Things to Know Before You Invest in LIC
Life Insurance Company or LIC is an Indian insurance company owned by the Government of India. It is the largest insurance company in the country. The estimated value of this company is about $ 240 million. If you want to invest in LIC there are primarily four types of popular life insurance policies.
These are the more popular than the previous two. In this case, the holder gives a premium for tenure. However, if he or she does not die during the tenure, the holder gets back the premium paid along with investment benefits and bonuses. These policies these days are combines with ULIPs.
Money back policy
In this policy, the holder keeps getting some money back at regular intervals. Upon conclusion of the tenure, the holder gets the balance sum back.
Annuities and pension
As the name suggest, this policy is for people who want to set up a retirement fund. In this, the person has to pay a premium until retirement. After retirement, the person will get certain amount of money as pension every month. In addition, on death anytime during this whole course, the holder will get the entire amount of the policy.
Unit linked Insurance plans are the most popular type of insurance policies for people who want to create wealth and be insured at the same time. In this policy typically, a premium is spent in two directions. One is used for investment and the other part is used to get life cover to be insured from death. Some of the famous ULIP policies are BIMA plus, Future plus and Child Fortune plus. Even though Bima plus has shown the best track record, but one of the reason for this could be that BIMA PLUS came into market when sensex was at 4000 in 2001. A true test of ULIP is to see how it performs in unfavorable market conditions. Child fortune plus on the other hand has shown good growth in past 3 years.