LIC Terminology

LIC of India offers a range of products designed to meet diverse financial needs. For new and existing policyholders, familiarizing themselves with the terminologies of LIC is important in making informed decisions about insurance policies. Therefore, to help you understand the common terms in insurance, here is a list of some commonly used LIC terminologies. 

Read more
LIC Plans-
Buy LIC policy online hassle free
Tax saving under Sec 80C & 10(10D)^
Guaranteed maturity with life cover for securing family's future
Sovereign guarantee as per Sec 37 of LIC Act
LIC life insurance
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold
Now Available on Policybazaar
Grow wealth through
100% Guaranteed Returns with LIC
+91
Secure
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on ''View Plans'' you, agreed to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold
  1. Premium

    The premium is the amount you must pay to obtain LIC insurance coverage. While premiums may vary depending on the type of policy, they generally remain consistent throughout the policy term.

  2. Premium Payment Mode

    LIC offers premium payment modes, including monthly, quarterly, semi-annual, and annual options, allowing policyholders to choose the one that best suits their financial planning.

  3. Premium Payment Term

    This term refers to the period during which the policyholder must pay premiums. Depending on the policy, payment options include single, limited, or regular premium terms.

  4. Policy Term

    The policy term is the duration for which the insurer provides coverage and benefits. Most policies allow you to select the term, which can often be extended with whole-life policies up to 99 or 100 years.

  5. Claim Amount

    The claim amount is the benefit the policyholder or their beneficiaries are entitled to receive. It includes the death benefit in case of a claim and the maturity amount upon policy completion.

  6. Death Benefit

    Also known as the life cover amount, the death benefit is the sum payable upon the policyholder’s death during the policy term. This amount may include the sum assured, rider benefits, and applicable bonuses.

  7. Exclusions

    Exclusions are specific conditions or circumstances under which the policy does not provide coverage. For example, most LIC policies do not cover deaths due to suicide within the first year.

  8. Free Look Period

    This is the period immediately following the issuance of a policy during which the policyholder can review the policy details. If dissatisfied, the policyholder can return it within this period (usually 30 days for online policies and 15 days for offline policies) and receive a refund of the premium minus any nominal charges.

  9. Grace Period

    The grace period is the extra time to pay premiums after the due date. Typically, LIC offers a 15-day grace period for monthly premiums and 30 days for other payment modes, allowing policyholders to avoid policy lapse.

  10. Lapsed Policy

    The policy lapses if premiums are not paid even after the grace period, meaning it will no longer provide coverage.

  11. Life Assured

    The life assured is the individual covered under the policy. In policies purchased for oneself, the policyholder and life assured are the same person. For child plans, the policyholder is the parent, while the child is the life assured.

  12. Maturity Benefit

    This is the amount payable to the life assured upon surviving the policy term. It can be a fixed sum assured or a variable amount based on the type of policy. In LIC policy, it refers to the return of premiums paid throughout the policy term at maturity.

  13. Nominee

    The nominee is the person designated by the policyholder to receive the death benefit in case of the policyholder's death during the policy term.

  14. Paid-up Benefit

    Some policies offer a paid-up benefit, where if premiums are not paid after a certain period, the policy will continue with a reduced sum assured based on premiums already paid, rather than lapsing.

  15. Revival Period

    After a policy lapse, the revival period allows the policyholder to reinstate it by paying the outstanding premiums and any applicable interest. This often requires a new medical assessment.

  16. Riders

    Riders are benefits that can be added to a base policy for enhanced coverage. Common riders include critical illness riders, accidental death benefit riders, and waiver of premium riders.

  17. Sum Assured

    The sum assured is the amount the insurer guarantees to pay in case of the policyholder’s death or other specified events. For instance, if a policy has a sum assured of ₹50 lakhs, that amount will be paid to the nominee upon the policyholder’s death.

  18. Surrender Benefit

    If the policyholder decides to terminate the policy before its maturity, they can receive the cash value accumulated up to that point, known as the surrender benefit. The policy will terminate after this payment.

  19. Survival Benefit

    Some policies offer periodic survival benefits for outliving specific policy years. This benefit may include any applicable bonuses.

  20. Tax Benefits

    Life insurance policies in India offer tax benefits under sections 80C, 80D, and 10(10D) of the Income Tax Act of 1961. These benefits are subject to changes in tax laws.

Lic Hub

The LIC of India offers an array of insurance and investment products to cater to the needs of a diverse range of customers. Let us take a look at the various types of plans offered by Life Insurance Corporation of India:

  • Tax Saving
  • Investment Plans
  • Senior Citizens
  • Kids Plan
  • Women

LIC for TAX Saving:

Enjoy the dual benefit of tax deductions under Section 80C and comprehensive insurance coverage with LIC’s tax-saving policies.

Best LIC for Investment:

Explore LIC's top-performing plans, which provide the perfect blend of investment growth and insurance protection to achieve your financial aspirations.

LIC for Senior Citizens:

Ensure a peaceful and financially stable retirement with LIC plans offering guaranteed returns, life cover, and regular income options.

LIC for Kids:

Protect and plan your child’s education, marriage, and future goals with LIC’s specialized child insurance plans that combine savings and life cover.

LIC for Women:

LIC offers plans tailored for women, focusing on their unique needs. These plans include savings, life cover, and financial independence to secure a brighter future.

Summing It Up:

Understanding these terms will help you navigate LIC policies more effectively, ensuring you make the most of your insurance coverage. Whether you’re a new policyholder or looking to review your existing policies, familiarity with these terms will help you navigate the intricacies of LIC products and manage your insurance needs more effectively. 


*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

LIC of India
LIC Plans
LIC Amritbaal
LIC Index Plus
LIC Jeevan Dhara II-872
LIC Jeevan Utsav
LIC Jeevan Kiran
LIC Dhan Vriddhi
LIC Monthly Investment Plans
LIC Jeevan Azad
LIC 1 Crore Endowment Plans
LIC Jeevan Labh 1 Crore
LIC Crorepati Plan
LIC Dhan Varsha - Plan No. 866
LIC Pension Plus Plan
LIC New Jeevan Shanti
LIC Bima Ratna
LIC Group Plans
LIC Fixed Deposit Monthly Income Plan
LIC Savings Plans
LIC’s New Jeevan Anand
LIC New Jeevan Anand Plan 915
LIC's Saral Jeevan Bima
LIC's Dhan Rekha
LIC Jeevan Labh 836
LIC Jeevan Jyoti Bima Yojana
LIC Child Plans Single Premium
LIC Child Plan Fixed Deposit
LIC Jeevan Akshay VII
LIC Yearly Plan
LIC Bima Jyoti (Plan 860)
LIC’s New Bima Bachat Plan 916
LIC Bachat Plus Plan 861
LIC Policy for Girl Child in India
LIC Samriddhi Plus
LIC New Janaraksha Plan
LIC Nivesh Plus
LIC Policy for Women 2025
LIC Plans for 15 years
LIC Jeevan Shree
LIC Jeevan Chhaya
LIC Jeevan Vriddhi
LIC Jeevan Saathi
LIC Jeevan Rekha
LIC Jeevan Pramukh
LIC Jeevan Dhara
LIC Money Plus
LIC Micro Bachat Policy
LIC Endowment Plus Plan
LIC Endowment Assurance Policy
LIC Bhagya Lakshmi Plan
LIC Bima Diamond
LIC Anmol Jeevan
LIC Bima Shree (Plan No. 948)
LIC Jeevan Saathi Plus
LIC Jeevan Shiromani Plan
LIC Annuity Plans
LIC Jeevan Akshay VII Plan
LIC SIIP Plan (Plan no. 852) 2025
LIC Jeevan Umang Plan
LIC Jeevan Shanti Plan
LIC Online Premium Payment
LIC Jeevan Labh Policy-936
LIC Money Plus Plan
LIC Komal Jeevan Plan
LIC Jeevan Tarang Plan
LIC Bima Bachat Plan
LIC’s New Money Back Plan-25 years
LIC Money Back Plan 20 years
LIC Limited Premium Endowment Plan
LIC Jeevan Rakshak Plan
LIC New Jeevan Anand (Previously LIC Plan 149)
LIC New Endowment Plan
LIC Varishtha Pension Bima Yojana
LIC Investment Plans
LIC Pension Plans
Show More Plans
LIC Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

LIC of India articles

Recent Articles
Popular Articles
Prime Minister Modi Launches LIC Bima Sakhi Yojana to Empower Women

10 Dec 2024

4 min read

Prime Minister Narendra Modi has launched the Bima Sakhi Yojana
Read more
LIC Bima Sakhi Yojana

10 Dec 2024

3 min read

The Bima Sakhi Yojana, launched by Prime Minister Narendra Modi
Read more
LIC Yuva Term Plan Calculator

20 Nov 2024

3 min read

LIC Yuva Term Plan Calculator is an online tool designed to
Read more
LIC Index Plus Plan Details

15 Oct 2024

2 min read

The LIC Index Plus plan is a ULIP offered by the Life Insurance
Read more
How to Buy LIC Index Plus from Policybazaar?

15 Oct 2024

3 min read

The LIC Index Plus combines the benefits of insurance and
Read more
LIC Online Premium Payment

3 min read

The LIC Online Payment by Policybazaar enables policyholders to pay their insurance premiums online at their
Read more
How to Check the Maturity Amount of LIC Policies?

4 min read

The LIC maturity value is the amount payable to the policyholders at the end of their policy term. To calculate
Read more
Surrendering LIC Policy Before Maturity Time: Your Guide!

3 min read

The surrender value of an LIC policy is the amount given to the policyholder if they cancel their policy before
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL