Life Insurance Corporation (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India and has a market share of more than 70% of the Indian insurance business. LIC offers a variety of life insurance products, including traditional policies, investment-oriented policies, and pension plans. The company also provides a host of other financial services, such as mutual funds, health and accident insurance, and corporate insurance.
The term ‘LIC’ is often used interchangeably with ‘life insurance’ in India. This is because the company is the largest life insurer in the country. In Hindi, the term ‘LIC’ stands for 'Lakshya Insurance Corporation'. The term ‘Lakshya’ is derived from the Sanskrit word ‘Lakshya’, which means ‘goal’ or ‘aim’. The term ‘Insurance Corporation’ is used to refer to the company’s core business of insurance.
History of Life Insurance Corporation
LIC was established in 1956 by the Government of India, with the primary objective of providing life insurance cover to the citizens of the country. The company was formed by the merger of over 200 small insurance companies and provident societies. LIC was initially a wholly-owned government company, but it was later converted into a public sector undertaking in 2000. It is now a major player in the Indian insurance market and has a presence in more than 1,200 towns and cities across India.
LIC’s operations are divided into five divisions, namely, Life Insurance, Health Insurance, Pension and Group Insurance, Investment and Finance, and Corporate Services. The company has a wide network of agents and offices, which ensure that its products and services reach out to the maximum number of people. It also provides a wide range of online services, such as policy renewal, payment of premiums, and claim settlement, making it easier for customers to avail of its services.
Types of Life Insurance Corporation Policies
LIC offers a variety of life insurance products, including traditional policies, investment-oriented policies, and pension plans. The traditional policies are mainly protection-oriented and are designed to provide financial security to the policyholder and his or her family. These policies offer a lump sum amount on the death of the policyholder. The investment-oriented policies are designed to provide long-term financial security and are ideal for those who wish to invest in the stock market or other financial products.
The pension plans are designed to provide a steady income to the policyholder after retirement. They are ideal for those who wish to secure their retirement years. The group insurance policies are designed to provide coverage to a group of people, such as employees of a company or members of an association. They are ideal for those who wish to avail of a collective insurance cover.
Benefits of Investing in LIC
The main benefit of investing in LIC is that it offers a wide range of life insurance products, which are tailor-made to meet the specific needs of the policyholder. It also offers a variety of investment-oriented policies, which can help the policyholder to build wealth over a period of time. It also offers a range of pension plans, which can provide a steady income to the policyholder after retirement. The policies offered by LIC are flexible and can be adjusted as per the changing needs of the policyholder.
Moreover, LIC is a highly trusted and reliable brand, which has been in business for more than 60 years. The company enjoys a strong financial base and a wide network of agents and offices, which makes it easier for customers to avail of its services. The company also provides flexible premium payment options, which makes it easier for customers to pay the premiums.
Life Insurance Corporation is one of the largest and most trusted life insurance companies in India. It offers a wide range of life insurance products, which are tailor-made to meet the specific needs of the policyholder. It also provides flexible premium payment options and a wide network of agents and offices, which makes it easier for customers to avail of its services. The company also enjoys a strong financial base and has been in business for more than 60 years, which makes it a reliable and trustworthy brand.