What is LIC Insurance?

The full form of LIC is Life Insurance Corporation of India. The importance of insurance is not as well recognized as it should be in our nation, which is among the most populous in the world. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC.

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:

The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilization's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:

That of dying prematurely leaving a dependent family to fend for itself.
That of living till old age without visible means of support.

Benefits Of LIC

Industry leader: You are assured of being associated with a leader which has a technologically advanced network to provide you the most advanced and efficient services.
An array of plans: Innovative plans are designed to ensure the maximum benefit of the policyholder and their family. LIC provides a complete basket of plans from Endowment plans to Money Back plans cover to its customers.
Easy claim procedure: LIC provides a simplified claim procedure. This is the reason perhaps why it provided the highest percentage of Claim Settlement Ratio across the industry for the year 2015-16.
Unmatchable customer support: The customer support of LIC is one of the best in the industry. It provided 100% grievances settlement for the year 2015-16.
Simplified process: Simplified processes, especially the online customer services are configured to make life easier for the policyholders. You can get the complete details of your policy sent on an SMS.
Most trusted: LIC is the most trusted insurance company with hundreds of recognitions and awards including the likes of Golden Peacock Award-2015, India’s Most Trusted Brand-2015 and Brand Icon Award among many others.
Offers Risk Cover: In case of an unfortunate event, you and your family are protected with a high-risk cover.
Death Benefits: Sudden demise of a family member leaves the dependents grief-stricken and during such situations financial worries should be the least they should think of. An adequate life cover ensures that one's family is well taken care of in case of such incidents. The insurer pays up the bereaved family the sum assured along with any bonus or profits, as applicable.
Tax Benefits: Under Section 80C of Income Tax Act, investments made in certain specified instruments are subject to tax rebate. Moreover, Section 80C is an effective way by which a salaried person can reduce his/her tax liability. Since life insurance premiums are taken into consideration, it can be a way that will help you reduce your tax burden.
Loan Facility: As per policy provisions, you can avail loan facility to meet any emergencies. The loan amount can be taken in a percentage of the sum assured of your life insurance.
Assured Returns/Income Benefits: Certain policies that offer money back benefits help in keeping your family secure with regular & timely payouts. Rent, bills, loans, and other routine costs are some of the things that this revenue helps them in future.
Life Stage Planning: Insurance enables you to effectively plan for every life stage and needs during that stage. One way to think about life insurance is as a long-term investment that offers stable financial assistance. As per your life stage and risk appetite, you can fix and meet all your financial goals whether it is your child's education, wedding expenses, buying a dream home or your retirement. As per your life stage and risk appetite, you can fix and meet all your financial goals whether it is your child's education, wedding expenses, buying a dream home or your retirement.