Life Insurance Corporation of India Profile: Products, Promoters and Clients

Question 1: What are the products and services of Life Insurance Corporation of India?

Life Insurance Corporation of India (LIC) is the biggest insurance company in India. It provides many products and services for different life ins

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1- Life Insurance Plans

LIC has different life insurance plans that offer financial protection and savings.

  • Term Insurance Plans: These are basic life insurance policies that pay a death benefit but do not offer a maturity benefit. They are affordable and cover a specific period—for example, LIC's Tech-Term Plan.
  • Endowment plans mix insurance with savings. They provide both death benefits and maturity benefits. An example is the LIC New Endowment Plan.
  • Money-back plans: These plans offer regular payouts during the policy term and also offer insurance coverage. An example is the LIC New Money Back Plan.
  • Whole Life Plans: These plans cover the insured for their entire life and pay a lump sum to the beneficiary after death. An example is LIC Jeevan Umang.

2- Pension and Annuity Plans

LIC provides different retirement products to guarantee a steady income after retirement.

  • Pension Plans: These plans help people save for retirement and turn their savings into a pension—One example is the LIC New Jeevan Shanti Plan.
  • Immediate Annuity Plans: These plans give you regular income right after you pay a lump sum. An example is the LIC Jeevan Akshay VII.

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3- Health Insurance Plans

  • LIC Jeevan Arogya: This option covers hospital stays and significant surgeries, helping with medical costs.

4- Unit-Linked Insurance Plans (ULIPs)

  • LIC's ULIPs offer both insurance and investment. A portion of the premium goes toward life insurance; the rest is invested in market-linked options like stocks and bonds. For example, consider LIC New Endowment Plus.

5- Group Insurance Plans

LIC provides group insurance options for employers, organizations, and associations.

  • Group Term Insurance Plans: These plans help companies give life insurance to their employees.
  • Group Gratuity Plans: These plans assist employers in handling gratuity payments for their employees.
  • Group Savings Linked Insurance: These plans offer employees insurance and savings benefits.

6- Micro Insurance Plans

LIC provides affordable insurance plans for low-income people and those in rural areas. One example is LIC Bhagya Lakshmi, which offers low-cost life insurance.

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7- Social Security Schemes

LIC runs various government-supported social security programs.

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension plan for senior citizens that provides guaranteed returns.
  • Aam Aadmi Bima Yojana (AABY) offers rural and low-income families life insurance.

8- Additional Services:

  • Loan Against Policy: LIC policyholders can borrow money based on the surrender value of their policies.
  • Online Services: The company offers online services like paying premiums, checking policy status, and renewing policies.

Q2. Who are the Promoters/Management of Life Insurance Corporation of India?

Shri. Siddhartha Mohanty is the CEO & Managing director of Life Insurance Corporation of India. The company also has 4 more Managing Director. M. Jagannath, Shri. Tablesh Pandey, Shri. Sat Pal Bhanoo and Shri R. Doraiswamy. Dr.M.P.Tangirala is the Government Nominee Director.

The promoter holding in Life Insurance Corporation of India (LIC) is 96.50%. The government owns LIC, and is considering ways to dilute a small portion of its stake. It is a statutory Corporation constituted under the LIC Act 1956.

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