Life Insurance Corporation of India (LIC)- An Overview
Established on 1st September 1956, Life Insurance Corporation of India (LIC) is a government-owned insurance and investment company headquartered in Mumbai. With a vast customer base of over 540 million people, LIC is not only trusted by Indians but also across the globe and has met customer expectations successfully with a high claim settlement ratio (CSR) of death claims 98.60% and maturity claims 92.65% (as per the IRDAI annual report of (2022-2023).
LIC of India is the largest insurance company offering multiple plans per every individual need, with an estimated market cap of Rs. 6.40 trillion. By the end of this article, you will learn about the Life Insurance Corporation of India (LIC) details, its inception, the plans available, the process of buying an LIC insurance policy, online premium payment, the claim process, and a lot more.
What’s New: On April 28, the Government of India officially appointed Siddhartha Mohanty as the chairman of the state-run Life Insurance Corporation of India until June 29th, 2024.
Table of Content
Brief History of LIC:
The history of the Life Insurance Corporation of India is as old as the first-ever inception of the Indian insurance industry. LIC was formed when hundreds of life insurance companies were nationalized. Let’s look into the brief evolution of the largest insurance company in India.
Launch of Life Insurance in India
In 1818, life insurance was brought to India under British Rule.
First Life Insurance Company
In 1870, the first life insurance company was formed, named Bombay Mutual Life Assurance Society.
Evolution of the Life Insurance Sector
Many indigenous life insurance companies were born in India during the Swadeshi Movement. In 1938, there were 178 insurance companies with a total business of Rs. 298 crores.
Nationalization of the Life Insurance Sector
About 154 Indian insurance companies, 16 non-Indian companies, and 75 provident were operating in India when the demand for nationalization of the insurance sector was raised. The companies were numerous but needed to be financially stable.
Formation of LIC India
After the Life Insurance Corporation Act was passed on 19th June 1956 by the parliament of India, the Life Insurance Corporation of India (LIC) was formed on 1st September 1956.
At present, there are around two dozen companies in the insurance market. Still, LIC is the most trusted among Indians and holds the largest market share of the Indian insurance market.
Awards & Recognitions of LIC:
By bringing life insurance plans that perfectly complement the customers' financial needs and life goals, LIC remains the top-choice life insurance company for urban and rural Indian demographics. Since the first inception of LICi, the company has continued to shine in terms of its performance, advancements, plans, and improvements for the mass welfare. LIC India has received countless awards for their efforts and solutions. Some of the recent LIC awards and recognitions for the Year 2023-24 are as follows:
- LIC of India won ‘BFSI National Award for Best Mobile Application Award’
- Life Insurance Corporation won ‘BFSI National Award for Excellence in Agency Distribution’
- LIC India was awarded ‘4th Emerging Asia Insurance Conclave & Awards, 2023, Best Strategies for Insurance Spreading - India’
- LIC won ‘The Great Indian BFSI Awards 2023 for Digital Marketing Campaign of the Year’
- LIC of India won ‘SAP ACE Award 2023’
- LIC received award for ‘Financial Services Marketing Summit and Awards Claims Service Leader - Large’
- LIC of India won the ‘Financial Services Marketing Summit Awards Insurance Company of the Year - Life’
- LIC of India was awarded ‘2nd Edition Most Preferred Workplace on BFSI 2023-24’
- LIC of India won ‘ET Edge Now - Smart Insurer in the Life Insurance - Large Category, 2023’
- Navabharat - Certificate of Excellence awarded to LIC of India for Most Customer Friendly Insurance Company
- Life Insurance Corporation of India won ‘Insure Next Awards & Conclave 2024 for Best Life Insurance Company of the Year’
- India’s Best Life Insurance Company - Life Insurance Corporation of India, 7th Annual Insurance Conclave & Awards
- India’s Leading Life Insurance Company (Public) - Life Insurance Corporation of India - from Dun & Bradstreet BFSI Fintech Summit 2024
- LIC won ‘BFSI National Award for Customer Service Excellence Award’
- LIC of India received ‘Finnoviti Awards 2023’
Highlights of Life Insurance Corporation of India (LIC)
Look at the highlights of LIC of India, which embarks on the outstanding performance of the company in the insurance industry.
| Particulars | Specifications |
|---|---|
| Date of Establishment | 1st September 1956 |
| Plans offered | Term life insurance, Whole life plan, Unit linked Insurance plan, Endowment Plan, Money back plan, Retirement Plan, Child insurance plan, Group Insurance, and savings & investment plans. |
| Claim Settlement Ratio (2022-23) | Maturity Claims: 92.65% Death Claims: 98.60% |
| Solvency Ratio (2022-23)) | 1.87 |
| Market Share (2022-23) | Policies: 71.76% FY Premium: 62.58% |
| Total Policyholders | More Than 29 Crore (as of 2019) |
| Policy Sold in 2022-23 | 204.65 Lakhs |
Objectives of Life Insurance Corporation of India
Keeping the motto of “Yogakshemam Vahamyaham”- Your Welfare is Our Responsibility at the forefront, LIC continues to fulfil India's most demanding insurance and investment needs. The key objectives of LIC are mentioned as:
- To serve the socially and economically backward classes and rural areas, the company focuses on all insurable people in the country. It provides them with adequate financial coverage at an affordable cost.
- To increase insurance-linked savings and maximise people’s savings mobilization.
- To protect people's investments and provide them with the best returns keeping national obligations in mind.
- Meet life insurance needs with the ever-changing society and the economy.
- To act as trustees of the insured.
- To promote a sense of belongingness, pride, and job satisfaction towards all agents and employees.
- Conduct business most economically and be accountable to the policyholder’s money.
Interesting Facts About Life Insurance Corporation of India
- The LIC of India has a solvency ratio of 1.87 (as per IRDAI annual report 2022-23),
- LIC operates in 4 GCC countries- Bahrain, UAE (Dubai & Abu Dhabi), Kuwait, and Oman.
- As per the financial year LIC annual report 2022-23, the Life Insurance Corporation of India holds 71.76% market share (policies) in the Indian insurance market.
- LIC boasts of a claim settlement of 92.65% (instant claim). The number of claims settled in single-day processing is 2.25 Crores.
- LIC has the most extensive portfolio of life insurance group schemes.
- LIC India stocks are listed under the best-performing stock list on BSE among insurance companies.
Why Should You Buy Plans From LIC?
With the largest customer base of about 290 million (reported in 2019),LIC Insurance Corporation has the most comprehensive and affordable life insurance plans with high coverage irrespective of an individual's economic and social status. The name is not the only entity that makes LIC preferable among other life insurance companies. Other specific reasons can be highlighted as follows:
Over 6 Decades of Trust
With the most customer-centric approach, LIC maintained the trust from its inception and has successfully settled over 98% of claims made by the nominees.
Strong Global Network
As per the Brand Finance Insurance 100 report for 2021, LIC holds the 3rd position as the Strongest Indian Insurance Brand. LIC is not only operating in India but also has fully developed operational offices across borders. It’s not only that LIC is operating in India, but it has fully developed operational offices across the borders. LIC also plans to open offices in Australia, Canada, and the United States.
Sense of Security
You will only invest your hard-earned money if you know that it is only in safe hands. With the LIC Act 1956, the LIC of India is backed up by the central government and guarantees to pay the return as mentioned in the policy term.
PAN India Network
To provide its customers with the most accessible customer experience, LIC India operates 2048 computerized branch offices and 1572 satellite offices.This strong network helps policyholders reach head offices at the earliest convenience and helps solve issues.
Technologically Advanced
To help the insurance industry opt for paperless documentation, the organization uses the most advanced technology, such as WAN, IVRS, LAN, and EDMS.
Convergent Operation
LIC India does not work alone but collaborates with insurance and finance titans such as NSE of India, LIC Mutual Fund, NCDEX, Stock Holding Corporation of India, Insurance Institute of India, National Insurance Academy, and others. With this convergent operation, LIC ensures that the company makes its products as diversified as possible.
Variety of Products
LIC of India offers one of the most comprehensive policy ranges in the life insurance or group insurance as per customer requirements. It has the most extensive portfolio of group schemes. The company focuses on developing products to benefit society rather than earn profits. The company has also launched micro-insurance products for those living under the poverty line to obtain insurance at a reduced cost. No wonder why LIC is the first choice among Indians.
Simplified Consumer Support
Whether you purchase a LIC policy online or offline, LIC company offers 24X7 customer support to simplify the process and solve any issue.
Tax Benefits
LICi offers tax benefits under Section 80C, Section 80CCC, Section 80D, Section 80DD, and Section 10(10D) per the Income Tax Act 1961.
Online Policy Management
LIC of India has launched the LIC e-services portal to make policy management accessible for customers without even visiting the LIC branch. By logging into the LIC customer portal, the policyholder can list LIC policies in one place, check policy status, make LIC premium payments, download premium receipts, check LIC benefits, etc., from anywhere.
What Are the Different Types of LIC Plans Available?
No matter what stage of life you are searching for an insurance plan for your financial expectations, Life Insurance Corporation of India has one optimum plan that complements your needs. The competitive plans are designed to cater to every individual's needs at the most affordable prices. Let’s look at the various plans offered by LIC-
LIC Endowment Plans
 |
LIC’s Bima Jyoti |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Guaranteed Benefit
Eligibility Criteria
Entry Age: 90 days to 60 years
Min Sum Assured: Rs. 1,00,000 ars
Sum Insured: 5 Lakhs to 1 Cr
|
LIC’s Bima Ratna |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Survival Benefit
Eligibility Criteria
Entry Age: 5 years to 55 years
Min Sum Assured: Rs. 5,00,000
|
LIC’s Dhan Sanchay |
Coverage Benefits
- Regular Income at Maturity
- Limited Premium Payment
- Death Benefit
Eligibility Criteria
Entry Age: 3 years to 65 years
Min Sum Assured: Rs. 2,50,000
|
LIC's Jeevan Azaad |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Tax Benefit
Eligibility Criteria
Entry Age: 90 days to 50 years
Min Sum Assured: Rs. 2,00,000
|
LIC’s New Endowment Plan |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Guaranteed Benefit
Eligibility Criteria
Entry Age: 8 years to 55 years
Min Sum Assured: Rs. 1,00,000
|
LIC’s New Jeevan Anand |
Coverage Benefits
- Death Benefit
- Surrender Benefit
- Participation in Profits
Eligibility Criteria
Entry Age: 8 years to 55 years
Min Sum Assured: Rs. 10,00,000
|
LIC’s Single Premium Endowment Plan |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Rebates
Eligibility Criteria
Entry Age: 90 days to 65 years
Min Sum Assured: Rs. 50,000
|
LIC’s Jeevan Lakshya |
Coverage Benefits
- Death Benefit
- Settlement against maturity
- Loan Benefit
Eligibility Criteria
Entry Age: 18 years to 50 years
Min Sum Assured: Rs. 1,00,000
|
LIC’s Jeevan Labh |
Coverage Benefits
- Death Benefit
- Limited Premium Payment
- Maturity Benefit
Eligibility Criteria
Entry Age: 8 years to 59 years
Min Sum Assured: Rs. 2,00,000
|
LIC’s Aadhaar Stambh |
Coverage Benefits
- Death Benefit
- Loyalty Additions
- Rebates available
Eligibility Criteria
Entry Age: 8 years to 55 years
Min Sum Assured: Rs. 75,000
|
LIC’s Aadhaar Shila |
Coverage Benefits
- Saving and Life Protection
- Loyalty Additions
- Surrender Benefits
Eligibility Criteria
Entry Age: 8 years to 55 years
Min Sum Assured: Rs. 75,000
|
LIC’s Amrit Baal Plan |
Coverage Benefits
- Guaranteed additions
- Tax benefits
- Maturity benefit
Eligibility Criteria
Entry Age: 30 days - 13 years
Min Sum Assured: Rs. 2 Lakhs
LIC Whole Life Plans
|
LIC’s Jeevan Umang |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Survival Benefit
Eligibility Criteria
Entry Age: 90 days to 55 years
Min Sum Assured: Rs. 2,00,000
|
LIC Jeevan Utsav |
Coverage Benefits
- Regular income benefit
- Guaranteed Additions
- Death Benefit
Eligibility Criteria
Entry Age: 90 days to 65 years
Min Sum Assured: Rs. 5 Lakhs
LIC Money Back Plans
|
LIC’s Dhan Rekha |
Coverage Benefits
- Guaranteed Additions
- Money Back
- Full Payment on Maturity
Eligibility Criteria
Entry Age: 90 days to 60 years
Min Sum Assured: Rs. 2,00,000
|
LIC’s New Bima Bachat |
Coverage Benefits
- Death Benefit
- Loyalty Addition
- Bonus available
Eligibility Criteria
Entry Age: 15 years to 66 years
Min Sum Assured: Rs. 35,000
|
LIC’s New Money Back Plan- 20 Years |
Coverage Benefits
- Death Benefit
- Survival Benefit
- Loyalty Addition
Eligibility Criteria
Entry Age: 13 years to 50 years
Min Sum Assured: Rs. 1,00,000
|
LIC’s New Money Back Plan- 25 Years |
Coverage Benefits
- Death Benefit
- Survival Benefit
- Bonus
Eligibility Criteria
Entry Age: 13 years to 45 years
Min Sum Assured: Rs. 1,00,000
|
LIC’s Jeevan Shiromani |
Coverage Benefits
- Death Benefit
- Survival Benefit
- Inbuilt Critical Illness Benefit
Eligibility Criteria
Entry Age: 18 years to 55 years
Min Sum Assured: Rs. 1,00,00,000
|
LIC’s Bima Shree |
Coverage Benefits
- Death Benefit
- Survival Benefit
- Maturity Benefit
Eligibility Criteria
Entry Age: 8 years to 55 years
Min Sum Assured: Rs. 10,00,000
|
LIC Jeevan Umang Plan |
Coverage Benefits
- Guaranteed Survival Benefit
- Death Benefit
- Maturity Benefit
Eligibility Criteria
Entry Age: 90 days - 55 years
Min Sum Assured: Rs. 2,00,000
|
LIC New Children Money Back Plan |
Coverage Benefits
- Death Benefit
- Survival Benefit
- Tax Benefit
Eligibility Criteria
Entry Age: 0 years - 12 years
Min Sum Assured: Rs. 1,00,000
|
LIC Jeevan Tarun Plan |
Coverage Benefits
- Death Benefit
- Bonus
- Free-look Period
Eligibility Criteria
Entry Age: 90 days to 12 years
Min Sum Assured: Rs. 75,000
LIC Child Plan
|
LIC’s New Children Money Back Plan |
Coverage Benefits
- Death Benefit
- Survival Benefit
- Participation in Profits
Eligibility Criteria
Entry Age: 0 years to 12 years
Min Sum Assured: Rs. 1,00,000
|
LIC’s Jeevan Tarun |
Coverage Benefits
- Death Benefit
- Bonus
- Free-look Period
Eligibility Criteria
Entry Age: 90 days to 12 years Min Sum Assured: Rs. 75,000
LIC Term Assurance Plan
|
LIC’s New Tech Term |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Instalment Premium Payment
Eligibility Criteria
Entry Age: 18 years to 65 years
Min Sum Assured: Rs. 50,00,000
|
LIC’s New Jeevan Amar |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Increasing or Level Sum Assured
Eligibility Criteria
Entry Age: 18 years to 65 years
Min Sum Assured: Rs. 25,00,000
|
LIC’s Saral Jeevan Bima |
Coverage Benefits
- Death Benefit
- Flexible Premium Paying Term
- Policy Cancellation Value
Eligibility Criteria
Entry Age: 18 years to 65 years
Min Sum Assured: Rs. 25,00,000
|
LIC’s Saral Jeevan Bima |
Coverage Benefits
- Death Benefit
- Flexible Premium Paying Term
- Policy Cancellation Value
Eligibility Criteria
Entry Age: 18 years to 65 years
Min Sum Assured: Rs. 5,00,000
|
LIC’s Saral Jeevan Bima |
Coverage Benefits
- Death Benefit
- Flexible Premium Paying Term
- Policy Cancellation Value
Eligibility Criteria
Entry Age: 18 years to 65 years
Min Sum Assured: Rs. 5,00,000
|
LIC Jeevan Kiran Plan |
Coverage Benefits
- Return of Premium on Maturity
- High Risk Cover at Affordable Cost
- Death Benefit
Eligibility Criteria
Entry Age: 18 years - 65 years
Min Sum Assured: Rs. 15,00,000
Pension Plans
|
LIC’s Jeevan Akshay- VII |
Coverage Benefits
- Multiple Annuity Options
- Death Benefit
- Maturity Benefit
Eligibility Criteria
Entry Age: 30 years to 100 years
Min Purchase Price: Rs. 1,00,000
|
LIC’s New Jeevan Shanti |
Coverage Benefits
- Multiple Annuity Options
- Increasing Death Benefit
- Fixed Annuity Rates
Eligibility Criteria
Entry Age: 30 years to 79 years
Min Purchase Price: Rs. 1,50,000
|
LIC’s Jeevan Dhara II |
Coverage Benefits
- Incentive on high premium
- 11 annuity options
- Top-up annuity
Eligibility Criteria
Entry Age: 20 years to 79 years
Min Purchase Price: Depends upon the minimum annuity
|
LLIC’s Saral Pension |
Coverage Benefits
- Return of 100% Purchase Price
- Incentives available
- Surrender Value
Eligibility Criteria
Entry Age: 40 years to 80 years
Min Purchase Price: Depends upon the minimum annuity
Unit Linked Plans
|
LIC’s Nivesh Plus |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Partial Withdrawals
Eligibility Criteria
Entry Age: 90 days to 70 years
Min Sum Assured: Option 1: 1.25 times of the single premium Option 2: 10 times of the single premium
|
LIC’s SIIP |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Refund on Mortality Charges
Eligibility Criteria
Entry Age: 90 days to 65 years
Min Sum Assured: Age below 55 years: 10 times of annualized premium Age above 55 years: 7 times of annualized premium
|
LIC’s New Pension Plus |
Coverage Benefits
- Flexible Premium Payment
- Guaranteed Additions
- Partial Withdrawals
Eligibility Criteria
Entry Age: 25 years to 75 years
Min Sum Assured: Not Applicable
|
LIC’s New Endowment Plus |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Participation in Profits
Eligibility Criteria
Entry Age: 5 years to 55 years
Min Sum Assured: Rs. 1,00,000
|
LIC Index Plus Plan |
Coverage Benefits
- Guaranteed Additions
- Maturity Benefit
- Death Benefit
Eligibility Criteria
Entry Age: 90 days - 60 years
Basic Sum Assured: Rs. 7/ 10 times of Annualized Premium
Micro-Insurance Plans
|
LIC’s Bhagya Lakshmi |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Free-look Period
Eligibility Criteria
Entry Age: 8 years to 55 years
Min Sum Assured: Rs. 50,000
|
LIC’s New Jeevan Mangal |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Surrender Value
Eligibility Criteria
Entry Age: 18 years to 55 years
Min Sum Assured: Rs. 50,000
|
LIC’s Micro Bachat Plan |
Coverage Benefits
- Death Benefit
- Maturity Benefit
- Loyalty Addition
Eligibility Criteria
Entry Age: 18 years to 55 years
Min Sum Assured: Rs. 50,000
Health Plans
|
LIC’s Cancer Cover |
Coverage Benefits
- Total Benefit
- Cancer Early and Major Stage Cover
- Waiting Period
Eligibility Criteria
Entry Age: 20 years to 65 years
Min Sum Assured: Rs. 10,00,000
*LIC has recently withdrawn LIC’s Cancer Cover Plan on 26th April 2023.
|
LIC’s Arogya Rakshak |
Coverage Benefits
- Ambulance Benefit
- Health Check-up Benefit
- Surgical Benefit
Eligibility Criteria
Entry Age: 91 days to 65 years
Min Initial Day Benefit: Rs. 2,500
What Riders Are Offered by LIC of India?
Riders are the add-on benefits that are optional or sometimes in-built with the base plan to provide a policyholder with enhanced coverage. You can easily purchase a rider on your base LIC policy by paying some additional premium amount. LIC of India offers the following riders mentioned below
| Name of LIC Rider | Minimum Sum Assured |
|---|---|
| LIC’s Linked Accidental Death Benefit Rider | Rs. 10,000 |
| LIC’s Accidental Benefit Rider | Rs. 20,000 |
| LIC’s Premium Waiver Benefit Rider | Sum of the future premiums payable till the end of the rider term |
| LIC’s New Critical Illness Benefit Rider | Rs. 1,00,000 |
| LIC’s New Term Assurance Rider | Rs. 1,00,000 |
| LIC’s Premium Waiver Benefit Rider (With Auto Cover) | Rs. 25,000 |
What are the Benefits of Buying Insurance Plans from LIC?
With the evergreen tagline “Zindagi ke Saath Bhi, Zindagi ke Baad Bhi”, LIC promises to pay you and your loved ones significant benefits in case of some misfortune conditions. LIC plans are the most cost-effective for every range of economic demographics. Besides the plans, there are several benefits of buying a plan from LIC, such as
Financial Protection for Your Family
In exchange for a relatively small amount you will pay as a policy premium, your family gets the most efficient financial cushion if any unfortunate event occurs with you during the tenure. This amount will be tax-free and can be used by your family as financial support.
The Earlier Purchase is Always a Plus
The earlier you buy a plan, the minimum cost you will have to bear as a premium. To make the premium amount fit your budget, you can minimize the coverage amount and the term length.
Stress-free Life
The company is highly accountable for its partners and customers. Buying a plan from the Life Insurance Corporation of India can leave you stress-free during the peak earning years of your life. The LIC plan works as a safeguard for the worst-case scenarios that may take place.
Policy Customization
With the help of the riders, you can enhance the cover of your LIC policy to make it more robust. After comparing the available LICi plans and benefits, you can enjoy in-built riders or customize your policy with add-on riders for any unique instances.
Easier Applying Process
You can take advantage of LIC online services and compare the plans in minutes. LIC has also launched mobile applications for customers, development officers, and agents to make the process easier and to stay on note of your plan. You can also get complete details of your policy with an SMS.
Easy Claim
The ease of claim settlement is another crucial factor why Indians trust LIC to buy a policy in the first place. LIC has settled the death and other claims most efficiently in the past years with a high CSR of over 98%.
What are the Exclusions Under LIC Insurance?
There are some exclusion cases where the policyholder is not eligible to file the claims. The exclusions of LIC insurance are as follows
- In case, the policyholder commits suicide by any means, no claim will be entertained.
- In case any incorrect statement is contained in the proposal, personal statement, or any document, the policy will be declared void, wherever applicable, under Section 45 of the Insurance Act 1938.
- The policy lapses if the premium is not paid within the grace period. The policyholder needs to revive the existing policy in a limited period.
- In case the premium is paid for less than twelve months, no benefits will be payable to the beneficiary.
- In case the premium is paid for more than twelve months, then the beneficiary will get 80% of the total premium paid, but the sum assured will not be paid.
How to Choose a Suitable LIC Policy?
Selecting a LIC policy from a long list of plans can be a difficult task for you. But if you keep your agenda clear, the process can be more manageable. Here are the steps to help you pick the right LIC policy:
Identify your Financial Goals
Goals may vary from person to person depending on their personal or economic considerations. Choose an insurance coverage amount wisely by calculating your current income, savings, number of dependents, future milestones, etc.
Choose an Appropriate Category of Plan
After your financial goals are clear, pick a plan from the LIC policy list that fulfils them. If you want to protect your family from unforeseen events, opt for a term plan. If you are planning to save money for your child's education or planning to buy your dream house, opt for a ULIP plan. In case you are working and want to safeguard your post-retirement period, you can opt for a suitable pension plan. The categories of LIC plans available are
- LIC Unit-linked Plans
- LIC Term Plan
- LIC Endowment Plan
- LIC Whole Life Insurance Plan
- LIC Pension Plan
- LIC Money-back Plan
Compare plans
After shortlisting the plan category, select a plan that fits your financial needs. Now, briefly read the features, benefits and additions that can help you increase your savings. The benefits may include waiver benefits, return of premium benefits, loan accessibility, tax benefits, riders, etc.
Determine the premium amount
The policyholders often need clarification about what amount should be considered while estimating the life insurance amount. Many financial experts suggest a life cover amount of at least ten to fifteen times your annual income. You can increase the range if you have debts or extensive financial obligations. This will help you determine the right premium amount you are willing to pay and get the highest benefits in life cover.
Evaluate your life insurance needs regularly
You need to keep track of your life insurance plan as your financial goals might change depending on significant life events. You can adjust your cover accordingly.
How to Buy LIC Policy?
If you are reading it here, you must have selected the most optimal plan for you and want to know how to start with the buying process of LIC policy. Well, after digitization, the buying process of a LIC policy online is simpler than ever.
Buy LIC Policy from the Official Website:
To buy LIC policy from the official website, you just need to follow these simple steps:
- Visit the official website of LIC of India.
- Select the suitable plan that you want to buy and tap on “Click to Buy Online”.
- It will reflect the documents and information you need to proceed with the buying process.
- Provide the right COVID-19 details.
- Fill in your name and contact details and click “Proceed”.
- Customize the amount and tenure of the payment as per your suitability. Select if you want “add-on benefits/Riders”.
- Provide the necessary documents and click the “Proceed to Payment” option.
- Once the payment is successful, you will get the policy details in your email.
Buy LIC Policy Online with RenewBuy:
With RenewBuy, you can quickly compare and buy the best LIC policy online in the simple steps mentioned below:
- Visit our website and click on the “Life Insurance” tab.
- Then, click on the “Inquire Now” button.
- Fill out the form by providing the required information.
- Compare and pick the best premium plans from the list provided.
- A pop-up will show you the plan details and the additional riders' information.
- Click on the “Proceed to Buy” button.
- Once the payment is made, you will get your LIC policy documents on your registered email ID.
To make the LIC policy buying process more convenient, connect with one of our RenewBuy Partners and buy the best-suited LIC of India plan per your needs.
Documents Required to Buy LIC Policy
A policy buyer needs to provide the following documents to buy a LIC policy:
Age Proof: School certificate, Passport, Driving license, PAN Card.Residence Proof: Ration Card, Election Card, Bill Proof, Bank Passbook, Rent Agreement, etc.
Photo ID Proof: PAN Card, D/L, Ration Card & Bank Passbook with the proposer's photograph.
Income Proof: Salary Slip, From 16, ITR, Pension Passbook (in case total premium exceeds 1 lakh)
Self-attested photograph
What Payment Options Are Available to Buy a LIC Insurance Plan?
Gone are the days when you have to visit the LIC branches to make the LIC policy payments. With digital advancements, Life Insurance Corporation of India, the giant insurance company, has made it possible to make policy payments from the comfort of your home in a few simple steps. But to make the payment accessible for all, LIC accepts offline and online payments. Let’s see the options available for LIC premium payment:
Channels available for LIC Premium Payment Online
| LIC Website | Mobile Apps | Authorized Banks | Franchises | Merchant |
|---|---|---|---|---|
| Net Banking | PayTM | Axis Bank | APT Online | Premium Point |
| Debit Card | Google Pay | City Union Bank | MP Online | Life- Plus (SBA) |
| Credit Card | Amazon Pay | IDBI Bank | Suvidha Infoserve | Retired LIC Employee Collection |
| UPI | Phone Pe | Easy Bill Pay | ||
| BHIM | Mobikwik | CSC |
Channels available for LIC Premium Payment Offline
| Medium | Mode of Payment |
|---|---|
| NACH (National Automated Clearing House) | Submit documents at the branch office of LIC |
| ATMs and Banks | Through check or demand draft Take the signed receipt after the payment of the premium |
| Premium Points | Through Empowered Agents, Authorized Retired Employees, & Chief Organizers |
| Life Plus Offices | Senior Business Associates |
| BimaConnect Offices | LIC Associates |
| Life Point Offices | Development Officers |
What is the Grace Period for LIC Premium Payments?
If you have missed your chance to make the premium payment within the due date and are worried about what to do next? Then here’s some relieving news for you. LIC provides a grace period to make LIC premium payments that allow you to make payments without paying interest. The premium payment period depends on the premium payment frequency you selected at the time of policy inception: monthly, quarterly, half-yearly, or annually.
Grace Period of LIC Term Insurance
| Premium Payment Frequency | Grace Period |
|---|---|
| Yearly | 30 Days |
| Half-yearly | 30 Days |
| Quarterly | 30 Days |
| Monthly | 15 Days |
If you miss your chance to pay the premium during the grace period, then your LIC policy lapses. Now, you need to revive your LIC policy to regain the benefits.
What is the LIC Policy Renewal Process?
LIC policy renewal before the premium due date is important to gain uninterrupted benefits for you and your family and remain financially protected against any uncertainties of life. Registered customers can follow the given steps to renew their LIC policy online:
- Visit the official website of LIC at www.licindia.in.
- Log in to the ‘Customer Portal’ using your user ID and password.
- Upon successful login, select the LIC policy to renew from the list of active policies.
- Review all the policy details, including policy number, premium amount, and renewal date.
- Complete LIC premium payment using your preferred payment option, such as net banking, debit/ credit card, or online wallets.
- Upon successful payment, LIC of India will send a confirmation message and email to acknowledge the renewal of the LIC policy.
- You can download the LIC policy renewal receipt for future reference.
You can also renew your LIC policy without registration using the ‘Direct Pay’ method on the official website of the Life Insurance Corporation of India. If you want to renew your LIC policy offline, visit the nearest LIC branch office or connect with an LIC agent and pay in cash or cheque. If the policyholder misses LIC policy renewal before the due date or before the expiry of the grace period, the LIC policy lapses.
Alternatively, if you have purchased the LIC policy with RenewBuy, connect with RenewBuy Partners to get assistance on LIC policy renewal.
What are the Steps to Revive the Lapsed LIC Policy?
When you miss your premium payment even in the grace period, the policyholder cannot take any benefits from the life insurance policy. For the maximum benefit of the policyholder, the life insurance company provides a two-year revival period to renew a lapsed LIC policy. LIC policy revival can be a life saviour for your family to regain financial capabilities in difficult times. Life Insurance Corporation of India has launched different revival schemes mentioned below
- Special Revival Scheme
- Installment Revival Scheme
- Survival Benefit cum Revival Scheme
- Loan cum Revival Scheme
Steps to revive lapsed LIC policy
Follow the steps mentioned below to revive your lapsed LIC policy:
- Visit the official website of LIC India.
- Download the policy revival form.
- Fill out the form and submit it to the LIC office with the required premium amount and late fee.
What is the Claim Process of LIC Life Insurance Company?
Life Insurance Corporation of India offers the most efficient claim settlement process to settle maturity and death claims. The claim settlement process of LIC is as follows:
To File a LIC Maturity Claim
- For the endowment policies, the sum assured is payable on the policy's maturity.
- The branch serving the policy sends a letter mentioning the date the policy money is payable to the policyholder.
- The policyholder must return the discharge form fully completed with the policy document.
- On the receipt of these documents, a post-dated cheque is sent to the insured by post before the due date.
- If the sum assured is less than Rs. 60,000, the cheques are released without calling for a policy document in the discharge receipt.
- In other plans like money-back plans, periodic payments are made to the insured only if the due premiums are paid up to the due anniversary for the survival benefits.
File a LIC Death Claim
If the insured is demised within the policy tenure, the branch office asks for the following documents
- The Claim Form A.
- Original policy documents.
- Certified extract from the death register.
- Document of age proof if age is not admitted.
- Proof of the title of the deceased’s estate (only in case the policy is not nominated, assigned or issued under M.W.P. Act.)
- The FIR report copy and post-mortem report are required in case of accidental death.
If the demise occurs within three years from the date of the revival, the following documents are required
- Claim Form B:Certificate of the medical attendant.
- Claim Form B1:If the insured received treatment in a hospital.
- Claim Form B2:Filled by the medical attendant who treated the last illness.
- Claim Form C:Certificate of identity and burial or cremation, completed and signed by the person of known character.
- Claim Form E:Employment certificate (in case the insured is employed)
Explore LIC of India Resources
| Endowment Plan | Money Back Schemes | Term Insurance Plan | Pension Plan | Complete Life Plan |
|---|---|---|---|---|
How to Check LIC Policy Status?
To keep track of your LIC policy, the policyholder must regularly check the LIC policy status. Now, you can do this on the LIC India website. The process to check LIC policy status is slightly different for new users, registered users, or without registration. Here, we will discuss all the necessary steps for different individuals:
Steps to Track LIC Policy Status for New Users
- Visit the official website of LIC India and choose “customer portal” from the online service section.
- Select “New User” on the new window that appeared.
- Fill out the form by providing the necessary details.
- Create a user account using customer ID and passwords./li>
- Once the form is filled, print it, sign it, and upload the final document.
- LIC will verify your registration, and now you can use LIC e-services.
- Using LIC e-services, you can quickly check your policy status by entering your policy details.
Steps to Track LIC Policy Status for Registered Users
- Visit the official website of LIC India and choose “customer portal” from the online service section.
- You will be redirected to the login screen; now click on the “Registered User” option.
- Enter the required details like username, password, and date of birth.
- Policy tools will be displayed on the window.
- Click on “view enrolled policies”.
- The policies that you’re enrolled in will be displayed.
- Click on the desired policy number to check the status.
Steps to Track LIC Policy Status Without Registration
LIC India offers the most customer-focused services catering to urban and rural demographics. By any chance, you can not register for LIC online services, Life Insurance Corporation allows you to track your LIC of India policy status via SMS or voice call. You can do it by verifying some essential policy details.
Via SMS: Send an SMS to 56767877 or 9222492224 from the registered number. With the 24X7 support available, you can get real-time updates regarding your LIC policy status.
| Inquiry Type | SMS Code |
|---|---|
| Installment Premium | ASKLIC (Policy Number) |
| Revival Amount | ASKLIC (Policy Number) |
| Bonus Addition Status | ASKLIC (Policy Number) |
| Loan Availability | ASKLIC (Policy Number) |
| Nomination | ASKLIC (Policy Number) |
Via Call: You can contact the LIC helpline to get voice support.
| Type of User | Inquiry Helpline Number |
|---|---|
| MTNL and BSNL Users | 12151 |
| Landline or Mobile Phone Users |
How to Contact LIC of India?
LIC allows their trusted policyholders to contact them most efficiently. Whether you have any inquiries related to LIC policy, track LIC details, or want to file a grievance regarding LIC, you can contact the authority.
Corporate office address: Yogakshema Building, Jeevan Bima Marg, P.O. Box No.- 19953, Mumbai- 400021, IRDAI Reg No- 512.
Contact information: LIC Call Center at +91-02268276827
Monday to Friday: 8:00 am to 8:00 pm
Saturday: 10:00 am to 6:00 pm
SMS services: Send an SMS typing SMSHELP (Policy Number)
Final Words
There you have it! All the necessary information regarding the Life Insurance Corporation of India. With the mirage of facilities and benefits offered for its policyholders, partners, and development officers, no wonder why LIC is considered the giant of the insurance industry in India. With the numerous plans available for various customers, whether online or offline, urban or rural, economically advanced or below the poverty line, LIC of India is the first choice of Indians considering insurance. LIC has also launched e-services to make the processes easier and increase the customer satisfaction ratio.
With the numerous plans available for various customers, whether online or offline, urban or rural, economically advanced or below the poverty line, LIC of India is one of the trusted options to choose by Indians considering insurance. LIC has also launched e-services to make the processes easier and increase the customer satisfaction ratio.
If you are looking for any LIC details not covered above, connect with RenewBuy Partners.
Explore LIC of India Resources
| Category Pages | ULIP Plan | Micro Insurance Plan | Health Plan | Child Plan |
|---|---|---|---|---|
