Why Buy an LIC Policy

Why buy an LIC policy over only other life insurance policy in India?

Life insurance is an essential financial tool that provides security and stability to families in case of unforeseen circumstances. In India, the Life Insurance Corporation of India (LIC) has been the preferred choice for millions of policyholders for decades. While there are several private insurance companies in the market, LIC holds a unique position due to its trust, sovereign guarantee, and legacy. Here’s why purchasing an LIC policy is a better option than opting for any private life insurance policy in India.

1. Trust and Legacy

LIC has been operating since 1956 and has built a legacy of trust among Indians. It is the oldest and most established life insurance provider in the country, with a proven track record of settling claims and ensuring financial security for policyholders. The corporation’s name is synonymous with reliability, making it a top choice for life insurance seekers.

2. Government-Backed Sovereign Guarantee

One of the most significant advantages of LIC policies is the sovereign guarantee provided by the Government of India. Under Section 37 of the LIC Act, 1956, all policies issued by LIC are guaranteed by the Indian government. This means that policyholders are assured of receiving their benefits without any risk of default, making LIC one of the safest options in the insurance sector.

LIC policy sovereign guarantee

3. Higher Claim Settlement Ratio

LIC consistently maintains a high claim settlement ratio, which reflects its commitment to fulfilling policyholder obligations. According to IRDAI (Insurance Regulatory and Development Authority of India) reports, LIC has one of the highest claim settlement ratios in the industry, ensuring that beneficiaries receive the promised sum without hassle. Private insurers, on the other hand, may have slightly lower ratios and stricter claim approval processes.

4. Financial Strength and Stability

LIC is the largest life insurer in India, holding a dominant market share. With vast financial reserves and government backing, it ensures the security of investments. Unlike private insurers, which depend on market performance and corporate profitability, LIC remains a financially stable entity that can withstand economic fluctuations, ensuring policyholders’ long-term security.

5. Wider Reach and Accessibility

LIC has an extensive network across India, even in the most remote areas. It has over 2,000 branch offices, thousands of agents, and digital service platforms that cater to millions of customers. This accessibility ensures that people from all walks of life can easily purchase and manage their policies, a facility that many private insurers fail to provide in rural areas.

6. Variety of Policies Tailored for All Segments

LIC offers a wide range of life insurance policies, including term plans, endowment plans, whole life policies, pension plans, and child plans. These policies cater to different financial needs, age groups, and income levels. The flexibility in policy terms, premium payment options, and benefits makes LIC more appealing than private insurers, which may have limited offerings.

7. Customer-Centric Approach

LIC is known for its customer-friendly approach. With decades of experience in handling policyholders' needs, it has established a seamless and efficient process for purchasing policies, servicing existing policies, and settling claims. Unlike private insurers that focus on profit maximization, LIC prioritizes policyholder satisfaction and ensures transparency in operations.

8. Bonuses and Profits Shared with Policyholders

Unlike private insurers, which operate with a profit motive for shareholders, LIC is a government entity that shares its surplus earnings with policyholders in the form of bonuses. This makes LIC policies more attractive as they provide higher returns in the long run.

9. Affordable Premiums

LIC policies often come with competitive and affordable premium rates compared to private insurers. Since LIC operates with a service-oriented mission rather than a purely profit-driven approach, it provides cost-effective insurance solutions without compromising on coverage benefits.

10. Strong Regulatory Compliance and Ethical Practices

Being a government entity, LIC follows stringent regulatory norms and maintains high ethical standards. It operates transparently and adheres to all legal frameworks set by IRDAI. Private insurers, in contrast, may sometimes face allegations related to misspelling, hidden charges, or policyholder disputes.

In an era where financial security is a top priority, choosing the right life insurance policy is crucial. LIC, with its government backing, trust, high claim settlement ratio, and customer-friendly approach, remains the best option for millions of Indians. The sovereign guarantee ensures that policyholders’ investments are completely secure, making LIC a safer and more reliable choice over private life insurance companies.

For anyone seeking long-term financial protection, LIC stands as the most trustworthy and stable life insurance provider in India.

Buy LIC Micro Bachat policy

Buy LIC Micro Bachat policy now

NO GST Plan

The Micro Bachat Policy is a tailored life insurance plan designed to provide essential financial protection to individuals, particularly those who may not have access to more expensive insurance products. This plan offers basic life insurance cover up to Rs. 2, 00,000/- Rupees (Rupees Two lakhs only)  This policy is affordable, with a focus on meeting the needs of the underinsured and underserved populations, offering a simple yet effective way to secure financial security for loved ones.

One of the key features of the Micro Bachat Policy is its low premium rates. This makes it highly affordable, ensuring that people from diverse income brackets, especially those in lower income groups, can avail of basic life insurance protection. It is ideal for individuals looking for an economical way to safeguard their family's future, even if they don’t have the means to invest in comprehensive life insurance plans.

Moreover, the NO GST plan makes the policy even more cost-effective. The Micro Bachat Policy does not impose GST (Goods and Services Tax) on the premium, making it more accessible to a wider population. In countries where GST is levied on insurance policies, the exclusion of this tax can significantly reduce the overall cost of the policy, ensuring that the policyholder pays only for the coverage they need. This makes it an attractive option for individuals who are looking to manage their finances more efficiently while still receiving essential life insurance coverage.

The Micro Bachat Policy is not just affordable, but it also ensures a basic level of life insurance cover. Life insurance is a critical tool in financial planning, especially in the event of an untimely death or unforeseen health issues. This policy ensures that the policyholder's family or dependents receive a lump sum payout in the event of their passing, providing financial support during a difficult time. The payout can be used to cover daily living expenses, outstanding debts, or any immediate costs arising from the loss.

The Micro Bachat Policy is a powerful tool for financial inclusion, offering an easy and inexpensive way for individuals, particularly from lower-income segments, to obtain essential life insurance coverage. Its simplicity, low cost, and tax-free nature ensure that it remains within reach for a vast majority of people who might otherwise not be able to afford traditional life insurance. By offering basic yet crucial protection, it plays an important role in securing the financial future of families and providing peace of mind.

Ultimately, the Micro Bachat Policy is an ideal solution for those looking for an affordable and straightforward life insurance option that prioritizes essential protection without the burden of high premiums or added taxes.

Know the benefits of LIC Jeevan Anand policy - Buy LIC policy

Know the Benefits of LIC Jeevan Anand Policy

The LIC Jeevan Anand policy is one of the most popular and trusted insurance plans offered by Life Insurance Corporation (LIC) of India. It perfectly embodies the slogan “Zindagi ke saath bhi, zindagi ke baad bhi,” ensuring financial security both during and after the policyholder's lifetime. Here’s why this plan is considered one of LIC's best options:

LIC Jeevan Anand plan is a dual benefit policy. After giving maturity also, the policy continues without paying any premium till life.

The benefits after maturity are:

For an example, you had taken a policy for Rs. 5 lakhs sum assured. The LIC policyholder will get the maturity amount during the maturity time, after that

1) After maturity, till 70 years, Rs. 10,00,000/- Accidental Death cover  

2) After maturity, till 100th birthday, Rs. 5,00,000/- normal death cover

“Zindagi ke saath bhi, zindagi ke baad bhi,”

1. Dual Benefits: Insurance and Investment
   

   Jeevan Anand combines the advantages of a life insurance policy and an endowment plan. It provides a lump sum amount at the end of the policy term while ensuring life coverage even after maturity.
   On surviving the policy term, the policyholder receives the sum assured, along with bonuses accumulated over the years. This acts as a substantial financial corpus for future needs like education, marriage, or retirement planning.
   In the unfortunate event of the policyholder's demise, the nominee receives the sum assured plus bonuses, regardless of whether the death occurs during or after the policy term.
   Even after the maturity of the policy, the life risk cover continues without any further premium payments, making it a lifelong security blanket for loved ones.
   The policyholder can avail loans against the policy in times of financial need, offering liquidity while retaining coverage.
   Premiums paid under the policy are eligible for tax deductions under Section 80C of the Income Tax Act, while the maturity and death proceeds are tax-free under Section 10(10D).

2. Maturity Benefits
   

3. Death Benefits
   

4. Lifetime Coverage
   

5. Loan Facility
   

6. Tax Benefits
   

LIC Jeevan Anand offers comprehensive coverage, making it an ideal choice for those seeking financial stability, ensuring peace of mind for the policyholder and their family.