Basics Of LIC and Various Policies
Life Insurance Corporation is a largest insurance company in India. It comes in India at 1956. It is fully owned by the government. It provides different plans like individual life insurance, group life insurance and pension plan etc. its subsidiaries include life insurance Corporation of India international, LIC Nepal, LIC Lanka, LIC Housing Finance and LICHFL care homes. LIC has 120 million policies which is handling by 9 lakh agents. There are 12 million policy holders are the customer of LIC.
Rules of LIC policies (endowment or money back policy (tenure 2 years))
- In first 3 years, Policy can’t be surrendered before 3 years, you will get nothing.
- In between 4 to 2 years, policy can be surrendered, but you will get reduced amount today. It minimum 30% of premium paid (excluding first year premium)
- In between 6 to 20 year, accrued bonus will only be given, if you surrendered the policy or make it paid up after 5 premiums.
- In between 15 to 20 years, final additional bonus might be including if your policy runs for more than 15 years.
- At the end of the policy loyalty bonus is also given if applicable.
There are four types of LIC term plans that provide financial protection to their user:
- ANMOL JEEVAN: it is a term plan where on death of the life assured sum assured under the policy is paid to his beneficiary.
- AMULYA JEEVAN: in case of unfortunate death of the policy holder during the term of the policy, sum assured is payable, provide the policy is kept in force.
- TWO YEAR TEMPORARY ASSURANCE POLICY: in this policy the individual is covers for tenure of maximum2 years with single premium.
- THE CONVERTIBLE TERM ASSURANCE POLICY: this term insurance plan comes with double advantage of protection and convertibility. In this plan helps the policy holder gets a cover of a whole life or endowment policy if he is unable to pay higher premium amount initially.
SOME LIC PLANS:
- Endowment plan:
- Single premium endowment plan
- New Endowment plan
- New jeevan anand
- Money back plans:
- LIC’s New money back plan- 20 years
- LIC’s New money back plan-25 years
- LIC’s New Bima Bachat
- Term assurance plans
- LIC’s Anmol Jeevan II
- LIC’s Amulya Jeevan II etc.
LIC JEEVAN ANAND:
LIC jeevan anand is one of the most popular LIC policies. It is so popular because of its triple benefit. It covers death, maturity and post maturity benefit. It is a insurance come investment product. Under it premium paid are Tax exempted under section 80 c.
The main objective of it is provide financial protection against death throughout the lifetime of the policy holder along with the provision of payment of a lump sum at the on maturity and extended life cover after maturity. It is a with-profits policy and bonuses will be added during the selected term or till death, if it occurs earlier
- Fixed/ guaranteed returns:
- Natural death: in the case of natural death they give sum assured money.
- Accidental death: in the case of accidental death they give double of sum assured money.
- Bonus return:
Last 5 year’s average return on a policy term upto 1 years has been 3.4% p.a. the project investment rate of return is 6% p.a. and 10%p.a.