LIC Life Insurance: Complete Guide

Founded in 1956, the Life Insurance Corporation of India is the largest insurance company in India. Before we get into LIC and its features, let us understand what Life Insurance is all about and the types of Life Insurance policies available. LIC is said to be the largest life insurance company in the world with 23 crore customers and counting. In India, LIC is synonymous with Life Insurance. with some of the most reasonably rated premiums and sufficient coverage options, regardless of which walk of life an individual belongs to. The brand name is not the sole reason one should opt for LIC since it is not ideal to rely on life insurance products from a single brand.

Life Insurance, in simple terms, is a contract which is signed between an individual and an insurance provider, wherein the insurance provider guarantees to pay a certain sum of money (sum assured) in case of the insured individual’s death. In order to avail this protection, the insured pays a certain amount as premium towards maintaining the policy.

It is nothing but a safety net which provides financial security/protection against loss of life. The primary purpose of a life insurance policy is to protect the financial interests of the insured’s family.

There are various types of Life Insurance policies, an individual can choose from. Take a look at the figure below to know the Life Insurance Policy types.


In addition to the above premium options, Life Insurance also has options of Money back plans and Annuity Pension plans.

LIC Life Insurance LIC is the most trusted brand when it comes to life insurance. LIC Life Insurance has a huge range of products to offer and it often becomes difficult to choose the right fit, thereby making LIC Life Insurance policy as the best Life Insurance policy in India.

LIC Life Insurance has a wide range of insurance plans to choose from. The below table gives us the five best designed plans with customer convenience in mind.


Parameters Jeevan Akshay VI E-Term Plan Children’s Money back plan Jeevan Anand Jeevan Saral
Entry Age 30-85 years 18-60 years 0-12 years(child)

18-65 years(proposer)

18-50 years 12-60 years
Maturity Age NA 75 years 25 years 75 years 70 years
Min. Sum assured Rs. 7190 annualy Rs. 25,00,000/- Rs. 1,00,000/- Rs. 1,00,000/- on maturity 250 times the monthly premium paid
Medical Examination Nor required Required Not required Required Not required


To be eligible for an LIC Life Insurance Policy, the applicant should be,

  • Minimum 18 years of age
  • Maximum 60 years of age
  • Must be either a salaried or a self-employed professional
  • Or have a business of his own.

The applicant should support his LIC Life Insurance application with the following supportive documentations.

  • Identity Proof
  • Age Proof
  • Income Proof
  • Address Proof
  • Pan Number

Apart from a huge pan India audience base, LIC Life Insurance has several attractive features and advantages which continue to keep the LIC Life Insurance policy, way above the rest, in terms of Life Insurance Policies. Let’s take a look at the advantages and features.

  • Technologically superior network
  • The company does not work alone but partners with insurance and financial tycoons including NSE, LIC Mutual Fund, NCDEX, Stock Holding Corporation of India
  • It has fully functional offices in countries such as Nepal, Sri Lanka, .Saudi Arabia and Bahrain. LIC has also been ambitious enough to plan opening offices in Australia, Canada and USA.
  • LIC Life Insurance has a proven variety of products with one of the highest number of policies on offer
  • LIC Life Insurance has been an innovative company which launches new products every other quarter and they are mostly to serve the society than to make profits although they are doing pretty well as an insurance company, financially. They were the first to launch micro-insurance products so that people living below the poverty line in India could afford insurance for a certain amount of discount.
  • When it comes to stock market positioning, LIC Life Insurance Policies stocks are one of the most stable stocks available in the BSE. Some of the well-performing stock lists almost always feature this company.        


LIC Life Insurance FAQ’s:

  1. What are the non-term life insurance policies that LIC offers?
  1. LIC offers the following life insurance policies:
  • Single Premium Endowment Plan
  • New Endowment Plan
  • New Jeevan Anand
  • Jeevan Rakshak
  • Limited Premium Endowment Plan\
  • Jeevan Lakshya
  • New Money Back Plan – 20 years
  • New Money Back Plan – 25 years
  • New Bima Bachat
  • New Children’s Money Back Plan
  • Jeevan Tarun


  1. What are the methods through which you can pay the LIC premiums?
  1. You can opt to pay the LIC Premium through net banking or phone banking.
  2. What are the documents that should be submitted at the time of applying for the policy?
  3. You must submit age proof, identity proof, address proof, PAN card and income proof documents.
  1. Are there any organisations authorised to collect LIC premium through net banking and phone banking?
  1. The authorised banks that are authorised to collect the LIC premiums are:
    • HDFC Bank
    • ICICI Bank
    • Bank of Punjab
    • UTI bank
    • Federal Bank
    • Corporation Bank
    • Citibank
  1. What happens if I miss paying my premium?
  2. Usually banks give a 30 day grace period to make your payment. If you don’t pay the premium in the grace period, the policy will get lapsed.
  3. Can I get a refund if I cancel the policy in between?
  4. A. Yes, you will get the full refund if you are cancelling the policy in the free look period.
  5. How safe is it to pay premiums through the agent?
  6. A. If you wish to pay the premiums through the agent, ensure that you are drawing a cheque in the name of the company and also make sure that you receive the receipt from the insurance company.


  1. How can I make a claim?
  2. A. You will have to fill in a claim form and contact the financial adviser from whom you got the policy. You will have to submit the relevant documents to support your claim. If the claim application is accepted, you will get a cheque in 7 working days.
  3. Will I be getting maturity benefits with my life insurance policies?

A. Yes, you will get maturity benefits as defined in your plan. Refer the policy document to know