Life Insurance Corporation of IndiaThe Whole Life Policy
LIC is the oldest and largest life insurance Company of India which introduced various Life Insurance products for Individuals as well as for Group. LIC is the pioneer to start insurance products with savings component. LIC is the most trusted brand in India. LIC not only helped people to save their savings for the future needs but also helped a lot in the development of the country. Major bridges, highways, airports and other major infrastructure projects are funded by the LIC. LIC till date has issued higher number of traditional plans as compared to unit linked insurance plans. Not only this LIC plans emphasized more on long-term plans for customers, but gradually analysing the requirements of investors, LIC also started with ULIP plans which are market linked insurance plans. LIC has recently stated that it can invest approx Rs. 50,000 crores every year in the stock market and therefore asked for relaxation on holding more than 10% in single company. LIC is no.1 life insurance Company both in terms of number of LIC policies sold and premium collected every year. The claim ratio is also higher as compared to all life insurance companies in India.
LIC policies are segregated into different categories:
Few Traditional Plans - Children's Education and Marriage:
i) Jeevan Anurag: LIC's Jeevan Anurag is designed to fulfill the education needs of the children. It is basically a traditional plan where investment is done as per the directives of the insurance act where returns are normally safe. The main benefit of the plan is that it covers the parent's life, implying that plan will provide immediate payment of basic sum assured amount on death of the life assured during the term of the policy.
ii) Komal Jeevan: LIC's Komal Jeevan is a Money Back plan which provides regular income on a fixed interval after child becomes major. This gives financial support during the child's education period. It has both survival benefits and maturity benefits. In case of death of the proposer, future premiums are waived of and all other benefits are paid as it is.
iii) Marriage Endowment Or Educational Annuity Plan: Every parent would like to invest for the future of children's either for children's higher education or marriage. LIC has introduced this plan just to meet the marriage or for education expenses of the child.
1) Few Endowment plans:
Jeevan Anand : LIC's Jeevan Anand Plan is a combination of Endowment plan and whole-life plan. The plan is again a mixture of insurance and investment. As this plan is a whole-life plan, risk cover continues after the maturity value is paid on the completion of the term. It will provide protection against the death throughout the life of the assured.
Jeevan Saral : LIC's Jeevan Saral plan is one such plan which provides higher cover, smooth return, liquidity and lot of flexibility. Plan is a variable insurance plan which is a combination of traditional plan and unit linked insurance plan. The life cover under the plan is offered 250 times of the monthly premium. The first bonus will be declared after completion of 10 years. This plan will cater to those who perceive insurance more as a means of financial protection and wish to make provision for future contingencies. On completion of the term it will provide sum assured plus loyalty addition.
Amulya Jeevan : LIC's Amulya Jeevan is a term plan in which the premium is very low. There is no maturity value in the plan and the sum assured is paid in case of early death of insured person during the term of the policy. The plan is also not eligible for the bonus as there is no savings component attached in the plan. The plan covers risk of early death and is becoming more and more popular now a days.
2) LIC's Moneyback plans:
There are many Money back plans having different names. Most important benefit of having Money back plan is that it gives financial pay out during regular intervals over a period of term of the policy year. And at the end of the term it gives the balance of the Sum assured plus loyalty addition. It is gernerally taken on the life of the parents. It also has benefit where premium can be continued even after the death of the any of parent.
i) Endowment Plus : LIC's Endowment plan is unit linked insurance plan where the risk is borne by the investor. Here the investor has different options for investment like Bond Fund , Secured Fund , Balanced Fund and Growth Fund etc. Investor can also switch his amount into these mentioned funds at any time as per the market conditions. It gives flexibility to the investor. At the end the maturity, Fund value linked with the market performance will be given to the investor. It also has policy admin charges , premium allocation charges and fund managment charges.
LIC is having having pan India presence has a agent force comprising of 15 lakhs agents. LIC policies are more traditional in nature which include Insurance and investment component both.