 years. However, some policies may have different age limits based on their features and benefits.
Ans: LIC aims to settle claims within 30 days from the date of receipt of all necessary documents. However, the time taken may vary based on the complexity of the claim and the completeness of the documentation.
Ans: Yes, most LIC policies allow policyholders to take a loan against the surrender value of their policy, subject to certain conditions and interest rates.