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 Assurance 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 plan can be bought from the LIC online.

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.

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 Jeevan Shanti

In the LIC Jeevan Shanti plan, a one-time investment needs to be made and then avail guaranteed income for long life. On the premise of the prerequisites and circumstances chose from the nine various annuity options.

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.

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.

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.

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.

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 proviso 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.

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.

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.

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.

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.

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.

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.

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 Umang

It is a whole life assurance plan that provides a blend of both protection and income to the family. Likewise, it offers survival benefits right from the end of the term of the premium payment until maturity.

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.

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.

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.

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.

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.

LIC of India - FAQs

Q. How to pay a premium? What are the modes of payment available?

The Life insurance Corporation of India Ltd. offers 6 modes of premium payment namely:

• Cheque / DD payment at the branch and cash counters
• Payment at the Axis Bank
• Payment at the Corporation Bank
• Online Payment
• NEFT
• ECS
• AP online
• MP Online
• Suvidha Infoserve
• Easy bill pay
• Premium point by empowered agents
• Life plus SBA
• Retired LIC Employee collection
• Phone banking
• Authorized Service Provider (in selected cities)

For the online payment mode, the policyholder can pay via;

• Credit Card,
• Debit Card
• Net banking

Q. How can I LIC check policy status?

For online registered users, they can check the policy status by loging into the e-Portal alternatively; visit the branch personally to know the policy status.

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 branch in your city.

Q. What is the company’s process to settle claim?

For the claim settlement nominee can visit the branch personally and the customer service desk will help you there.

Q. What is the policy cancellation process?

For the cancellation of the policy, you can visit the branch personally.

Q. How to check LIC policy status without registration?

To check the policy status online, it is mandatory to complete the registration process online by choosing the username and password. Once, you successfully complete the registration process you can enter the policy number and other required details to check the status of the policy.

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 to pay LIC online?

To pay the policy premium directly thorough the insurer website, the insurance holder will need to visit the official website of LIC of India i.e.; www.licindia(dot)in, and click on the option of pay premium online from the section of online services. Here, the policyholder will get 2 options 1.) pay online direct (without logging) or 2.)  through the customer portal.

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 check my LIC policy details online?

You can follow these simple steps to check the policy details online.

Step 1 - For new users, the insurance holder will require to fill the registration form available online on the official website of LIC of India i.e. www.licindia(dot)in

Step 2- Enter the required details like policy number, DOB, e-mail ID, premium amount, etc.

Step 3- Once the process of registration is completed a verification email will be sent to the registered mail ID.

Step 4- After completion of the verification, one can check any details related to policy from the account.

Step 5- The insurance holder will need to enter his/her username password and press enter.

Step 6- Once the account is logged in, the policyholder will need to choose the option F enrolled policies.

Step 7- The policyholder will be directed to another page where they can check the details of all the enrolled policies listed.

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 6826 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 canceled 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.