LIC of India is the largest life insurance company in India with over 20 crore policyholders. It offers a variety of life insurance products such as term plans, whole life plans, money back plans, ULIPs, and child plans. LIC of India also has a wide network of agents and branches across the country, making it easily accessible to people from all walks of life. In this blog post, we will take a look at LIC of India and some of the key features of its products.
What is LIC?
LIC is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest life insurer in India with a 24% market share in fiscal year 2018-19. LIC has more than 329 million policyholders and assets of over Rs. 28 lakh crore (US$400 billion).
LIC offers a range of insurance products including life, health, and vehicle insurance. It also offers investment products such as mutual funds and bonds. LIC is one of the few companies in India that offer a complete suite of financial products.
LIC was founded in 1956 by the Indian government. The company was created to provide affordable life insurance to the masses. LIC is owned by the Government of India and is run by a team of professional managers.
LIC has a wide network of branches and agents across India. The company also has a large number of tied agents who sell LIC policies.
LIC’s History
LIC was founded on 1st September, 1956 with the merger of more than 200 insurance companies and provident societies. Since then, it has been one of the most trusted names in India when it comes to life insurance.
LIC’s history is synonymous with the history of insurance in India. The Indian insurance industry can be traced back to 1818 when the British East India Company started selling life insurance policies in India. However, it was not until 1870 that the industry saw its first Indian company – Bombay Mutual Life Assurance Society. This was followed by a host of other Indian companies such as Hindustan Cooperative Insurance Society (1896), Cochin Insurance Society (1901) and United India Fire & General Insurance Company (1906).
The growth of the Indian insurance industry was halted by the First World War but picked up again in the 1920s. By 1938, there were about 100 life insurers in India. However, the industry was once again hit by another world war.
After Independence, the Government of India took over control of around 175 insurers out of which only 24 were viable. In order to consolidate and streamline the operations of these companies, LIC was formed on 1st September 1956 with an authorised capital of Rs. 5 crores and a paid-up capital of Rs. 2 crores.
Why Choose LIC Policy
LIC of India is one of the most trusted and popular life insurance companies in India. LIC has a wide range of life insurance policies to suit the needs of different people. Some of the reasons why people choose LIC policies are:
1. LIC is a government-owned company, which makes it more trustworthy than private insurance companies.
2. LIC has been in operation for over 60 years and has a good track record.
3. LIC offers a wide range of life insurance policies, which gives policyholders a variety of options to choose from.
4. LIC policies offer tax benefits, which can help policyholders save money on their taxes.
5. LIC agents are available all over the country, which makes it easy for people to get in touch with them when needed.
LIC’s Products and Services
The Life Insurance Corporation of India (LIC of India) is the largest insurance company in India with over 250 million policyholders. It offers a wide range of life insurance products and services, including term life insurance, whole life insurance, universal life insurance, annuities, and health insurance.
LIC’s products are designed to meet the diverse needs of its policyholders. Its term life insurance plans offer protection for a specific period of time, while whole life and universal life plans provide lifelong coverage. Annuities can provide a steady stream of income during retirement, while health insurance plans can help cover the costs of medical care.
LIC of India has a wide network of branches and agents across the country that makes it easy for policyholders to get in touch with the company. The company also has an online presence that allows customers to purchase policies and make claims online.
How to Buy a LIC Policy
There are numerous ways to buy a LIC policy. The most common and easiest way is to purchase it directly from the company either online or offline. However, one can also buy a policy through an insurance agent or a broker.
The first step is to understand what life insurance you need. There are two main types of life insurance- term life insurance and whole life insurance. Term life insurance provides protection for a specific period of time, usually 10-30 years. Whole life insurance, on the other hand, covers you for your entire life.
Once you have decided on the type of policy you need, the next step is to choose the best plan that suits your needs and budget. LIC offers a wide range of policies with different features and benefits. It is important that you compare different plans before making a decision.
Once you have selected the right plan, the next step is to fill up an application form and submit it along with the required documents. After your application is approved, you will be asked to pay the premium amount. You can choose to pay the premium annually, semi-annually, quarterly or monthly basis as per your convenience.
After you have paid the premium, your policy will be issued and will be valid for the chosen term. In case of any eventuality during the policy tenure, your nominees will receive the death benefit sum assured by LIC.
LIC Claim Settlement Process
The Life Insurance Corporation of India (LIC) is a state-owned insurance group and investment company headquartered in Mumbai. It is the largest life insurance company in India with an estimated asset base of ₹3.14 trillion (US$42 billion) and gross written premiums of ₹1,206 billion (US$16 billion) for the financial year 2018-19. The company has about 2000 offices across India and around 10 crore policyholders.
To settle a claim, the nominee or the legal heir of the deceased policyholder needs to submit a duly filled in and signed claim form along with other required documents to the nearest LIC office within 30 days from the date of death of the policyholder.
The documents required are as follows:
1) Death certificate issued by a competent authority
2) Policy Bond
3) Claim form duly filled in and signed by the nominee or legal heir
4) NEFT Mandate Form if settlement is desired through NEFT mode
5) KYC documents as applicable
6) Any other document as may be specified by LIC from time to time
On receipt of all the above mentioned documents, LIC will verify all the details and process the claim within 30 days from the date of receipt of all documents. The entire claim amount will be paid out through NEFT to the bank account details furnished by the claimant.
LIC’s Financial Performance
Life Insurance Corporation of India (LIC of India) is one of the largest life insurers in India with over 20 million policyholders. The company has a long history dating back to 1956 when it was founded by the Government of India. LIC of India offers a wide range of insurance products including term life, whole life, and universal life insurance.
In recent years, LIC of India has been facing stiff competition from private insurers such as HDFC Life, Max Life, and SBI Life. As a result, LIC’s market share has declined from 70% in 2010 to 55% in 2016. Nevertheless, LIC remains the largest life insurer in India with a total premium income of Rs. 2 trillion (US$30 billion) in FY2016.
LIC’s financial performance has been strong in recent years despite the competitive pressure. The company’s total premium income grew at a compound annual growth rate (CAGR) of 12% between FY2010 and FY2016. Its net profit also increased at a CAGR of 10% during the same period.
Looking ahead, LIC is well-positioned to maintain its leading position in the Indian life insurance market given its vast distribution network and brand equity.
Conclusion
The Life Insurance Corporation of India (LIC of India) is a public sector life insurance company that was established in 1956. LIC of India provides a wide range of life insurance products and services to its policyholders, including term life insurance, whole life insurance, and endowment plans. In addition to its traditional product offerings, LIC of India also offers health insurance and investment-linked policies.
