Life Insurance Corporation of India- review

The company founded in 1956, Life Insurance Corporation of India, is a government financed insurance provider and is the largest in India and also the 3rd largest company in Asia to provide Life Insurance.
With the established and fully functional headquarters in Mumbai city which is also the financial capital of India, The Life Insurance Corporation ahs around 8 main offices with 101 child offices. There are at least 2050 branches located in the different major cities of India and are connected to each other by one satellite office and 50 child branches. The perpetuating network of LIC is around 1 million and 200 thousand agents for soliciting the life insurance business from its policy holders.

Present financial and administration status

Since 50 years, Life Insurance Corporation of India has given the Indian economy 7%of GDP and the amount of GDP percentage is going on increasing year after year. Around 9% GDP has been achieved in 2007 by LIC.

The LIC which started its business with overall 300 offices and 5 million policies and a amount of 459 million INR, has achieved a growth of 3,000 offices in 2007, servicing around 180 million policies and a amount of over 4 million.
The Life insurance Corporation of India comprises of 2052 branches, 103 divisional offices and 8 offices zone wise. The employee count is almost 1.1 million agents and also it is operated in around 12 other countries, mainly to cater the needs of non residential; Indians.

With the decision to allow the other insurance providers settle and establish their insurance businesses in India, LIC has lost its domination over the insurance sector of India and the other companies like Bajaj Allianz and ICICI life insurance are running in the competitive streams of insurance business , thus giving a stiff competition to the LIC of India. The private investors in insurance business of India also include some Multi National companies like MET Life and CITY Finance.

The total number of employees in LIC includes 112,183 who cater the daily needs of their respected customers.

The year 2007 has witnessed a growth in the number of policies in the LIC‘s account and is said to be a whooping 200 million.

The subsidiaries of LIC are-

1. Life Insurance Corporation of India International

2. LIC Nepal

3. LIC Lanka

4. LIC housing Finance

5. LICHFL Care Homes

Use of sophisticated technology

The life Insurance Corporation of India has opted for internet services for all its policy holders and devised and developed a huge World Wide Web network to facilitate its policy holders with the bets and better services. But Unfortunately due to some technical lag, which has been the main source for the failure of this system and this is not at all up to the mark and fails to satisfy the 21st century customers. The low network band width, the improper web designing, the lack of security to the site has failed to please the customers. But the company is very much sure that their new technology which is said to be complete and established till 2009, will cater the consumer needs and will be on top of the service till the end of 2009.

Life Insurance Corporation offers the following plans

LIC’s exclusive children’s plans

Jeevan ANURAG- this is an exclusive plan offered by LIC and is a profitable plan. The plan can be taken by the parents on his/her plan and will be applicable to their children when they grow up to 18 years in age. Assured sum of 20% of the main assured sum at the starting of the year and during the last 3 policy years before the maturity. The maturity time will offer a guaranteed 405 return of the sum and will also get the reversionary bonuses which are given from time to time. payments of an amount equal to the sum insured under the basic rule after the death of the insured is a benefit.

Eligibility
For a basic plan the minimum age will be 20 and the max age will 60 years and the sum assured will be till 70 years.

The term of the insurance premium will 5 years. The mode of payment will be in terms of yearly, half yearly or through salary deductions.

For a term life insurance the age limit is 20-25 years and the maximum limit will be 60 years.
The minimum sum assured is 10, 00,000. The maximum will be around 25 lakhs.

For critical illness rider-

Age at entry is 20-254 years
Minimum and the maximum sum whish is assured will be 50,000 Rs to 5 lakh rupees. The age limit is extended up to 60 years.

Tentative premium options

Age

Single premium per 1000 sum assured for 5 years

10 year

15 years

20 years

25 years

The tentative annual premium sum table for every 1000 sum assured

Age

Policy tem of 10 year

15 yrs

20yrs

25yrs

Other benefits which are claimed to be offered only by LIC are 15 days satisfaction period in which the consumer has the right to withdraw from the policy.
The following the other plans offered by LIC life under the children’s schemes. These plans are also advertised daily in the media

• Komal Jeevan
• Jeevan Kishore
• Child Career Plan
• Jeevan Chhaya
• Child Future plans
• Marriage and educational annuity plans for children

The above mentioned plans are offered at a premium ranging from 527 Rs to 3,000 Rs per month.
Plans for handicapped dependants

Jeevan Aadhar- this plan is offered to a person who has a handicapped dependant and the satisfying conditions as specified in section 80D of income Tax Act, 1961. The plan provides the life time cover through out the life time to the policy holder. The minimum age is 35 years to enter and the maximum age can be up to 70 years. And the age dependant should be at least 5 years. The premium paying term is 15 years and the sum assured is 1, 00,000. The annual premium is Rs 4095. The maximum assured amount for the dependant who is handicapped, if the premium is paid for 40 years continuously is 4lakhs.i.e 4095 Rs per year.

Jeevan Vishwas- The Above plan is offered for the benefit of the handicapped people who are dependant on the other for financial help. The premium ranges from Rs 25/ Month to Rs 1000/ per month and the policy term will be selected from 5 years to 25 years.
Money back plan for women named Jeevan bharathi

This plan is for women and is mainly available for the customers in the rural areas as well as urban areas. This is a with profit plan and is only offered to women. It provides Life Insuranec cover through out the term plan along with the regular payments on the endurance at the specified policy term duration. For every 5 years the bonus is offered and the minimum age of entry is 25 years. The minimum sum to be assured is 1 lakh and the annual premium payment is 7,345Rs up to an age of 41 years.
The other plans offered by LIC of India are-

Endowment assurance plans- this plan of policy is not only a good provision for the family of the life insured and in the event of his/her early death, but also assures a good sum amount at a desired age and is received. This plan also offers a benefit of disability, in case the policy holder becomes totally or partially disabled due to an accident and that too before reaching the age of 70 and if the policy is in full force then he or she need pay the extra premium thereafter. This policy also offers an added benefit of Rs. 1 per 1000 Rs assured as per year where he /she can easily be eligible assured for the sum. This sum is assured at the age of minimum 12 years and the sum which has to be minimum assured will be 50,000Rs. The term is from 5 years to 65 years and the maximum amount can be up to 4 lakhs.

Plans for high worth individuals- this plan is a unique plan which is only offered by LIC and offers two varieties of insurance plans. The first one will be Jeevan shree and the second one will be Jeevan Pramukh. This is a total plan for high worth individuals and provides a financial protection against death throughout the term plan with a payment of maturity amount on survival to the need of the policy terms. The premiums and the bonuses are the same which are offered in the other regular plans. The total premiums paid at the end of the year are starting from the 25,186 Rs per annum in the first year and goes until 25 years. The max amount of premium at the end of 25 years is 4, 02,976Rs. The maximum returns at the need of the total premium are from 5 lakhs 25 thousand. The benefit of paying the premium per yearly for 25 years will be added to 4 lakhs 96 thousand. That is a profit of almost 1 lakh 25 thousand is achieved.
Money back plans- Unlike ordinary endowments insurance plans where the existence benefits are payable only at the endowment period, this scheme provides for periodic payments of partial existence benefits.

Whole life plans- this plans is mainly designed for the heirs of the policy as the plan generally provides for payment of sum assured plus the bonuses on the death of the policy owner. The premiums under this policy are payable up to an age of 80 years of the policy owner or for the term of 35 years of age which ever is the latter. The minimum age to enter these plans is 15 years and can live u n this plan till the age of 6 years. But the minimum sum must be assured for is Rs 50,000. The mode of payment is yearly and quarterly. There is a facility of a policy loan also.
Term assurance plan- this is a two year plan which is beneficial; to the candidates such as students who are willing to take a life insurance policy for a specific period of 1 or two years. This plan will enable the insurer to get the sum insured for 50,000Rs and the max up to a limit of 1, 00,000Rs. The term premium amount shout be paid every 6 months, 12 months and 24 months.
Joint life Plans- this is a plan exclusively designed for a husband and wife. The plan provides a financial protection against death of both the lives. It pays the maturity amount to the survival of one person out of both or two persons. The minimum age is 35 years to the man to enter this policy and the maximum age is 60 years. The mode of payment of the premium amount will be yearly or quarterly. The annual tentative premium payment will be Rs 5361.

Decreasing term assurance to cover home loan payment- this policy is beneficial for middle aged and also to the elderly professionals whose family members oir dependants may need assistance in claring their debts in case of their unexpected death. The minimum age is 20 yaers to enter into this policy and the max is 50 years. The sum assured is Rs 50,000to 10,00,000Rs.