Life Insurance Corporation is the leading state-owned life insurance business of India. It is fully owned by the Government of India. LIC of India today is the largest life insurance company in India with 8 zonal offices, 100 divisional offices, 2048 branch offices and a network of over 10 lakh agents. If you want financially protect your family or dependents so as to maintain a standard life style then you can consider purchasing life insurance.
LIC is important for everyone and can be used for different purposes, for example, it can be used for your daily fixed cost, education, and illness. These days life insurance policy is growing by leaps and bounds and become quite renowned for the people. Moreover, companies selling policies are among the most important firms in the world. In the face of fast and immense competition, LIC has held on its own and still commands higher percentage of market shares.
Below are two categories that falls under LIC of India:
(a) Investment policy
(b) Protection policy
The protection policy is planned to provide a profit for a specified event typically a lump sum payment were in the investment policy the main criteria facilitating the growth of capital by regular or single premiums. The life insurance policies can be categorized into different types: temporary or permanent policies which include whole life plans as well as endowment life insurance.
Permanent life insurance Policy: this type of insurance that remains until the policy matures, unless the owner fails to pay the premium. The policy cannot be canceled by any reason. Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. The permanent insurance falls into four types whole life, universal life, limited pay as well as endowment.
Term insurance Policy: the term insurance provides life insurance coverage for a specified period of time. In term insurance three factors are considered the face amount, premium to be paid as well as length. In temporary insurance policy three main classes are there universal, whole life and term policies. The level term policy can be for 5, 10, 15, 20, 25 etc. This type of policy can be used for long term planning. In this policy annual renewable policy is for one year.
Whole life coverage Policy: in whole life insurance provides a level premium as well as cash value table. Universal life insurance: this type of insurance is a relatively new product that is intended to provide permanent insurance. There are several types of universal life insurance variable, equity indexed life insurance. This type of policy includes a cash value. Universal life insurance addresses the perceived disadvantages of whole life namely that premiums and death benefit are fixed. Endowment insurance plan is compensated when the policy owner lives or dies after a particular period of time.
Endowment Policy: It is the most popular Life Insurance Plans among other types of policies. This policy combines risk cover with the savings and investment. If the policy holder dies during the policy time, he will get the assured amount. Even if he or she survives he will receive the assured amount. The advantage of this policy is if the policy holder survives after the completion of policy tenure, he receives assured amount plus additional benefits like Bonus, etc. from the insurance company. In this kind of policy, policy holder receives huge amount while completing the tenure.
LIC of India is thus able to gather ample funds. This money is used to finance commerce and improvement actions. Finally manufacture of goods and services will gesture and the economic system of the nation will be amended.
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