Life is all about uncertainties but Life Insurance is a way that can save your future if you invest in the present.

What is LIC?

Life Insurance is an agreement between an individual and an insurance company; wherein the latter agrees to pay an assured sum to the family member of the policyholder at the time of death of the assured.

Working of LIC
  • 1 Insurance Agreement
  • When you acquire insurance, the firm provides you with a document. This document specifies all of the terms and conditions after conducting rigorous background checks.

  • 2 Premiums
  • Against the assured amount, the company charges a premium that you need to pay. The premium amount depends upon multiple factors including your income, age, medical history, or the number of family members.

  • 3 Investments in securities
  • The amount the company earns through premiums is directly invested in government securities, corporate bonds, or stocks, and earns huge profits.

  • 4 Settlement of claims
  • LIC settles claims using the profits earned through investments.

Eligibility Criteria for LIC Plans
Minimum age at entry 14 years
Maximum age at entry 57 years (12-year Term plan) 51 years (16-year Term plan) 45 years (20-year Term plan)
Age at the expiry of extended-term Maximum 75 years
Minimum Sum Assured Rs 50,000

Benefits of LIC

  • 1 Death Benefits
  • If the policyholder dies during the policy tenure, then the nominee is eligible to get the sum assured. It will help them achieve goals and fulfill their financial needs.

  • 2 Maturity Benefits
  • With maturity benefits, if the life assured survives, he/she is eligible to get Maturity Sum Assured plus Loyalty additions.

  • 3 Rider Benefits
  • You can choose to enhance the scope of coverage of your base life insurance policy by purchasing a life insurance rider, which are additional coverages that come with an additional payment.

  • 4 Tax Benefits
  • Even if the life assured is no longer alive, the benefits of a life insurance policy help the life assured family establish a safe and secure future. Furthermore, income tax benefits are obtained by investing in a life insurance policy under Sections 80C and 10(10D) of the Income Tax Act of 1961. Tax breaks are available for premiums paid on a life insurance policy.

  • 5 Loan Benefits
  • Some life insurance policies include a loan against the policy feature that can enable a policyholder to meet immediate financial needs, such as medical treatment during any urgency, or meet financial obligations that cannot be ignored.