Life Insurance Corporation of India: A Comprehensive Overview

InsuranceLecturer — Life Insurance Corporation of India (LIC) is an Indian multinational public sector life insurance company headquartered in Mumbai. It is India’s largest insurance company as well as the largest institutional investor with total assets under management worth ₹45.7 trillion (US$570 billion) as of March 2023.

History

The Life Insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act, nationalizing the insurance industry in India. Over 245 insurance companies and provident societies were merged together.

Products and Services

LIC offers a wide range of products and services, including life insurance, health insurance, investment management, and mutual funds. The company also has a number of subsidiaries, including LIC Pension Fund Limited, LIC Cards Services Ltd, and LIC Housing Finance.

Insurance Plans

LIC’s Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Financial Performance

In 2023, LIC reported a revenue of ₹784,889 crore (US$98 billion), an operating income of ₹41,093 crore (US$5.1 billion), and a net income of ₹37,997 crore (US$4.8 billion). The company also had total assets worth ₹4,578,491 crore (US$570 billion) and total equity worth ₹46,233 crore (US$5.8 billion).

Why Choose LIC?

LIC is a trusted name in the insurance industry with a long history of providing quality products and services to its customers. The company’s strength speaks for itself with 28.7+ Crore Total No. of Inforce Policies as on 31.03.2022.

Questions and Answers

  1. What is the history of LIC?
    LIC was established on 1 September 1956 when the Parliament of India passed the Life Insurance of India Act, nationalizing the insurance industry in India. Over 245 insurance companies and provident societies were merged together.
  2. What products and services does LIC offer?
    LIC offers a wide range of products and services, including life insurance, health insurance, investment management, and mutual funds. The company also has a number of subsidiaries.
  3. How has LIC performed financially?
    In 2023, LIC reported a revenue of ₹784,889 crore (US$98 billion), an operating income of ₹41,093 crore (US$5.1 billion), and a net income of ₹37,997 crore (US$4.8 billion). The company also had total assets worth ₹4,578,491 crore (US$570 billion) and total equity worth ₹46,233 crore (US$5.8 billion).
  4. Why should I choose LIC for my insurance needs?
    LIC is a trusted name in the insurance industry with a long history of providing quality products and services to its customers. The company’s strength speaks for itself with 28.7+ Crore Total No. of Inforce Policies as on 31.03.2022.
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What is the difference between endowment and money back plans?

Endowment and money back policies are both types of life insurance products that have an investment component. The returns are guaranteed up to the term of the policy. The main difference between an endowment policy and a money back plan is the time period of the delivery of the sum assured.

In an endowment plan, the policyholder receives the sum assured and any bonuses at the completion of the policy term. This means that the policyholder receives a lump sum payment at the end of the policy term.

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In a money back plan, on the other hand, the policyholder receives a percentage of the sum assured at regular intervals during the policy term. This means that the policyholder receives periodic payments throughout the policy term.

Both types of plans provide life coverage and can act as savings, but they differ in terms of how and when the benefits are paid out to the policyholder. Is there anything else you would like to know?

How do I apply for an LIC policy?

You can apply for an LIC policy online through the official LIC website. On the website, you can click on the “Buy Policy Online” option to view and purchase available policies. You can also apply for a policy by visiting an LIC branch or by contacting an LIC agent.

If you choose to apply online, you will need to provide some personal information such as your name, mobile number, email address, date of birth, and other details. You will also need to select the type of plan you are interested in and provide information about your annual income and number of dependents.

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Once you have completed the application process, an LIC representative may contact you to verify your information and assist you with the purchase of your policy. Is there anything else you would like to know?

What are the different types of insurance plans offered by LIC?

LIC offers a wide range of insurance plans to cater to the diverse needs of its customers. According to their official website, LIC’s insurance plans are divided into several categories, including:

  1. Endowment Plans: These plans provide a combination of protection and savings. Some examples of endowment plans offered by LIC include LIC’s Bima Jyoti, LIC’s Bima Ratna, and LIC’s Dhan Sanchay.
  2. Whole Life Plans: These plans provide coverage for the entire lifetime of the policyholder. An example of a whole life plan offered by LIC is LIC’s Jeevan Umang.
  3. Money Back Plans: These plans provide periodic payments to the policyholder during the policy term. Some examples of money back plans offered by LIC include LIC’s Dhan Rekha, LIC’s New Bima Bachat, and LIC’s NEW MONEY BACK PLAN – 20 YEARS.
  4. Term Assurance Plans: These plans provide coverage for a specified term and are typically more affordable than other types of life insurance. Some examples of term assurance plans offered by LIC include LIC’s New TECH TERM, LIC’s New Jeevan Amar, and LIC’s Saral Jeevan Bima.
  5. Riders: These are additional benefits that can be added to a base policy to enhance coverage. Some examples of riders offered by LIC include LIC’s Linked Accidental Death Benefit Rider, LIC’s Accidental Death and Disability Benefit Rider, and LIC’s Accident Benefit Rider.
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In addition to these categories, LIC also offers Pension Plans, Micro Insurance Plans, Health Plans, and Withdrawn Plans. Is there any specific type of plan you would like to know more about?