In today’s life of uncertainity , we never know what happens next !
And if the person is the sole bread-earner then ?
Who will help his/her family if he dies ?
Here comes an Answer….
LIC ……
LIC (Life Insurance Corporation) as the name suggest deals only with Life and not with General Insurance ( i.e Property ),
It’s the No.1 Life Insurance Company in India.
Note :
I had a very good experience of LIC . We got money invested with all the bonus etc as promised (very much in time )on the demise of my beloved Uncle.
What is Life Insurance ?
It is a agreement for payment of a sum to the person who has taken a policy (and in case of his demise, to the person who is nominated to receive the same) on the happening of the event insured against.
The payment of premium periodically is to be made by the person who has taken the policy. ( Depending upon the policy , it can be monthly, quarterly or yearly premium payment )
Something more :
The person who is Major and is entitled to enter into agreement.
While taking out this policy, first , State of Health of the person insured is checked.
Depending upon the policy, one can also take out policy to insure spouse ( e.g. Jeevan Saathi) or Children
Note :
Premium payments are calculated based on sum assured (i.e Policy amount ) and age of Insured Person. More is the age, higher will be the premium….So advisable to take out policy as earliest as possible.
Benefits or Advantages :
Please refer policy details as there may be different terms and conditions. What I am listing down is generally applicable to LIC policies.
1. Risk Cover
Risk cover starts the moment you pay your first premium And sum of money assured is paid when it is needed i.e either on Maturity of policy or events against which policy is taken, whichever is earlier.
2. Tax Benefit
This is for all Tax payers,
Tax relief in Income Tax is available for amounts paid as premium for the policy.
3. Loans
LIC policies are widely accepted as collateral for loans, thus offers you liquidity.
4. Planning for your future requirements :
LIC has certain money – back policies , which give you certain percentage of policy amount during different time intervals e.g. say every 4 yrs or 5 yrs.
The money paid in this case depends again on Policy amount and ofcourse on tenure of policy i.e 20 years , 10 years etc.
In some cases you don’t’ have pay premium for all the years of policy.
So you can decide and plan for your policies !
That’s how it scores over other savings scheme !
Policies :
LIC has different policies to cover needs of different set of people.
It has Group policies, Pension policies, Women Policies, Children Policies, Joint Policies.
It has policies with or without profit (In with profit policies, premium rate is higher)
How to take out policy :
You need to contact LIC agent , you can’t do it yourself.
Some agents give you some percentage of their commission that they will earn by getting your policy. ( Only for the first year)
But some do not offer.
In case of any problems or questions , you can contact them.
Few Points :
Just don’t buy any policy coz agent suggests you. First understand and then decide.
Check few points viz. Risk cover, events/disease against which life is insured, Premium amount, How many years premium is payable etc.
Go through few policies….
That’s what all I know about LIC….
Hope it helps everybody who read it !
Chao
Rekha
p.s : This is what I learnt from my experience, I am not LIC agent !
Some input taken from https://licindia.com ( check policy status ).