Life Insurance Corporation of India (LIC of India)

LIC of India is the only public sector life insurance company in India. It was founded in 1956 with the merger of more than 245 insurance companies and provident societies. LIC of India has its headquarters in Mumbai, the commercial capital of India. The Life Insurance Corporation currently functions with 8 zonal offices and 113 divisional offices.

The Life Insurance Corporation is the largest life insurance company in India with over 2000 branches and over 14 lakh agents to solicit life insurance business in the country. The LIC of India provides a wide range of life insurance plans from pure term insurance plans to savings and investment products. LIC of India has a phenomenal presence in both urban and rural India. The motto of the Life Insurance Corporation is "Yogakshemam Vahamyaham", which means - your welfare is our responsibility.

Types of LIC Plans:

As a pioneer of life insurance in India, the Life Insurance Corporation offers a wide range of comprehensive insurance products to its diverse customer base and maximizes the ability of savings of the insurance holder. LIC of India focuses majorly on safeguarding the interests of the insurance holder and acts as trustees in their individual as well as collective abilities. Let us take a look at the various types of plans from Life Insurance Corporation of India:

LIC Term Insurance Plans:

LIC term plans protect the insured at affordable costs. This LIC plan assures substantial advantages in case of the death of the policyholder during the term of the plan. The LIC of India usually does not pay maturity value under such plans if the individual survives until the term of the plan ends. The term policy comes at a low cost and caters to high coverage at lower premium rates.

The term plans offered by the Life Insurance Corporation of India are as under:

LIC Tech Term

It is a pure risk premium plan that provides security in terms of finances to the family of the policyholder under any unfortunate circumstances during the policy tenure. This LIC plan can be bought from the online.

Features

• It offers longer protection for up to 40 years.
• No age boundaries and is available for anyone who is 18 years of age and above.
• For the non-smokers a rebate on the premium and also who have sound health.

Benefits

• The flexibility of paying the premium with three choices namely single, limited and regular premium.
• The nominee upon the demise of the insured will receive the sum assured during the policy term.
• In case you do not consume any of the toxic substances you will get health rewards at the time of purchasing the plan.
• The females can avail the plan at a special price.

LIC Jeevan Amar

This protection plan offers the flexibility to choose between two benefit options and is also available for women at a special price.

Features

• It offers the flexibility to select between two options of benefit that are increasing sum assured and level sum assured.
• Can easily enhance the cover by choosing the rider options.
• Two sections of premium rates for both smokers and the non-smokers.

Benefits

• Anyone who maintains a healthy lifestyle can avail the plan at a special price.
• The assured individual can enjoy low premium rates when opted for high sum assured. The special rate is on the premise of the life assured’s age.
• Two alternatives to death benefit payment that is an instalment and a lump sum. In case the assured had liabilities, then choosing the lump sum option is a better thought and in case the money is needed to support the family then opting for instalment is better.

LIC Pension Plans:

Everyone intends to save enough and live a financially protected retirement life. LIC of India offers several pension plans to guarantee financial stability in old age. These are the three pension plans that LIC of India offers:

LIC New Jeevan Shanti

In the LIC New Jeevan Shanti plan, is the single premium plan wherein a policyholder has an alternative to select between joint life and single life deferred annuity. At the initiation of the plan, the rates have been guaranteed and the annuities will be payable post deferment term throughout the annuitant lifetime.

Features

• It is a single lump sum and paid pension plan where a pension income or a deferred annuity can be received.
• The annuity is payable either monthly, half-yearly, quarterly or yearly.
• The minimum deferment term is a year and can go up to twelve years and can be bought both offline as well as online.

Benefits

• Within the deferred annuity, at the end of each month of the policy, the guaranteed additions will be accrued only until the period of deferment ends.
• The survival benefits are payable within two options namely deferred annuity for the joint-life and single life.

LIC Jeevan Akshay-VII

The LIC of India offers the Jeevan Akshay-VII plan; the policyholder has the option to select the sort of annuity from ten options available by paying a lump sum amount. The rates of the annuity are guaranteed during the initiation of the policy and are payable throughout the life of the annuitant.

Features

• The key feature of this plan is that it offers ten annuity options.
• A loan can be easily availed after the policy has been issued for three months or after the expiry of the period of free-look.
• The annuities will be payable throughout the life of the annuitant and the rates are mostly guaranteed whenever the policy commences.
• In case if the plan is bought at Rs 5, 00,000 and more then an incentive is available that also increases the rate of an annuity.

Benefits

• The annuity payments are taxable within the rate of marginal income tax.
• For the equivalent, buying sum gets a higher pension when the plan is purchased online.

Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana has been introduced by the Indian government. This scheme essentially provides the pension that is assured of 7.40 per cent that is payable every month. Besides, the Life Insurance Corporation of India is solely authorized for this scheme to operate.

Features

• The plan has no maximum entry age.
• The pension mode of the plan is monthly, quarterly, yearly and half-yearly.
• The highest pension sum in criteria within the plan is the complete family.

Benefits

• On the completion of the policy term, the last purchase cost and the final pension instalment is paid to the pensioner.
• When the pensioner survives the policy tenure the pension will be paid as per the chosen pension mode.
• One can avail loan within this policy only after the completion of three years of the term of the policy.

LIC Whole Life Plan:

LIC of India also offers a whole life plan for a better and secured tomorrow. The following is the plan that LIC of India offers and one can make a choice:

LIC Jeevan Umang

The LIC of India offers a plan, which is a blend of both protection and income to the family. It provides yearly survival benefit from the premium payment term ends until maturity and a lump sum payment at maturity or upon the demise of the policyholder during the policy tenure. This plan can be bought from the LIC online.

Features

• The large sum assured is accessible within this plan.
• It is an amalgamation of both fixed pay and routine income.
• The simple reversionary bonus will be payable upon early demise or the maturity.
• Enables to fulfil the policyholders’ liquidity requirements as well as in case of a loan, etc. 

Benefits

• Upon demise, before the commencement of risk, a sum equivalent to the complete sum of premium paid will be given without any interest.
• The premiums are tax exempted within Section 80C. Moreover, the maturity and death sum also remain tax-exempted within Section 10 (10D).

LIC Endowment Plans:

The LIC of India offers endowment plans with additional benefits. For instance, a few plans take part in company gains while other plans produce savings via making investments in the equity market. These are the endowment plans that LIC of India offers:

LIC New Endowment Plan

LIC New Endowment Plan is a non-linked, participating scheme that provides an alluring combo of saving and protection features. This combo offers fiscal support for the deceased insured’s family any time before the policy gets matured and a good amount in a lump sum during the maturity for the surviving insured. This plan from the LIC of India also makes sure to take care of the liquidity requirements via the loan facility.

Features

• In case of survival at the end of the policy tenure, the benefits are paid to the survivor.
• With this plan huge sum assured rebate is accessible along with assured bonus and returns.
• In case when the insured passes away, the death benefit will be payable to the nominee and the policy will terminate.

Benefits

• The insured can easily avail loan within this; however, the sum will be decided upon the surrender value and the terms and conditions of the policy.
• Include the rider benefit options and enhance the policy cover such as disability benefit rider and accidental death.

LIC Single Premium Endowment Plan

It is a non-linked, participating protection-cum-savings where you can pay a premium in a lump sum at the onset of the plan. This combo offers financial protection aligned with demise during the term of the policy with the provision of payment of lump sum at the end of the term of the chosen policy in the case of survival of the policyholder. This scheme also makes sure of the liquidity requirements via the facility of loan.

Features

• There is no upper limit of quoting the sum; however, the sum has to be in the multiples of 5000.
• The policy offers bonuses such as reversionary and final addition bonus.

Benefits

• After the initial year of the policy, a loan facility will be availed.
• The policyholder will avail tax benefits for the premiums paid and the received claims.

LIC New Jeevan Anand

It is a non-linked, a participating plan that provides an attractive combo of savings and protection. This combo offers fiscal protection against the demise all through the lifetime of the insured with the proviso of payment of the lump sum amount at the termination of the term of the chosen policy in the case of his survival.

Features

• The loan can be availed within the plan if a surrender value is acquired.
• The option of regular premium payment is provided by the policyholder.
• The rebates in premium are permitted for selecting the high level of sum assured and also paying premiums semi-yearly or yearly.

Benefits

• The policy can be easily revived less than two years right from the initial date of the unpaid premium and paying the premiums with other expenses and interest.
• The premiums are available at a special rate that is accessible on high sum assured.

LIC Jeevan Labh

It is a non-linked, limited premium paying endowment life insurance plan that offers both protection and savings to the policyholders. The scheme of LIC of India provides both maturity and death benefits together with gain participation bonuses.

Features

• Flexibility to choose policy term from 16 years, 21 years or 25 years.
• Free-look period of fifteen years from the issue date of the policy.
• This policy offers a revival period of two years.

Benefits

• This policy lets you avail perks in the form of rebates.
• In case the policyholder survives, then the insured will avail benefits such as sum assured upon maturity, final additional bonuses and simple reversionary bonuses.

LIC New Bima Bachat

This is a money-back plan that provides financial security against demise during the policy tenure with the provision of making payments of the survival benefit at a certain point in time within the policy tenure. Besides upon maturity, the single premium will be returned with the loyalty additions and also takes care of the liquidity requirements with its facility of loan.

Features

• The policyholder at the beginning of the policy tenure needs to pay the premium as the lump sum.
• The policyholder who opts for a high sum assured is provided with the rebates.
• Upon completion of the policy tenure, a one-time premium is returned to the policyholder with the loyalty bonus applicable.

Benefits

• The loyalty additions will be paid at a Corporations’ discretion. On the premise of the profits of the corporation, the loyalty additions for the policyholder will be declared.
• The maturity benefit will become payable in case the insured survives the policy term duration.

LIC Aadhar Shila

LIC Aadhaar Shila policy caters to a combo of savings and protection. This scheme is wholly designed for females who have Aadhaar Card that is issued by the Unique Identification Authority of India (UIDIA). This policy of LIC of India offers fiscal security for the insured’s family in the case of unforeseen demise of the insured any time before the policy gets matured and a lump sum at the maturity of the policy for the surviving insured.

Features

• This plan is exclusively available only for females.
• The maturity sum is tax-exempted within Section 10 (10D).
• Accessibility to take loan after the completion of three years of the policy.

Benefits

• In case the policyholder passes away a death benefit will be received by the nominee.
• If the loyalty additions are declared it will be payable as part of the death benefit when the demise incurs after five policy years

LIC Jeevan Lakshya

It is a non-linked, participating scheme offering a combo of savings and protection. This scheme caters to Annual Income benefit, which might help to fulfil the requirements of the insured’s family, mainly for the children’s benefits, in the case of unforeseen death of the insured any time before the policy gets insured and a lump sum at the time of policy’s maturity heedless of the policyholder’s survival.

Features

• Enhance the policy and choose rider benefit options.
• The policy term could be selected between 16 years to 25 years.
• An alternative of electronic clearance service that facilitates easy premium payment.

Benefits

• If the premiums have been duly paid and the policyholder happens to survive the policy tenure then a maturity benefit can be availed.
• The premiums paid within this plan and the maturity sum is eligible for tax benefit.

LIC Aadhar Stambh

It is a non-linked, participating scheme offering a combo of savings and protection. This scheme caters to annual income benefit, which might help to fulfil the requirements of the insured’s family, mainly for the children’s benefits, in the case of unforeseen death of the insured any time before the policy gets insured and a lump sum at the time of policy’s maturity heedless of the policyholder’s survival.

Features

• Multiple alternatives to select the amount of the sum assured.
• Enhance the policy by choosing rider options.
• Flexibility to choose the policy term as per the convenience.

Benefits

• In case of the passing away of the insured, a death benefit will be received by the nominee.
• On surviving the policy period, the sum assured upon maturity and the loyalty additions will be received.

LIC Money Back Plans:

Money-Back Plans are life insurance policies that provide life cover during the policy term and payment of maturity benefit is made in instalments via survival advantages every 5 years. There are several schemes with varied terms under this policy offered by LIC of India. Most of these schemes provide optional riders together with tax benefits.  

LIC Jeevan Shiromani

It is a non-linked, limited premium payment, the with-profit money-back insurance plan that provides both the benefit of savings and protection. This LIC of India plan is specifically designed for individuals with high net worth. The plan provides financial backup to the family of the insured in case of any eventuality. Moreover, like a money-back policy, It also provides periodic payment to the insured in case of survival at a specific period during the tenure of the policy. The lump-sum amount is paid as maturity benefit to the insured after the completion of the policy tenure.

Features

• After the completion of the initial year, this plan permits you to get the paid-up immediately.
• Flexibility to pay the premium as per the preference and chose monthly, yearly, quarterly or semi-yearly.
• Enhance the policy by simply choosing suitable rider benefit options such as accidental benefit rider, disability benefit rider, critical illness, etc.

Benefits

• Upon demise within the initial five years, death benefit and accrued guaranteed addition will be payable.
• Upon survival of the insured, a basic sum assured that is a fixed percentage shall be payable.

LIC Jeevan Tarun

It is a non-linked, participating, limited premium payment scheme that offers an exclusive combo of savings and protection features for kids. This scheme is particularly designed to meet the requirements of the kids including, education, marriage, etc. via annual survival benefit payments from 20-24 years and Maturity Benefit at the attainment of 25 years of age.

Features

• The premium needs to be paid until the child turns 20 years of age and the policy will be active up to 25 years of age.
• The premium needs to be paid only till 20 years of age and the plan will be in force until another five years.
• The standing sum assured with the vested bonus will be paid to the child as the maturity benefit.

Benefits

• When the life assured survives the policy tenure then the sum assured, which percentage is fixed is payable upon maturity.
• This plan is entitled to participate in the profits of the corporation and obtain simple reversionary bonuses and any other final addition bonus wherein the claim is made either due to demise or the maturity is provided when a policy is active.

LIC New Money Back Plan- 20 years

New Money Back Plan-20 years is a participating, non-linked plan that offers an alluring combo of savings and protection against the demise of the policyholder during the term of the policy together with the periodic payments on the survival of the insured at particular durations throughout the term. This distinctive combo offers financial support for the loved ones of the departed insured any time before the policy gets matured and a lump sum when it matures for the surviving insured. This scheme also ensures liquidity requirements via the loan facility.

Features

• Pay the annual premiums for only 15 years.
• If the policy acquires a surrender value the loan facility can be availed.
• There is no upper cap to the sum assured so you can select a higher amount as well.
• From the payout of the death benefit, the survival benefits paid up will not be deducted.

Benefits

• When the life assured survives until the maturity, the 40 per cent of a basic sum assured including the simple reversionary and final additional bonus will also be paid.
• When the policyholder survives the policy period then a nominee is entitled to receive 20 per cent of the basic sum assured towards the end of every 5, 10 and 15 years of the policy.

LIC New Children’s Money Back Plan

The New Children’s Money Back Plan is a distinctive scheme planned to provide multiple requirements of growing kids, counting on to their education, marriage etc. This non-linked, participating money back LIC of India plan comes with survival benefits along with the risk cover for the kids.

Features

• An alternative to revive the policy less than two years by paying all the unpaid premiums.
• A plan specifically designed to cater to the interest of the children and provides cover to the child during the policy period.
• To cater to any sort of emergencies, a loan can also be availed.

Benefits

• The maturity benefit, which is equal to a sum assured and the bonuses accrued within the period will likely be paid.
• Rebates can be availed on the high premium sum that will lead to saving money.
• To obtain an assured surrender value, post the completion of three years of the policy can be surrendered.

LIC New Money Back Plan- 25 years

New Money Back Plan – 25 years is a non-linked, participating policy that offers an appealing combo of savings and protection against the demise of the insured during the term of the policy together with the cyclic payments on the survival of the insured at particular throughout the term. This exclusive combo from LIC of India offers financial aid for the loved ones of the departed insured any time before it gets matured and a lump sum while the maturity for the surviving insured. This scheme also makes certain the liquidity requirements via loan facility.

Features

• Enhance the policy cover by opting for various rider benefit options.
• As per the rules, 30 days of the grace period is provided and 15 days of the cooling period.
• Rebates upon the high basic sum assured half-yearly and yearly modes of premium payment.

Benefits

• 15 per cent of the basic sum assured will be payable towards the end of every 5, 10, 15 and 20 years of the policy. Such a benefit will be payable upon the survival of the life insured to the end of a certain duration within the policy period where the policy is still active.
• The facility of loan can be accessed when the three years of premium payment has been made successfully.

What is the Online Services Provided by the LIC?

The Life Insurance Corporation of India is India’s oldest and trusted insurance provider. With the varying needs of the customers, it has initiated LIC e-services for the convenience of the customers. Right from registering a policy to paying the premium amount, the LIC e-services have made the customer journey smoother.

You can easily visit the LIC e-service page on the official website of LIC of India and get details in a hassle-free manner at any point in time from anywhere.

Any LIC customer can avail the LIC e-services. The LIC online services permit the existing policyholder to get them registered online and keep a track on every update in regards to the policy and make the LIC premium payment online including various other services. The key aspect of using the LIC e-services is that you can easily register the spouse along with the children and the policies and not take stress in regards to adding them separately and remember the passwords or usernames respectively.

The LIC online services provide the customers with the facility to solve any policy-related query and problems. With this, you need not visit any agent for any work. Listed below are the online services offered by the LIC for a customer-friendly journey:

• Primarily, the online premium payment through various modes available such as the credit/debit card, BHIM, net banking, UPI.
• Easily review the status and policy update.
• Checking the details of the loan status.
• Checking the history of the claim.
• Deletion or addition of the nominee names.
• Availing loan on service request registration for the equivalent.
• Availing information in regards to schemes and details of different LIC insurance plans.
• The registration of complaints online that is associated with the insurance policy.

Now, let us take a quick understanding of the following features offered within LIC online services:

• Policy Schedule: The policy bond comprises of the policy schedule. The initial page will show the schedule.
• Revival Quotes: In case the policy lapses then it will show a revival quote on the screen.
• Status of Bonus: The complete accrued bonus until the time can easily be checked, which is paid during the last final payment within the LIC policy.
• Status of Claim: The dates for a different benefit such as the survival or the maturity benefit that is unpaid during policy tenure will be displayed as the claim status. This is because you can then proceed further with the settlement of the claims if applicable.
• Status of Loan: Any outstanding loan sum and the dues for the interest and loans paid within the plan will also be shown.

How to Check the LIC Policy Status?

The Life Insurance Corporation of India has implemented various mobile online services. By simply utilizing these online services you can easily keep a track on the status of the policy.

Let us understand how to check the LIC policy details online.

For a New User

In case you are a new user, follow the below steps:

1. A new customer should duly fill the registration form that is easily available on the website of LIC of India.
2. To proceed further with the LIC login process important details such as the policy number, premium sum, and so on will be required.
3. Now, when it is completed then a verification link will be shared on the registered email address.
4. Once you click on the verification link sent on the email address then you can easily check any information related to the policy from your account.

For Registered Users

If you have already registered then follow the below steps:

1. Visit the official website of LIC of India and login with the credentials.
2. Next, you need to click on the tab ‘View Enrolled Policies’. Then you will be directed to the page wherein you can see the policies that you have enrolled.
3. Select the LIC policy of your choice and check the details for the same.

Moreover, the LIC of India also provides an interactive voice response system round-the-clock that is accessible in almost every city across the nation. The LIC policyholder needs to simply dial the Universal Access Number that is 1251 and likewise get in touch with the customer support of the corporation. You can also ask any question and check for the LIC policy status directly over the call. You also have the option to reach out the zonal and regional offices of the LIC. The LIC regional offices in India have been classified into seven zones namely:

• Central Zone
• Northern Zone
• Eastern Zone
• Western Zone
• Southern Zone
• South Central Zone
• North Central Zone

The seven zones have been characterized city-wise and email addresses and customer support contact numbers along with the local city codes to help you know the LIC policy status over a phone call.

Apart from the online registration option, you can easily check the LIC policy status through an SMS from your mobile phone as well. This option is much helpful as you would not need to remember the password to check the LIC policy status. However, do not forget the LIC policy number as it is the most important information to get the details for this process.

To know the LIC policy status through an SMS simply type ‘ASKLIC’ that is followed by the function policy number certain code and then send it to the number 56767877. In the below grid, are other types of SMS catering to other services:

It is important to check the LIC policy status as in the hustle and bustle of life sometimes the policyholder might forget to make the timely premium payment. Therefore, to keep track on the LIC policy status is not a bad idea so that in case the premium payment was not made in the recent month because of any reason then the policyholder can make the premium payment under the grace period of the upcoming month.

Besides, the policyholder will also be able to understand the transitional bonuses offered and keep the plan up to date. In case the premiums are not paid timely, the LIP policy might lapse and you will not be able to benefit from the plan. It is to be noted that revival of the policy is also time-taken and could be troublesome in case the premium re delayed and the policy has lapsed already for 6 months and above. Henceforth, to keep your family and yourself insured it is highly recommended to check the LIC policy status regularly and make the payment under the date of due.

How to Pay the LIC Premium Online?

The Life Insurance Corporation of India has simply made some online alternatives accessible to its policyholders so that they can pay the LIC premiums successfully.

The premium payment can be done either on the mobile app of the LIC of India or simply visit the official website of the same. Listed below are the modes that will help to make the timely LIC premium payment online:

Website of Life Insurance Corporation of India

To pay the LIC premium via the website, all you need to do is visit the official website of the provider and click on the tab ‘Pay Premium Online’ under the Online Service s Portal. Now, you will have the following two options:

• Pay Direct: This is an option for those customers who do not wish to register with the portal. With this option the following types of payments could be done:
• Advance premium payment
• Loan interest repayment
• Loan repayment

Now, follow the steps one by one.

1. Select the option of ‘Advance Premium Payment’ for making the payment.
2. The pop-up will appear on the screen of your computer that will illustrate the process of payment of the premiums and likewise ask for the consent. To give your consent, click on the ‘Proceed’ tab.
3. Now, enter all the relevant details such as the policy number, premium instalment, etc. correctly and on time so that the session does not expire and you need not fill all the details from the scratch.
4. Further, click on the submit tab after you select ‘I Agree’.
5. Now, you will see the details of the policy for, which the premium is being paid. To make the payments click on the ‘Check & Pay’ tab.
6. Now, it will ask you to make the payment. You can choose the mode of payment that suits you the most make the LIC premium payment online.

Through Customer Portal

In case you are already registered with the portal, then simply log in to the account to make the LIC premium payment. And if you have not been registered then complete the registration. Click on ‘Signup’ tab to register yourself wherein you will be required to enter information such as the policy number, contact number, premium sum, date of birth and the email address. Once the registration is done, you can log in the account to make the LIC premium payment. Now, follow the below steps:

1. By entering your details log in to the account.
2. Now click on the tab ‘Online payments’, which will take you to the portal of premium payment.
3. Now select the LIC policy for, which you need to make the payment and then click on ‘Check and Pay’, etc.
4. Next, the portal will ask you to duly confirm all the details such as the premium sum, policy number. To confirm the details click on the tab ‘Check and Pay’.
5. Select the payment gateway and complete the transaction using the preferred mode

Life Insurance Corporation of India Mobile App

The policyholder can also make the LIC premium payment simply by downloading the app on a smart device. There are mainly three applications available on the Apple app store and Google play store namely My LIC, LIC Customer and LIC Pay Direct.

LIC Customer App: You can make the premium payment either by using the pay direct option or simply by registering. The process to make the LIC premium payment is the same as it on the website. Besides, you can also avail different services such as the LIC premium calculator, LIC office locator and much more.

LIC Pay Direct App: The policyholder can easily pay the premium without even registering. Moreover, you can also download the statements of the transaction by using this app.

My LIC App: This is essentially the LIC app store that provides the link to above-mentioned two apps. The policyholder needs to install the above-mentioned app to make the LIC premium payment.

Payment via ECS: The policyholder has an alternative to give the ECS mandate to the LIC. Within this, the premium will be deducted automatically from the bank account registered of the policyholder on a date specified. You need to visit the branch and carry a cancelled cheque and the policy details if you wish to register for an ECS mandate.

Some Important Points When Making the Payments

Listed below are some important pointers that should be considered while you are making the payment:

• Provide the correct details and valid contact number along with email address.
• The payment receipt will always be mailed to the email address provided.
• When it comes to the LIC premium payment it should be done by the policyholder and should not be an involvement of a third-party.
• In case the LIC premium sum is debited from the bank account, however, an error is displayed on the screen then a receipt will be shared with you on the email address within three working days after confirmation has been received from your bank. You can always report such an incident to bo_eps1@licindia[dot]com.
• In case you retry ensure that you check the same with the bank with the sum of the previous transaction. In case the sum has been debited do not make the payment again. The insurer will mail you the receipt within three working days.
• The online portal will accept domestic banks issued cards. Any international cards will duly be not accepted.

What is the Claim Settlement Process of the LIC?

The settlement of claims is one of the most important aspects of the services to the policyholders. Therefore, the LIC of India has emphasized greatly on the settlement of both maturity and the death claims.

Let us understand the procedure of settling the LIC maturity and death claims listed below:

• Maturity Claims: In case the policy is an endowment type then the sum is payable at the end of the policy term. The branch office that serves the policy will send a letter that will inform the date on, which the policy money is payable to the policyholder either two months before or after the payment due date. The policyholder is then requested to return a discharge form that is duly completed with the document of the policy. With the receipt of the two documents, post-dated cheque is then sent by post in the name of the policyholder before the date of due.

With plans like a money-back plan will provide periodical payments to the policyholders only if the due premium within the policy is paid up to the due anniversary for the survival benefit. In such cases wherein the sum payable is less than Rs 60,000 then cheques are most likely released without calling for a policy document in the discharge receipt. In case the amount is high then these two requirements will be insisted upon.

• Death Claims: The death claim sum is payable when the premiums are duly paid or the demise occurs under the grace days. Whenever the intimation of the life assured’s demise is received the branch office will call for the listed below requirements:
• The Claim Form A- It is essentially the statement of the claimant, which gives the information of the claimant and passed away.
• From the death register the certified extract.
• In case the age is not admitted then evidence to substantiate the same.
• Proof of title to the deceased’s’ estate in case the policy isn’t assigned, nominated or issued within the MWP act.
• The original papers of the policy document.

Moreover, there are some other forms that we required additionally if the demise occurs less than three years right from the date of reinstatement/ revival or risk as listed below:

• Claim Form B: A certificate of the medical attendant that is completed by the deceased’s medical attendant during the last illness.
• Claim Form B1: In case the treatment in the hospital was received by the life assured.
• Claim Form B2: This should be duly completed by the deceased life assured’s a medical attendant who treated for last.
• Claim Form C: A certificate of identity and cremation or burial that is completed and signed by the person who is a known responsibility and character.
• Claim Form E: The employment certificate if the life assured was an employed individual.
• The copies of the post-mortem report, first information report and the investigation of police in case the demise was due to an unnatural cause or an accident.

Such additional forms will be required to substantiate the genuineness of the claim wherein no material details would likely affect the acceptance of the proposal that has been withheld during the time of proposal by the deceased. Let us also understand the LIC rider benefit claim as well listed below:

Disability Benefit Claims: It essentially consists of the waiver of future premiums within the policy and the disability benefit extended that consists of the monthly payment benefit as per the conditions of the policy. The key condition to claim this benefit is the complete and permanent disability to preclude the individual from earning any profit, compensation or wage as the result of such an accident.

Double Accident Benefits Claims: It provides the injection to a life insurance cover. An extra premium that costs up to Rs 1 for every Rs 1,000 sum assured is charged. To claim the benefit within this the claimant will have to produce the evidence that satisfies the corporation that the mishap is defined as per the conditions of the policy. Document such as the copy of the FIR, report of the post-mortem is mostly insisted upon. 

LIC of India - FAQs

Q. What is the LIC policy renewal process?

For renewing online, follow these easy steps;

Step1: Enter your Client ID and Date of Birth to login into e-portal

Step2: Choose the policy and payment option (Net Banking/ Debit/Credit Card)

Step3: Print/save the premium deposit receipt on successful payment completion

Alternatively, you can pay via cheque at any of the nearest branches in your city.

Q. What is the sum assured in LIC?

The sum assured is the amount of money that the insurance company guarantees to pay and death benefit or maturity benefit to the insured or beneficiary before any addition of bonuses.

Q. How to change the nominee in LIC?

An individual can change the nominee as many times as he/she wants. To do so, the policyholder will have to submit a notice to the Life Insurance Corporation of India in Form 3750. In the form, the policyholder will require to mention the details of the person they want to approve a nominee. The policyholder can change the nominee at any time without notifying the existing nominee.

Q. How is the LIC maturity amount calculated?

The maturity amount is calculated as the total sum assured amount of policy + bonus amount that has been received during the policy tenure + final additional bonus if any.

Q. How can I get a LIC premium statement?

To get the premium statement, log in to the online portal of LIC of India by using your username and password. You will be directed to your account page. Choose the year for, which you want to download the statement and click on the save and download option to download the premium statement of the policy.

Q. How is the LIC surrender value calculated?

The surrender value of the policy is calculated as:

{Basic sum assured X (no. of premium paid/ total number of premiums payable) plus total bonus received}, X, the factor of surrender value.

Q. What is the customer care number of LIC of India?

The customer care number is 022 6827 6827

Q. What is the rate of interest on loan against the LIC policy?

The rate of interest on loan against LIC policy usually varies between 9-11%.

Q. What are the documents required for the LIC maturity claim?

The documents required for maturity claim process are:

• Original LIC policy documents.
• Identity proof
• Age proof ( if not submitted earlier)
• A copy of the bank passbook of the policyholder and a cancelled cheque.
• NEFT mandate form (to transfer maturity benefit directly to the bank account of the policyholder).
• Assignment/ Reassignment (if any)

Q. How to change the address in LIC policy?

The policyholder can either visit the nearest office or submit a request of an address change in writing or can change the policy address online by logging in to their account.

Q. How to get a loan against LIC policy?

If the policy is eligible to take a loan against the policy then he/she will need to follow these processes to avail loan against the policy.

• Visit the branch office of the bank.
• Thoroughly fill the loan application form and submit it along with the required documents to the lender’s representatives.
• Existing bank customers will require submitting minimal documents.
• The lender will verify the submitted documents and will approve the application.
• After approval, the loan amount will be credited to the savings bank account.

Q. Where to show LIC maturity amount in ITR?

The maturity proceeds are applicable for tax exemption under Section 10(10D) of the Income Tax Act.

Q. LIC comes under, which Section?

The tax benefit offered on the premium payment of the policy comes under Section 80C of the Income Tax Act. 

LIC of India- Latest News

Karnataka Shifts Sukanya Samriddhi Yojana to India Post from the LIC of India

The state cabinet is likely to implement the redefined Bhagyalakshmi scheme within the Sukanya Samriddhi Yojana scheme of the India Post and not LIC of India. This scheme will focus upon providing the financial assistance to two girls to the maximum who fall into the category of below poverty line family and will issue the insurance bond wherein the maturity sum will be given to the girl when they turn 18 years of age.

The scheme was earlier launched in the year 2006-2007 to improve the sex ratio and provide incentives to the families who fall into the category of BPL and have a girl child. Within this scheme, the girl will obtain a sum of Rs 1, 00,000 when turning 18 years of age. Owing to the low rate of interest in the former, the cabinet has decided to transfer this scheme from the LIC of India to India post from the year 2020-2021.

A New Deferred Annuity ‘Jeevan Shanti’ Plan Introduced by the LIC of India

The Life Insurance Corporation of India has recently launched the new deferred annuity plan that is called the ‘New Jeevan Shanti’ plan.

At the beginning of the policy, the annuity rates are guaranteed and the annuities will be payable post the period of deferment throughout the annuitants’ lifetime. The LIC of India's New Jeevan Shanti plan can be easily purchased both online and offline. Moreover, there are two annuity options available within the New Jeevan Shanti Plan.

In subject to the minimum annuity criterion, the minimum buying price is Rs 1, 50,000 and the modes of annuity accessible are monthly, quarterly, yearly and half-yearly respectively.  The least annuity is Rs 12,000 every year, however, on the maximum buying price, there is no ceiling. By way of increase in the rate of an annuity an incentive for the buying price of Rs 50,000 and more is accessible.

LIC Shares the Income Tax Rules for Pradhan Mantri Vyay Vandana Yojana

An employee can easily claim a standard deduction that is to the maximum of Rs 50, 000 in the financial year that is against the income taxable within the ‘Salaries’ head. The standard deduction is likewise accessible against the salary obtained either in the arrears or in case of advances or for the present period.

Besides, the salary that is obtained in the present employment, the pension obtained from an ex-employer is also entitled to taxation within the ‘Salaries’ head. Therefore, the ex-employees can also claim a standard deduction against a pension income.

For the pension that is accrued to the person within the employment either received or not from the employer, the taxpayer can easily claim the standard deduction. The pension when received by the retired person from the Employment Provident Fund Scheme and the annuity obtained from the LIC in regards to annuity bought by an employer for the superannuation is also taxable with the head of ‘salaries’ wherein the recipient is entitled to claim a standard deduction.

In case of any periodic payment that is either received as the pension or upon the annuity bought directly also becomes taxable within the ‘Income from other sources’ head and not within ‘salaries’, which implies that is not entitled to for a standard deduction.

Government to Sell 25 percent in Phases in LIC

The government intends to amend the parliament act within, which the Life Insurance Corporation of India was initially set-up. The timing of the providers’ initial public offering will be on the premise of the market conditions. Besides, the sale will likely be done in the tranches. The stake sale in the LIC will be through the public offering of the shares that will enable the government to bolster the finances under the crisis of this pandemic. The company is also reworking upon the financial statement and as a part of the proposal, an amendment in the parliament will be moved by the government to authorize the capital of about 200 billion rupees that will be then divided into twenty billion shares.