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Life Insurance Corporation of India (LIC)- An Overview

Established on 1st September 1956, Life Insurance Corporation of India (LIC) is a government-owned insurance and investment company headquartered in Mumbai. With a vast customer base of over 540 million people, LIC is not only trusted by Indians but also across the globe and met customer expectations successfully with a high Claim Settlement Ratio of 98.74% (as per the IRDAI annual report of 2021-2022).

Life Insurance Corporation of India is the largest insurance company offering multiple plans per every individual need, with an estimated market cap of Rs. 3,46,895 Cr. By the end of this article, you will learn about Life Insurance Corporation of India (LIC), its inception, the plans available, the process of how to buy a LIC insurance policy, LIC online payment, the claim process, and a lot more.

Table of Content

Brief History of LIC
Awards & Recognitions of LIC
Objectives of Life Insurance Corporation of India
Interesting Facts about Life Insurance Corporation of India
Why Should You Buy Plans From LIC?
Types of LIC Plans Available
Riders Offered by LIC
Benefits of Buying Plans from LIC
Exclusions of LIC Insurance
How to Choose a Suitable LIC Policy?
How to Buy LIC Policy?
Mode of Payment Options Offered by LIC
What is the Grace Period for LIC Premium Payments?
Steps to Revive Lapsed LIC Policy
Claim Process of LIC Life Insurance Company
How to Check LIC Policy Status?
How to Contact LIC of India?
FAQs Related to Life Insurance Corporation of India

Brief History of LIC:

The history of the Life Insurance Corporation of India is as old as the first-ever inception of the Indian insurance industry. LIC was formed when hundreds of life insurance companies were nationalized. Let’s look into the brief evolution of the largest insurance company in India.

01

Launch of Life Insurance in India

In 1818, life insurance was brought to India under British Rule.

02

First Life Insurance Company

In 1870, the first life insurance company was formed, named Bombay Mutual Life Assurance Society.

03

Evolution of the Life Insurance Sector

Many indigenous life insurance companies were born in India during the Swadeshi Movement. In 1938, there were 178 insurance companies with a total business of Rs. 298 crores.

04

Nationalization of the Life Insurance Sector

About 154 Indian insurance companies, 16 non-Indian companies, and 75 provident were operating in India when the demand for nationalization of the insurance sector was raised. The companies were a lot in number but needed to be financially stable.

05

Formation of LIC India

After the Life Insurance Corporation Act was passed on 19th June 1956 by the parliament of India, the Life Insurance Corporation of India (LIC) was formed on 1st September 1956.

At present, there are around two dozen companies in the insurance market. Still, LIC is the most trusted among Indians and holds the largest market share of the Indian insurance market.

Awards & Recognitions of LIC:

By bringing life insurance plans that perfectly complement the customers' financial needs and life goals, LIC remains the top choice for urban and rural Indian demographics. Since the first inception of LICi, the company has continued to shine in terms of its performance, advancements, plans, and improvements for the mass welfare. As a recognition of their efforts and solutions, LIC India has received countless awards. Some of the recent awards and recognitions are listed below:

For the year 2021-22-

  • ACEF Award
  • Ashirwad Award
  • CFBP Jamna Lal Bajaj Award
  • Dun and Bradstreet Award
  • FICCI Insurance Industry Award for Best Campaign Award
  • India's Most Trusted Insurance Brand Award Honored by Insurance Alerts
  • Marksmen Daily Excellence in the BFSI Industry
  • National Award For Excellence in Digital Marketing 7th Edition Digital Advertising Award
  • Most Trusted Brand in Insurance by Outlook Money Award 2021
  • Economic Times BFSI Award- Best Brand 2021-22
  • World BFSI Congress Award- Customer Service Excellence Award
  • World BFSI Congress Award- Excellence in Claim Service
  • 3rd Strongest Indian Insurance Brand by Brand Finance Insurance 100 report for 2021
  • 10th Most Valuable Indian Insurance Brand by Brand Finance Insurance 100 report for 2021
  • 6th Most Trusted Service Brand of India by Economic Times Brand Equity Survey 2022
  • Reader's Digest Brand (Regularly winning from 2006)

Highlights of Life Insurance Corporation of India (LIC)

Particulars Specifications
Date of Establishment 1st September 1956
Plans offered Term life insurance, Whole life plan, Unit linked Insurance plan, Endowment Plan, Money back plan, Retirement Plan, Child insurance plan, Group Insurance, and savings & investment plans.
Claim Settlement Ratio (2021-22) 98.74%
Solvency Ratio (2021-22) 1.79
Market Share 63.80%
Total Policyholders More Than 29 Crore
Total Policy Sold in 2021-22 2.17 Crore

Objectives of Life Insurance Corporation of India

Keeping the motto of “Yogakshemam Vahamyaham”- Your Welfare is Our Responsibility at the forefront, LIC continues to fulfil India's most demanding insurance and investment needs. The key objectives of LIC are mentioned as:

  • To serve the socially and economically backward classes and rural areas, the company focuses on all insurable people in the country. It provides them with adequate financial coverage at an affordable cost.
  • To increase the insurance-linked saving and maximise people’s savings mobilization.
  • To protect people's investments and provide them with the best returns keeping national obligations in mind.
  • Meet life insurance needs with the ever-changing society and the economy.
  • To act as trustees of the insured.
  • To promote a sense of belongingness, pride, and job satisfaction towards all agents and employees.
  • Conduct business most economically and be accountable to the policyholder’s money.

Interesting Facts About Life Insurance Corporation of India

  • The LIC of India has a solvency ratio of 1.79 (as per IRDAI annual report 2021-22), meeting its financial obligations as a strongly abled insurance company.
  • LIC operates in 4 GCC countries- Bahrain, UAE (Dubai & Abu Dhabi), Kuwait, and Oman.
  • As per the annual report 2021-22, the Life Insurance Corporation of India holds a 63.80% market share in the Indian insurance market.
  • LIC has the most extensive portfolio in offering life insurance group schemes.
  • LIC India stocks are listed under the best-performing stock list on BSE among insurance companies.

Why Should You Buy Plans From LIC?

With the largest customer base of about 290 million (reported in 2019), LIC insurance corporation has the most comprehensive and affordable life insurance plans with high coverage irrespective of an individual's economic and social status. The name is not the only entity that makes LIC preferable among other life insurance companies. Other specific reasons can be highlighted as follows:

01

Over 6 Decades of Trust

With the most customer-centric approach, LIC maintained the trust from its inception and has successfully settled over 98% of claims made by the nominees.

02

Strong Global Network

As per the Brand Finance Insurance 100 report for 2021, LIC holds the 3rd position as Strongest Indian Insurance Brand. It’s not only that LIC is operating in India, but it has fully developed operational offices across the borders. LIC also plans to open offices in Australia, Canada, and the United States.

03

Sense of Security

You will only invest your hard-earned money if you know that it is only in safe hands. With the LIC Act 1956, the Life Insurance Corporation of India is backed up by the central government and guarantees to pay the return as mentioned in the policy term.

04

PAN India Network

To provide its customers with the most accessible customer experience, LIC India operates 2048 computerized branch offices and 1572 satellite offices. This network helps the policyholders to reach head offices at the earliest convenience and help solve the issues.

05

Technologically Advanced

To help the insurance industry opt for paperless documentation, the organization uses the most advanced technology, such as WAN, IVRS, LAN, and EDMS.

06

Convergent Operation

LIC India does not work alone but collaborates with insurance and finance titans such as NSE of India, LIC Mutual Fund, NCDEX, Stock Holding Corporation of India, Insurance Institute of India, National Insurance Academy, and others. With this convergent operation, LIC ensures that the company makes its products as diversified as possible.

07

Variety of Products

LIC of India offers one of the most comprehensive policy ranges in the life insurance or group insurance as per customer requirements. It has the most extensive portfolio of group schemes. The company focuses on developing products to benefit society rather than earn profits. The company has also launched micro-insurance products for those living under the poverty line to obtain insurance at a reduced cost. No wonder why LIC is the first choice among Indians.

08

Simplified Consumer Support

Whether you purchase a LIC policy online or offline, LIC company offers 24X7 customer support to simplify the process and solve any issue.

09

Tax Benefits

LICi offers tax benefits under Section 80C, Section 80CCC, Section 80D, Section 80DD, and Section 10(10D) per the Income Tax Act 1961.

Types of LIC Plans Available:

No matter what stage of life you are searching for an insurance plan for your financial expectations; Life Insurance Corporation of India has one optimum plan that complements your needs. The competitive plans are designed to cater to every individual's needs at the most affordable prices. Let’s look at the various plans offered by LIC:

LIC Endowment Plans

LIC Whole Life Plans

LIC Money Back Plans

Pension Plans

Unit Linked Plans

Endowment Plan

Health Plans

*Disclaimer: LIC has recently withdrawn LIC’s Cancer Cover Plan on 26th April 2023.

Riders Offered by LIC

Riders are the add-on benefits that are optional or sometimes in-built with the base plan to provide a policyholder with enhanced coverage. You can easily purchase a rider on your base LIC policy by paying some additional premium amount. LIC of India offers the following riders mentioned below

Name of LIC Rider Minimum Sum Assured
LIC’s Linked Accidental Death Benefit Rider Rs. 10,000
LIC’s Accidental Benefit Rider Rs. 20,000
LIC’s Premium Waiver Benefit Rider Sum of the future premiums payable till the end of the rider term
LIC’s New Critical Illness Benefit Rider Rs. 1,00,000
LIC’s New Term Assurance Rider Rs. 1,00,000
LIC’s Premium Waiver Benefit Rider (With Auto Cover) Rs. 25,000

Benefits of Buying Plans from LIC

With the evergreen tagline “Zindagi ke Saath Bhi, Zindagi ke Baad Bhi”, LIC promises to pay the significant benefits to you and your loved ones in case of some misfortune conditions. LIC plans are the most cost-effective for every range of economic demographics. Besides the plans, there are several benefits of buying a plan from LIC, such as

01

Financial Protection for Your Family

In exchange for a relatively small amount you will pay as a policy premium, your family gets the most efficient financial cushion if any unfortunate event occurs with you during the tenure. This amount will be tax-free and can be used by your family as financial support.

02

The Earlier Purchase is Always a Plus

The earlier you buy a plan, the minimum cost you will have to bear as a premium. To make the premium amount fit your budget, you can minimize the coverage amount and the term length.

03

Stress-free Life

The company is highly accountable for its partners and customers. Buying a plan from the Life Insurance Corporation of India can leave you stress-free during the peak earning years of your life. The LIC plan works as a safeguard for the worst-case scenarios that may take place.

04

Policy Customization

With the help of the riders, you can enhance the cover of your LIC policy to make it more robust. After comparing the available LICi plans and benefits, you can enjoy in-built riders or customize your policy with add-on riders for any unique instances.

05

Easier Applying Process

You can take advantage of LIC online services and compare the plans in minutes. LIC has also launched mobile applications for customers, development officers, and agents to make the process easier and to stay on note of your plan. You can also get complete detail of your policy with an SMS.

06

Easy Claim

The ease of claim settlement is another crucial factor why Indians trust LIC to buy a policy in the first place. LIC has settled the death and other claims most efficiently in the past years with a high CSR of over 98%.

Exclusions of LIC Insurance

There are some exclusion cases where the policyholder is not eligible to file the claims. The exclusions of LIC insurance are as follows

  • In case, the policyholder commits suicide by any means, no claim will be entertained.
  • In case any incorrect statement is contained in the proposal, personal statement, or any document, the policy will be declared void, wherever applicable, under Section 45 of the Insurance Act 1938.
  • The policy lapses if the premium is not paid within the grace period. The policyholder needs to revive the existing policy in a limited period.
  • In case the premium is paid for less than twelve months, no benefits will be payable to the beneficiary.
  • In case the premium is paid for more than twelve months, then the beneficiary will get the 80% of the total premium paid, but the sum assured will not be paid.

How to Choose the Best LIC Policy?

Selecting a LIC policy from a long list of plans can be a difficult task for you. But if you keep your agenda clear, the process can be more manageable. Here are the steps to help you pick the right LIC policy:

01

Identify your Financial Goals

Goals may vary from person to person depending on their personal or economic considerations. Choose an insurance coverage amount wisely by calculating your current income, savings, number of dependents, future milestones, etc.

02

Choose an Appropriate Category of Plan

After your financial goals are clear, pick a plan that fulfils them. If you want to protect your family from unforeseen events, opt for a term plan. If you are planning to save money for your child's education or planning to buy your dream house, opt for a ULIP plan. In case you are working and want to safeguard your post-retirement period, you can opt for a suitable pension plan. The categories of LIC plans available are

  • LIC Unit-linked Plans
  • LIC Term Plan
  • LIC Endowment Plan
  • LIC Whole Life Insurance Plan
  • LIC Pension Plan
  • LIC Money-back Plan
03

Compare plans

After shortlisting the plan category, select a plan that fits your financial needs. Now, briefly read the features, benefits and additions that can help you increase your savings. The benefits may include waiver benefits, return of premium benefits, loan accessibility, tax benefits, riders, etc.

04

Determine the premium amount

The policyholders often need clarification about what amount should be considered while estimating the life insurance amount. Many financial experts suggest a life cover amount of at least ten to fifteen times your annual income. You can increase the range if you have debts or extensive financial obligations. This will help you determine the right premium amount you are willing to pay and get the highest benefits in life cover.

05

Evaluate your life insurance needs regularly

You need to keep track of your life insurance plan as your financial goals might change depending on significant life events. You can adjust your cover accordingly.

How to Buy LIC Policy?

If you are reading it here, you must have selected one most optimal plan for you and want to know how to start with the buying process of LIC policy. Well, after digitization, the buying process of a LIC policy online is simpler than ever.

Buy LIC Policy from Official Website:

To buy LIC policy from the official website, you just need to follow these simple steps:

  • Visit the official website of LIC of India.
  • Select the suitable plan that you want to buy and tab on “Click to Buy Online”.
  • It will reflect the documents and information you need to proceed with the buying process.
  • Provide the right covid details.
  • Fill in your name and contact details and click “Proceed”.
  • Customize the amount and tenure of the payment as per your suitability. Select if you want “add-on benefits/Riders”.
  • Provide the necessary documents and click the “Proceed to Payment” option.
  • Once the payment is successful, you will get the policy details in your email.

Buy LIC policy online with RenewBuy:

With RenewBuy, you can quickly compare and buy the best LIC policy online in the simple steps mentioned below:

  • Visit our website and click on the “Life Insurance” tab.
  • Fill out the form by providing the required information.
  • Compare and pick the best premium plans from the list provided.
  • A pop-up will show you the plan details and the additional riders' information.
  • Click on the “Proceed to Buy” button.
  • Once the payment is made, you will get your policy documents by email.

To make the LIC policy buying process more convenient, connect with one of the POSP advisors on our handy mobile application.

Documents Required to Buy LIC Policy

A policy buyer needs to provide the following documents to buy a LIC policy:

Age Proof: School certificate, Passport, Driving license, PAN Card.
Residence Proof: Ration Card, Election Card, Bill Proof, Bank Passbook, Rent Agreement, etc.
Photo ID Proof: PAN Card, D/L, Ration Card & Bank Passbook with the proposer's photograph.
Income Proof: Salary Slip, From 16, ITR, Pension Passbook (in case total premium exceeds 1 lakh)
Self-attested photograph

Mode of Payment Options Offered by LIC

Gone are the days when you have to visit the LIC branches to make the LIC policy payments. With digital advancements, Life Insurance Corporation of India, the giant insurance company, has made it possible to make policy payments from the comfort of your home in a few simple steps. But to make the payment accessible for all, LIC accepts offline and online payments. Let’s see the options available for LIC premium payment:

 

Channels available for LIC Premium Payment Online

LIC Website Mobile Apps Authorized Banks Franchises Merchant
Net Banking PayTM Axis Bank APT Online Premium Point
Debit Card Google Pay City Union Bank MP Online Life- Plus (SBA)
Credit Card Amazon Pay IDBI Bank Suvidha Infoserve Retired LIC Employee Collection
UPI Phone Pe   Easy Bill Pay  
BHIM Mobikwik   CSC  
 

Channels available for LIC Premium Payment Offline

Medium Mode of Payment
NACH (National Automated Clearing House) Submit documents at the branch office of LIC
ATMs and Banks Through check or demand draft Take the signed receipt after the payment of premium
Premium Points Through Empowered Agents, Authorized Retired Employees, & Chief Organizers
Life Plus Offices Senior Business Associates
BimaConnect Offices LIC Associates
Life Point Offices Development Officers

What is the Grace Period for LIC Premium Payments?

If you have missed your chance to make the premium payment within the due date and are worried about what to do next? Then here’s some relieving news for you. LIC provides a grace period to make LIC premium payments that allow you to make payments without paying interest. The premium payment period depends on the premium payment frequency you selected at the time of policy inception: monthly, quarterly, half-yearly, or annually.

 

Grace Period of LIC Term Insurance

Premium Payment Frequency Grace Period
Yearly 30 Days
Half-yearly 30 Days
Quarterly 30 Days
Monthly 15 Days

You need to revive your LIC policy if it lapses due to not paying the premium during the grace period.

Steps to Revive Lapsed LIC Policy

When you miss your premium payment even in the grace period, the policyholder cannot take any benefits of the life insurance policy. For the maximum benefit of the policyholder, the life insurance company provides a two years revival period to renew a lapsed LIC policy. LIC policy revival can be a life saviour for your family to regain financial capabilities in difficult times. Life Insurance Corporation of India has launched different revival schemes mentioned below

  • Special Revival Scheme
  • Installment Revival Scheme
  • Survival Benefit cum Revival Scheme
  • Loan cum Revival Scheme

Steps to revive lapsed LIC policy

Follow the steps mentioned below to revive your lapsed LIC policy:

  • Visit the official website of LIC India.
  • Download the policy revival form.
  • Fill out the form and submit it with the required premium amount and late fee to the LIC office.
    Or, you can also contact your LIC insurance agent or source who manages the terms and is responsible for efficiently running your LIC policy.

Claim Process of LIC Life Insurance Company

Life Insurance Corporation of India offers the most efficient claim settlement process to settle maturity and death claims. The claim settlement process of LIC is as follows:

01

To File a LIC Maturity Claim

  • For the endowment policies, the sum assured is payable on the policy's maturity.
  • The branch serving the policy sends a letter mentioning the date the policy money is payable to the policyholder.
  • The policyholder must return the discharge form fully completed with the policy document.
  • On the receipt of these documents, a post-dated cheque is sent to the insured by post before the due date.
  • If the sum assured is less than Rs. 60,000, the cheques are released without calling for a policy document in the discharge receipt.
  • In other plans like money-back plans, periodic payments are made to the insured only if the due premiums are paid up to the due anniversary for the survival benefits.
02

File a LIC Death Claim

If the insured is demised within the policy tenure, the branch office asks for the following documents

  • The Claim Form A.
  • Original policy documents.
  • Certified extract from the death register.
  • Document of age proof if age is not admitted.
  • Proof of the title of the deceased’s estate (only in case the policy is not nominated, assigned or issued under M.W.P. Act.)
  • The FIR report copy and post-mortem report are required in case of accidental death.

If the demise occurs within three years from the date of the revival, the following documents are required

  • Claim Form B:Certificate of the medical attendant.
  • Claim Form B1:If the insured received treatment in a hospital.
  • Claim Form B2:Filled by the medical attendant who treated the last illness.
  • Claim Form C:Certificate of identity and burial or cremation, completed and signed by the person of known character.
  • Claim Form E:Employment certificate (in case of insured is employed)

How to Check LIC Policy Status?

To keep track of your LIC policy, the policyholder must regularly check the LIC policy status. Now, you can do this on the LIC India website. The process to check LIC policy status is slightly different for new users, registered users, or without registration. Here we will discuss all the necessary steps for different individuals:

Steps to Track LIC Policy Status for New Users

  • Visit the official website of LIC India and choose “customer portal” from the online service section.
  • Select “New User” on the new window that appeared.
  • Fill out the form by providing the necessary details.
  • Create a user account using customer ID and passwords./li>
  • Once the form is filled, print it, sign it, and upload the final document.
  • LIC will verify your registration, and now you can use LIC e-services.
  • Using LIC e-services, you can quickly check your policy status by entering your policy details.

Steps to Track LIC Policy Status for Registered Users

  • Visit the official website of LIC India and choose “customer portal” from the online service section.
  • You will be redirected to the login screen; now click on the “Registered User” option.
  • Enter the required details like username, password, and date of birth.
  • Policy tools will be displayed on the window.
  • Click on “view enrolled policies”.
  • The policies that you’re enrolled in will be displayed.
  • Click on the desired policy number to check the status.

Steps to Track LIC Policy Status Without Registration

LIC India offers the most customer-focused services catering to urban and rural demographics. By any chance, you can not register for LIC online services, LIC Life Insurance Corporation allows tracking your LIC policy status via SMS or voice call. You can do it by verifying some essential policy details.

Via SMS: Send an SMS to 56767877 or 9222492224 from the registered number. With the 24X7 support available, you can get real-time updates regarding your LIC policy status.

Inquiry Type SMS Code
Installment Premium ASKLIC (Policy Number)  Premium
Revival Amount ASKLIC (Policy Number) Revival
Bonus Addition Status ASKLIC (Policy Number) Bonus
Loan Availability ASKLIC (Policy Number) Loan
Nomination ASKLIC (Policy Number) Nom

Via Call: You can contact the LIC helpline to get voice support.

Type of User Inquiry Helpline Number
MTNL and BSNL Users 12151
Landline or Mobile Phone Users (city code)12151

How to Contact LIC of India:

LIC allows their trusted policyholders to contact them most efficiently. Whether you have any inquiries related to LIC policy or want to file a grievance regarding LIC, you can contact the authority.

Corporate office address: Yogakshema Building, Jeevan Bima Marg, P.O. Box No.- 19953, Mumbai- 400021, IRDAI Reg No- 512.

Contact information: LIC Call Center at +91-02268276827
Monday to Friday: 8:00 am to 8:00 pm
Saturday: 10:00 am to 6:00 pm

SMS services: Send an SMS typing SMSHELP (Policy Number)  to 9222492224 or 56767877 Customers can also visit their zonal offices for personalised assistance.

Final Words

There you have it! All the necessary information regarding the Life Insurance Corporation of India. With the mirage of facilities and benefits offered for its policyholders, partners, and development officers, no wonder why LIC is considered the giant of the insurance industry in India. With the numerous plans available for every kind of its customer, whether online or offline, urban or rural, economically advanced or below the poverty line, LIC is the first choice of Indians considering insurance. LIC has also launched e-services to make the processes easier and increase the customer satisfaction ratio.

If you are looking for any other issues not covered above, leave a comment below, and we will provide you with the most suitable solution. Or you can directly contact us regarding the latest LIC policy update on RenewBuy website.