Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) is India’s largest insurance provider. The company deals in life insurance and provides all the standard products such as term insurance, endowment policies, unit-linked insurance plans (ULIPs), retirement plans, and group life insurance, among others. LIC also provides rural plans and promotes Social Security schemes like Aam Admi Bima Yojana and Janashree Bima Yojana introduced by the Government of India for the economically weaker sections of society. It has the vision to be an internationally competitive financial conglomerate for India and other parts of the world.
LIC has been in operation since 1957, when it was formed by amalgamating over 240 insurance companies and provident businesses under an act of the Indian Parliament. The company touches over 250 million people through its policies. It is headquartered in Mumbai and runs its pan-India business through 8 zonal offices, over 110 divisional offices, and more than 1380 satellite branches.
Types of Plans offered by LIC
The LIC Company offers various plans include traditional insurance policies such as endowment plans, money-back policies, and term covers that can be grouped under separate heads. Let’s look at these LIC plans in more detail.
LIC Term Plans
These policies are the simplest form of insurance policies as they only have a death benefit and no maturity benefit. Since the insurance company does not have to return any money, these LIC plans are also the least priced insurance covers available in the market.
LIC Term Insurance Plans are Following:
- LIC Anmol Jeevan II: It’s a non participating pure term insurance plan with very good premium rate compare to other. This LIC plan comes with the only death benefit, Have not any maturity benefit.
- LIC Amulya Jeevan II: This LIC plan insured policyholder for long tenure of 35 years. This plan also has only death benefit.
- LIC e-Term Plan: It’s a regular non participating term insurance plan which offers high sum assured (Minimum- Rs 25 lakhs)
LIC Endowment Plans
These LIC policies collect premium over a certain period that may be the entire tenure of the policy or for a limited period. They pay back as a lump sum on maturity the sum assured and bonuses declared during the policy period. The investor receives a two-way benefit – an insurance cover during the tenure of the policy and an investment return on his money.
List of LIC Endowment Plans are:
- LIC Jeevan Pragati: It is non linked and with profit plan which is a combination of savings and protection. In this LIC policy the risk cover of death increase in every 5 years within the policy term.
- Maturity benefit= Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (if any)
- LIC Jeevan Labh: LIC jeevan labh is best endowment plan of LIC due to its limited premium paying term. The policy term is the deciding factor of the premium paying term.
|For Policy Term||Premium Paying Term|
|16 years||10 years|
|21 years||15 years|
|25 years||16 years|
- LIC Single Premium Endowment Plan: It’s LIC single premium endowment plan of the dual benefit of life protection and savings. The entry age for the plan is 90 days to 65 years but risk cover for the age group below 8 years is start after 2 years and for the age group above 8 years the risk cover starts immediately.
- LIC New Endowment Plan: This plans also come with the combination of savings and protection. LIC new endowment plan offers guaranteed return and bonus. The policyholder chooses a plan term between 12 to 35 years.
- LIC New Jeevan Anand: This LIC plan provides life cover for whole life even after receiving the maturity sum assured by the policyholder.
- LIC Jeevan Rakshak: This is a standard participating endowment plan. You can get extra benefits in the form of riders.
- LIC Limited Premium Endowment Plan: As the policy name suggested you have to pay a premium for a limited time period(8 or 9 years) and avail policy benefits for the complete policy tenure which you have chosen at the time of buy (12, 16 & 21).
- LIC Jeevan Lakshya: LIC Jeevan Lakshya is non linked with-profit endowment assurance plan with dual benefits of insurance and investment.
- Premium paying term = Policy term – 3 years
- LIC Aadhaar Shila: This plan is specially designed for Women which have Aadhar card issued by UIDAI. You can also take loan against this policy but after completion of 3 years of plan.
- LIC Aadhaar Stambh: LIC Aadhaar stambh is exclusively endowment plan for the male who holds an Aadhaar card. The policyholder can also choose Accident benefit rider at the time of buying the policy.
LIC Money-Back Plans
These are endowment policies that pay a certain sum of money at regular intervals in addition to the final lump sum. The money paid back is generally given as a percentage of sum assured. For instance, a 20-year money back LIC plan may pay back 20% of sum assured every 5 years after the 5th year and the rest (i.e. 40%) at maturity on the 20th year.
Below are the LIC Money-Back Plans:
- LIC Bima Shree Plan: LIC Bima Shree Plan is a money back plan of policy term 14, 16, 18 and 20 years. This plan is specially designed for high net worth individuals. The premium paid term is 4 years lesser than the policy term.
- LIC Jeevan Shiromani Policy: LIC Jeevan Shiromani Policy is non-linked, with-profit participating and limited premium money back plan which provides protection, savings and medical cover against 15 critical illnesses.
- LIC New Money Back Plan– 20 years: As the policy name suggested the term of the policy is 20 years in which you need to pay the premium only for 15 years. In this money back plan the 20% of sum assured is paid at the end of 5th, 10th & 15th year as survival benefit. The remaining 40% of sum assured is paid as maturity benefit with bonuses.
- LIC New Money Back Plan – 25 years: This plan is the same as the above plan the only difference is that 15% of sum assured paid at the end of 5th, 10th, 15th & 20th year.
- LIC New Bima Bachat: LIC New Bima Bachat is a traditional saving plan which provides savings, insurance cover & liquidity.This single premium plan comes in three policy term options 9, 12 & 15 years.
- LIC New Childen’s Money Back Plan: This is a non-linked money back plan for the children aged between 0 to 12 years. 20% of sum assured is paid to the policyholder as he attain age 18, 20 & 22 years and remaining 40% paid as maturity benefit with bonuses.
- LIC Jeevan Tarun Plan: LIC jeevan tarun is participating endowment plan for the child (90 days to 12 years). This policy active till the child 25 years old and premium need to pay till the child is 20 years old. Jeevan tarun plan has 4 maturity options, you can choose anyone at the time of purchase of the policy.
LIC Retirement Plans
These policies are meant to provide annuity returns during the investor’s retirement years. These LIC plans are generally divided into two: immediate annuity plans and deferred annuity covers. The immediate annuity plans generally require a single premium that is paid at the beginning of the policy, while deferred plans need regular premiums that are paid to build up a retirement corpus for the future.
LIC Latest Retirement Plans are:
- Pradhan Mantri Vaya Vandana Yojana: PMVVY is Government of India pension scheme for senior citizens of aged 60 years and above. The minimum purchase amount for this lic scheme is Rs 1,50,000 for monthly mode of pension.
- LIC New Jeevan Nidhi: This plan provides dual benefits of protection and savings (for retirement days). The premium of the policy depends upon the age of entry.
- LIC Jeevan Akshay- VI: LIC jeevan akshay is an immediate annuity pension plan. You can buy this LIC policy by paying a single premium and receive regular payouts from LIC.
LIC ULIP’s Plans
These are ULIPs that peg their returns to market performance. LIC offers a host of such plans that allow investors to get better returns on their money. Investors in plans such as LIC Market Plus 1 can choose from a range of funds including equity, debt and mixed. LIC’s NEW ENDOWMENT PLUS is the LIC’s latest ULIP plan.
LIC Whole Life Plans
Whole life insurance plans cover policyholder entire life and the premium amount never increases. Jeevan Umang is the whole life plan of LIC Company.
Micro Insurance Plans
These insurance products provide adequate insurance cover and investment returns for a low premium. These LIC policies are ideal for the economically weaker sections of the society who need an insurance plan to cover against risks faced by them.
LIC Micro Insurance Plans are following:
- LIC New Jeevan Mangal: This is a protection plan with maturity benefit. This plan provides double risk cover if the policyholder demise in accident.
- LIC Bhagya Lakshmi Plan: This is a protection plan for lower income group with dual benefits of investment and savings. The premium paying term for LIC bhagya lakshmi plan is two years lesser than policy term.
LIC Health Plans
These LIC plans are ideal for protecting the health of the insured against specific health risks. These LIC policies provide a way for people to overcome the increasing costs of healthcare. They include daily cash options that let the insured meet daily healthcare costs during hospitalization as well as protection against costs of surgery or long-term treatment.
LIC Health Plans are:-
- LIC JEEVAN AROGYA: LIC jeevan arogya is non-linked health insurance plan which covers you, child, spouse, parents and your’s in-laws. This plan comes with hospital cash benefit (HCB).
- LIC Cancer Cover: The cancer cover plan helps the policyholder if he is diagnosed with cancer. This plan comes with 2 plan options
- Level Sum Insured- Sum insured remain unchanged.
- Increasing Sum Insured: Sum insured increase 10% every year for the starting 5 years.
|You may also like to read: LIC Health Insurance Plans – Feature and Benefits|
LIC Group Plans
These covers are meant for businesses, associations or groups of people and help their employees/members and dependents against risks. These LIC plans come with a low premium (when taken on a per head basis) than individual plans.
List of LIC’s Group plans are below:
- LIC Group Credit Life Insurance
- LIC Single Premium Group Insurance
- LIC New Group Leave Encashment Plan
- LIC New Group Superannuation Cash Accumulation Plan
- LIC NEW ONE YEAR RENEWABLE GROUP TERM ASSURANCE PLAN I
- LIC NEW ONE YEAR RENEWABLE GROUP TERM ASSURANCE PLAN II
- LIC New Group Gratuity Cash Accumulation Plan