A

PROJECT REPORT ON

“A CASE STUDY ON VARIOUS PLANS OF LIFE INSURANCE

CORPORATION OF INDIA”

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE

FOR THE AWARD OF THE DEGREE OF
MASTER IN COMMERCE

IN THE SUBJECT
“ADVANCE IN ACCOUNTING AND TAXATION”

SUBMITTED BY
Miss. Sanika Gajanan Shinde

UNDER THE GUIDENCE OF

Dr. RAHUL SADASHIV KHARAT
{ M.com, NET, G.D.C &A, MBA, Ph.D.}

MUGUTRAO SAHEBRAO KAKADE COLLEGE

DEPARTMENT OF COMMERCE & RESEARCH CENTRE
WAGHALWADI-SOMESHWARNAGAR, BARAMATI, PIN-412306.

MAY, 2024.
 DECLARATION

I hereby declare that the work presented in the project work “A CASE STUDY ON VARIOUS
PLANS OF LIFE INSURANCE CORPORATION OF INDIA”, carried under the supervision of
Dr. Rahul Sadashiv Kharat is original and not has been copied or submitted for any other degree
of this or any other University.

I further declare that the material obtained from other sources has been duly acknowledged in the
project report.

Date:

Place: Someshwarnagar Miss. Sanika Gajanan Shinde

 CERTIFICATE OF THE GUIDE

CERTIFIED that the work incorporated in the project report “A CASE STUDY ON LIFE
INSURANCECORPORATION OF INDIA”, submitted by Miss. Sanika Gajanan Shinde
was carried out under my supervision. The material obtained from other sources has been duly
acknowledged in the project report.

Date:
Dr. Rahul S. Kharat
Place: Someshwarnagar [Project Guide].

[INTERNAL EXAMINAR] [EXTERNAL EXAMINAR]

 ACKNOWLEDGEMENT

I have done my project in such a well-organized and diversified organization. I am grateful to all
those who helped and supported me in completing the project in time. I take this opportunity of
expressing my profound gratitude to my guide Dr. Rahul S. Kharat HOD of M.Com whose
continuous support has been a constant source of motivation for me.

I am extremely thankful to him for providing valuable and attention to me. I would like to give my
special vote of thanks to Mr. Pravin Vatre for sparing his valuable time in helping and guiding me
throughout this summer internship program. I am grateful to the Organizational members of LIFE
INSURANCE CORPORATION OF INDIA , Baramati Branch for their support.It is great
privilege help and support throughout the project.

I thank all the respondents who have given their precious time to answer my questionnaire during
the survey for primary data collection.

Miss. Sanika Gajanan Shinde

  TABLE OF CONTENTS

SR.NO CONTENTS PAGE.NO

1 CERTIFICATE I.
2 DECLARATION II.
3 CERTIFICATE OF THE GUIDE III.
4 ACKNOWLEDGEMENT IV.
  INDEX

SR.NO CONTENTS PAGE.NO

1 EXECUTIVE SUMMERY 01
2 INTRODUCTION 02
3 RESEARCH OBJECTIVE & METHODOLOGY 06
4 TYPES OF DATA USED 07
5 INTRODUCTION OF THE COMPANY 08
6 PLANS AND POLICY 11
7 SOME OF PLANS DETAIL OVERVIEW 21
8 NEW PRODUCTS LAUNCHED 52
9 CUSTOMER RELATIONSHIP MANAGEMENT 53
10 HUMAN RESOURCES 56
11 SOCIAL ACTIVIVTY 57
12 AWARDS AND RECOGNITIONS 58
13 OBJECTIVE OF LIC 59
14 FINDINGS 60
15 IMPORTANCE OF JOINT VENTURES 69
16 PROFIT AND LOSS 76
17 OBJECTIVE OF THE STUDY 79
18 MARKETING STRATEGY OF LIC 82
19 CONCLUSION 88
20 RECOMMENDATIONS 90
21 BIBLIOGRAPHY 91
 1
INTRODUCTION

 Life insurance is a contract between an insurer and a policyholder. A life insurance policy guarantees
the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in

7
 exchange for the premiums paid by the policyholder during their lifetime.
 Life insurance is a legally binding contract.
 For the contract to be enforceable, the life insurance application must accurately disclose the
insured’s past and current health conditions and high-risk activities.
 For a life insurance policy to remain in force, the policyholder must pay a single premium up front or
pay regular premiums over time.
 When the insured dies, the policy’s named beneficiaries will receive the policy’s face value, or death
benefit.
 Term life insurance policies expire after a certain number of years. Permanent life insurance policies
remain active until the insured dies, stops paying premiums, or surrenders the policy.
 A life insurance policy is only as good as the financial strength of the company that issues it. State
guaranty funds may pay claims if the issuer can’t. Who Should Buy Life Insurance? Life insurance
provides financial support to surviving dependents or other beneficiaries after the death of an insured.
Here are some examples of people who may need life insurance.
 Parents with minor children—If a parent dies, the loss of their income or caregiving skills could
create a financial hardship. Life insurance can make sure the kids will have the financial resources
they need until they can support themselves.
 Parents with special-needs adult children—For children who require lifelong care and will never be
self-sufficient, life insurance can make sure their needs will be met after their parents pass away. The
death benefit can be used to fund a special needs trust that a fiduciary will manage for the adult
child’s benefit.
 Adults who own property together—Married or not, if the death of one adult would mean that the
other could no longer afford loan payments, upkeep, and taxes on the property, life insurance may be
a good idea. An example would be an engaged couple who took out a joint mortgage to buy their first
house.
 Elderly parents who want to leave money to adult children who provide their care—Many adult
children sacrifice by taking time off work to care for an elderly parent who needs help. This help may
also include direct financial support. Life insurance can help reimburse the adult child’s costs when
the parent passes away.
 Young adults whose parents incurred private student loan debt or cosigned a loan for them—Young
adults without dependents rarely need life insurance, but if a parent will be on the hook for a child’s
debt after their death, the child may want to carry enough life insurance to pay off that debt.
 Young adults who want to lock in low rates—The younger and healthier you are, the lower your
insurance premiums. A 20- pg. 8 something adult might buy a policy even without having dependents
if there is an expectation to have them in the future.
 Wealthy families who expect to owe estate taxes—Life insurance can provide funds to cover the
taxes and keep the full value of the estate intact.

8
 Families who can’t afford burial and funeral expenses—A small life insurance policy can provide
funds to honor a loved one’s passing.
 Businesses with key employees—If the death of a key employee, such as a CEO, would create a
severe financial hardship for a firm, that firm may have an insurable interest that will allow it to
purchase a life insurance policy on that employee.
 Married pensioners—Instead of choosing between a pension payout that offers a spousal benefit and
one that doesn’t, pensioners can choose to accept their full pension and use some of the money to buy
life insurance to benefit their spouse. This strategy is called pension maximization. Types of Life
Insurance Many different types of life insurance are available to meet all sorts of needs and
preferences.
 Term Life—Term life insurance lasts a certain number of years, then ends. You choose the term
when you take out the policy. Common terms are 10, 20, or 30 years. The best term life insurance
policies balance affordability with long-term financial strength.
 Level Term—The premiums are the same every year.
 Increasing Term—The premiums are lower when you're younger and increase as you get older. This
is also called “yearly renewable term.”
 Return of Premium—Return of premium (ROP) policies include a built-in savings mechanism. You'll
pay a flat rate for the duration of your policy, but unlike traditional term life insurance, you'll get
your money back at the end of the term.
 Permanent—This stays in force for the insured’s entire life unless the policyholder stops paying the
premiums or surrenders the policy. It’s typically more expensive than term.
 Single Premium—In this case the policyholder pays the entire premium up front instead of making
monthly, quarterly, or annual payments.
 Whole Life—Whole life insurance is a type of permanent life insurance that accumulates cash value.
 Universal Life—A type of permanent life insurance with a cash value component that earns interest,
universal life insurance has premiums that are comparable to term life insurance. Unlike term and
whole life, the premiums and death benefit can be adjusted over time.
 Guaranteed Universal—This is a type of universal life insurance that does not build cash value and
typically has lower premiums than whole life.
 Variable Universal—With variable universal life insurance, the policyholder is allowed to invest the
policy’s cash value.
 Indexed Universal—This is a type of universal life insurance that lets the policyholder earn a fixed or
equity-indexed rate of return on the cash value component.
 Burial or Final Expense—This is a type of permanent life insurance that has a small death benefit.
Despite the names, beneficiaries can use the death benefit as they wish.
 Guaranteed Issue—A type of permanent life insurance available to people with medical issues that
would otherwise make them uninsurable, guaranteed issue life insurance will not pay a death benefit

9
 during the first two years the policy is in force (unless the death is accidental) due to the high risk of
insuring the person. However, the insurer will return the policy premiums plus interest to the
beneficiaries if the insured dies during that period.
 Additional Uses for Life Insurance
 Most people use life insurance to provide money to beneficiaries who would suffer a financial
hardship upon the insured’s death. However, for wealthy individuals, the tax advantages of life
insurance, including tax-deferred growth of cash value, tax-free dividends, and tax-free death
benefits, can provide additional strategic opportunities.
 Funding Retirement—Policies with a cash value or investment component can provide a source of
retirement income. This opportunity can come with high fees and a lower death benefit, so it may
only be a good option for individuals who have maxed out other tax-advantaged savings and
investment accounts. The pension maximization strategy described earlier is another way life
insurance can be used to fund retirement.
 Avoiding Taxes—The death benefit of a life insurance policy is usually tax free.4 Wealthy
individuals sometimes buy permanent life insurance within a trust to help pay the estate taxes that
will be due upon their death. This strategy helps to preserve the value of the estate for their heirs. Tax
avoidance is a law-abiding strategy for minimizing one’s tax liability and should not be confused
with tax evasion, which is illegal.
 Borrowing Money—Most permanent life insurance accumulates cash value that the policyholder can
borrow against. Technically, you are borrowing money from the insurance company and using your
cash value as collateral. Unlike with other types of loans, the policyholder’s credit score is not a
factor. Repayment terms can be flexible, and the loan interest goes back into the policyholder’s cash
value account. Policy loans can reduce the policy’s death benefit, however.
 How Life Insurance Works A life insurance policy has two main components—a death benefit and a
premium. Term life insurance has these two components, but permanent or whole life insurance
policies also have a cash value component.
 Death Benefit—The death benefit or face value is the amount of money the insurance company
guarantees to the beneficiaries identified in the policy when the insured dies. The insured might be a
parent, and the beneficiaries might be their children, for example. The insured will choose the desired
death benefit amount based on the beneficiaries’ estimated future needs. The insurance company will
determine whether there is an insurable interest and if the proposed insured qualifies for the coverage
based on the company’s underwriting requirements related to age, health, and any hazardous
activities in which the proposed insured participates.
 Premium—Premiums are the money the policyholder pays for insurance. The insurer must pay the
death benefit when the insured dies if the policyholder pays the premiums as required, and premiums
are determined in part by how likely it is that the insurer will have to pay the policy’s death benefit
based on the insured’s life expectancy. Factors that influence life expectancy include the insured’s

10
age, gender, medical history, occupational hazards, and high-risk hobbies.2 Part of the premium also
goes toward the insurance company’s operating expenses. Premiums are higher on policies with
larger death benefits, individuals who are higher risk, and permanent policies that accumulate cash
value. 3. Cash Value—The cash value of permanent life insurance serves two purposes. It is a
savings account that the policyholder can use during the life of the insured; the cash accumulates on a
tax-deferred basis. Some policies may have restrictions on withdrawals depending on how the money
is to be used. For example, the policyholder might take out a loan against the policy’s cash value and
have to pay interest on the loan principal. The policyholder can also use the cash value to pay
premiums or purchase additional insurance. The cash value is a living benefit that remains with the
insurance company when the insured dies. Any outstanding loans against the cash value will reduce
the policy’s death benefit.

11
  TYPES OF DATA USED:

Both primary and secondary data is used in the research.

Data Collection Methods

To conduct the market research the data is collected by two sources.

 PRIMARY DATA

The primary sources of data refer to the first-hand information Primary data is collected during the
survey with the help of Questionnaires

 SECONDARY DATA

Secondary data is one which already exists and is collected from the
published sources.
The sources from which secondary data was collected are:

 Newspapers and Magazines like Economic Times,

Insurance Times, and Insurance Post.
 Internet

12
 2
INTRODUCTION OF THE COMPANY

13
 “LIFE INSURANCE CORPORATION OF INDIA (LIC)”

 LIFE INSURATION CORPORATION OF INDIA (abbreviated as LIC) is an Indian

government owned insurance and investment corporation. It is under the owned insurance and
investment corporation.
 It is under the ownership of Ministry of Finance, Government of India.
 The Life insurance Corporation of India was established on September 1, 1956, when the
Parliament of India passed the Life Insurance of India Act that nationalized the insurance
industry in India. Over 245 insurance companies and provident societies were merged to create
the state-owned Life Insurance Corporation of India.
 As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 trillion. The total
value of sold policies in the year 2018–19 is ₹21.4 million. Life Insurance Corporation of India
settled 26 million claims in 2018–19. It has 290 million policy holders.

 MISSION OF LIC: -
14
 “Ensure and enhance the quality of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering
resources for economic development.”

 VISION OF LIC:-

“A trans-nationally competitive financial conglomerate of significance to societies and

pride of India.”

15
 3

General Insurance:

16
General insurance business in the country was nationalized with effect from 1st January, 1973 by the
General Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance
companies including branches of foreign companies operating within viz., the National Insurance
Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.,
and The United India Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi
and Madras, respectively. General Insurance Corporation (GIC) which was the holding company of
the four public sector general insurance companies has since been delinked from the later and has
been approved as the "Indian Reinsurer" since 3rd November 2000. The share capital of GIC and that
of the four companies are held by the Government of India. All the five entities are Government
companies registered under the Companies Act, 1956. The general insurance business has grown in
spread and volume after nationalization. The four companies have 2699 branch offices, 1360
divisional offices and 92 regional offices spread all over the country. GIC and its subsidiaries have
representation either directly through branches or agencies in 16 countries and through associate
locally incorporated subsidiary companies in 14 other countries. A wholly- owned subsidiary
company of GIC, i.e. Indian International Pvt. Ltd. is operating in Singapore and there is a joint
venture company, viz. Ken-India Assurance Ltd. in Kenya. A new wholly owned subsidiary called
New India International Ltd., UK has also been registered

17
  CHAPTER NO.5
 PLANS AND POLICY:

LIC of India provides diverse insurance and investment products catering to customer needs.
From traditional life insurance to investment plans, they offer comprehensive financial solutions,
ensuring individuals find tailored plans for their unique requirements. Here is the list of all the
available LIC Plans:

1. LIC Endowment Plans

The endowment Plans offered by the company promise a life cover for the insured and increased
savings opportunities. These plans offer a guaranteed maturity benefit on surviving the whole
policy term, and, therefore, can be used to save for the future.

Below-mentioned are the pension plans offered by the Life Insurance Corporation of India are:

Table No:-5.1

LIC Endowment Plan Name Entry Age Maturity Minimum Sum Assured
Age (in Rs.)

Bima Jyoti 90 days-60 years 70 years Rs. 1 Lakh

New Endowment Plan 8 Years -55 years 75 years Rs. 1 Lakh

Single Premium Endowment Pla 90 days -65 years 75 years Rs. 50,000
n

18
New Jeevan Anand 18 Years -50 75 years Rs. 1 Lakh
years

Jeevan Labh 8 Years -59 years 75 years Rs. 2 Lakh

Aadhaar Shila 8 Years -55 years 70 years Rs. 2 Lakhs

Jeevan Lakshya 18 Years -50 65 years Rs. 1 Lakh

years

Aadhaar Stambh 8 Years -55 years 70 years Rs. 2 Lakhs

Dhan Sanchay 3 years-65 years 85 years Rs. 2.5 Lakhs

Jeevan Azad 90 days-65 years 70 years Rs. 2 Lakhs

Bima Ratna 90 days-65 years 70 years Rs. 5 Lakhs

Dhan Vriddhi 90 days-60 years 78 years Rs. 1.25 Lakhs

LIC Amritbaal 0 years-13 years 25 years Rs. 2 Lakhs

19
.

2. LIC Whole Life Plans

Life Insurance Corporation of India also offers a whole life plan that offers insurance coverage
throughout the insured's lifetime. These plans are designed to provide the dual benefits of life
protection and savings till 100 years of age.

Below-mentioned are the whole-life plans offered by the company:

Table No:-5.2

20
 LIC Whole Life Insurance Entry Age Maturity Minimum Sum Assured (in
Plans Age Rs.)

Jeevan Umang 90 days-55 100 years Rs.2 Lakhs

years

Jeevan Utsav 90 days-65 NA Rs.5 Lakhs

years

3. LIC Unit-Linked Plans

LIC Unit-Linked Entry Age Maturity Minimum Premium (in Rs.)

Plans Age

Nivesh Plus 90 days- 70 85 years Rs.1 Lakh

years

SIIP 90 days- 65 85 years Annually - Rs.40,000

years

21
 New Endowment Pl 90 days- 50 60 years Annually - Rs.20,000
us years

New Pension Plus 25 years -75 85 years For Regular Premium Payment: Rs.
years 3,000 monthly
For Single Premium Payment: Rs.
1,00,000

LIC Index Plus 90 days- 60 85 years 7 times of Annualized Premium

years

These plans allow customers to invest in the equity market to grow their wealth through market-
linked returns. A part of the premiums paid towards the policy goes towards this investment and
the remaining is used to secure a life cover that protects the dependents' financial future.

Table No:-5.3

Unit-linked insurance plans (ULIP) offered by company are –

4. LIC Pension Plans

Everyone should save enough to live a financially protected retirement life. Life Insurance
Corporation of India offers several pension plans to guarantee financial stability in old age. These
plans are designed to look after your post-retirement life and ensure that you live independently.

Table No:-5.4

22
 Below-mentioned are the pension plans offered by the company:

LIC Pension Plan Name Entry Age Vesting Minimum Purchase

Age Price

New Jeevan Shanti 30 years -79 years 80 years Rs 1.5 Lakhs

Jeevan Akshay –VII 25 Years -85 - Rs 1 Lakhs

years

Saral Pension 40 Years -80 - -

years

Pradhan Mantri Vaya Vandana Yojan 60 years- no limit - Rs. 1,56,658/-

a annually

LIC Jeevan Dhara II 20 years- 80 years 80 years -

5. LIC Money Back Plans

Money-back plans are life insurance policies providing life cover during the term. Such plans
offer pay-outs at specific intervals, which are known as survival benefits.

Below-mentioned are the money-back plans offered by the company:

23
Table No:-5.5

Plan Name Entry Age Maturity Minimum Sum Assured (in

Age Rs.)

LIC Jeevan Shiromani 18 Years -55 69 years Rs. 1 Crore

years

LIC Jeevan Tarun 90 days-12 years 25 years Rs. 75,000

LIC New Money Back Plan- 20 13 Years -50 70 years Rs. 1 Lakh
years years

LIC New Children’s Money Bac 0 Years -12 25 years Rs. 1 Lakh
k Plan years

LIC New Money Back Plan- 25 13 Years -45 70 years Rs. 1 Lakh
years years

LIC Bima Shree 8 Years - 55 69 years Rs. 10 Lakhs

years

LIC Dhan Rekha 90 days- 60 80 years Rs. 2 Lakhs

years

24
 LIC New Bima Bachat 15 Years -50 65 years 35,000
years

6. LIC Term Insurance Plans

The term insurance plans protect the family of the insured against his/her death at affordable
costs. These insurance plans assure financial to the nominee on the policyholder's death during
the policy term. The LIC of India usually does not pay maturity value under term plans if the
individual survives until the end of the policy tenure.

The term plans offered by the Life Insurance Corporation of India are as under:

Table No:-5.6

LIC term Plans Entry Age Maturity Age Policy Term

New Tech Term 18 Years -65 years 80 years 10 to 40 years

New Jeevan Amar 18 Years -65 years 80 years 10 to 40 years

Saral Jeevan Bima 18 Years -65 years 70 years 5-40 years

Jeevan Kiran 18 Years -65 years 80 years 10-40 years

7. LIC Riders

25
Riders or add-on benefits are optional or sometimes in-built additional protections that you can
attach to your base LIC policy to enhance its coverage. You can opt for these additional add-on
benefits by paying an additional premium

Here is the list of riders that the Life Insurance Corporation of India offers with its insurance
policies

LIC’s Accidental Death and Disability Benefit Rider

LIC’s Premium Waiver Benefit Rider

LIC’s New Term Assurance Rider

LIC’s Linked Accidental Death Benefit Rider

LIC’s Accident Benefit Rider

LIC’s New Critical Illness Benefit Rider

LIC’s Premium Waiver Benefit Rider (With

Auto Cover)

Sample Premium Illustration of LIC Plans

26
Table No:-5.7

Plan Name Sum Assured (in Rs.)

5 Lakhs 10 Lakhs 15 Lakhs

LIC SIIP 4,200 8,500 12,500

LIC Bima Jyoti 3,505 6,923 10,385

LIC New Jeevan Anand 2,506 4,968 7,452

To understand the premiums payable under the LIC Plans, let us take the example of Mr Sharma,
a 30-year-old individual who decided to invest in the LIC Plan for 20 years. Let us see how much
premium he needs for different LIC Policies. Mr. Sharma can carefully analyze these premium
illustrations to select the ideal plan that aligns with his financial goals and coverage
requirements,

ensuring a tailored and beneficial investment.

Table No:-5.7

 CHAPTER NO.6

 SOME OF PLANS DETAIL OVERVIEW

27
1. LIC Jeevan Labh Plan 936

LIC Jeevan Labh Plan 936 (previously known as LIC Jeevan Labh 836) is an endowment plan
that combines the benefits of life protection and savings. The plan comes with maturity benefits
if you survive the policy term. Its participating nature allows customers to earn a percentage of
the profits made by LIC of India. This makes it an ideal choice for savings, increased returns,
and insurance protection, all in one product.

 Features:

 Customers have to pay premiums for a limited period to enjoy long-term protection.
 Policyholders can avail of loan facilities on this plan, after paying a regular premium for 2
years. It is limited to 90% of the surrender value.
 The plan offers the option to avail of the death and maturity benefit in installments across 5,
10, or 15 years.
 If the plan is bought for a child, parents can add the LIC’s Premium Waiver Benefit Rider
with the policy. If the parent dies, LIC waives future premiums so that the child does not
have to bear the burden of keeping the policy in force.
 One can enjoy rebates on the premium amount if the sum assured is Rs.5 lakhs and above.

 LIC Jeevan Labh Plan Eligibility Criteria

Let’s take a look at the eligibility criteria of the policy.

Table No:-6.1

28
 Criteria Minimum Maximum

Entry Age 8 years 59 years for PT 16 years 54 years for PT 21 years 50 years for PT
years

Sum Assured Rs.2,00,000 No upper limit

Maturity Age N/A 75 years

Policy Term 16, 21& 25 years

Premium Paying Term 10, 15 & 16 years

 Jeevan Labh LIC Policy Benefits

 Death Benefit

The death benefit is paid by the insurer to the beneficiary in case of death of the insured person
during the tenure of the policy. The death benefit under LIC Jeevan Labh will be either of the
following –

Basic sum assured amount

7 times the annualized premium
The final death benefit on the death of the policyholder will include the highest of these two plus
a vested simple reversionary bonus and a final additional bonus (if any).

29
.

 Maturity Benefit

If the insurance holder survives the entire policy tenure and has been paying due premiums till
the end, he/she gets the maturity benefit. It is equal to the basic sum assured plus a vested simple
reversionary bonus and final additional bonus (if any).

 Tax Benefits

The premium paid towards the policy up to the maximum limit of Rs.1.5 lakh in a financial year
and the maturity proceeds are tax exempted under Section 80C and 10(10D) of the Income Tax
Act.

30
2. LIC Jeevan Umang- An Overview

LIC Jeevan Umang is a life assurance plan in which the policy holder will be covered till he/she
turns 100 years of age. The key benefit of this plan is that it comes with dual benefits of income
and insurance protection to help the family of the insured in his/her absence. The assured benefits
act as a strong financial backup in case of any emergency.

 Features of LIC Jeevan Umang Plan

 This LIC plan provides annual survival benefits starting at the end of the premium payment
tenure and continues till maturity.
 The plan also provides a lump sum amount as a maturity benefit at the end of the policy term,
if the insured survives.
 The death benefit can be claimed if the policyholder dies during the policy tenure. It is paid
either as a lump sum or in regular installments.
 The plan offers an option to choose from different premium paying terms i.e. 15 years, 20
years, 25 years, and 30 years.
 LIC Jeevan Umang policy is a participating policy that entitles buyers to additional bonuses
depending on the profits earned by LIC in a year.
 There are discounts available for choosing the either half-yearly or yearly premium payment
mode

 Eligibility Criteria of LIC Jeevan Umang Plan

Let’s take a look at the eligibility criteria of the policy:

Table No:-6.2

Eligibility Criteria Minimum Maximum

Entry Age 90 days 55 years

Policy Term 100 years- Age at entry

31
 Sum Assured Rs. 2,00,000 No limit

Maturity Age 100 years

Premium paying term 15 years, 20 years, 25 years, and 30 years

Age at the end of premium paying term 30 years 70 years

 Benefits Offered by LIC Jeevan Umang

Here are some of the prime benefits of the LIC Jeevan Umang plan:

 Death Benefit

 On Death of the Life Assured Before the Commencement of Risk

 Nominees can claim the entire premium amount paid (Return of premium).
 On Death of the Life Assured After the Commencement of Risk & Before Maturity
 Nominee can claim the higher amount between 7 times the annual premium and the basic
sum assured amount. Applicable bonuses such as the simple reversionary bonus and final
additional bonus are also paid out along with the death benefit.

 Survival Benefit

 If the life assured survives the premium payment tenure and provided the policy is in force,
LIC Jeevan Umang starts paying out an annual survival benefit.
 It is equal to 8% of the basic sum assured amount.
 The same amount is offered every year till the policyholder survives or till the last plan
anniversary before the date of maturity (whichever event occurs earlier).

 Maturity Benefit

32
 In case the life assured survives the specified maturity date, then LIC offers them the basic sum
assured along with the simple reversionary bonus and final additional bonus if any.

 Loans

 The loan facility can be availed under the LIC Jeevan Umang plan as per the following terms
and conditions:
 A policyholder is eligible for a loan if they have paid premiums for a minimum of 2 years
without fail.
 If in case the loan is availed during the premium paying term, the maximum loan amount is
limited to 90% of the surrender value.
 In the case of paid-up policies, the cap on the loan amount is 80% of the paid-up value.
 Any loan unpaid shall be recovered from the claim proceeds during exit along with the
applicable interest.

3.LIC Kanyadan Policy

LIC's Kanyadan policy stands as an excellent insurance choice for girls children, allowing the Life
Insurance Corporation of India to build financial support for your daughter.

The Life Insurance Corporation of India accumulates funds for your girl child and also pays a
handsome sum to your loved ones every year for her schooling.

 LIC Kanyadan Policy Features

The various features of LIC Kanyadan policy are mentioned below -

 At maturity, the policyholder receives a lump sum payment.

 Gives your daughter financial security
 The premium is waived in the event of the insured parent's death.
 The full maturity amount will be paid when the policy matures.
 Life insurance coverage for a set length of time, up to three years before maturity

 LIC Kanyadan Policy Benefits

The different benefits of LIC Kanyadan are discussed briefly below -

33
  The premium payment period is three years shorter than the policy payment term.
 Term of paying premiums is limited.
 Payments can be made on an annual, half-yearly, quarterly, or monthly basis.
 The disability rider benefit is available if the premium tenure is at least 5 years.
 The account maturity period ranges from 13 to 25 years.

LIC Kanyadan Policy Eligibility Criteria

Table No:-6.3

Basic Sum Assured (Minimum) Rs.1,00,000

Basic Sum Assured (Maximum) No limit

Policy term 13 to 25 years

Minimum age 18 years

Maximum age 50 years

Maturity age (Minimum) 50 years

Maturity age (Maximum) 65 years

Minimum age of daughter 1 year

 Additional Details
Below are some additional details about LIC Kanyadan policy -

 What is excluded - No benefits or supplementary coverages will be paid if the policyholder

commits suicide within 12 months of the policy's inception.
 Grace period - The policyholder has 30 days to make annual, half-yearly, or quarterly
payments, and 15 days to make monthly premium payments. During the grace period, the
policyholder is not charged any late fees or penalties. If the premium is not paid even after
the grace period, the policy will be cancelled without further notice.

34
  Surrender value - Surrender value will be paid only if the premiums have been paid in full
for at least three years prior to relinquishing the LIC Kanyadan Policy. The guaranteed
surrender value is the total percentage of premiums less rider premiums, which varies
according to policy duration and surrender year.

4.LIC New Children Money Back Plan

Children are the future of our world, and as parents, most of us strive to provide sufficient platforms
for our children to excel in life. The New Children's Money Back Plan from LIC is a unique plan
designed to cater to multiple needs of growing children, including their education, wedding, etc.
This participating, non-linked money back scheme offers survival benefits in addition to the risk
cover for children.

Listed below are the important features of LIC New Children’s Money Back Plan:

 This plan is subjected to one individual essentially at one time and is non-linked money back
plan for the children growing up.

 The LIC New Children’s’ Money Back plan offers survival benefit, maturity benefit and
death benefit.

 The policy period is on the premise of the maturity age that is 25 years of age minus the age
of entry. For instance, when the age of entry is 9 years then the period will be 25-9= 16 years.

 The maturity benefit will likewise be the complete sum of the base sum assured when the
plan is bought along with the bonuses as applicable.

 The sum assured would range ideally from Rs 1, 00,000 up to highest of no specified upper
limit.

 From the date of purchase, the LIC New Children’s Money Back Plan can be returned within
15 days.

 An individual can pay the LIC premium on a yearly, half-yearly, quarterly or monthly basis
as per the convenience. Moreover, the insured could also look for loans from this plan.

35
 The grace period or payments delayed could differ from the premium payment frequency. In
case, an individual is paying monthly so the grace period will be approximately 15 days. In
case of any other frequencies, it might go up to 30 days.

 An individual could also choose the premium waiver benefit rider option, which implies that
in case the insured passes away, the remaining premiums will be waived.

 The plan could be surrendered once the payment of premiums for three years is completed.
Under such a situation, the value of surrender will be the complete percentage value of all the
premiums that have been paid till date that will be excluded from ant of the premiums that
have been paid extra and if any premium rider values the survival benefit, which is due and
even then payable to the insured.

 The probability of obtaining a high sum assured rebate is on the premise of the rebate mode.
In case the mode is half-yearly then it will be 1 per cent of the tabular premium. In case the
mode is yearly, then it will be 2 per cent of the tabular premium. The rebates are not payable
for monthly and quarterly mode.

 In case, less than 2 years premiums have been duly paid and any of the subsequent premiums
are not paid, then benefits will cease within the plan after the grace period expires from the
date of initial unpaid premium that means nothing will be payable. In the case where the
subsequent payments are not duly paid and the premiums are completely cleared for two
years, then the LIC New Children’s Money Back Plan offers paid-up value until the end of
the policy period. Within this, it will not be treated as a void and mostly be reduced to below
specific plans:

 The sum assured upon demise within the policy will be reduced and referred to as ’death
paid-up sum assured’ and be equivalent to the sum assured upon demise that will be
multiplied by the total period ratio for that the premium that has been paid to the highest
period and the premiums are payable originally.

 The sum assured upon maturity within the paid-up policy will be reduced and referred to as
maturity paid-up sum assured and will be equivalent to the sum assured upon the maturity
adding the complete sum of survival benefits payable within the plan and then multiplied by
the total period ratio for that the premium that has been paid to the highest period and the
premiums are payable originally and then reduced by the complete sum of survival benefits
that are already paid within the plan inclusive the deferred survival benefit.

36
  LIC’s New Children’s Money Back Plan's Benefits

Listed below are the three key benefits offered within LIC New Children’s Money Back Plan:

 Survival Benefit: When the life assured survives every policy anniversary that is either
coinciding or is followed with the completion of 17, 20 and 22 years of age then 20 per cent
of the sum assured on either of the occasion will be payable if the LIC New Children’s
Money Back Plan is in force.

 Maturity Benefit: If the life assured survives the policy period when the plan is still in force,
then the sum assured on maturity along with final additional bonus and vested simple
revisionary bonuses will be payable wherein the sum assured on maturity is equivalent to the
40 per cent of the basic sum assured.

Table No:-6.4

Minimum Maximum

Entry Age (Last Birthday) 0 years 12 years

Maturity Age (Last Birthday) - 25 years

Policy Term (PT) in years 25 – entry age

Premium Paying Term (PPT) in 7 pay, 10 pay or (term-5)

years

Premium Paying Frequency Annual, half-yearly, quarterly, monthly

Premium 24,000 No limit

37
 Sum Assured 100,000 No limit

 Death Benefit: If under any unfortunate circumstances, the policyholder is no more the sum
payable will be the complete sum assured at demise including the bonuses to the sum.

 Participation in Profits: When the policy is in force, it will participate in the profits of the
corporation and entitled to obtain simple reversionary bonuses as per the corporation’s
experience. Within paid-up policies, the final additional bonus will not be payable. Likewise,
the final additional bonus will be declared within the policy during the year where the policy
has not been claimed either by demise or maturity.

Product Specification:

 Details About Premium

Annual premium in Rupees

Table No:-6.5

Age / Sum 100,000 200,000 500,000

Assured

0 year 4415 8830 22,075

5 years 5700 11,400 28,500

10 years 8060 16,120 40,300

12 years 9390 18,780 46,950

38
  Policy Details of LIC’s New Children’s Money Back Plan

 Grace Period: 15 days’ grace period is allowed for premium payment in monthly mode and
30 days in other modes. If policyholder fails to make payment within the grace period, the
policy lapses
 Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy and
receive the Surrender Value after 3 completed years’ premiums have been paid. The
Surrender Value will be higher of the Guaranteed Surrender Value (GSV) or the Special
Surrender Value.
 GSV = (GSV % of Premiums paid – Survival Benefits already paid) + GSV % of vested
Bonuses
 Free Look Period: If you would not be pleased with the coverage, and terms and conditions of
the policy, you have the option of canceling the policy within 15 days of receipt of the policy
documents, provided there has been no claim.

 Inclusion

 Loan is available under the plan.

39
  CHAPTER NO.7

 Insurance plans:

As individuals it is inherent to differ. Each individual’s insurance needs

and requirements are different from that of the others. LIC’s Insurance
Plans are a policy that talk to you individually and gives the most
suitable options that can fit ones’ requirement.

Jeevan Anurag Marriage Endowment Or

Educational Annuity Plan

Jeevan Kishore Jeevan Chhaya

Child Career Plan Child Future Plan

The Endowment Assurance

Policy The Endowment
Assurance Policy-Limited Payment
Jeevan Mitra(Double Cover
Endowment Plan)
Jeevan Mitra(Triple Cover
Endowment Plan) Jeevan Anand

40
 The Money Back Policy-20 Years The
Money Back Policy-25 Years Jeevan
Surabhi-15 Years Jeevan Surabhi-20
Years
 Jeevan Surabhi-25 Years
 Jeevan Rekha (closed for sale) Bima
Bachat

 Jeevan Bharati

 The Whole Life Policy

The Whole Life Policy- Limited Payment The
Whole Life Policy- Single Premium Jeevan
Rekha (closed for sale) Jeevan Anand
 Jeevan Tarang

41
 Two Year Temporary
Assurance Policy The
Convertible Term
Assurance Policy
Anmol Jeevan-I
Amulya Jeevan

Jeevan Saathi

42
  CHAPTER NO.8

 Types of LIC Life Insurance Plans

1. LIC's Jeevan Pragati

 A non-linked plan constituted in such a way that after every five years of the policy, the risk
cover will automatically increase. It is best suitable for retirement collection with the cover
against accident. An endowment plan with profits makes it a combination of savings and
financial protection.

 Entry Age- This policy is available for individuals from 12 years to 45 years.

 Term Period- The term period is from 12 years to 20 years.

 Death Benefits- In the case of the death of the policyholder, the nominee gets the sum assured
with the bonus, and is either ten times the total annual premium or is calculated as per the terms
of the policy.

 Maturity Benefits- The sum assured is paid with the bonus and the reversionary bonus for the
full term of the policy. Minimum sum assured is Rs.1, 50,000/-. Maximum age at maturity is
65years. Maturity amount is tax-free under section 10 (10D).

 Tax Benefit - The amount of premium paid is exempted under section 80C.

 Loan Facility- It is available after you have paid a premium for three years. Riders
Available: The optional riders are for accidental death and disability.

2. LIC’s Jeevan Labh

 This policy is limited premium paying and is not linked to share markets. It is an endowment
plan with profits and hence the holder gets the sum assured with bonus and other benefits.

 Premium- Premium paying period is lesser than the policy term.

 Entry Age – The age of the policyholder should be between 8 years and 59 years.
43
 Term Period- The Policy has a term period of 16 years to 25 years.

 Grace Period- There is a grace period of 30days for paying yearly, half yearly and quarterly
premium, and a grace period of 15days in case of monthly premium.

 Loan Facility- Once you have paid the premium for three years, you can avail the loan.

 Tax Benefits- The amount of premium paid is exempted under section 80C and the maturity

 The plan is a combination of whole life plan and an endowment plan. The plan continues to
provide coverage in case of the sudden death of the insured and even after the maturity of the
plan.

 Maturity- A traditional endowment plan with the added feature that even after the
maturity, the plan continues to be in force.

 Tax Benefits- Premium paid and the maturity amount is exempted under section 80C and
10(10D).

 Entry Age- It is available for individuals between the age of 18 years and 50years.

 Grace Period- A grace period of 30days is applicable.

 Rider Available: LIC’s Accidental death and disability benefit rider are applicable.

3. LIC’s Jeevan Lakshya

 This is a conventional endowment plan with profits. The policy is useful for minors and offers
a lump-sum amount irrespective of the survival of the insured at the time of policy maturity

 Sum Assured- Minimum sum assured is Rs.1,00,000/-.

 Entry Age – The insured should be between 18 years and 50years of age and the maturity age is
44
6 years.

45
 Premium Tenure- Irrespective of the tenure of the policy, the premium tenure is 3 years.

 Maturity Benefits- Sum Assured plus Bonus and the Final Additional Bonus (FAB).

 Death Benefits- Sum assured (110% of the premium paid) plus bonus and FAB. Riders
Available:

 LIC’s Accidental death and disability benefit rider

 LIC New Term Insurance Rider

4. LIC’s Bima Diamond

 It is a perfect plan for individuals who are looking for a short-term investment with periodic
guaranteed return and added benefits.

 Extended Protection Period- Your protection is extended, even after the completion of the
policy tenure, to half of the policy tenure.

 Money Back- After every 4th year of the policy, you get an assured amount as money back.

 Addition Cover Period- In the case of non-payment of the premium for full five policy years,
an Auto Cover Period of two years is offered.

 Maturity Benefits- The sum assured and the loyal additions are paid at maturity.

 Maturity is calculated as – 55% of the basic sum assured for 16 years and 45% of the basic
sum assured for 20 and 24 years.

 Riders Available:

 LIC’s Accidental death and disability benefit rider

 LIC New Term Insurance Rider.

46
 LIC’s New Money Back Plan -20 Years

 This plan is a money-back traditional endowment plan. It is a non-linked plan. The survival
benefits are disbursed after the completion of every fifth year of the policy.

 Policy Term– The policy is valid for 20 years

 Minimum Sum Assured – Minimum sum assured is Rs.100,000/-

 Survival Benefits- 20% of the sum assured is paid on the 5th, 10th, and 15th year of the policy.

 Death Benefits- The nominee receives the sum playout plus the bonus and the FAB. It is ten
times the total sum of the annual premium or 125% of the basic sum assured.

 Maturity Benefits- The balance 40% of the sum is paid with Bonus plus FAB to the
policyholder.

47
5. LIC's New Bima Bachat

 It is a traditional single premium endowment plan. However, the survival benefits are paid just
like in a money back plan.

 Survival Benefits- After every three years, if the insured is alive, 15% of the basic sum assured
is paid as survival benefit.

 Maturity Benefits- The complete single premium along with Loyalty Addition is paid.

 Death Benefits- In the case of death of the policy tenure the complete, sum assured along with
the Loyalty addition are paid to the nominee.

6. LIC’s New Children’s Money Back plan

 A traditional money back policy specially designed for the benefit of children, even in the case
of the absence of parents. The child’s life is also covered.

 Life Cover of Child- If the age of the life assured is less than 8 years, the risk cover starts one
day before the commencement date of two years.

 Survival Benefits- The survival benefits are disbursed once the life assured has attained the age
of 18years and is paid @20% of the sum assured. It is paid every policy anniversary year.

 Death Benefits- If the life assured dies before the commencement of the risk, the paid
premiums are returned. The benefits of sum assured plus bonus and FAB is paid in case the
death is after the commencement of risk.

 Tax Benefits- The premium paid and the sum assured are exempted under the section 80C and
10(10D).

 Entry Age- 0 years to 12 years.

 Policy Term- 25years.

7. LIC’s Jeevan Tarun

 This is a participating endowment plan for children up to the age of twelve years. There are

48
 four options to receive the maturity and survival benefits. It is best suited for a child’s
education.

 Premium Period- 20 years but the policy continues till 25 years.

 Risk Cover- Either at the age of 8years or two years after the commencement of the policy.

 Survival Benefits- The last five years, when the policyholder is not paying the premium, he has
the option of receiving the survival benefits in four different forms- 0%, 5%, 10% and 15% of
the sum assured.

 Maturity Benefits- The balance sum assured and the bonus are paid as the maturity benefits
after the completion of tenure of the policy.

 Death Benefits- In the case of the death of policyholder, the nominee gets the sum assured at
the time of death and the acquired bonus. This is irrespective of the amount paid as the
“survival benefit”.

 Tax Benefits- The premium paid and sum assured are exempted under section of 80C and
10(10D).

 Riders Available:

 LIC’s Premium Waiver Benefit Rider is offered.

8. LIC's Amulya Jeevan 2

 This is purely a term plan whereby in case the insured dies within the policy tenure, the nominee
gets the sum assured or the death benefits.

 Sum Assured - Minimum Sum Assured is Rs.25Lacs. However, it can be as high as 1 crore.

 Tenure - The tenure can be as long as 35years.

 Tax Benefits - The Premium paid and the sum assured are exempted under the section 80C
and 10(10D).

 Entry Age - Entry Age is 18 years to 60years.

 Grace Period - Grace Period of 30days is available to pay the premium.

49
50
9. LIC Bhagya Lakshmi Plan

 This micro insurance policy is specially designed for lower- income groups and has features of
investment, savings, and insurance. Unlike any term plan, it also offers Maturity Benefits to the
surviving policyholder.

 Death Benefit- In case of sudden death of the policyholder within the policy tenure, the
nominee gets the assured sum.

51
 Unit plans:
Unit plans are investment plans for those who realize the worth of hard-earned
money. These plans help you see your savings yield rich benefits and help you
save tax even if you don’t have consistent income.

 Jeevan plus

 Future plus

 Bima plus

 Market plus

 Money plus

 Profit plus

 Fortune plus

52
 PROFIT PLUS

Features

It is a unit linked Endowment plan where the premium payment term (PPT) is limited to single lump sum, or
uniformly over 3, 4 or 5 years. You can choose the level of cover within the limits, which will depend on
whether the policy is a Single premium or Limited premium contract, term chosen and on the level of
premium you agree to pay.

Four types of investment Funds are offered. Premiums paid after allocation charge will purchase units of the
Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease,
depending on the Net Asset Value (NAV).

Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS) intervals over the
premium paying term of 3, 4 or 5 years. The minimum premium will be Rs.10000/-. Alternatively, a Single
premium can be paid subject to a minimum of Rs.20, 000/- .

Other Features:

i) Partial Withdrawals: You may in cash the units partially after the third policy anniversary subject
to the following:

53
In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with
or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).

Partial withdrawals may be in the form of fixed amount or in the form of fixed numbers of units.

For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be
reduced to the extent of the amount of partial withdrawals made.

Under Limited Premium Paying Term policies where less than 3 years’ premiums have been paid
and further premiums are not paid, the partial withdrawals shall not be allowed.

Under Limited Premium Paying Term policies where atleast 3 years’ premiums have been paid,
partial withdrawal will be allowed subject to Policyholder’s Fund Value being at least Rs. 10000/-.

Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum
balance of Rs. 5000/- in the Policyholder’s Fund Value.

Switching: You can switch between any fund types for the entire Fund Value during the policy term
subject to switching charges, if any.

Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or

monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the
Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of
first unpaid premium.

I Where at least 3 years’ premiums have been paid, the Life Cover, Accident Benefit and Critical Illness
Benefit riders, if any, shall continue during the revival period.

During this period, the charges for Mortality, Accident Benefit and / or Critical Illness Benefit cover, if any,
shall be taken, in addition to other charges, by canceling an appropriate number of units out of the
Policyholder’s Fund Value every month. This will continue to provide relevant risk covers for:

two years from the due date of first unpaid premium, or

Till the date of maturity, or

54
Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-, whichever is earlier.

The benefits payable under the policy in different contingencies during this period shall be as under:
In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s Fund Value.
The Sum Assured shall be subject to provisions of Partial Withdrawals made, if any.

55
In case of Death due to accident: Accident Benefit Sum Assured in addition to the amount under ‘A’
above, if Accident Benefit is opted for.

In case of Critical Illness claim: Critical Illness Rider Sum Assured, if opted for.

On maturity: The Policyholder’s Fund Value.

In case of Surrender (including Compulsory Surrender): The Policyholder’s Fund Value. The
Surrender value, however, shall be paid only after the completion of 3 policy years.

In case of Partial Withdrawals: For 2 years period from the date of withdrawal, the sum assured
under the basic plan shall be reduced to the extent of the amount of partial withdrawals made.

II Where the policy lapses without payment of at least 3 years’ premiums, the Life Cover, Accident Benefit
and/or Critical Illness Benefit rider covers, if any, shall cease and no charges for these benefits shall be
deducted. However, deduction of all the other charges shall continue. The benefits under such a lapsed policy
shall be payable as under:

In case of Death: The Policyholder’s Fund Value.

In case of death due to accident: Only, the amount as under G above.

In case of Critical Illness claim: Nil.

In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value / monetary

value as the case may be, shall be payable after the completion of the third policy anniversary. No
amount shall be payable within 3 years from the date of commencement of policy.

In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even
after completion of 3 years period.

Revival: If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can
be revived during the period of two years from the due date of first unpaid premium or before
maturity, whichever is earlier. The period during which the policy can be revived will be called

56
“Period of revival” or “revival period”.

If premiums have not been paid for at least 3 full years, the policy may be revived within two years from the
due date of first unpaid premium. The revival shall be made on submission of proof of continued insurability
to the satisfaction of the Corporation and the payment of all the arrears of premium without interest.

If at least 3 full years’ premiums have been paid and subsequent premiums are not paid, the policy may be
revived within two years from the due date of first unpaid premium but before the date of maturity. No proof
of continued insurability shall be required but

57
all arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a lapsed
policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and
is specifically communicated in writing to the Proposer / Life Assured.

Irrespective of what is stated above, if less than 3 years’ premiums have been paid and the Policyholder’s
Fund Value is not sufficient to recover the charges, the policy shall be terminated and thereafter revival will
not be entertained. If 3 years’ or more than 3 years’ premiums have been paid and the Policyholder’s Fund
Value reduces to Rs.
5000/-, the policy shall terminate and Policyholder’s Fund Value as on such date shall be refunded to the Life
Assured and thereafter revival will not be allowed.

Settlement Option: When the policy comes for maturity, you may exercise “Settlement Option” and
may receive the policy money in instalments spread over a period of not more than five years from
the date of maturity. There shall not be any life cover during this period. The value of installment
payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down
depending upon the performance of the fund.

REINSTATEMENT:
A policy once surrendered can not be reinstated.

Risks borne by the Policyholder:

LIC’s Profit Plus is a Unit Linked Life Insurance products which is different from the traditional
insurance products and are subject to the risk factors.

The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated

58
with capital markets and the NAVs of the units may go up or down based on the performance of fund
and factors influencing the capital market and the insured is responsible for his/her decisions.

Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Profit
Plus is only the name of the unit linked life insurance contract and does not in any way indicate the
quality of the contract, its future prospects or returns.

Please know the associated risks and the applicable charges, from your Insurance agent or the
Intermediary or policy document of the insurer.

The various funds offered under this contract are the names of the funds and do not in any way
indicate the quality of these plans, their future prospects and returns.

All benefits under the policy are also subject to the Tax Laws and other financial

59
enactments as they exist from time to time.

Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the
policy to us within 15 days.

Assignment:
Assignment will be allowed under this plan.

Exclusions:
In case the Life Assured commits suicide at any time within one year, the Corporation will
not entertain any claim by virtue of the policy except to the extent of the Fund Value of the
units held in the Policyholder’s Fund Value on death.

60
  CHAPTER NO.9
 NEW PRODUCTS LAUNCHED:

Your Corporation offers a wide variety of products, which fulfil the needs of different
customer segments of the society.

During the financial year 2022-23, the Corporation introduced seven (7) new
Individual products viz LIC''s Bima Ratna, LIC''s Dhan Sanchay, LIC''s New Pension
Plus, LIC''s Dhan Varsha, LIC''s New Tech -Term, LIC''s New Jeevan Amar, LIC''s
Jeevan Azad and one (1) Group Rider viz. LIC''s Group Accident Benefit Rider.

In addition, the Corporation also introduced modified versions of five (5) Individual
Products viz; LIC''s Aadhaar Stambh, LIC''s Aadhaar Shila, LIC''s New Jeevan
Shanti, LIC''s Jeevan Akshay -VII and LIC''s Saral Pension.

61
As at the end of the financial year 2022-23, the Corporation had thirty seven(37)
Individual Products, eleven (11) Group Products, seven (7) Individual Riders and 1
Group Rider available for sale.

62
  CHAPTER NO.11

 HUMAN RESOURCE:(EMPLOYMENT)
As on March 31, 2023, the Corporation has a total of 98,463 employees on roll which
includes 23,157 female employees (constitutes approx. 23.52% of total employees). The
details are as under:

Particulars Male Female Total

CLASS-1 23,244 7,085 30,329

CLASS-2 17,863 1,142 19,005

CLASS-3 32,971 14,552 47,523

CLASS-4 1,228 378 1,606

Total 75,306 23,157 98,463

Table No:-11.1

63
  CHAPTER NO.12
 SOCIAL ACTIVITY

LIC GOLDEN JUBILEE FOUNDATION (LICGJF):

LIC Golden Jubilee Foundation (LICGJF) was established in the year 2006 as a part of LIC''s Community
Service initiatives. The objectives of the Foundation are Relief of Poverty or Distress, Advancement of
Education, Medical Relief and Advancement of any other object of General Public Utility.
During the year, your Corporation has provided ? 100/- crore to the foundation and as on March 31,2023,
LICGJF''s total corpus was of ? 360 Crore. The interest earned on the corpus is utilised for funding various
projects for charitable purposes. Since inception, the Foundation has supported NGOs located across the
country and dedicated to the above objectives through 723 projects amounting to ? 145.52 Crores. During
2022-23, the Foundation has sanctioned ? 18.49 Crore for 77 projects. The Foundation has reached out to
many deprived sections of society through infrastructural support provided in the above areas. LIC Golden
Jubilee scholarship Scheme provides scholarships to children from economically weaker sections of the
society, amounting to ? 20,000/- p.a for regular students for pursuing higher education and ?10,000/- p.a to
special girl child for pursuing 10 2 education. During 2022-23, scholarship of ? 10.04 crore was disbursed.
Since inception, LICGJF has disbursed scholarships of ? 59.02 crore to 24,875 students.

64
  CHAPTER NO.15
 FINDINGS

QUESTIONNAIRE ANALYSIS

Respondents = 80
Respondents Responded = 60

Response Rate = 75%

Table NO:-15.1

Respondents are taken from private, government and business sectors.

According to you, which have played a major role in the field of life- insurance companies?

Insurance Pvt. Employees Govt. Employees Business Man

LIC 10 13 10
HDFC 5 3 5
ICICI 3 3 4
Others 2 1 1

Table NO:-15.2
1

N
o. Pvt. Employees Govt. Employees Business Man
of
R
es
po
nd
en
ts

LIC HDFC ICICI Others

Table NO:-15.3

65
After analyzing this data it is found that from the given three respective level of Pvt. Govt. and Business 10
out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%)
are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%),
1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies.

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67
Is retirement bond or pension policy launched by the number of private player as well as public sector
Company in the direction of secured old AGE?

Pvt. Sector Govt. Sector Business Man

Yes 15 18 13
No 5 2 7

Table NO:-15.6

Yes
No

Pvt. Sector Govt. Sector Business Man

Table NO:-15.7

68
It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 13 out of 20 (39%) from
the given three think retirement bend or pension policy a legitimate step in the direction of secure old age but
5 out 20 (15%), 2 out of 20 (6%) and 7 out 20 (21%) don’t agree with the opinion of the majority class.

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Do you think that the arrival of so many private companies in this insurance sector envisage a lot of
choice to policy holder?

N
o.
of Pvt. Sector Govt. Sector Business Man
R
es Yes 16 18 16
p No 4 2 4
o
TablenNO:-15.8
de

From analyzing the above data it is found that 16 out of 20 (48%) from Pvt. Sector, 18 out of 20 (54%) from
Govt. sector and 16 out of 20 (48%) think that the arrival of private players envisage a lot of choice to policy
holder. But 4 out of 20 (12%), 2 out of 20 (6%) and 4 out of 20 (12%) don’t think it so.

70
Do you agree that customer-centricity and transparency are the buzzwords for success in this evolving
industry?

71
Table NO:-15.10

From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector and 20 out of 20 (60%) from Govt.
Sector 19 out of 20 (57%) from Business men agree with this statement whereas only 2 out of 20 (6%) from
Pvt. Sector and 1 out of 20 (3%) from Business men do not agree with this statemen

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  CHAPTER NO.17
 PROFIT & LOSS REPORT;-

1. HIGHLIGHTS OF FINANCIAL PERFORMANCE:

The Highlights of the Standalone financial performance of the Corporation for financial year under review,
are presented below:

(? in crore)

Particulars 2022-23 2021-22 Growth

New business Premium (Net of

Reinsurance)

First Year Premium 39,054.94 36,615.35 6.67%

Single Premium 1,92,960.65 1,62,282.83 18.90%

Renewal Premium 2,41,989.02 2,28,521.03 5.90%

Total Premium 4,74,004.61 4,27,419.21 10.90%

Investment & Other income 3,14,048.03 2,93,683.36 6.93%

Total Income 7,88,052.64 7,21,102.57 9.28%

Profit after Tax (PAT) 36,397.39 4,043.12 800.23%

Other Key Parameters:

Particulars 2022-23 2021-22 Growth

Corporation's Annual Premium Equivalent

56,682.00 50,390.00 12.49%
(APE) (? in crore)

Assets under Management 43,97,204.59 40,84,600.65 7.65%

Embedded Value (? in crore) 5,82,243.00 5,41,492.00 7.52%

* Solvency Margin 1.87 1.85 -

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Table NO:-16.1

• Solvency margin is calculated before considering the proposed final dividend for the FY, which is subject to
shareholders’ approval in AGM.
Your Corporation witnessed consistent performance and growth in FY2023. Some of the other key financial
parameters of the Corporation are as follows:
• Gross NPA has decreased by 55.58% from ?27,087.11 crore in FY 2022 to ?12,031.36 crore in FY 2023.
• Net NPA has decreased by 96.63% from ?175.81 crore in FY 2022 to ?5.93 crore in FY 2023.
• Basic & Diluted EPS for the FY 2023 is ?57.55.
• Net retention ratio for the FY 2023 is 99.86%
COVID - 19:
In view of the changed claim experience during last two years and uncertainty of change in claim experience,
additional COVID reserve was provided for, in the valuation for the years ended March, 2021 and March,
2022. However, with the COVID related claims now significantly coming down and in view of improving
overall claim experience, no additional COVID reserve has been provided for the valuation as at March,
2023, as the mortality assumptions are adequate.

74
 CHAPTER NO.20
 MARETING STRATEGY OF LIC: -

Marketing Mix of LIC analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and
explains the LIC marketing strategy. There are several marketing strategies like product/service innovation,
marketing investment, customer experience etc. which have helped the brand grow.
Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the
widely used framework to define the strategies. This article elaborates the product, pricing, advertising &
distribution strategies used by LIC.
Let us start the LIC Marketing Mix & Strategy:

LIC Product Strategy:

The product strategy and mix in LIC marketing strategy can be explained as follows:

LIC or Life Insurance Corporation of India, is the biggest insurance company in India. LIC offers a range of
financial and investment products in its marketing mix like insurance, special, unit, pension, Micro
investment, withdrawn and health plans. LIC also offers participation in the government scheme of Aam
Admi Bima Yojana. Insurance plans include different types of plans like Endowment plan (Jeevan
Utkarsh, Jeevan Rakshak), Whole life plan (Jeevan Umang), Money Back plans (New Bima Bachat,
Jeevan Tarun), Term assurance plan (Anmol Jeevan I & II) and Riders like New Critical Illness Benefit
Rider. The special plans are combinations of insurance, investment and the security because of it. Pension
plans are more suited for senior citizens for secure future. Through pension plan, LIC also gives access to
government plan of Pradhan Mantri Vaya Vandana Yojana. Unit plans are the schemes for people with
inconsistent income and has benefits of rich returns and tax savings. It also offers group schemes for
employers, families, societies or associations. Life Insurance Corporation has different subsidiaries for
specialized services. These are; LIC Housing Finance, LIC Pension Fund Ltd, LIC International, LIC Cards
Services and LIC Mutual Fund.

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LIC Price/Pricing Strategy:
Below is the pricing strategy in LIC marketing strategy:
The main objective of LIC is to offer adequate financial cover to all insurable persons at reasonable and
affordable cost.
In 2017, LIC's market share for number of policies was 76.09% and sold 20 million new policies. The
product range of LIC is varied and so is the price range. The website is equipped with a 'Premium Calculator '
service wherein the premium for each scheme of Life Insurance Corporation can be calculated. It depends on
variables like age, term and sum assured. The payment of the premium can be paid by cash, cheque or DD at
cash counter of any LIC branch. Apart from this for ease of customers, premium can also be paid through
Alternate channels as described on website. Keeping up with the implementation of GST by Government of
India, LIC has replaced the service tax from earlier transaction with GST. The Tax rate will be different for
different schemes. It will also be charged on interest of delayed payments.
LIC Place & Distribution Strategy:
Following is the distribution strategy of LIC:
LIC of India operates on the principle of providing life insurance on wider scale and urban and rural areas so
all the insurable individuals have access to it. When Life Insurance Corporation was established, it had 5
zonal offices, 33 divisional offices and 212 branch offices governed by corporate office. To maintain long
term accessibility for the consumers and build up the trust with them, LIC expanded their operations and
opened the branches in each district. Due to this lot of organizational changes were initiated and branches got
more functionality and acted as accounting units. Presently, LIC headquarter is located in financial capital of
India, Mumbai with 2048 computerized branch offices, 113 divisional offices 8 zonal offices, 1381 satellite
offices. In tier 1 and 2 cities like Mumbai, Bangalore, Ahmedabad, Chennai, New Delhi, Pune on line kiosks
and IVRS info centres have been specially made. The new initiative called 'Satellite Sam Park' offices have
been opened for easy access to policy holders. Thus, LIC has thoroughly penetrated the Indian market with
reach in all the segments. Outside India, LIC operated in 13 countries through joint ventures or subsidiaries.
These countries include Bahrain, Qatar, Nepal, Singapore etc

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LIC Promotion & Advertising Strategy:
The promotional and advertising strategy in the LIC marketing strategy is as follows:
The product of LIC is intangible in nature involving customer involvement and loyalty in highly competitive
market. Life Insurance Corporation has strong market share. With the emergence of new insurance
organizations, LIC has to maintain its dominant position. LIC has used print and broadcast media exclusively.
LIC advertisements feature in many national as well as local newspapers and magazines. It shows returns on
the product and tax benefits from it. The television commercials for LIC appeal to emotions of consumer by
depicting importance of life insurance for the family when the earner of the family is no more. It ends with
the tagline of 'Zindagi Ke Sath Bhi, Zindagi Ke Baad Bhi' (With you during and after your life). LIC also
involved in co-promotion at various exhibitions, seminars for other products like real estate, medical services.
The communication with customer is maintained through multiple channels like IVRS, Call centres,
Customer zone, SMS, e-mail, website and social networking sites.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of LIC
(Life Insurance Corporation of India).
People:
LIC believes in insurance for all, i.e., all the insurable persons from rural and economically backward class
should receive financial security of insurance. It has the objective of involving all their employees to their
fullest capacity to serve the customers better. They also believe in integrating the corporate objective of
organization with personal objective of employees leading to job satisfaction and pride. Life Insurance
Corporation has a separate portal for its customers to submit their grievances. The grievance officers at
respective Grievance Redressed Office, attend the customer without prior appointment. LIC insurances can
be availed through the authorized LIC agents. The agents undergo exclusive training by LIC and have access
to the infrastructure access in the branch offices and sales-marketing support. Domestic as well as NRI
customers have information portal on the website providing guidance on services like premium calculation,
bonus information, policy status etc.

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Process:
LIC is a pioneer in the insurance industry. It is highly respected and trusted organization. The website of Life
Insurance Corporation is very informative and starts the customer education right from the need for
insurance, enlists its benefits and describes detailed information regarding all aspects of insurance and other
related financial services. It also gives detailed information about all the products and allows calculation of
cost and benefits of each. The form for the policy can be procured from the website or the agent or the nearest
branch of LIC. Application for policy requires the documents from the applicant. There are multiple ways for
payment of the premium making the process easy for consumer. The claim for the policy can also be made by
submission of formal request through form and producing necessary documentation. Thus, over the years LIC
has improved and adjusted its operations as per the changing times, keeping them customer centric.
Physical Evidence:
The offices of Life Insurance Corporation are in every district. The contracts for infrastructure developments
of the offices are invited through the Tender Notices. These notices are circulated in the newspapers and
website and bids are invited. The infrastructure is congenial to the requirements of customer having spacious
building with proper layout, adequate seating and waiting arrangements, pleasing ambiance, clear sign boards
for assistance, availability of the informative material and literature, telephone and basic restroom and
drinking water facilities. The physical proofs of all the necessary documents are required for the application
and availing of the policy. After the policy is acquired, it can be procured in the physical form and for some
of the official purposes, it is considered as a proof of address and date of birth. LIC logo consists of joined
hands holding a lamp.
Hence this completes the marketing mix of Life Insurance Corporation (LIC).

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  CHAPTER NO.22
 CONCLUSION; -

After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in
the Insurance Sector to give befitting competition to the established behemoth LIC in public sector, we come
at the conclusion that :
There is very tough competition among the private insurance companies on the level of new trend of
advertising to lull a major part of Customers.
LIC is not left behind in the present race of advertisement.

The entry of the Pvt. Players in the Insurance Sector has expanded the product segment to meet the
different level of the requirement of the customers. It has brought about greater choice to the
customers.
Private insurers have restricted reach to the customers.

LIC has vast market and very firm grip on its traditional customers and monopoly of life insurance
products.
Bank assurance - that allows life insurers to leverage on the risk product through bank network, was
adopted by private players. But LIC was also not left behind as picking up majority stake in the
corporation Bank and large equity stake in the Oriental Bank of Commerce.

IRDA is also playing very comprehensive role by regulating norms mandating to private
players in this sector, that increases the confidence level of the customers to the private
players.
The purpose of the study was how LIC works and how it retains the market. In FY21 LIC has the one of the
leading organisations who offers best insurance plans. LIC collects highest ever premium of Rs. 1.84 trillion
in FY21. LIC continued its performance in new business, despites a highly challenging business environment
due to the covid- 19. LIC is offering several plans which it says will provide insurance, protection, wealth
creation in the long term, secure financial future after retirement, health insurance. Apart from these, one will
get tax benefits under income tax act.
LIC employees are expected to benefit from wage revision with over 25 per cent hike in their packets 5 days’
work week. They always try to hold their customers by offering them with great new policy every quarters.

79
The customers have keen faith in LIC. And during pandemic of second wave on the month of may it
benefited to lots of customers financially and give relief for them and to their family.
Due to the great performance, it contributed 11% in the GDP growth during pandemic. Which make me
curious how it survives in pandemic and make such growth in this year that’s why I choose LIC as a
topic of internship report.

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  CHAPTER NO.23

 RECOMMENDATIONS

In the modernized well advanced hi-tech approach to the customer every possible facilities and effort to build
up the confidence of the rising policy holders towards. Insurance companies, to complete one another nothing
is left to recommend. But some recommendations that are intensely felt and highly required for insures to
sustain in the market. These are as follows:

More and more transparency should be ascertained between insurers and policy holders.
Particularly, in the emerging boom in the insurance company, every insurance company should be
customer centered, and well versed in the handling of problem and grievances of the policy holders.
Each and Every product launched by the Insurance company should be in favour of increasing need
of policy holders.
IRDA should be more and more responsible to the insurance sector by determining some standard. It should
be mandatory to every insurers to make more and more responsible and responsive to the policy holders so
that comprehensive understanding may be developed among policy holders. It may be beneficial on both
sides.

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  CHAPTER NO.24

 BIBLIOGRAPHY

BROCHURES / INFORMATION BOOKLETS

Product List L.I.C.

L.I.C. Annual Report, 2006

ICICI Annual Report, 2006

HDFC Annual Report, 2006

Malhotra Committee Report on Reforms in the Insurance Sector, 1993.

The Insurance Regulatory and Development Authority Bill, 1999.

NEWSPAPERS / MAGAZINES

The Economic Times

The Insurance Times

Insurance Post

BOOKS

Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004, New Delhi,

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WEBSITES

w.w.w.liclndia.com

www.lrdaindia.org.com

www.indiainfoline.com

www.icici.com

www.hdfc.com

https://www.licindia.in/getattachment/Bottom-Links/annual-report/LIC-Annual-Report-2015- 16.pdf.aspx

http://articles.economictimes.indiatimes.com/2012-01-23/news/30655455_1_brand-trust- report-trust-
research-advisory-n-chandramouli

http://economictimes.indiatimes.com/features/brand-equity/most-trusted-brands-2012-top-50- service-
brands/articleshow/17101285.cms

https://economictimes.indiatimes.com/markets/ipos/fpos/government-proposes-to-hike-lic- authorised-
capital-to-rs-25000-crore/articleshow/81375724.cms

83