SERVICES RENDERED TO CUSTOMERS BY LIFE

INSURANCE CORPORATION

A M i n or P ro j e c t R e p o r t

Submitted in partial fulfillment of the requirement for BBA

( B a n k i n g & I n s u r a n c e ) s e m e s t e r- I I I p r o gr a m m e o f
G . G . S . I n dr a p r a s t h a U n i v e r s i t y, D e l h i .

Submitted by
P o o j a Ya d a v
BBA (Banking & Insurance)
S e m e s t e r- I I I
Enrl. No.:0241221808

Delhi College Of Advanced Studies

Shankar Garden, Vikaspur i, New Delhi-110018
 Declaration

I h e r e b y d e c l a r e t h a t t h e m i n or p r o j e c t r e p o r t , e n t i t l e d
“ S e r v i c e s R e n d e r e d t o C u s t o m e r s b y L I C ’s ” , i s b a s e d o n m y
o r i g i n a l s t u d y a n d h a s n o t b e e n s u b m i t t e d e a r l i e r f or a n y
d e g r e e o r d i p l o m a of a n y i n s t i t u t i o n / u ni v e r s i t y

T h e w o r k of o t h e r a u t h o r ( s ) , w h e r e v e r u s e d , h a s b e e n
a c k n o w l e d g e d a t a p p r o pr i a t e pl a c e ( s ) .

Place: New Delhi C a n d i d a t e Si g n a t u r e

D a t e : 5t h O c t o b e r 2 0 0 9 N a m e : Po o j a Ya d a v

E nr o l N o . : 0 2 4 1 2 2 1 8 0 8

Counter Signed:

Name: Miss Neha Gupta

( S u p er v i s o r )
Delhi College Of Advanced Studies
Table of Contents

1. Declaration Page

2 . P r ef a c e

3. Introduction
 R e v i e w o f L i t e r a t ur e
 O b j e c t i v e & S c o p e of P r o j e c t / S t u d y
 Methodology
 Limitations

4. Analysis and interpretation

5. Conclusion/Recommendations

6. Bibliography

7. Appendix
 I n t ro du c t i o n

L i f e I n s u r a n c e C o r p or a t i o n o f I n d i a ( L I C ) i s a G o v e r nm e n t
o f I n d i a e n t er p r i s e , a n d i s s a i d t o b e t h e l a rg e s t l i f e
i n s u r a n c e c o m p a n y a n d a l s o t h e l a rg e s t i n v e s t o r of t h e
c o u n t r y. T h e c o r p or a t i o n i s a i m e d a t p r o v i di n g l i f e i n s u r a n c e
s e r v i c e s p r i m ar i l y t o t h e r ur a l m a s s e s a n d t h e s o c i a l l y &
e c o n o m i c a l l y b a c k w a r d s e c t i o n s o f t h e I n d i a n s o c i e t y. T h e
h e a d q u a r t e r s of L i f e I n s u r a n c e C o r p o r a t i o n o f I n d i a a r e
l o c a t e d i n M u m b a i , a n d a s of A pr i l 2 0 0 9 i t h a s 8 z o n a l
o ff i c e s , 1 0 1 d i v i s i o n a l o ff i c e s a n d 2 0 4 8 br a n c h e s l o c a t e d i n
d i ff e r e n t t o w n s a n d c i t i e s o f I n d i a . L I C i s p r o v i d i n g s e v e r a l
s e r v i c e s t o d i ff e r e n t s e c t o r s o f t h e e c o n o m y. W h e t h e r i t s f or
t h e c h i l d r e n o r a d u l t , h o m e or o ff i c e . T h e m a j o r s e c t i o n s a r e
insurance plans, unit plans, pension plans, special plans,
g r o u p s c h e m e a n d e n g i n e e r i n g s e c t o r.
 Review of Literature

1. Insurance plans

a. Whole life plans

 W h o l e l i f e w i t h p r of i t

Suitability

 P e o p l e w h o w i s h t o pr o v i d e f o r t h e i r d e p e n d a n t s h u g e
sums at comparatively low contribution as premium can
t a k e t h i s p o l i c y. U n d e r t hi s p l a n a n i n d i v i d u a l g e t s l i f e
coverage for almost whole of his life.

Salient Features

 Sum assured is payable only on the death of the life

assured.
 Premiums have to be paid for 35 years or till age 80
years whichever is more.
 P r e m i u m s c e a s e o n d e a t h of t h e l i f e a s s u r e d .

 Limited payment whole life

 Suitability

 I n d i v i d u a l s w h o w i s h t o pr o v i d e f o r t h e i r d e p e n d a n t s ,
i n s u r e d s u m s a t a l o w c o s t c o n t r i b u t e d d ur i n g t h e
i n c o m e - e a r n i n g p e r i o d c a n h a v e t h i s p ol i c y. P r e m i u m
payment period can be adjusted to the income-earning
period.

Salient Features

 Sum assured is payable only on the death of the life

assured
 T h e l i f e a s s u r e d c a n s e l e c t pr e m i u m p a y i n g t e r m s
between 5 and 55 years, according to his convenience
 P r e m i u m s c e a s e o n d e a t h of t h e l i f e a s s u r e d
 B o n u s i s a v a i l a b l e e v e n a f t e r p a y m e n t o f pr e m i u m
ceases.

 Single premium whole life

Suitability

 B e i n g a l i m i t e d- p a y m e n t l i f e a s s u r a n c e p o l i c y, t h i s pl a n
i s s u i t a b l e f or p e o p l e of a l l a g e s a n d s o c i a l g r o u p s w h o
w i s h t o pr o t e c t t h e i r f a m i l i e s f r o m a f i n a n c i a l s e t b a c k
that may occur owing to their demise.

Salient Features
  T h i s i s t h e b e s t f or m o f l i f e a s s u r a n c e f o r f a m i l y
provision since it enables the Life Assured to pay the
p r e m i u m d ur i n g t h e o r d i n a r i l y v i g o r o u s a n d m o s t
productive years of life, relieving him from the
n e c e s s i t y of m a k i n g p a y m e n t s l a t e r i n l i f e w h e n t h e y
m i g h t b e c o m e a b ur d e n
 Wi t h P r o f i t s S i n g l e Pr e m i u m p o l i c i e s d o n o t c e a s e t o
p a r t i c i p a t e i n p r of i t s af t e r c o m p l e t i o n o f t h e p er i o d f o r
which premium has been paid ,but continue to share in
the periodical Bonus Distribution until the death of the
Life Assured.

 Jeevan tarang

T h i s i s a w i t h- p r of i t s w h o l e o f l i f e p l a n w h i c h p r o v i d e s f o r
a n n u a l s u r v i v a l b e n e f i t a t a r a t e o f 5 ½ % of t h e S u m A s s u r e d
after the chosen Accumulation Period. The vested bonuses in
a l u m p s u m ar e p a y a b l e o n s u r v i v a l t o t h e e n d o f t h e
A c c u m u l a t i o n P er i o d o r o n e a r l i e r d e a t h . F u r t h e r, t h e S u m
A s s u r e d , a l o n g w i t h L o y a l t y A d d i t i o n s , i f a n y, i s p a y a b l e o n
survival to age 100 years or on earlier death.

A c c u m u l a t i o n P er i o d :
T h e p l a n o ff er s t hr e e A c c u m u l a t i o n p e r i o d s – 1 0 , 1 5 a n d 2 0
years. A proposer may choose any of them.
Payment of Premium:
P r e m i u m s c a n b e p a i d r e g u l a r l y a t y e a r l y, h a l f - y e a r l y,
q u a r t e r l y or m o n t h l y i n t e r v a l s o r t hr o u g h s a l a r y d e d u c t i o n s
o v e r t h e A c c u m u l a t i o n P er i o d . A l t e r n a t i v e l y, a S i n g l e
P r e m i u m c a n b e p a i d o n c o m m e n c e m e n t of a p o l i c y.

Participation in Profits:
P o l i c i e s u n d er t h i s p l a n s h a l l p a r t i c i p a t e i n p r of i t s of t h e
C o r p o r a t i o n . D u r i n g t h e a c c u m u l a t i o n p e r i o d p ol i c i e s s h a l l
b e e n t i t l e d t o r e c e i v e s i m p l e r e v er s i o n a r y b o n u s e s w h i c h
will be payable on survival to the end of the accumulation
p e r i o d o r o n e ar l i e r d e a t h . Af t e r t h e a c c u m u l a t i o n p e r i o d ,
policies will be entitled to receive a Loyalty Addition
p a y a b l e o n m a t ur i t y o r e a r l i e r d e a t h . T h e a m o u n t of s i m p l e
reversionary bonus and Loyalty Addition will depend on the
e x p e r i e n c e of t h e C o r p o r a t i o n .

b . Te r m A s s u r a n c e P l a n s

 Anmol jeevan I

Suitability

 T h i s i s a p ur e r i s k p ol i c y s u i t a b l e f or p e o p l e w h o w i s h
t o p r o v i d e h u g e s u m s f or t h e i r f a m i l y a t a n e c o n o m i c a l
p r e m i u m . A l l m a l e s a n d f em a l e s w i t h e a r n e d i n c o m e
 (Category I) and females with unearned income and
p a y i n g t a x ( C a t e g o r y I I ) a r e e l i g i b l e f or t h i s p l a n .

Salient Features

 T h e p o l i c y b e i n g a p u r e t e r m pl a n , t h e s u m a s s u r e d i s
p a y a b l e o n t h e d e a t h o f t h e p o l i c y h o l d er d u r i n g t h e
t e r m of t h e p ol i c y
 On survival to maturity nothing is payable
 The policy will not acquire any paid-up value
 N o S u r r e n d e r Val u e w i l l b e a v a i l a b l e u n d e r t h i s p l a n
 No loan will be granted under this plan
 P o l i c y h o l d e r h a s a n o p t i o n t o p a y pr e m i u m Ye a r l y,
H a l f - y e a r l y, Q u a r t e r l y or S i n g l e P r e m i u m
 A gr a c e p e r i o d o f 1 5 d a y s w i l l b e a l l o w e d f or p a y m e n t
o f y e a r l y, h a l f - y e a r l y or q u a r t e r l y pr e m i u m s
 I f d e a t h o c c u r s w i t h i n t h e g r a c e p e r i o d a n d b e f or e t h e
payment of the premium then due, the policy will still
b e v a l i d a n d t h e S um A s s u r e d p a i d af t e r d e d u c t i o n o f
t h e s a i d p r e m i um a s a l s o u n p a i d pr e m i u m s f al l i n g d u e
b e f o r e t h e n e x t p o l i c y a n n i v e r s a r y o f t h e P ol i c y. I f t h e
p r e m i u m i s n o t p a i d b e f o r e t h e e x p i r y o f t h e d a y s of
grace, the Policy lapses.

 Te m p o r ar y Ter m A s s u r a n c e

Suitability
  T h e Tw o Ye a r Tem p o r a r y A s s u r a n c e p o l i c y c a t e r s t o t h e
individuals who specifically require insurance cover
a g a i n s t r i s k f or a s h o r t p e r i o d o f t w o y e ar s , f or i n s t a n c e
persons who are required to go on tours for instance for
a year or so.

Salient Features

 T h e Tw o Ye a r Tem p o r a r y A s s u r a n c e p o l i c y i s d e s i g n e d
f or t h e i n s u r i n g p u b l i c w h o r e q u i r e s r i s k c o v e r f o r a
maximum of two years
 U n d e r t h e Tw o Ye a r Te m p or a r y A s s u r a n c e p o l i c y a
s i n g l e pr e m i u m i s r e q u i r e d t o b e p a i d a t t h e o u t s e t o f
t h e p o l i c y t o c o v e r t h e e n t i r e p e r i o d of t e r m
 The proposer is required to pay the medical
e x a m i n a t i o n f e e . T h e pr o o f of a g e m u s t a l s o a c c o m p a n y
the proposal
 T h e p o l i c y i s s u e d w i l l b e o n l y u n d e r t h e ' Wi t h o u t
P r of i t s ' p l a n
 The policy is not entitled to any surrender value
 N o l o a n w i l l b e g r a n t e d a g a i n s t t h e Tw o Ye a r
Te m p o r ar y A s s u r a n c e p o l i c y

 Amulya jeevan
The Plan will be allowed to standard and substandard lives.  
I n c a s e of f e m a l e l i v e s , t h i s p l a n w i l l b e r e s t r i c t e d t o
C a t e g o r y - I a n d I I l i v e s o nl y. P h y s i c a l l y h a n d i c a p p e d p e r s o n s
f a l l i n g u n d e r Gr o u p A w i t h l o s s of o n e l i m b w i l l b e e l i g i b l e
f or t h i s P l a n w i t h s t a n d a r d e x t r a r at e s .   T h i s Pl a n c a n b e
allowed to persons engaged in hazardous occupations by
c h a rg i n g a p pr o p r i a t e o c c u p a t i o n e x t r a o r w i t h C l a u s e 8 6 .
F u r t h e r, t h e f o l l o w i n g p o i n t s s h o u l d b e n o t e d

 S t a n d a r d a g e p r o of w i l l h a v e t o b e s u b m i t t e d a l o n g w i t h
the Proposal Form.

 Proposals will be considered on the basis of Medical

Reports and Special reports (if any). FMR will be
r e q u i r e d t o b e d o n e b y D M R / A d d l . D M R o r b y T PA .
FMR from MEs with enhanced powers will not be
accepted.
 C o s t o f m e d i c a l e x a m i n a t i o n ( i n c l u d i n g Sp e c i a l r e p or t s ,
i f a n y ) w i l l b e b or n e b y t h e C o r p o r a t i o n a s p er r u l e s .
 F o r t h e p ur p o s e o f S U C a n d u n d e r w r i t i n g ( S p e c i a l
R e p o r t s , F i n a n c i a l u n d e r wr i t i n g e t c . ) , t h e S u m A s s u r e d
under the plan is to be considered.

 C o n v e r t i b l e Ter m A s s u r a n c e

This plan of assurance is designed to meet the needs of those

w h o a r e i n i t i a l l y u n a b l e t o p a y t h e l a rg e r p r e m i u m r e q ui r e d
f or a W h o l e L i f e or E n d o w m e n t A s s u r a n c e P o l i c y, b u t h o p e
to be able to pay for such a policy in the near future.

This plan would be found useful also in cases where it is

desired to leave the final decision as to the plan to a later
date when, perhaps a better choice could be made.

P o l i c y h o l d e r s g e t a n o pt i o n o f c o n v e r t i n g a n p o l i c y i n t o
e n d o w m e n t a s s u r a n c e or l i m i t e d p a y m e n t w h o l e l i f e
assurance.

S u i t a b l e f or a l l p e o p l e w i t h e ar n e d i n c o m e u n d e r C a t e g o r y I
and unearned incomes under Category II, basically Standard
and sub-Standard lives attracting EMR classes I and II.

c. Endowment Plans

 E n d o w m e n t w i t h pr o f i t

Suitability

 B e i n g a n e n d o w m e n t a s s u r a n c e p o l i c y, t h i s p l a n i s a p t
f or p e o p l e of o f a l l a g e s a n d s o c i a l gr o u p s w h o w i s h t o
protect their families from a financial setback that may
occur owing to their demise.
  T h e a m o u n t a s s u r e d i f n o t p a i d b y r e a s o n of h i s d e a t h
earlier will payable at the end of the endowment term
w h e r e i t c a n b e i n v e s t e d i n a n a n n u i t y p r o v i s i o n f or t h e
r e s t o f t h e p o l i c y h o l d e r ' s l i f e o r i n a n y o t h er w a y h e
may think most suitable at that time.

Salient Features

 Moderate Premiums
 High bonus
 High liquidity
 S a v i n g s or i e n t e d

T h i s p o l i c y n o t o n l y m a k e s pr o v i s i o n s f or t h e f a m i l y o f t h e
L i f e A s s u r e d i n e v e n t of h i s e a r l y d e a t h b u t a l s o a s s u r e s a
l u m p s u m a t a d e s i r e d a g e . T h e l um p s u m c a n b e r e i n v e s t e d
t o p r o v i d e a n a n n u i t y d u r i n g t h e r e m a i n d e r o f h i s l i f e or i n
any other way considered suitable at that time.

P r e m i u m s a r e u s u a l l y p a y a b l e f or t h e s e l e c t e d t e r m of y e a r s
o r u n t i l d e a t h i f i t o c c u r s d ur i n g t h e t e r m p e r i o d .

 Limited payment endowment

Suitability

 This is a modified version of Endowment Assurance

p l a n w i t h r e g a r d t o p a y m e n t of p r e m i u m . I t p r o v i d e s
 f a m i l y pr o t e c t i o n a s w e l l a s o l d a g e p r o v i s i o n a t a n
a ff o r d a b l e p r e m i um . T h i s p o l i c y i s s u i t a b l e f o r a l l
c a t e g o r i e s of p e o p l e .

Salient Features

 S u m a s s u r e d i s p a y a b l e e i t h e r o n s u r v i v a l t i l l t h e e n d of
the term or on death happening within the term.
 T h e p o l i c y i s a v a i l a b l e f o r t hr e e t er m s : 1 5 , 2 0 a n d 2 5
years.
 P a y m e n t o f pr e m i u m s i s l i m i t e d t o s h o r t e r t er m s .
 B o t h Wi t h - P r o f i t a n d Wi t h o u t - P r of i t p l a n s a r e
available.
 B o n u s f or t h e f u l l t e r m i s p a y a b l e o n t h e d a t e of
m a t u r i t y or i n t h e e v e n t of d e a t h , w h i c h e v e r i s e a r l i e r.
 P r e m i u m s c e a s e o n d e a t h or o n e x p i r y of t e r m
w h i c h e v e r i s e a r l i e r.

 Bhavisya jeevan

Suitability

 An Endowment Assurance policy with the facility to

pay higher premiums initially and smaller amounts in
later years. The plan has been designed to meet the
n e e d s o f p er s o n s w h o h a v e s h o r t s p a n of e a r n i n g s . F o r
e x a m p l e , f i l m a r t i s t s a n d o t h er s u c h p r of e s s i o n a l s
 w h o s e i n c o m e s dr o p s u b s t a n t i a l l y m a y f i n d t h i s p l a n
suitable.

Salient Features

 S u m a s s u r e d i s p a y a b l e e i t h e r o n s u r v i v a l t o t h e t er m o r
o n d e a t h h a p p e n i n g w i t h i n t h e t er m .
 Higher premiums can be paid in the first five years of
t h e p o l i c y, w h i l e s m a l l e r a m o u n t s c a n b e p a i d i n t h e
l a t e r y e a r s t i l l d a t e o f m a t u r i t y.
 P r e m i u m s c e a s e a t d e a t h or o n e x p i r y of t e r m w h i c h e v e r
i s e a r l i e r.
 B o n u s f or t h e f u l l t e r m i s p a y a b l e o n t h e d a t e of
m a t u r i t y or i n t h e e v e n t of d e a t h , w h i c h e v e r i s e a r l i e r.

 N e w j a n ar a k s h a

Suitability

 This plan is similar to an Endowment Assurance plan

e x c e p t t h a t i t h a s a s p e c i a l a d d i t i o n a l f e a t u r e of a 3
y e a r f r e e r i s k c o v e r a g e , e v e n i f pr e m i u m s a r e d ef a u l t e d .
It also comes with a built-in accident benefit.
 T h i s p o l i c y i s m o s t s u i t a b l e f o r p er s o n s w h o ar e n o t
s u r e of a r e g u l a r i n c o m e e v e r y y e a r a n d w h o e x p e c t
their income position to improve after a short while.
 F o r e x a m p l e , f ar m e r s w h o e x p e r i e n c e c r o p f a i l u r e a t
intervals would find this plan beneficial.
 T h e a d d i t i o n a l p r e m i um p a y a b l e w h e n c o m p a r e d t o a n
o r d i n a r y E n d o w m e n t A s s u r a n c e pl a n i s m a rg i n a l . F o r
e x a m p l e , u n d er a n Or d i n a r y E n d o w m e n t A s s u r a n c e
p l a n , f o r A g e 3 0 a n d a t e r m o f 2 5 y e ar s , p e r R s 1 0 0 0
s u m a s s u r e d , t h e pr e m i u m p a y a b l e i s 4 2 . 0 5 ( i n c l u s i v e
o f a c c i d e n t b e n e f i t ) . F or t h e N e w J a n a R a k s h a p l a n ,
premium for the same policy is Rs 42.90 i.e. only Rs.
0 . 8 5 m o r e , f or t h e a d d i t i o n a l b e n e f i t s .

Salient Features

 S u m a s s u r e d i s p a y a b l e e i t h e r o n s u r v i v a l t o t h e t er m o r
o n d e a t h h a p p e n i n g w i t h i n t h e t er m .
 I f t w o y e a r s pr e m i u m s a r e p a i d u n d e r t h e p o l i c y, t h e
p o l i c y w i l l a u t o m a t i c a l l y e x t e n d f o r 3 m or e y e a r s e v e n
i f f u r t h e r pr e m i u m s ar e d ef a u l t e d . T h i s f a c i l i t y i s
a v a i l a b l e f o r a n y n u m b e r of t i m e s .
 Built in accident benefit.
 B o n u s f or t h e f u l l t e r m i s p a y a b l e o n t h e d a t e of
m a t u r i t y or i n t h e e v e n t of d e a t h , w h i c h e v e r i s e a r l i e r.
 P r e m i u m s c e a s e a t d e a t h or o n e x p i r y of t e r m w h i c h e v e r
i s e a r l i e r.

 Jeevan anand
Suitability

 T h i s p o l i c y i s a c o m b i n a t i o n of a w h o l e l i f e p l a n a n d
w i t h p r of i t e n d o w m e n t p l a n . I t i s s u i t a b l e f or p e o p l e
w h o w i s h t o pr o v i d e f o r t h e i r d e p e n d e n t s , i n s u r e d
s u m s , l i m i t t h e pr e m i u m p a y m e n t t er m t o t h e i r e a r ni n g
p e r i o d a n d a t t h e s a m e t i m e p r o vi d e f o r t h e i r o l d a g e .

Salient Features

 T h e p l a n c o m b i n e s t h e v i r t u e s of b o t h w h o l e l i f e p l a n
and endowment plan
 Under the plan, premiums are limited to the term
c h o s e n a n d b e n e f i t s ar e p a y a b l e o n t h e d a t e o f m a t ur i t y.
But the insurance cover on the life assured continues
till death, like a whole life policy
 B o n u s a c c r u e s d u r i n g t h e pr e m i u m p a y i n g t e r m a n d i s
p a y a b l e a t t h e e n d o f t h e pr e m i u m p a y i n g t e r m or o n
earlier death along with Final Additional Bonus. No
B o n u s i s p a i d o n d e a t h a f t er t h e p r e m i u m p a y i n g t e r m .
 Double Accident Benefit is available during the
p r e m i u m p a y i n g t e r m a n d t h er e a f t e r u p t o a g e 7 0
wherein additional sum assured is payable on death due
to an accident. This benefit is built in and no additional
premiums needs to be paid. Maximum Accident Cover
a v a i l a b l e u n d er t h i s p l a n w i l l b e R s . 5 l a k h ( t h i s l i m i t
e x c l u d e s a c c i d e n t b e n e f i t t a k e n u n d er o t h e r p l a n s )
  P r e m i u m p a y m e n t c a n b e M o n t h l y, Q u ar t e r l y, H a l f
y e a r l y, Ye a r l y a n d S SS .

 Jeevan mitra

Suitability

 P e r s o n s d e s i r o u s of m a k i n g p r o v i s i o n f or t h e i r
dependants during their earning period may opt for this
p o l i c y. F o r a v e r y l o w a d d i t i o n a l c o s t , s u ff i c i e n t f a m i l y
benefit is secured.
 F o r e x a m p l e , f or a p e r s o n a g e d 3 0 s e l e c t i n g a 2 0 y e a r
insurance policy :
o A p er s o n c h o o s i n g E n d o w m e n t A s s u r a n c e h a s t o
pay 51.50 per 1000 per annum
o A p er s o n c h o o s i n g J e e v a n M i t r a - d o u b l e c o v e r h a s
to pay 55.20 per 1000 per annum

Salient Features

 Sum assured is payable if the life assured survives the

selected term, while double the sum assured is paid in
t h e e v e n t of l i f e a s s u r e d d y i n g w i t hi n t h e t er m
 Bonus is payable on the date of maturity or in the event
of death, whichever is earlier
 P r e m i u m p a y m e n t c e a s e s o n d e a t h or o n e x p i r y o f t er m
w h i c h e v e r i s e a r l i er
  A c c i d e n t b e n e f i t i s a v a i l a b l e w i t h t h i s pl a n .

 Jeevan mitra triple cover

Suitability

 P e r s o n s d e s i r o u s of m a k i n g p r o v i s i o n f or t h e i r
dependants during their earning period should have this
p o l i c y. F o r a v e r y l o w a d d i t i o n a l c o s t , s u ff i c i e n t f a m i l y
benefit is secured.
 F o r e x a m p l e , f or a p e r s o n a g e d 3 0 y e a r s , s e l e c t i n g a 2 0
year insurance policy:
o A p er s o n c h o o s i n g E n d o w m e n t A s s u r a n c e h a s t o
pay 51.50 per 1000 per annum
o A p er s o n c h o o s i n g J e e v a n M i t r a - t r i p l e c o v e r h a s
to pay 58.85 per 1000 per annum

Salient Features

 Sum assured is payable if the life assured survives the

selected term, while triple the sum assured is paid in
t h e e v e n t of l i f e a s s u r e d d y i n g w i t hi n t h e t er m
 Bonus is payable on the date of maturity or in the event
of death, whichever is earlier
 Premium payment cease on death or on expiry of term
w h i c h e v e r i s e a r l i er
 A c c i d e n t b e n e f i t i s a v a i l a b l e w i t h t h i s pl a n .
  Jeevan amrit

Some people, particularly the younger ones, want to have

h i g h c o v e r a t a l o w c o s t . F ur t h e r, m a n y of t h e m d o n o t w a n t
c o m m i t m e n t t o p a y p r e m i u m s f or a l o n g e r d u r a t i o n . L I C ' s
J e e v a n A m r i t i s m o s t s u i t a b l e f or s u c h p e r s o n s . U n d e r t h i s
p l a n p r e m i u m p a y m e n t i s l i m i t e d t o 3 o r 4 or 5 y e a r s a n d t h e
p r e m i u m p a y a b l e d u r i n g t h e f i r s t y e a r i s h i g h er t h a n t h e
premiums payable in subsequent years.

Options:
Yo u m a y c h o o s e S u m A s s u r e d ( S . A .) , P r e m i u m P a yi n g Ter m ,
P o l i c y Ter m a n d M o d e of p r e m i u m p a y m e n t .

Payment of Premiums :
Yo u m a y p a y pr e m i u m s y e a r l y o r h a l f - y e a r l y d u r i n g t h e
p r e m i u m p a y i n g t e r m o f 3 o r 4 or 5 y e a r s .

d. Joint life plan

 Jeevan Saathi

Suitability
  T h i s p l a n i s i d e a l f o r e m p l o y e d c o u p l e s . Wi t h a
m a rg i n a l a d d i t i o n t o t h e p r e m i u m of a n E n d o w m e n t
A s s u r a n c e , t w o l i v e s a r e c o v e r e d u n d e r t h i s p o l i c y.

Salient Features

 This plan is issued on the lives of husband and wife

 P r e m i u m p a y m e n t c e a s e s o n f i r s t d e a t h o r u p t o m a t ur i t y
d a t e i f b o t h l i v e s s u r v i v e u p t o t h e d a t e of m a t u r i t y.

e . P l a n s t o t a k e c a r e o f c h i l dr e n

 Marriage endowment

Suitability

 B e i n g a n e n d o w m e n t a s s u r a n c e p o l i c y, t h i s p l a n i s a p t
f or p e o p l e w i t h f l u c t u a t i n g i n c o m e o f a l l a g e s a n d
s o c i a l g r o u p s w h o w i s h t o pr o t e c t t h e i r f a m i l i e s f r o m a
financial setback that may occur owing to their
untimely death and in particular to meet the educational
and marriage expenses of childern.
 T h e a m o u n t a s s u r e d w i l l b e c o m e p a y a b l e a t t h e e n d of
t h e e n d o w m e n t t er m w h e n i t c a n b e i n v e s t e d i n a n
a n n u i t y p r o v i s i o n f or t h e r e s t of t h e p o l i c y h o l d e r ' s l i f e
 or in any other way he may think most suitable at that
time.
 The policyholder also has the option to receive the
policy moneys in 10 equal half-yearly installments. If
there is a death claim, then the beneficiaries can
exercise their right instead

Salient Features

 The Marriage Endowment/ Educational annuity plan

provides a sum assured to be kept aside for the
e x p e n s e s of m a r r i a g e or h i g h e r e d u c a t i o n o f t h e
p o l i c y h o l d e r ' s c h i l dr e n . P r e m i u m s p a y a b l e f o r s e l e c t e d
t e r m or t i l l d e a t h o f t h e l i f e A s s u r e d . B e n e f i t s w i l l b e
g i v e n o n l y a f t e r t h e s e l e c t e d t er m .
 Wi t h t h e h e l p of t h i s p o l i c y o n e c a n e a r m a r k m o n e y
e x c l u s i v e l y f or t h e m a r r i a g e or h i g h e r e d u c a t i o n o f
children – two major responsibilities in the life of
e v e r y f a m i l y p er s o n .
 U n d e r t h i s p l a n t h e p o l i c y m o ni e s a n d b o n u s a r e p a i d
o n l y a t t h e e n d of t h e s e l e c t e d t e r m , i r r e s p e c t i v e of
w h e t h e r t h e p o l i c y h o l d e r s u r v i v e s t i l l t h e t e r m o r n ot ,
i . e . t h e s u r v i v a l or d e a t h b e n e f i t i s p a y a b l e a t t h e s a m e
time. Unlike in the case of other endowment policies,
t h e p o l i c y b e n e f i t s i n t h e c a s e of M a r r i a g e E n d o w m e n t /
Educational Annuity Plan are not released to the policy
h o l d e r ’s f a m i l y i n c a s e o f h i s p r e m a t ur e d e a t h , b u t
 r e t a i n e d b y L I C a n d r e l e a s e d o nl y a t t h e e n d of t h e
o r i g i n a l l y s e l e c t e d t er m .
 I n c a s e t h e p o l i c y h o l d e r w er e t o di e d ur i n g t h e t e r m of
t h e p o l i c y, n o f ur t h e r p r e m i u m s a r e p a y a b l e b u t t h e
bonus continues to accrue for the full-term of the
p o l i c y. T h e s u m a s s u r e d , p l u s t h e a c c u m u l a t e d b o n u s
f or t h e f u l l t e r m , ar e t h e n p a i d t o t h e f a m i l y a t t h e e n d
o f t h e p o l i c y ’s t e r m . F ur t h e r, o n e c a n o p t t o r e c e i v e t h e
money either in one lump sum, or in ten half-yearly
i n s t a l l m e n t s , t h e f or m e r m a y b e s u i t a b l e i f t h e p o l i c y i s
b o u g h t e s s e n t i a l l y f o r t h e p ur p o s e of a c h i l d m ar r i a g e
a n d t h e l a t t e r i f i t i s a p r o v i s i o n f or h i g h e r e d u c a t i o n .
 n case, the Double Accident Benefit is availed, then an
a d d i t i o n a l s u m e q u a l t o t h e b a s i c S um A s s u r e d b e c o m e s
p a y a b l e i m m e d i a t e l y o n d e a t h d u e t o a c c i d e n t d ur i n g
the policy term
 Non-medical General and Special schemes are
applicable.

 Jeevan chhaya

Suitability

 This plan is best suited for some one planning for

c h i l d r e n ' s h i g h er e d u c a t i o n or m a r r i a g e , a s m o n e y b a c k
i n s t a l m e n t s a r e p a y a b l e i n t h e l a s t f o ur y e a r s of t h e
 term choosen. Couples having a child aged less than 1
y e a r c a n t a k e t h i s p o l i c y w i t h o u t h a v i n g t o u n d e rg o a n y
m e d i c a l e x a m i n a t i o n . O t h er s w i t h or w i t h o u t a c h i l d
a g e d l e s s t h a n a y e a r c a n a l s o o p t f o r t h e p o l i c y, b u t
w o u l d h a v e t o u n d e rg o m e d i c a l e x a m i n a t i o n

Salient Features

 A policy where sum insured is payable to the life

a s s u r e d i n f o ur e q u a l i n s t a l m e n t s i n t h e l a s t f o ur y e a r s
o f t h e t e n u r e of t h e p o l i c y
 F u l l s u m i n s u r e d b e c o m e s p a y a b l e i n c a s e of d e a t h of
t h e l i f e a s s u r e d w i t h i n t h e t er m a n d a d d i t i o n a l l y m o n e y
b a c k i n s t a l m e n t s ar e p a y a b l e
 B o n u s f or t h e f u l l t e r m p l u s a n y a d d i t i o n a l b o n u s i s
p a y a b l e o n t h e d a t e o f m a t ur i t y
 P r e m i u m s c e a s e o n d e a t h or o n e x p i r y of t e r m
w h i c h e v e r i s e a r l i er
 T h i s p l a n c a n b e a v a i l e d f or t e r m s b e t w e e n 2 0 a n d 2 5
years

 Jeevan kishore

Suitability

 T h i s i s a n i m pr o v e d v e r s i o n of t h e N e w C h i l dr e n ' s
Deferred Assurance plan. Parents or legal guardians can
 p r o p o s e t h e p o l i c y f o r c h i l dr e n b e t w e e n a g e s 1 a n d 1 2
years, with risk commencing at an early age

Salient Features

 Children between ages 1 and 12 years are eligible

 P a r e n t s c a n pr o p o s e t h e c h i l d ’s l i f e
 The Plan is basically endowment type.i.e.Sum assured
i s p a y a b l e e i t h e r o n s u r v i v a l t o t h e t e r m or o n d e a t h
happening within the term

Risk Commencement Age

 F o r c h i l dr e n a g e d 1 t o 4 y e a r s , r i s k c o m m e n c e s f r o m
policy anniversary after attaining age 7 years
 F o r c h i l dr e n a g e d 5 t o 1 0 y e a r s , r i s k c o m m e n c e s f r o m
s e c o n d p o l i c y a n n i v e r s a r y f r o m t h e d a t e of
c o m m e n c e m e n t of p o l i c y
 F o r c h i l dr e n a g e d 11 y e a r s , r i s k c o m m e n c e s f r o m f i r s t
p o l i c y a n n i v e r s a r y f r om t h e d a t e of c o m m e n c e m e n t of
p o l i c y.

 Jeevan sukanya

Suitability

 T h i s p l a n i s e x c l u s i v e l y d e s i g n e d f or f e m a l e c h i l d a g e d
1 t o 1 2 y e a r s . B a s i c a l l y, i t i s a l i m i t e d pr e m i u m
 p a y m e n t p l a n f o r t h e c h i l d pr o v i d i n g r i s k c o v e r a f t e r a
d e f e r m e n t p e r i o d . I n v i e w o f t h e m u l t i pl e b e n e f i t s t h e
p o l i c y o ff e r s , a n y g i r l c h i l d b e t w e e n 1 t o 1 2 y e a r s m a y
o p t f or t h i s p o l i c y. W h e n t h e l i f e a s s u r e d g e t s m ar r i e d ,
a f r e e i n s u r a n c e c o v e r e x t e n d s o n t h e l i f e of h u s b a n d
also.

Salient Features

 Girl child between ages 1 and 12 years only is eligible.

 F a t h e r, m o t h e r a n d i f t h e y ar e n o t a l i v e , l e g a l g u a r d i a n
c a n s u b m i t pr o p o s a l o n t h e l i f e of t h e c h i l d .
 Risk under the policy commences from policy
a n n i v e r s a r y f a l l i n g i m m e d i a t e l y a f t er a t t a i n m e n t o f a g e
7 y e a r s of t h e c h i l d o r 2 y e a r s f r om d a t e of
c o m m e n c e m e n t of p o l i c y, w h i c h e v e r i s l a t e r.
 Policy vests on the life assured after the life assured
a t t a i n s m a j or i t y.
 When the child gets married, a free insurance cover
e x t e n d s f or t h e l i f e of h u s b a n d a l s o .
 T h e p r e m i um p a y m e n t s a r e t o b e m a d e f o r a p er i o d
e q u a l t o 2 0 y e a r s m i n u s a g e a t e n t r y. P o l i c y t e r m i s
f i x e d a t 5 0 y e a r s m i n u s a g e a t e n t r y.
 N o b o n u s e s ar e p a y a b l e d ur i n g w a i t i n g p e r i o d .
H o w e v e r, o n c e r i s k c o m m e n c e s b o n u s v e s t s f o r w a i t i n g
period.
 P r e m i u m w a i v e r b e n ef i t a v a i l a b l e : f o r t h i s d e f e r r e d
p e r i o d i s r e c k o n e d a s e q u a l t o 1 8 m i n u s a g e a t e n t r y.
  Komal jeevan

Suitability

 T h i s p o l i c y i s s u i t a b l e f or p a r e n t s w h o w i s h t o p r o v i d e
f or t h e c h i l dr e n ’s e d u c a t i o n e x p e n s e s . I t c a n b e a v a i l e d
b y p a r e n t s h a v i n g c h i l dr e n a g e d b e t w e e n 0 t o 1 0 y e a r s .

Salient Features

 P a r e n t s c a n pr o p o s e t h e c h i l d ' s l i f e .
 It is money back plan wherein survival benefits are paid
a t r e g u l a r i n t er v a l s a f t er t h e c h i l d a t t a i n s t h e a g e o f 1 8
years.
 Guaranteed additions @ Rs.75 per Rs.1000 sum assured
a r e p a y a b l e u n d er t h e p o l i c y. T h i s a d d i t i o n s a r e p a y a b l e
either on death within the term(after commencement of
r i s k ) or o n c h i l d a t t a i n i n g h e a g e o f 2 6 y e ar s .
 L o y a l t y a d d i t i o n s a r e p a i d e i t h e r o n d e a t h o r o n m a t ur i t y
d e p e n d i n g o n t h e p er f o r m a n c e o f t h e c o m p a n y.
 R i s k c o m m e n c e s a f t e r 2 y e ar s f r o m t h e d a t e o f
c o m m e n c e m e n t of p o l i c y o r o n p o l i c y a n n i v e r s a r y
f o l l o w i n g c o m p l e t i o n of 7 y e a r s b y t h e c h i l d , w h i c h e v e r
i s l a t e r.
 P o l i c y v e s t s o n l i f e a s s u r e d o n t h e p o l i c y a n n i v e r s a r y or
t h e c h i l d a t t a i n i n g t h e a g e of 1 8 y e a r s .
  O n v e s t i n g t h e l i f e a s s u r e d i s t h e a b s o l u t e o w n er o f t h e
p o l i c y a n d t h e pr o p o s e r c e a s e s t o h a v e a n y i n t e r e s t i n t h e
p o l i c y.
 Premiums cease on the policy anniversary immediately
after the child /life assured attains age 18.
 P r e m i u m s a r e p a y a b l e u p t o a t er m e q u a l t o 1 8 m i n u s t h e
a g e of t h e c h i l d a t e n t r y.
 P r e m i u m w a i v e r b e n ef i t c a n b e a v a i l e d b y p r o p o s e r b y
p a y i n g a d d i t i o n a l p r e m i u m w h e r e i n pr e m i u m s u n d e r t h e
policy stand waived on death of the proposer within the
term.
 P r o p o s e r c a n a v a i l i n s u r a n c e c o v e r t o t h e e x t e n t o f 2 0%
o f b a s i c s u m a s s u r e d s u b j e c t t o a m a x i m u m of
R s . 1 0 0 , 0 0 0 b y p a y i n g a d d i t i o n a l p r e m i u m . F a t h er i s t h e
p r o p o s e r. T h e c h i l d ' s m o t h e r, i f s h e h a s a n i n c o m e of h e r
o w n , c a n a l s o p r o p o s e t h e p o l i c y. I f b o t h p ar e n t s a r e n o t
a l i v e l e g a l g u ar d i a n c a n pr o p o s e .
 Policy can be gifted by grand parents, elder sisters and
brothers, uncles by taking a single premium plan.

 Jeevan baalya

Suitability

 The income benefits being phenomenal, the plan is

i d e a l f o r m e e t i n g t h e e d u c a t i o n a l e x p e n s e s of c h i l d r e n .
 T h e p l a n c a n b e s e c u r e d b y t h e p r o p o s e r f or a r e l a t i v e l y
low premium.

Salient Features

 C h i l d r e n i n t h e a g e gr o u p o f 0 t o 1 7 y e a r s c a n t a k e t h i s
p o l i c y.
 Risk on the child's life commences at age 21 years, and
thereafter the policy continues like any other
Endowment Assurance. Sum assured is payable either
on survival to the term or on death happening within
the term.
 The policy can be taken in units, where 1 unit = Rs.
25,000, maximum being 4 units.
 B a s i c p r e m i u m s a r e p a y a b l e t hr o u g h o u t t h e t e r m or t i l l
t h e d e a t h of t h e c h i l d i f t h e pr o p o s e r i s a l i v e o n t h e
vesting date.
 T h e p r e m i um s i n r e s p e c t o f a d d i t i o n a l b e n e f i t s a r e
p a y a b l e u p t o d a t e of v e s t i n g o r e ar l i e r d e a t h o f t h e
p r o p o s e r.
 I n c o m e b e n e f i t s a r e a v a i l a b l e u n d er t h i s p l a n b y
p a y m e n t o f a n a p p r o p r i a t e a d d i t i o n a l pr e m i u m .

 Jeevan anurag

L I C ’s J e e v a n A N U R A G i s w i t h pr o f i t s p l a n s p e c i f i c a l l y
d e s i g n e d t o t a k e c a r e o f t h e e d u c a t i o n a l n e e d s o f c h i l dr e n .
The plan can be taken by a parent on his or her own life.
Benefits under the plan are payable at pre-specified
durations irrespective of whether the Life Assured survives
t o t h e e n d o f t h e p o l i c y t e r m or d i e s d ur i n g t h e t e r m o f t h e
p o l i c y. I n a d d i t i o n , t h i s p l a n a l s o pr o v i d e s f o r a n i m m e d i a t e
payment of Basic Sum Assured amount on death of the Life
A s s u r e d d u r i n g t h e t er m o f t h e p o l i c y.

 C h i l d c ar r i e r p l a n

This plan is specially designed to meet the increasing

e d u c a t i o n a l a n d o t h e r n e e d s o f g r o w i n g c h i l dr e n . I t pr o v i d e s
t h e r i s k c o v e r o n t h e l i f e o f c h i l d n ot o n l y d u r i n g t h e p o l i c y
t e r m b u t a l s o d u r i n g t h e e x t e n d e d t e r m ( i . e . 7 y e a r s a f t er t h e
e x p i r y o f p ol i c y t er m ) . A n u m b e r o f Su r v i v a l b e n e f i t s a r e
payable on surviving by the life assured to the end of the
s p e c i f i e d d ur a t i o n s .

Options:
Yo u m a y c h o o s e S u m A s s u r e d ( S . A .) , M a t u r i t y A g e , P ol i c y
Te r m , M o d e o f P r e m i u m p a y m e n t a n d Pr e m i u m Wa i v e r
Benefit.

Payment of Premiums:
Yo u m a y p a y t h e pr e m i u m s r e g u l a r l y a t y e a r l y, h a l f - y e a r l y,
q u a r t e r l y or t h r o u g h S a l ar y d e d u c t i o n s o v e r t h e t e r m o f
p o l i c y. P r e m i u m s m a y b e p a i d e i t h e r f or 6 y e a r s or u p t o 5
y e a r s b ef o r e t h e p o l i c y t e r m .

 Child future plan

This plan is specially designed to meet the increasing

e d u c a t i o n a l , m ar r i a g e a n d o t h e r n e e d s of g r o w i n g c h i l d r e n .
I t pr o v i d e s t h e r i s k c o v e r o n t h e l i f e of c h i l d n o t o n l y d u r i n g
the policy term but also during the extended term (i.e. 7
y e a r s af t e r t h e e x p i r y of p o l i c y t e r m ) . A n u m b e r o f Su r v i v a l
b e n e f i t s ar e p a y a b l e o n s u r v i v i n g b y t h e l i f e a s s u r e d t o t h e
e n d o f t h e s p e c i f i e d d ur a t i o n s .

Options:
Yo u m a y c h o o s e S u m A s s u r e d ( S . A .) , M a t u r i t y A g e , P ol i c y
Te r m , M o d e o f P r e m i u m p a y m e n t a n d Pr e m i u m Wa i v e r
Benefit.

Payment of Premiums:
Yo u m a y p a y t h e pr e m i u m s r e g u l a r l y a t y e a r l y, h a l f - y e a r l y,
q u a r t e r l y or t h r o u g h S a l ar y d e d u c t i o n s o v e r t h e t e r m o f
p o l i c y. P r e m i u m s m a y b e p a i d e i t h e r f or 6 y e a r s or u p t o 5
y e a r s b ef o r e t h e p o l i c y t e r m .
 f. Moneyback Plans

 M o n e y b a c k w i t h P r of i t

Suitability

 T h i s p l a n i s s u i t a b l e f or p e o p l e w h o r e q ui r e l u m p s u m
amounts in future to meet specific expenses such as
c h i l d r e n ' s e d u c a t i o n o r m ar r i a g e . A t t h e s a m e t i m e , t h e
p o l i c y p r o v i d e s i n s u r a n c e p r ot e c t i o n f o r t h e f a m i l y a s
well as old age provision

Salient Features

 A policy where lump sum amounts are paid to the life

assured at periodic intervals on survival
 I n c a s e of d e a t h of t h e l i f e a s s u r e d w i t h i n t h e t er m , t h e
t o t a l s u m i n s u r e d i s p a i d t o t h e n o m i n e e , i r r e s p e c t i v e of
earlier survival benefits
 Bonus is payable under this scheme
 Premiums are to be paid regularly to get survival
benefits
 P r e m i u m s c e a s e a t d e a t h or o n e x p i r y of t e r m w h i c h e v e r
is earlier
 T h i s p l a n c a n b e a v a i l e d o f f o r t e r m s 2 0 o r 2 5 y e ar s
  Jeevan Surabhi

Suitability

 T h i s i s a n i m pr o v e d v e r s i o n of M o n e y B a c k pl a n w i t h
a n a d d e d f e a t ur e o f a d d i t i o n a l r i s k c o v e r. P e r s o n s w h o
w i s h t o e n j o y t h e b e n e f i t of s a v i n g t hr o u g h i n s u r a n c e
during their earning period and at the same time wish to
provide maximum insurance amount to the family
m e m b e r s i n t h e e v e n t of u n t i m e l y d e a t h o f t h e l i f e
a s s u r e d c a n g o i n f o r t hi s p o l i c y
 F o r e x a m p l e , u n d e r t h e or d i n a r y M o n e y B a c k Pl a n , a
p e r s o n a g e d 3 0 y e a r s f or a t er m o f 2 5 y e a r s w i l l h a v e t o
p a y a pr e m i u m o f R s 5 5 . 4 0 p er R s 1 0 0 0 S u m A s s u r e d
i . e . t o t a l o f R s . 1 3 7 6 / - i f h e s u r v i v e s t h e t er m . U n d e r
J e e v a n S u r a b h i t h e s a m e p er s o n w o u l d b e r e q u i r e d t o
pay Rs. 85/- for only 18 years i.e Rs.1530/-. The
a d d i t i o n a l t o t a l c o n t r i b u t i o n of R s . 1 5 4 / - g i v e s h i m a n
additional risk cover ranging from Rs. 500/- to Rs.
2000/- per Rs 1000 sum assured. This is based on the
duration elapsed from commencement of policy to the
d a t e of d e a t h o f l i f e a s s u r e d

Salient Features

 A policy where lump sum amounts are paid to the life

assured at periodic intervals on survival.
  P r e m i u m p a y i n g t er m s a r e l e s s t h a n c o r r e s p o n d i n g
p o l i c y t e r m s i . e . f o r p o l i c y t er m s of 1 5 , 2 0 a n d 2 5
y e a r s , t h e c o r r e s p o n d i n g pr e m i u m p a y i n g t e r m s w o u l d
be 12, 15 and 18 years.
 I n c a s e of d e a t h of l i f e a s s u r e d w i t h i n t h e t er m , f u l l
s u m i n s u r e d i s p a i d t o t h e n o m i n e e , i r r e s p e c t i v e of
earlier survival benefits.
 An additional amount is also paid on death occurring
w i t h i n t h e t e r m . T h e a m o u n t d e p e n d s o n d ur a t i o n
e l a p s e d f r o m c o m m e n c e m e n t of t h e p o l i c y.
 A c c i d e n t b e n e f i t i s a v a i l a b l e d u r i n g t h e pr e m i u m
p a y i n g t e r m o n l y.
 B o n u s i s p a y a b l e a t t h e e n d o f t h e p o l i c y t e r m u n d er
this scheme.
 Premiums are to be paid regularly to get survival
benefits.
 P r e m i u m s c e a s e o n d e a t h or o n e x p i r y of t e r m
w h i c h e v e r i s e a r l i er

 B i m a B a c h a t Pl a n

L I C ’s B i m a B a c h a t i s a m o n e y - b a c k p o l i c y w h i c h o ff e r s
f i n a n c i a l s e c u r i t y a n d a s s u r a n c e t o t h e p o l i c y h o l d er a n d h i s
f a m i l y. B i m a B a c h a t r e q u i r e s t h e p o l i c y h o l d e r t o p a y o n l y
o n e p r e m i u m . T h e a m o u n t p a i d f or t h e p r e m i u m d e p e n d s o n
the duration of the policy taken and life insurance is
a v a i l a b l e t i l l t h e d a t e of m a t u r i t y.

I f t h e p ol i c y h ol d e r o u t l i v e s t h e d ur a t i o n o f t h e p o l i c y, a t t h e
t i m e o f m a t ur i t y, a s i n g l e pr e m i u m p a y m e n t ( e x c l u d i n g e x t r a
p r e m i u m ) i s m a d e a l o n g w i t h l o y a l t y a d d i t i o n s , i f a n y.

T h e p o l i c y h o l d e r i s i n s u r e d f or a n a m o u n t e q u a l t o t h e s u m
assured.

T h e i n s u r a n c e c o v e r i s i r r e s p e c t i v e of t h e i n s t a l l m e n t s
received.

T h e g u a r a n t e e d s u r r e n d e r v a l u e i s a v a i l a b l e o n l y af t e r
c o m p l e t i o n o f a t l e a s t o n e p o l i c y y e a r. T h i s v a l u e i s e q u a l t o
9 0 % of t h e s i n g l e p r e m i u m p a i d ( e x c l u d i n g e x t r a p r e m i u m ) .

B i m a B a c h a t i s t h e o n l y m o n e y - b a c k p o l i c y t h a t o ff er s a l o a n
f a c i l i t y. T h e r a t e of i n t e r e s t f o r t h i s w i l l b e d e t e r m i n e d f r o m
t i m e t o t i m e b y t h e c o r p or a t i o n . P r e s e n t l y t h e r a t e o f i n t e r e s t
i s 9% p . a . p a y a b l e h a l f - y e a r l y.

I t a l s o o ff e r s o t h e r b e n e f i t s l i k e t h e 1 5 d a y c o o l i n g o ff
period, grace period and revival.
  J e e v a n Var s h a

L I C ’s J e e v a n Va r s h a i s a c l o s e e n d e d M o n e y B a c k P l a n w i t h
G u a r a n t e e d A d d i t i o n s . T h e p l a n p r o v i d e s f o r p er i o d i c a l
p a y m e n t s o f a pr o p o r t i o n of S u m A s s u r e d a t s p e c i f i e d
d u r a t i o n s , o n s u r v i v a l d u r i n g t h e t e r m of t h e p o l i c y a n d o n
m a t u r i t y. T h e P l a n pr o v i d e s f o r p a y m e n t o f S u m A s s u r e d o n
d e a t h . G u ar a n t e e d A d d i t i o n s a r e p a y a b l e o n d e a t h a n d
M a t u r i t y. L o y a l t y A d d i t i o n s m a y a l s o b e p a y a b l e d ur i n g t h e
l a s t y e a r of t h e p o l i c y o n b o t h m a t u r i t y a n d d e a t h .

S u b j e c t t o p r o d u c t i o n of s a t i s f a c t o r y e v i d e n c e o f c o n t i n u e d
i n s u r a b i l i t y, a l a p s e d p o l i c y c a n b e r e v i v e d b y p a y i n g a r r e a r s
o f pr e m i u m t o g e t h e r w i t h i n t e r e s t w i t h i n a p e r i o d of f i v e
y e a r s f r o m t h e d a t e o f f i r s t u n p a i d p r e m i u m b u t b ef o r e
m a t u r i t y. T h e r at e of i n t e r e s t a p p l i c a b l e w i l l b e a s f i x e d b y
the Corporation from time to time.

The Corporation reserves the right to accept at original

terms, accept with modified terms or decline the revival of a
d i s c o n t i n u e d p o l i c y. T h e r e v i v a l of t h e d i s c o n t i n u e d p o l i c y
s h a l l t a k e e ff e c t o n l y a f t er t h e s a m e i s a p pr o v e d b y t h e
Corporation and is specifically communicated to the Life
Assured.

g. Plans for handicapped dependents

  J e e v a n A d h ar

T h i s p l a n m a y b e o ff e r e d t o a p e r s o n w h o h a s a h a n d i c a p p e d
dependant satisfying conditions as specified in Section
8 0 D D A of I n c o m e Ta x A c t , 1 9 6 1 . T h e p l a n p r o v i d e s l i f e
i n s u r a n c e c o v e r t hr o u g h o u t t h e l i f e t i m e of t h e p u r c h a s e r.
T h e b e n e f i t s u n d e r t h e p l a n a r e f or t h e h a n d i c a p p e d
d e p e n d a n t w h i c h a r e p a r t l y i n l u m p s u m a n d p ar t l y i n t h e
f or m o f a n a n n u i t y.

T h e p r e m i um s p a i d u n d e r t h i s p l a n a r e e l i g i b l e f or I n c o m e
Ta x r e l i e f u n d er S e c t i o n 8 0 D D A of I n c o m e Ta x A c t .

Premiums:

P r e m i u m s a r e p a y a b l e y e a r l y, h a l f - y e a r l y, q u a r t e r l y, m o n t h l y
o r t hr o u g h S a l a r y d e d u c t i o n s , a s o p t e d b y y o u , w i t h i n t h e
s e l e c t e d p r e m i u m p a y i n g t e r m s o f 1 0 , 1 5 , 2 0 , 2 5 , 3 0 or 3 5
y e a r s or t i l l t h e e a r l i e r d e a t h . A l t e r n a t i v e l y, t h e pr e m i u m s
may be paid in one lump sum (Single Premium).

Guaranteed Additions:
T h e p o l i c y p r o vi d e s f or t h e G u a r a n t e e d A d d i t i o n s a t t h e r a t e
o f R s . 1 0 0 p e r t h o u s a n d S u m A s s u r e d f or e a c h c o m p l e t e d
p o l i c y y e a r. T h e G u a r a n t e e d A d d i t i o n s w i l l a c c r u e u p t o a g e
6 5 o f t h e l i f e a s s u r e d o r t i l l h i s / h e r d e a t h , i f e ar l i e r.

Te r m i n a l A d d i t i o n s :

T h i s i s a w i t h- p r of i t s p l a n a n d p a r t i c i p a t e s i n t h e p r o f i t s o f
t h e C o r p o r a t i o n ’s l i f e i n s u r a n c e b u s i n e s s .   I t g e t s a s h a r e o f
t h e p r o f i t s i n t h e f o r m o f Te r m i n a l A d d i t i o n s .   T h e p o l i c y
w i l l b e e n t i t l e d f or Ter m i n a l A d d i t i o n s i f a t l e a s t 1 0 y e a r s
p r e m i u m s h a v e b e e n p a i d . T h e Ter m i n a l a d d i t i o n s w o u l d
depend on the future experience of the Corporation.

 J e e v a n Vi s h w a s

This is an Endowment Assurance plan designed for the

benefit of handicapped dependants.

Premiums:

P r e m i u m s a r e p a y a b l e q u a r t e r l y, h a l f - y e a r l y or y e a r l y
t h r o u g h o u t t h e t er m o f t h e p o l i c y o r t i l l t h e e a r l i e r d e a t h .
A l t e r n a t i v e l y, t h e p r e m i u m m a y b e p a i d i n o n e l u m p s u m
(single premium).

Guaranteed Additions:

T h e p o l i c y p r o vi d e s f or t h e G u a r a n t e e d a d d i t i o n s a t t h e r a t e
o f R s . 6 0 p e r t h o u s a n d S u m A s s u r e d f or e a c h   c o m p l e t e d
p o l i c y y e a r w h i l e t h e p o l i c y i s i n f u l l f or c e . T h e G u a r a n t e e d
A d d i t i o n s ar e   p a y a b l e a t t h e e n d of t h e p o l i c y t e r m or o n
earlier death.

Loyalty Additions:

T h i s i s a w i t h- p r of i t p l a n a n d p ar t i c i p a t e s i n t h e p r of i t s o f
t h e C o r p o r a t i o n ’s l i f e i n s u r a n c e b u s i n e s s .   I t g e t s a s h a r e o f
the profits in the form of loyalty additions which are
t e r m i n a l b o n u s e s p a y a b l e a l o n g w i t h d e a t h or m a t u r i t y
benefit. Loyalty addition may be payable from fifth year
onwards depending on the experience of the Corporation.

h . S p e c i a l m o n e y b a c k p l a n f or w o m e n

 Jeevan Bharathi-I
L I C ’s J e e v a n B h a r a t i - I – i s a p l a n e x c l u s i v e l y f or w o m e n . I t
i s a w i t h pr o f i t p l a n h a v i n g s p e c i a l f e a t ur e s c o n s i d e r i n g t h e
n e e d s o f w o m e n . T h e p l a n a l s o pr o v i d e s f o r A c c i d e n t
Benefit, Critical Illness Benefit and Congenital Disability
Benefit as optional Riders.

Special features

1 . E n c a s h m e n t of S u r v i v a l B e n e f i t a s a n d w h e n n e e d e d :
T h e p o l i c y h o l d e r a t h er o p t i o n m a y a v a i l t h e s u r v i v a l b e n e f i t
a n y t i m e o n o r a f t er i t s d u e d a t e .   I f o p t e d t o a v a i l l a t e r,
increased survival benefit at the rate decided by the
corporation from time to time will be payable.

2 . F l e x i b i l i t y t o p a y pr e m i u m s i n a d v a n c e :
T h e m o d e o f pr e m i u m p a y m e n t i s o n l y y e a r l y u n d e r t h i s
p l a n . H o w e v e r, p o l i c y h o l d e r m a y p a y t h e n e x t y e a r l y
premium in advance in installments (maximum up to 3
i n s t a l l m e n t s ) d ur i n g t h e y e a r. I f pr e m i u m s ar e p a i d i n
advance a premium rebate may be allowed as may be decided
by the Corporation from time to time

3 . O p t i o n t o r e c e i v e m a t u r i t y pr o c e e d s i n t h e f or m o f a n
annuity:
T h e p o l i c y h o l d e r s h a l l h a v e t h e o pt i o n t o r e c e i v e t h e
m a t u r i t y pr o c e e d s i n t h e f or m o f a n n u i t y. T h e r a t e of a n n u i t y
w i l l b e b a s e d o n t h e a n n u i t y r a t e s pr e v a l e n t a t t h e t i m e of
s t i p u l a t e d D a t e o f M a t u r i t y.

4. Auto Cover:
After two years premiums have been paid, whenever
premium payment is discontinued, the life cover for full sum
a s s u r e d w i l l c o n t i n u e f or 3 y e a r s f r o m t h e d u e d a t e o f f i r s t
unpaid premium.

If death occurs during the Auto Cover period, then death

b e n e f i t a f t er d e d u c t i n g u n p a i d pr e m i u m s , w i t h i nt e r e s t i s
p a y a b l e a l o n g w i t h t h e v e s t e d b o n u s , i f a n y.

i . P l a n f or h i g h w o r t h i n d i v i d u a l s

 Jeevan Shree-I

T h i s i s a n E n d o w m e n t A s s u r a n c e p l a n o ff er i n g t h e c h o i c e of
m a n y c o n v e n i e n t pr e m i u m p a y i n g t e r m s . I t pr o v i d e s
f i n a n c i a l p r o t e c t i o n a g a i n s t d e a t h t hr o u g h o u t t h e t e r m of
p l a n w i t h t h e p a y m e n t of m a t u r i t y a m o u n t o n s u r v i v a l t o t h e
end of the policy term.
Premiums:

P r e m i u m s a r e p a y a b l e y e a r l y, h a l f - y e a r l y, q u a r t e r l y or
t h r o u g h S a l ar y d e d u c t i o n s , a s o p t e d b y y o u , t hr o u g h o u t t h e
p r e m i u m p a y i n g t e r m o r t i l l e a r l i e r d e a t h . A l t er n a t i v e l y
p r e m i u m m a y b e p a i d i n o n e l u m p s u m ( S i n g l e pr e m i u m ) .

Guaranteed Additions:

T h e p o l i c y p r o vi d e s f or t h e G u a r a n t e e d A d d i t i o n s a t t h e r a t e
o f R s . 5 0 / - p e r t h o u s a n d Su m A s s u r e d f o r e a c h c o m p l e t e d
y e a r f or f i r s t f i v e y e ar s o f t h e p o l i c y. T h e G u a r a n t e e d
A d d i t i o n s ar e p a y a b l e a l o n g w i t h t h e B a s i c S u m A s s u r e d a t
the time of claim.

Bonuses:

T h e p o l i c y p a r t i c i p a t e s i n t h e p r o f i t s of t h e C o r p or a t i o n ’s
life insurance business from the 6th year onwards. It will get
a s h a r e of t h e pr o f i t s i n t h e f or m o f b o n u s e s . S i m pl e
R e v e r s i o n a r y B o n u s e s w i l l b e d e c l a r e d p er t h o u s a n d B a s i c
S u m A s s u r e d a n n u a l l y a t t h e e n d of e a c h f i n a n c i a l y e a r.
O n c e d e c l a r e d , t h e y w i l l f o r m p a r t of t h e g u a r a n t e e d b e n e f i t s
of the plan.
  Jeevan Pramukh

Insurance Regulatory & Development Authority (IRDA)

requires all life insurance companies operating in India to
p r o v i d e o ff i c i a l i l l u s t r a t i o n s t o t h e i r c u s t o m e r s . T h e
i l l u s t r a t i o n s ar e b a s e d o n t h e i n v e s t m e n t r a t e s o f r et u r n s e t
by the Life Insurance Council (constituted under Section
64C(a) of the Insurance Act 1938) and is not intended to
reflect the actual investment returns achieved or may be
achieved in future by Life Insurance Corporation of India
(LICI).

F o r t h e y e a r 2 0 0 4- 0 5 t h e t w o r a t e s of i n v e s t m e n t r et u r n
d e c l a r e d b y t h e L i f e I n s u r a n c e C o u n c i l a r e 6 % a n d 1 0 % p er
annum.

T h i s i s a n E n d o w m e n t A s s u r a n c e p l a n o ff er i n g t h e c h o i c e of
t h r e e p r e m i u m p a y i n g t er m s . I t p r o v i d e s f i n a n c i a l p r o t e c t i o n
a g a i n s t d e a t h t h r o u g h o u t t h e t er m o f t h e p l a n w i t h t h e
p a y m e n t o f m a t u r i t y a m o u n t o n s u r v i v a l t o t h e e n d of t h e
policy term.

Premiums :
P r e m i u m s a r e p a y a b l e y e a r l y, h a l f - y e a r l y, q u a r t e r l y or
m o n t h l y, a s o p t e d b y y o u , t hr o u g h o u t t h e p r e m i u m p a y i n g
t e r m or t i l l e a r l i e r d e a t h .

Guaranteed Additions:

T h e p o l i c y p r o vi d e s f or t h e G u a r a n t e e d A d d i t i o n s a t t h e r a t e
o f R s . 5 0 / - p e r t h o u s a n d Su m A s s u r e d f o r e a c h c o m p l e t e d
y e a r f or f i r s t f i v e y e ar s o f t h e p o l i c y. T h e G u a r a n t e e d
A d d i t i o n s ar e p a y a b l e a l o n g w i t h t h e S u m A s s u r e d a t t h e
time of claim.

2 . P e n s i o n Pl a n s

P e n s i o n P l a n s a r e I n d i vi d u a l Pl a n s t o g a z e i n t o y o u r f u t u r e
a n d f o r e s e e f i n a n c i a l s t a b i l i t y d ur i n g y o u r r et i r e m e n t a g e .
T h e s e p o l i c i e s a r e m o s t s u i t e d f or s e n i o r c i t i z e n s a n d t h o s e
planning a safe and secure future. The objective of LIC's
pension plan is to provide financial security to your family
d u r i n g y o ur
p r o d u c t i v e s p a n a n d a h a p p y i n d e p e n d e n t r e t i r e d l i f e s t y l e f or
yourself and your spouse when you decide to retire.
 a . L I C m ar k e t pl u s

This is a unit linked pension plan wherein the pension is

p a y a b l e af t e r a   s p e c i f i e d p er i o d .   F o u r t y p e s o f i n v e s t m e n t
Funds namely Bond, Secured, Balanced and Growth Fund
a r e o ff e r e d . T h o u g h pr i m a r i l y a P e n s i o n p r o d u c t , t h e p l a n
h a s m a n y a t t r a c t i v e f e a t ur e s a n d o p t i o n s w h i c h m a k e i t a n
i d e a l R e t i r e m e n t s o l u t i o n f o r t h e f u t ur e .

Options

T hr e e a t t r a c t i v e b e n e f i t s , v i z . - L i f e C o v e r, A c c i d e n t
Benefit and Critical Illness Benefit are available as
o p t i o n s or r i d er s . L i f e o p t i o n i s a v a i l a b l e w i t h i n c e r t a i n
l i m i t s d e p e n d i n g o n a g e a t e n t r y of l i f e a s s u r e d .   O t h e r
o p t i o n s ar e a v a i l a b l e t o a l l pr o p o s e r s w h o h a v e o p t e d f o r
L i f e C o v e r. Q u a n t u m o f r i s k c o v e r s c a n a l s o b e r e d u c e d ;
s u b j e c t t o m i n i m um l i m i t s , o n c e a y e a r. A p o l i c y c a n b e
t a k e n w i t h o u t a n y of   r i d e r s a l s o .
 O t h e r f e a t ur e s

T h e r e w i l l b e n o s p r e a d b e t w e e n   b i d a n d O ff er p r i c e .   N e t
A s s e t Va l u e ( N AV ) w i l l b e d e c l a r e d o n a d a i l y b a s i s .
A d d i t i o n a l p r e m i u m i n m ul t i p l e s of R s . 1 , 0 0 0 c a n b e p a i d
w i t h o u t a n y l i m i t a t a n y t i m e d u r i n g   t er m o f p o l i c y.

A b o v e i n f o r m a t i o n i s o n l y a g i s t o f   b e n e f i t s / f e a t ur e s
o f   p l a n . F or f ur t h e r d e t a i l s p l e a s e r e f e r t o   s a l e s b r o c h ur e
a v a i l a b l e w i t h     o ur a g e n t s / o ff i c e s .

a ) N e w J e e v a n Su r a k s h a - I

T h e s e ar e D ef e r r e d A n n u i t y p l a n s t h a t a l l o w t h e p o l i c y h o l d er
t o m a k e p r o v i s i o n f o r r e g u l a r i n c o m e a f t e r t h e s e l e c t e d t er m .

Product summary:

T h e s e ar e D ef e r r e d A n n u i t y p l a n s t h a t a l l o w t h e p o l i c y h o l d er
t o m a k e p r o v i s i o n f o r r e g u l a r i n c o m e a f t e r t h e s e l e c t e d t er m .

Premiums:
P r e m i u m s a r e p a y a b l e y e a r l y, h a l f - y e a r l y, q u a r t e r l y, m o n t h l y
o r t hr o u g h S a l a r y d e d u c t i o n , a s o p t e d b y y o u , t hr o u g h o u t t h e
t e r m of t h e p ol i c y or t i l l e a r l i er d e a t h . A l t er n a t i v e l y, t h e
p r e m i u m m a y b e p a i d i n o n e l u m p s u m ( s i n g l e pr e m i u m ) .

Ta x B e n e f i t s :

Ta x r e l i e f u n d er S e c t i o n 8 0 c c c i s a v a i l a b l e o n pr e m i u m s p a i d
u n d e r N e w J e e v a n S u r a k s h a I ( Ta b l e N o . 1 4 7) . T h e pr e m i u m s
p a i d u n d e r N e w J e e v a n D h a r a I ( Ta bl e N o . 1 4 8) q u a l i f y f o r
t a x r e l i e f u n d er S e c t i o n 8 8 .

Bonuses:
T h e s e ar e w i t h - p r of i t p l a n s a n d p a r t i c i p a t e i n t h e pr o f i t s o f
t h e C o r p o r a t i o n ’s a n n u i t y / p e n s i o n b u s i n e s s . P o l i c i e s g e t a
s h a r e of t h e p r o f i t s i n t h e f o r m o f b o n u s e s . Si m p l e
Reversionary Bonuses are declared per thousand Sum
A s s u r e d a n n u a l l y a t t h e e n d of e a c h f i n a n c i a l y e a r.   O n c e
d e c l a r e d , t h e y f o r m p ar t o f t h e g u a r a n t e e d b e n e f i t s o f t h e
plan. Final (Additional) Bonuses may also be payable
p r o v i d e d p o l i c y h a s r u n f or a c er t a i n m i n i m u m p e r i o d .
 b ) N e w J e e v a n D h a r a- I

T h e s e ar e D ef e r r e d A n n u i t y p l a n s t h a t a l l o w t h e p o l i c y h o l d er
t o m a k e p r o v i s i o n f o r r e g u l a r i n c o m e a f t e r t h e s e l e c t e d t er m .

P rem i u m s :

P r e m i u m s a r e p a y a b l e y e a r l y, h a l f - y e a r l y, q u a r t e r l y, m o n t h l y
o r t hr o u g h S a l a r y d e d u c t i o n , a s o p t e d b y y o u , t hr o u g h o u t t h e
t e r m of t h e p ol i c y or t i l l e a r l i er d e a t h . A l t er n a t i v e l y, t h e
p r e m i u m m a y b e p a i d i n o n e l u m p s u m ( s i n g l e pr e m i u m ) .

Ta x B e n e f i t s :

Ta x r e l i e f u n d er S e c t i o n 8 0 c c c i s a v a i l a b l e o n pr e m i u m s p a i d
u n d e r N e w J e e v a n S u r a k s h a I ( Ta b l e N o . 1 4 7) . T h e pr e m i u m s
p a i d u n d e r N e w J e e v a n D h a r a I ( Ta bl e N o . 1 4 8) q u a l i f y f o r
t a x r e l i e f u n d er S e c t i o n 8 8 .

Bonuses:
T h e s e ar e w i t h - p r of i t p l a n s a n d p a r t i c i p a t e i n t h e pr o f i t s o f
t h e C o r p o r a t i o n ’s a n n u i t y / p e n s i o n b u s i n e s s . P o l i c i e s g e t a
s h a r e of t h e p r o f i t s i n t h e f o r m o f b o n u s e s . Si m p l e
Reversionary Bonuses are declared per thousand Sum
A s s u r e d a n n u a l l y a t t h e e n d of e a c h f i n a n c i a l y e a r. O n c e
d e c l a r e d , t h e y f o r m p ar t o f t h e g u a r a n t e e d b e n e f i t s o f t h e
plan. Final (Additional) Bonuses may also be payable
p r o v i d e d p o l i c y h a s r u n f or a c er t a i n m i n i m u m p e r i o d .

c) Jeevan Akshay-VI

It is an Immediate Annuity plan, which can be purchased by

p a y i n g a l u m p s u m a m o u n t . T h e p l a n p r o v i d e s f or a n n u i t y
payments of a stated amount throughout the life time of the
a n n u i t a n t . Var i o u s o p t i o n s a r e a v a i l a b l e f or t h e t y p e a n d
mode of payment of annuities.

Ty p e o f A n n u i t y :
 Annuity payable for life at a uniform rate.
 A n n u i t y p a y a b l e f o r 5 , 1 0 , 1 5 or 2 0 y e a r s c e r t a i n a n d
thereafter as long as the annuitant is alive.
 A n n u i t y f or l i f e w i t h r e t ur n o f p ur c h a s e p r i c e o n d e a t h
of the annuitant.
  Annuity payable for life increasing at a simple rate of
3% p.a.
 A n n u i t y f or l i f e w i t h a p r o v i s i o n o f 5 0% o f t h e a n n u i t y
p a y a b l e t o s p o u s e d ur i n g h i s / h e r l i f e t i m e o n d e a t h o f
the annuitant.
 A n n u i t y f or l i f e w i t h a p r o v i s i o n o f 1 0 0% o f t h e
a n n u i t y p a y a b l e t o s p o u s e d ur i n g h i s / h e r l i f e t i m e o n
d e a t h of t h e a n n u i t a n t .

d) Jeevan Nidhi

L I C ' s J E E VA N N I D H I i s a w i t h p r of i t s D e f er r e d A n n u i t y
( P e n s i o n ) p l a n . O n s u r v i v a l o f t h e p o l i c y h o l d er b e y o n d t er m
of the policy the accumulated amount (i.e. Sum Assured +
Guaranteed Additions + Bonuses) is used to generate a
p e n s i o n ( a n n u i t y ) f or   t h e p o l i c y h o l d e r. T h e pl a n a l s o
p r o v i d e s a r i s k c o v e r d ur i n g t h e d e f e r m e n t p er i o d . T h e U S P
of the plan being the pension can commence at 40 years. The
premiums paid are exempt under Section 80CCC of Income
Ta x A c t .
S a l i e n t f e a t u re s :

a. Guaranteed Additions: Guaranteed Additions @ Rs.50/-

p e r t h o u s a n d S u m a s s u r e d f or e a c h c o m p l e t e d y e a r, f o r t h e
first five years.

b . P a r t i c i p a t i o n i n pr o f i t s : T h e p o l i c y s h a l l p a r t i c i p a t e i n
p r of i t s of t h e C o r p o r a t i o n f r o m t h e 6 t h y e a r o n w a r d s a n d
shall be entitled to receive bonuses declared as per the
e x p e r i e n c e of t h e C o r p o r a t i o n .

3. Unit Plans

U n i t p l a n s are i n v e s t m e n t pl a n s f o r t h o s e w h o re a l i s e t h e
w o r t h o f h a r d - e a r n e d m o n e y. T h e s e pl a n s h e l p y o u s e e
your savings yield rich benefits and help you save tax
e v e n i f y o u d on ' t h a v e c o n s i s t e n t i n c o m e . U n i t l i n k w h ol e
l i f e p l an s , o f f e r t h e t w i n b e n ef i t s o f i n v e s t m e nt p l u s
i n s u r a n c e c o v e r t h rou g h o u t y o ur l i f e .

a. Market Plus I

I n t h i s p o l i c y , t h e i n v e s t m e n t r i s k i n i n v e s t m e nt p o r t f ol i o
i s b o r n e b y t h e p o l i c y h o l d e r.
This is a unit linked pension plan wherein the pension is
p a y a b l e af t e r a     s p e c i f i e d p er i o d .   F o u r t y p e s o f i n v e s t m e n t
Funds namely Bond, Secured, Balanced and Growth Fund are
o ff e r e d . T h o u g h pr i m a r i l y a P e n s i o n p r o d u c t , t h e p l a n h a s
m a n y a t t r a c t i v e f e a t u r e s a n d o pt i o n s w h i c h m a k e i t a n i d e a l
R e t i r e m e n t s o l u t i o n f o r t h e f ut u r e .

b . P r of i t P l u s

I n t h i s p o l i c y, t h e i n v e s t m e nt r i s k i n i n v e s t m e n t po r t f o l i o
i s b o r n e b y t h e p o l i c y h o l d e r.

I t i s a u n i t l i n k e d E n d o w m e n t p l a n w h e r e t h e p r e m i um
payment term (PPT) is limited to single lump sum, or
u n i f or m l y o v e r 3 , 4 o r 5 y e ar s . Yo u c a n c h o o s e t h e l e v e l o f
c o v e r w i t h i n t h e l i m i t s , w h i c h w i l l d e p e n d o n w h e t h er t h e
p o l i c y i s a S i n g l e pr e m i u m o r L i m i t e d p r e m i u m c o n t r a c t ,
t e r m c h o s e n a n d o n t h e l e v e l o f pr e m i u m y o u a g r e e t o p a y.

F o u r t y p e s o f i n v e s t m e n t F u n d s ar e o ff e r e d . P r e m i u m s p a i d
a f t e r a l l o c a t i o n c h a rg e w i l l p u r c h a s e u n i t s o f t h e F u n d t y p e
c h o s e n . T h e U n i t F u n d i s s u b j e c t t o v a r i o u s c h a rg e s a n d
v a l u e of u n i t s m a y i n c r e a s e o r d e c r e a s e , d e p e n d i n g o n t h e
N e t A s s e t Va l u e ( N AV ) .
 c. Fortune Plus

I t i s a u n i t l i n k e d a s s u r a n c e p l a n w h er e pr e m i u m p a y m e n t
term (PPT) is 5 years and the premium payable in the first
y e a r w i l l b e 5 0 % of t o t a l p r e m i u m p a y a b l e u n d e r t h e p o l i c y.
T h e l e v e l o f c o v e r w i l l d e p e n d o n t h e l e v e l o f pr e m i u m y o u
a g r e e t o p a y.

F o u r t y p e s o f i n v e s t m e n t f u n d s a r e o ff e r e d . Pr e m i u m s p a i d
a f t e r a l l o c a t i o n c h a rg e w i l l p u r c h a s e u n i t s o f t h e F u n d t y p e
c h o s e n . T h e U n i t F u n d i s s u b j e c t t o v a r i o u s c h a rg e s a n d
v a l u e of t h e u n i t s m a y i n cr e a s e o r d e c r e a s e , d e p e n d i n g o n
t h e N e t A s s e t Va l u e ( N AV ) . T h e p l a n t h e r ef o r e s e r v e s t h e
p u r p o s e of i n s u r a n c e - c u m - i n v e s t m e n t .

d. Money Plus-I

T h i s i s a u n i t l i n k e d E n d o w m e n t p l a n w i t h r e g u l a r pr e m i u m
p a y i n g t e r m w h i c h o ff e r s i n v e s t m e n t c u m i n s u r a n c e d u r i n g
t h e t e r m o f t h e p o l i c y. Yo u c a n c h o o s e t h e l e v e l of c o v e r
w i t h i n t h e l i m i t s , w h i c h w i l l d e p e n d o n t h e l e v e l of p r e m i u m
y o u a g r e e t o p a y.
F o u r t y p e s o f i n v e s t m e n t F u n d s ar e o ff e r e d . P r e m i u m s p a i d
a f t e r a l l o c a t i o n c h a rg e w i l l p u r c h a s e u n i t s o f t h e F u n d t y p e
c h o s e n . T h e U n i t F u n d i s s u b j e c t t o v a r i o u s c h a rg e s a n d
v a l u e of u n i t s m a y i n c r e a s e o r d e c r e a s e , d e p e n d i n g o n t h e
N e t A s s e t Va l u e ( N AV ) .

e. Child Fortune Plus

A l l o f u s w i s h t o e n s u r e t h e b e s t p o s s i b l e f u t u r e f or o u r
c h i l d r e n . Wi t h t h e c o s t of e d u c a t i o n s k y r o c k e t i n g , i t i s a l l
t h e m o r e i m p or t a n t t h a t a n e a r l y p r o v i s i o n i s m a d e t o e n s u r e
t h a t y o u r l o v e d o n e s g e t a g o o d h e a d s t a r t i n l i f e . L I C ’s
Child Fortune Plus is a total solution to their education and
o t h e r n e e d s . T h e p l a n i s a u n i t l i n k e d o n e o ff e r i n g t h e
p r o s p e c t s o f l o n g t er m c a p i t a l a p p r e c i a t i o n .

4. Special Plans

L I C ’s S p e c i a l P l a n s are no t p l a n s b ut o p p o r t un i t i e s t h at
k n o c k o n y o u r d o o r on c e i n a l i f e t i m e . T h e s e p l a n s a re a
p e r f e c t b l e n d of i n s u r a n c e , i n v e s t m e n t a nd a l i f e t i m e o f
happiness!

a. Golden Jubilee Plan

 New Bima Gold

I t i s a p l a n w h e r e p r e m i u m s p a i d o v er t h e t e r m o f pl a n ar e
p a i d b a c k d ur i n g t h e p o l i c y t e r m i n i n s t a l l m e n t s a n d l i f e
i n s u r a n c e c o v e r i s a v a i l a b l e n ot o n l y d u r i n g t h e t e r m b ut
a l s o d ur i n g t h e e x t e n d e d t e r m o f t h e p l a n .

b . H e a l t h Pl a n

 H e a l t h P rot e c t i o n P l u s

H e a l t h i s a m a j o r c o n c e r n o n e v e r y b o d y ’s m i n d t h e s e d a y s .
Wi t h s k y r o c k e t i n g m e d i c a l e x p e n s e s , t h e p o s s i b i l i t y o f a n y
i l l n e s s l e a d i n g t o h o s p i t a l i z a t i o n or s u rg e r y i s a c o n s t a n t
s o u r c e of a n x i e t y u n l e s s t h e f a m i l y h a s a c t i v e l y p r o v i d e d f o r
f u n d s t o m e e t s u c h a n e v e n t u a l i t y. M o s t f a m i l i e s r a r e l y
p r o v i d e f or h e a l t h c a r e , a n d e v e n i f t h e y d o , i t i s gr o s s l y
i n a d e q u a t e . G i v e n t h i s s c e n a r i o , L I C h a s l a u n c h e d L I C ’s
H e a l t h P r o t e c t i o n P l u s p l a n , a u ni q u e l o n g t er m h e a l t h
insurance plan that can combine health insurance covers for
t h e e n t i r e f a m i l y ( h u s b a n d , w i f e a n d t h e c h i l dr e n ) . H o s p i t a l
C a s h B e n e f i t ( H C B ) a n d M a j o r S u rg i c a l B e n e f i t ( M S B ) a l o n g
w i t h a U L I P c o m p o n e n t ( i n v e s t m e n t i n t h e f o r m of U n i t s )
t h a t i s s p e c i f i c a l l y d e s i g n e d t o m e e t D o m i c i l i a r y Tr e a t m e n t
B e n e f i t ( D T B ) / O u t P at i e n t D e p a r t m e n t ( O P D ) e x p e n s e s f or
t h e i n s u r e d m e m b er s .

 Health Plus
H e a l t h i s a m a j o r c o n c e r n o n e v e r y b o d y ’s m i n d t h e s e d a y s .
Wi t h s k y r o c k e t i n g m e d i c a l e x p e n s e s , t h e p o s s i b i l i t y o f a n y
i l l n e s s l e a d i n g t o h o s p i t a l i z a t i o n or s u rg e r y i s a c o n s t a n t
s o u r c e of a n x i e t y u n l e s s t h e f a m i l y h a s a c t i v e l y p r o v i d e d f o r
f u n d s t o m e e t s u c h a n e v e n t u a l i t y. M o s t f a m i l i e s r a r e l y
p r o v i d e f or h e a l t h c a r e , a n d e v e n i f t h e y d o , i t i s gr o s s l y
inadequate.

Given this scenario, LIC has launched Health Plus plan, a

u n i q u e l o n g t e r m h e a l t h i n s u r a n c e pl a n t h a t c o m b i n e s h e a l t h
i n s u r a n c e c o v e r s f or t h e e n t i r e f a m i l y ( h u s b a n d , w i f e a n d t h e
c h i l d r e n ) – H o s p i t a l C a s h B e n e f i t ( H C B ) a n d m a j or S u rg i c a l
B e n e f i t ( M S B ) a l o n g w i t h a UL I P c o m p o n e n t ( i n v e s t m e n t i n
the form of Units) that is specifically designed to meet
d o m i c i l i a r y t r e a t m e n t ( D T B ) r e l a t e d e x p e n s e s f or t h e i n s u r e d
members.

c . S p e c i a l Pl a n

 Bima Nivesh 2005

B i m a N i v e s h 2 0 0 5 i s a p l a n w i t h c o m p o u n d r a t e of
guaranteed additions and loyalty additions . This is the
r e v i s e d v er s i o n of o u r p o p u l a r B i m a N i v e s h Pl a n 2 0 0 4 a n d i s
i n t r o d u c e d t o m e e t t h e o v e r w h e l m i n g d e m a n d f or a s i n g l e
p r e m i u m p l a n f r o m o u r c u s t o m e r s . I t i s a s i n g l e pr e m i u m ,
i d e a l i n v e s t m e n t p l a n f or t h o s e w h o h a v e n o r e g u l a r i n c o m e
but good periodical income . Bima Nivesh 2005 is available
f or t e r m s 5 a n d 1 0 y e a r s . T h e g u a r a n t e e d s u r r e n d e r v a l u e i s
p a y a b l e af t e r t h e p o l i c y h a s r u n f o r a t l e a s t o n e y e a r. Te r m
Assurance Rider is also available by payment of a single
p r e m i u m a t t h e o p t i o n of t h e p r o p o s e r.

 Jeevan Saral

This is an Endowment Assurance plan where the proposer

h a s s i m p l y t o c h o o s e t h e a m o u n t a n d m o d e o f pr e m i u m
p a y m e n t . T h e p l a n pr o v i d e s f i n a n c i a l pr o t e c t i o n a g a i n s t
d e a t h t h r o u g h o u t t h e t e r m of t h e p l a n . T h e d e a t h b e n e f i t i s
d i r e c t l y r e l a t e d t o t h e pr e m i u m s p a i d . T h e M a t u r i t y S u m
Assured depends on the age at entry of the life to be assured
a n d i s p a y a b l e o n s u r v i v a l t o t h e e n d of t h e p o l i c y t e r m . I t
a l s o o ff er s t h e f l e x i b i l i t y o f t er m a n d a l ot o f l i q u i d i t y.

P rem i u m s :
P r e m i u m s a r e p a y a b l e y e a r l y, h a l f - y e a r l y, q u a r t e r l y, o r
monthly through salary deductions as opted by you
t h r o u g h o u t t h e t er m o f t h e p o l i c y o r t i l l e a r l i e r d e a t h .
L o y a l t y A d d i t i on s :
T h i s i s a w i t h- p r of i t s p l a n a n d p a r t i c i p a t e s i n t h e p r o f i t s o f
t h e C o r p o r a t i o n ’s l i f e i n s u r a n c e b u s i n e s s .   I t g e t s a s h a r e o f
the profits in the form of loyalty additions which are
terminal bonuses payable along with death benefit or
maturity benefit.  Loyalty Additions may be payable from
the 10th year onwards depending upon the experience of the
Corporation.

 Jeevan Madhur

It is a simple savings related life insurance plan where you

m a y p a y pr e m i u m s r e g u l a r l y
a t w e e k l y, f o r t n i g h t l y, m o n t h l y, q u a r t er l y, h a l f - y e ar l y o r
yearly intervals over the term
o f t h e p o l i c y.

F u r t h e r, t h e pr e m i u m c h o s e n b y y o u s h a l l b e s u b j e c t t o t h e
minimum and maximum
s u m a s s u r e d of R s . 5 , 0 0 0 / - a n d R s . 3 0 , 0 0 0 / - r e s p e c t i v e l y
payable on death and maturity
under this plan.

 Jeevan Mangal

L I C ’s J e e v a n M a n g a l P l a n – M i c r o i n s u r a n c e pr o d u c t
L I C ’s J e e v a n M a n g a l i s a t er m a s s u r a n c e p l a n w i t h r e t u r n of
p r e m i u m s o n m a t u r i t y, w h er e y o u m a y p a y t h e p r e m i um s
e i t h e r i n l u m p s u m o r r e g ul a r l y a t Ye a r l y, H a l f Ye a r l y,
Q u a r t e r l y, M o n t h l y, f o r t n i g h t l y or w e e k l y i nt e r v a l s o v e r t h e
t e r m of t h e p ol i c y.

c. Group Scheme

G ro u p I n s u r a n c e S c h e m e i s l i f e i n s u r a n c e pro t e c t i o n t o
g ro u p s o f p e op l e . T h i s s c h e m e i s i d e a l f o r em p l o y e r s ,
a s s o c i a t i o n s , s o c i e t i e s e t c . a n d a l l o w s y o u t o e nj o y g ro up
b e n e f i t s at re a l l y l o w c o s t s .

5 . E n g i n e e r i n g C o n s u l t a n c y S er v i c e s

LIC the pioneer in Life Insurance business in India. It is the

only financial institution in the country having Engineering
department as its integral part and started its operation all
over India in 1958 and now having 8 Zones.

Since its inception the Engineering department is equipped

w i t h i t s o w n t e c h n i c a l e x p e r t i s e o ff e r i n g f u l l r a n g e o f
services (i.e. from feasibility studies, site selection,
planning, architectural and engineering design, construction,
t o t a l p r o j e c t m a n a g e m e n t , r e s t o r a t i o n o f h er i t a g e b u i l d i n g s ,
i n t e r i or d e s i g n a n d s i t e s u p e r v i s i o n t o c o m p l e t i o n &
f i n a l i z a t i o n o f pr o j e c t s ) a n d a l s o w o r k i n g w i t h i n t h e pr e v i e w
o f t h e Vi g i l a n c e a n d CT E d e p a r t m e n t s . We a r e a l s o t a k i n g u p
valuation & Consultancy works.

The department is headed by Executive Director

( E n g i n e e r i n g ) a n d t h e Z o n e h e a d e d b y C h i e f E n g i n e e r. A t
present it comprises of 450 plus best trained technical and
m a n a g e r i a l p r of e s s i o n a l s i n v a r i o u s c a d r e i . e . f r om C h i e f
A r c h i t e c t u r e / D i r e c t o r C h i e f E n g i n e e r / Ar c h i t e c t u r e t o
Assistant Engineers.

The department has successfully completed major

e n g i n e e r i n g p r o j e c t s w i t h m o d e r n a r c h i t e c t u r e i n v ar i o u s
p a r t o f t h e c o u n t r y. T h e s e b u i l d i n g s t o n a m e a f e w a r e
“ Yo g a k s h e m a ” , M u m b a i , “ J e e v a n B h a r a t i ” , N e w D e l h i , “ L I C
Building”, Chennai, “Jeevan Sudha” & “Jeevan Deep”,
Kolkata, “National Insurance Academy ”,
P u n e , “ I n s u r a n c e I n s t i t u t e o f I n di a ” , B K C M u m b a i , “ Z o n a l
Tr a i ni n g C e n t r e – J e e v a n Vi d y a ” a t
Hyderabad etc.

The buildings constructed enjoy excellent reputation both

f r o m t h e p o i n t o f a e s t h e t i c s a n d d u r a b i l i t y.
E n g i n e e r i n g d e p ar t m e n t o ff e r s i t s u s e r s a l l t h e b e n e f i t s of a
firm like individualized attention and customized design as
w e l l a s t h e s t a b i l i t y, e x p e r i e n c e a n d u n i q u e a d v a n t a g e o f
engineering institution. The upkeep / day to day maintenance
( C i v i l & E l e c t r i c a l ) o f o ur o w n b u i l d i n g s
( C o n s t r u c t e d & I n h e r i t e d / H e r i t a g e b u i l di n g s ) ar e d o n e i n-
house.
A l s o w e a r e c a r r y i n g o u t v a l u a t i o n o f o u r o w n pr o p e r t i e s a n d
a l s o f o r o t h e r o rg a n i z a t i o n a s a c o n s u l t a n t .
I n c o n s u l t a n c y w e h a v e n o m i n a t e d N o d a l O ff i c e r s . T h e
N o d a l o ff i c e r s a n d t h e i r t e a m m e m b e r s ar e h a n d l i n g
c o n s u l t a n c y w o r k s u n d e r t h e a b l e g u i d a n c e of h e a d of t h e
Zonal Engineering Department and are presently handling
p r o j e c t s w or t h o v e r R s . 1 0 0 c r o r e s a t v a r i o u s l o c a t i o n s
t h r o u g h o u t I n d i a . T h e t e a m i s d e d i c a t e d t o d e l i v er e x c e l l e n t
w o r k a n d c o m m i t t e d f or p r o v i d i n g q u a l i t y w or k , t i m e l y a n d
c o s t e ff e c t i v e s e r v i c e a s t h e t r a d e m a r k of o u r o rg a n i z a t i o n .
Objective & Scope of Project/Study

T h e m a j o r o bj e c t i v e s o f t h e p r e p ar a t i o n o f t h i s p r o j e c t a r e :

1 . To u n d er s t a n d t h e v a r i o u s s e r v i c e s p r o v i d e d b y t h e L I C
i n d i ff e r e n t s e c t o r s o f t h e e c o n o m y.

2 . T h e r e a r e a l a rg e n u m b er o f p o p u l a t i o n s w h o a r e n o t
a w a r e o f t h e s e r v i c e s pr o v i d e d b y L I C . To m a k e t h e s e
 persons aware so that they could take up the insurance
p o l i c i e s t o m a k e g o o d t h e i n cr e a s i n g r i s k s .

3 . To b e i nf o r m e d a b o u t t h e r e c e n t i n c l u d e d p o l i c i e s i n
c h i l dr e n pl a n s , e n d o w m e n t p l a n s e t c .

4 . We c a n e a s i l y g e t l a t e s t i n f o r m a t i o n a b o u t a l l t h e
c u r r e n t a ff a i r s t h r o u g h n e w s p a p e r s b u t t h er e ar e s t i l l
s o m e o t h e r h i s t o r i c a l i n f or m a t i o n a b o u t t h e f or m a t i o n
of L I C , t h e y e a r of c o m m e n c e m e n t , d e v e l o p m e n t s e t c .
these knowledge can be conveyed with the help of this
pr o j e c t .

Methodology

 The type of research is analytical.

 The data collection mode is secondary sources.

 N e w s p a p e r s , i n t e r n e t a n d b o o k s h a v e b e e n u s e d f or
collection of data.
 Limitations

1 . A s t h e d a t a c o l l e c t e d f o r t h e pr o j e c t ar e s e c o n d a r y d a t a .
H e n c e t h e r e i s a p o s s i b i l i t y t h a t t h e s e ar e n ot a c c u r a t e
and reliable.

2 . T h i s p r o j e c t e x p l a i n s o n l y a b o u t t h e ‘ s e r vi c e s ’ w h i c h
are rendered to customers by Life Insurance
C o r p o r a t i o n . T h e r e i s s o m a n y o t h er i m p o r t a n t
i n f or m a t i o n a b o u t L I C a s w e l l w h i c h s h o u l d b e g i v e n
 e q u a l i m p o r t a n c e . H e n c e i n k n o w i n g L I C c o m p l e t e l y, i t
is incomplete.

3. Data is collected through the newspapers and internets

t h e r e f or e t h e r e c a n b e o m i t t i n g o f f a c t s a n d f i g u r e s .

4 . T h e p r oj e c t h a s b e e n pr e p a r e d i n M S Wo r d 2 0 0 3 . H e n c e
there can be spelling and grammatical errors which may
c o n v e y a d i ff e r e n t m e a n i n g t o t h e s e n t e n c e s .

5. Data has not been collected from the personal

o b s e r v a t i o n , q u e s t i o n n a i r e s o r s u r v e y.

Analysis and Interpre tation

After going thorough all the services that LIC render to its
customers, it has been analyzed that it has several positive
points n negative impact as well.

First we will discuss all the positive facts:

1 . L I C i s o w n e d b y t h e g o v er n m e n t t h e r e f or e i t h a s t h e
s o v e r e i g n g u ar a n t e e of t h e g o v e r n m e n t o f I n d i a . I t i s
v e r y r e l i a b l e f o r p e o p l e o f I n d i a . I t i s d i ff e r e n t s t o r y
that today LIC has become so powerful that the
government leans on LIC every time that the stock
market crashes.

2. LIC in the only Life Insurance Company making

p r of i t s . M o s t of t h e p r i v a t e i n s u r e r s i n c l u d i n g t h e s e l f
p r o c l a i m e d l e a d e r s l i k e I CI C I a n d B a j a j A l l i a n z a r e
booking heavy losses.

3 . L I C pr o v i d e s a l a rg e a m o u n t o f s e r v i c e s t h a n a n y o t h e r
i n s u r a n c e c o m p a n y i n I n di a .

4. It is the only financial institution in the country having

E n g i n e e r i n g d e p ar t m e n t a s i t s i n t e g r a l p a r t .

5 . M a n y p e o p l e a rg u e t h a t L I C h a s n o t b e e n a b l e t o
p e n e t r a t e t h e m a r k e t a s i t h a s i n s u r e d o nl y 1 5 % o f t h e
population. The important thing is that a country where
there are so many people living below the poverty line,
so may people who die of starvation. So many people
w h o d o n ’t h a v e a c c e s s t o b a s i c m e d i c a t i o n , s o m a n y
p e o p l e w h o d o n ’t h a v e b a s i c n e c e s s i t i e s of l i f e l i k e
f o o d , s h e l t e r, e d u c a t i o n a n d c l o t h i n g . Wi l l s u c h a
person first feed his children or buy insurance? A
 m a j o r i t y of t h e I n d i a n p o p u l a t i o n i s p o o r a n d a
substantial percentage is living below the poverty line.
H e n c e L I C h a s d o n e a s a t i s f a c t o r y j o b of i n s u r i n g
p e o p l e b y pr o v i d i n g i t s v a r i o u s s e r v i c e s i n a l l t h e
s e c t o r s o f t h e e c o n o m y.

The negative facts are:

1 . T h e a d m i n i s t r a t i v e s t a ff i n L I C i s i n d e e p s l u m b e r. Tr y
w r i t i n g a c o m p l a i n t t o t h e m a n d t h e y w o n ’t e v e n b o t h e r
t o r e p l y b a c k . I f y o u a s k t h e b r a n c h m a n a g e r f or t h e
c o m p l a i n t s b o o k . H e p r o b a b l y w o n ’t h a v e i t i n p l a c e . I f
a n a g e n t c o m p l a i n t s a g a i n s t n a y s t a ff , t h e a g e n t i s b l a c k
l i s t e d a n d n e x t t i m e o n w a r d s h i s w or k i s n o t d o n e .

2 . I n or d e r t o s h o w a b e t t e r p er f o r m a n c e a n d a c h i e v e
b r a n c h t a rg e t s , a g e n t s ar e m ot i v a t e d b y t h e m a n a g e r s t o
s p l i t t h e p o l i c i e s . T h i s n o t o nl y a d d s t o t h e
inconvenience of the policyholders but it also increases
t h e e x p e n s e s of L I C C o m p e t i t i o n s f o r a g e n t s ar e h e l d
w i t h p r i z e s o ff e r e d o n t h e n u m b e r of p o l i c i e s s o l d a n d
n o t o n t h e n u m b e r o f l i v e s i n s u r e d . T h e r e f or e m a n y
a g e n t s a r e t e m p t e d t o s p l i t t h e p o l i c i e s i n or d e r t o g e t
b e t t e r p r i z e s . H o w e v e r i f a n a g e n t w a n t s t h e f or m s or
s a l e s l i t e r a t u r e . M o s t of t h e t i m e i t s o u t of s t o c k . B u t
s u r p r i s i n g l y j u s t a w e e k b e f or e a n y s c h e m e i s a b o u t t o
 c l o s e , t h e o ff i c e i s f l o o d e d w i t h f or m s a n d s a l e s
l i t e r a t ur e .

3 . L I C i s l a c k i n g i n e ff e c t i v e l e a d e r s h i p i n r e c e n t t i m e s .
M a n a g e r s h a v i n g d e s i g n a t i o n s l i k e m ar k e t i n g m a n a g e r
or sales manager do not have the capability to motivate
an audience at a meeting. Even the senior level
m a n a g e r s c a n n o t m a k e e ff e c t i v e p r e s e n t a t i o n s o r d e s i g n
a s a l e s s t r a t e g y.

4 . T h o u g h L I C h a s m or e t h a n 2 0 0 0 br a n c h e s , t h e y a r e n o t
s y s t e m a t i c a l l y l o c a t e d . I n M u m b a i ’s f or t a r e a , L I C h a s
m o r e t h a n 2 0 b r a n c h e s w i t hi n a r a d i u s of 1 . 5 k m s .
W h e r e a s i n t h e s u b u r b s w h er e m o s t o f t h e p e o p l e
r e s i d e , t h er e a r e n o b r a n c h e s a t a l l . I f L I C g i v e s a
t h o u g h t t o s y s t e m a t i c r e l o c a t i o n o f i t s o ff i c e s , i t w i l l
immensely help the policyholders.

5. Even though LIC claims to have taken several

i n i t i a t i v e s i n t h e I T s e c t o r, p o l i c y h o l d e r s s t i l l f a c e
problems in revival of their policies, payment of
premium in several branches, change of mode, change
o f a d d r e s s , e t c . t h e a f t e r- s a l e s p o l i c y s e r v i c e s
departments need to be revamped, policyholders feel
t h a t L I C a g e n t s ar e h u m b l e w h i l e s e l l i n g a p o l i c y a n d
thereafter they fail to provide any service to the client.
T h e t r u t h i s t h a t L I C i s s o w e a k i n p ol i c y s e r v i c e s
 d e p a r t m e n t . T h a t e v e n a g o o d a g e n t f i n d s i t d i ff i c u l t t o
g e t t h e w o r k d o n e f r o m t h e a d m i n i s t r a t i v e s t a ff .

To s u m u p , L I C w i l l n e v e r c h e a t a p o l i c y h o l d e r i n p a y m e n t
o f c l a i m , b u t a t t h e s a m e t i m e e v e r y o n e w i l l a gr e e t h a t L I C
i s n o t r e s p o n s i v e t o t h e n e e d s o f t h e c u s t o m e r. I f y o u h a v e
p u r c h a s e d L I C p o l i c i e s t h e n d o n ’t f o rg e t t o p a y t h e p r e m i um
o n t i m e , a n d w h e n y o ur p o l i c y g e t s m a t ur e d L I C w i l l
h o n e s t l y p a y y o u r m a t ur i t y a m o u n t o n t i m e .

The employees are sometimes rude in their behaviors with

t h e p o l i c y h o l d e r. I f a c l a i m c h e q u e i s h a n d e d o v e r b y a
courteous and smiling employee of LIC, it will enhance the
i m a g e o f L I C i n t h e m i n d o f t h e p o l i c y h o l d e r.

To d a y L I C i s n o t j u s t a n i n s u r a n c e c o m p a n y, L I C i s a
movement. LIC is a cult, LIC is a religion. Imagine 10lac
agents and 1lac employees serving 16crore policyholders in
I n d i a . Yo u c a n n o t d e n y t h a t L I C h a s b e c o m e t h e w a y o f l i f e
in India.
 Conclusion

A f t e r f i n d i n g ’s w e c a n s e e a b o u t L I C f e a t u r e s a n d i t s
activities that it is leading financial institution in the
country and have been solving various problems of the
e c o n o m y. I t h a s c o n t i n u o u s l y p r o v i di n g v a r i o u s s e r v i c e s i n
d i ff e r e n t s e c t o r s of I n d i a . L I C i s t h e o n e a n d t h e o n l y p u b l i c
s e c t o r l i f e i n s u r a n c e c o m p a n y o f I n d i a t h e r e f or e i t h a s
a c h i e v e d a h i g h r e l i a b i l i t y a m o n g t h e p ol i c y h o l d e r s . I t h a s
b e e n s t a r t e d a s o nl y a n i n s u r a n c e c o m p a n y b u t n o w t h e
b r a n c h e s of L I C h a v e t a k e n a w i d er n e t w o r k . I t s e r v e s
a l m o s t e v e r y s e c t o r.

The centre of all the activities of LIC is population. It is

m a i n l y a ff e c t e d b y t h e p o p ul a t i o n o f I n d i a w h i c h i s
i n c r e a s i n g d a y b y d a y. T h o u g h j u s t 1 5 % of t h e I n d i a ’s
p o p u l a t i o n i s s e r v e d b y L I C b ut s t i l l a d e e p e r s t u d y w i l l
p r o v e t h a t i t a c t u a l l y t a k e s c a r e o f a l a rg e p o p u l a t i o n .

O n 1 s t S e p t e m b e r 2 0 0 9 , L I C h a s c o m p l e t e d 5 3 y e a r s of
service to the nation.

L I C c a m e i n t o b e i n g o n t h e 1 s t of S e p t e m b e r 1 9 5 6 o n
nationalization of the Insurance Industry which comprised of
2 4 5 p r i v a t e i n s u r e r s . L I C i s , t o d a y t h e l a rg e s t l i f e i n s u r a n c e
c o m p a n y w h i c h n o t o n l y h a s o ff i c e s i n s e v e r a l c o u n t r i e s b u t
a l s o h a s di v e r s i f i e d i t s b u s i n e s s i n t o M u t u a l Fu n d a n d
Housing Finance. The Life fund of LIC stands at Rs.6,86,616
c r o r e a n d i t s A s s e t B a s e s t a n d s a t R s . 8 , 0 3 , 8 2 0 c r or e m a k i n g
i t o n e o f t h e l a rg e s t f i n a n c i a l i n s t i t u t i o n s o f t h e c o u n t r y.

D u r i n g t h e y e a r 2 0 0 7- 0 8 , L I C c o m p l e t e d 3 7 5 . 9 0 l a c s n e w
policies with first premium income of Rs.43812.86 crores.
Wi t h t hi s t h e t o t a l n u m b e r of e n f o r c e p o l i c i e s o f L I C cr o s s e d
t h e m a r k o f 2 3 cr o r e i n i n d i v i d u a l i n s u r a n c e . M o r e t h a n 2 . 2 1
C r o r e p e r s o n s w e r e c o v e r e d d ur i n g t h e y e a r 2 0 0 7 - 0 8 u n d e r
various social security schemes managed by LIC.
N e w l y i n t r o d u c e d S c h e m e “ A a m A d m i B i m a Yo j n a a l s o
r e g i s t e r e d e x c e l l e n t r e s p o n s e a n d m or e t h a n 4 6 l a k h s h e a d s
o f t h e r ur a l l a n d l e s s h o u s e h o l d s h a v e b e e n c o v e r e d t i l l d a t e
under this scheme.

A s a t 3 1 s t M a r c h 2 0 0 8 , L I C h a s i n v e s t e d R s 8 2 , 0 2 2 cr o r e i n
t h e I n f r a s t r u c t u r e a n d S o c i a l S e c t o r. L I C h a s b e e n r a n k e d a s
t h e m o s t t r u s t e d s e r v i c e B r a n d i n T h e E c o n o m i c Ti m e s B r a n d
E q u i t y S u r v e y f or t h e f i f t h c o n s e c u t i v e y e a r i n 2 0 0 8 . L I C ’s
overall ranking across all categories has gone up from 27th
t o 1 2 t h i n t h i s s u r v e y. L I C h a s w o n v a r i o u s o t h e r pr e s t i g i o u s
a w a r d s d ur i n g t h e y e a r w h i c h c o n s i s t - R e a d e r ’s D i g e s t
Tr u s t e d B r a n d - 2 0 0 8 , S c o t c h C h a l l e n g e r s Aw a r d , M o s t
P r ef e r r e d L i f e I n s u r a n c e C o . of t h e Ye a r b y
C N B C - Aw a j - ( T h i r d t i m e i n a r o w ) , O u t l o o k M o n e y - N D T V
P r of i t B e s t L i f e I n s u r a n c e Aw a r d 2 0 0 7 , G o l d e n P e a c o c k
Aw a r d f o r C o r p or a t e G o v e r n a n c e e t c .

L I C h a s d e f i n e d t h e w o r l d s t a n d a r d i n t h e f i e l d of C l a i m
S e t t l e m e n t . D u r i n g t h e y e a r 2 0 0 7- 0 8 , L I C s e t t l e d o v e r
1 . 3 9 c r o r e c l a i m s f o r a n a m o u n t of R s . 3 7 , 2 0 6 c r o r e s i n
individual life business. LIC thus settles on an average
4 8 , 0 9 7 c l a i m s e v e r y w or k i n g d a y. O u t o f t h e t o t a l M a t u r i t y
C l a i m s s e t t l e d o v er 9 7 p e r c e n t a r e s e t t l e d o n o r b ef o r e t h e
d a t e of m a t u r i t y a n d o v er 9 2 p e r c e n t o f t h e t o t a l N o n E ar l y
Death Claims are settled within 20 days of intimation.
L I C i s t h e l a rg e s t u s e r o f I n f o r m a t i o n Te c h n o l o g y i n t h e
insurance sector and it has networked all its 2048 branches
a n d 3 4 0 s a t e l l i t e o ff i c e s t o p r o v i d e t h e c o n v e n i e n c e of
anytime premium payment to all its policyholders. For the
benefit of customers, LIC has also made available various
a l t e r n a t e c h a n n e l s o f pr e m i u m p a y m e n t l i k e i n t e r n e t , E C S
a n d AT M s . R e c e n t l y, a n o t h e r f a c i l i t y h a s a l s o b e e n g i v e n t o
the policy holders to pay their premium by just sending an
SMS. Currently this facility is available to the account
h o l d e r s o f C o r p o r a t i o n B a n k o n l y. T h e w o r l d c l a s s L I C
p o r t a l h a s a f a c i l i t y o f o n l i n e r e g i s t r a t i o n a n d p o l i c y h o l d er s
c a n g e t i nf o r m a t i o n r e g a r d i n g t h e i r p o l i c i e s a n d e ff e c t
s i m p l e t r a n s a c t i o n s l i k e c h a n g e o f a d dr e s s e t c .

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 H i n d u s t a n Ti m e s

 T h e E c o n o m i c Ti m e s