What Are the Benefits of Buying a Policy from LIC of India?

Choosing a life insurance policy is one of the most important financial decisions an individual can make. It’s not just about protecting your future but also ensuring your loved ones are secure in your absence. Among the many insurance providers in the Indian market, LIC of India continues to stand tall as a preferred and trusted name for millions of Indians.

Established in 1956, the Life Insurance Corporation of India, commonly known as LIC of India, has served generations of policyholders. Let’s explore the key benefits of buying a policy from LIC of India.

1. Trusted Government-Backed Institution

LIC of India is not just another insurance company—it is a government-owned financial institution. This public ownership ensures greater transparency, accountability, and regulatory oversight. For policyholders, this means added trust and reassurance that their money is safe and managed with care.

In uncertain times, people tend to rely more on government-backed institutions. LIC has consistently benefited from this sentiment and turned it into a long-term relationship with its customers.

2. High Claim Settlement Ratio

LIC of India has consistently had one of the highest claim settlement ratios in the industry, often above 98%.

This high ratio reflects LIC’s commitment to fulfilling its promises. Policyholders can be confident that in the unfortunate event of a claim, their families will receive timely and hassle-free support.

3. Comprehensive Range of Policies

LIC offers a wide array of plans to meet various financial goals and life stages. Whether you’re looking for term insurance, endowment plans, child education policies, or retirement solutions, LIC has a product to match your needs.

Some popular plans include:

• LIC Jeevan Labh – Combines savings and protection

• LIC Jeevan Umang – Provides income for life along with insurance cover

• LIC Bima Jyoti – Endowment plan with guaranteed additions

This diversity ensures that individuals from all walks of life can find a suitable policy under the LIC umbrella.

4. Affordable Premiums

LIC of India has a reputation for offering policies with reasonable premiums. This makes life insurance accessible to the average Indian, including people from rural or low-income backgrounds.

While private insurers may sometimes offer aggressive pricing, LIC balances affordability with long-term benefits and reliability. Additionally, LIC’s agents often guide customers toward the best value plans based on their income and future goals.

5. Participating Plans with Bonuse

Many LIC policies are “participating plans,” which means they are eligible to receive declared by the corporation. These bonuses get added to the policy’s value, increasing the total benefit at maturity or death.

For example, endowment and money-back plans typically accrue bonuses that grow over time, offering an attractive long-term return. These bonuses reflect LIC’s strong financial performance and commitment to sharing profits with policyholders.

6. Excellent Agent Network and Customer Support

LIC of India has the largest distribution network in the Indian insurance sector, with over 13 lakh agents and more than 2,000 branch offices across the country. This means help is always nearby, even in remote towns and villages.

Agents play a crucial role in explaining policy features, helping customers choose the right plan, assisting with paperwork, and following up with premium reminders. In contrast to purely digital services, LIC offers a personalized and human approach, which is particularly valuable for first-time insurance buyers or elderly customers.

7. Tax Benefits Under Indian Laws

Premiums paid towards LIC policies are eligible for deduction under Section 80C, up to a maximum of ₹1.5 lakh per annum.

In addition, the maturity or death benefits received from LIC policies are typically tax-free under Section 10(10D), subject to specific conditions. This makes LIC policies not just a protective tool but also a tax-saving investment.

8. Nationwide Brand Recognition and Emotional Trust

 For many Indians, the first name that comes to mind when they think of life insurance is LIC. This brand recognition is not just built on marketing but on the emotional trust and financial security it has delivered to generations.

Many customers buy LIC policies out of a sense of familiarity, safety, and tradition, often influenced by family members or peers who’ve had positive experiences.

9. Contribution to National Development

It invests heavily in government securities, infrastructure development, and public welfare projects. When you invest in LIC, you are also indirectly contributing to the growth of the nation.

For socially conscious investors, this adds another dimension of value, knowing their money supports initiatives beyond individual gain.

FAQs :- Frequently Asked Questions

Q1. What types of insurance policies does LIC offer?

LIC offers a wide range of policies including:

• Term Insurance

• Endowment Plans

• Money-Back Policies

• Whole Life Policies

• ULIPs (Unit Linked Insurance Plans)

• Pension Plans

• Children’s Plans

Q2. How do I buy a LIC policy?

You can buy LIC policies through:

• LIC’s official website or mobile app

• Authorized LIC agents

• LIC branches across India

Q3. Is LIC a government company?

Yes, LIC is owned by the Government of India and operates under its supervision.

Q4. What is the minimum premium amount for LIC policies?

It varies by plan, but some term plans start as low as ₹2,000 per year.

Q5. Are LIC premiums eligible for tax deductions?

Yes, under Section 80C of the Income Tax Act. Maturity and death benefits may also be exempt under Section 10(10D).

Q6. Can I pay my LIC premium online?

Yes. LIC accepts online premium payments via net banking, credit/debit cards, UPI, and mobile wallets.

Conclusion

With unmatched trust, high claim settlement ratios, a wide range of policies, and a deep-rooted service network, LIC remains the preferred choice for millions of Indians.

Whether you're a young professional looking for term cover, a parent planning for your child’s future, or a retiree seeking a reliable pension, LIC has something for everyone.

To compare LIC policies, calculate premiums, or get expert advice, platforms like Square Insurance offer simple tools and guidance that make choosing the right plan easier and faster.