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.

1
 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

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 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]

3
 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

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  INDEX
SR.NO CONTENTS PAGE.NO
1 Cover Page i
2 Declaration ii
3 Certificate iii
4 Acknowledgement iv
1 Table of content v
Executive Summary
2 INTRODUCTION 2
3 RESEARCH OBJECTIVE & METHODOLOGY 8
4 TYPES OF DATA USED

5 INTRODUCTION OF THE COMPANY

6 PLANS AND POLICY

7 SOME OF PLANS DETAIL OVERVIEW

8 NEW PRODUCTS LAUNCHED

9 CUSTOMER RELATIONSHIP MANAGEMENT

10 HUMAN RESOURCES

11 SOCIAL ACTIVIVTY

12 AWARDS AND RECOGNITIONS

13 OBJECTIVE OF LIC

14 FINDINGS

15 IMPORTANCE OF JOINT VENTURES

16 PROFIT AND LOSS

17 OBJECTIVE OF THE STUDY

18 MARKETING STRATEGY OF LIC

19 CONCLUSION

20 RECOMMENDATIONS

21 BIBLIOGRAPHY

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  TABLE OF CONTENTS

SR.NO CONTENTS PAGE.NO

.Table No:-5.1 pension plans of Life Insurance Corporation of India
Table No:-5.2 whole-life plans offered by the company
Table No:-5.3 LIC UNIT LINKED PLAN
Table No:-5.4 LIC PENSION PLANS
Table No:-5.5 money-back plans
Table No:-5.6 term plans offered by the Life Insurance Corporation of India
Table No:-5.7 Sample Premium Illustration of LIC Plans
Table No:-6.1 LIC Jeevan Labh Plan Eligibility Criteria
Table No:-6.2 Eligibility Criteria of LIC Jeevan Umang Plan
Table No:-6.3 LIC Kanyadan Policy Eligibility Criteria
Table No:-6.4 LIC’s New Children’s Money Back Plan's
Table No:-6.5 Details About Premium
Table No:-11.1 EMPLOYEMENT DETAILS CHART
Table NO:-13.1 DETAILS OF RESPONDENT

Table NO:-13.2
Table NO:-13.3
Table NO:-13.4
Table NO:-13.5
Table NO:-13.6
Table NO:-14.1 HIGHLIGHTS OF FINANCIAL PERFORMANCE

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  EXECUTIVE SUMMARY

The performance management system is a process of setting objectives,

making plans to achieve those objectives and accomplishing the desired
results and also performance management system is an organized method by
which an organization involves its employees as individuals as well as
members of a team where its prime target is to improve its organizational
effectiveness while accomplishing organizational mission and goals. This
System incessantly works to provide a complete scenario of employee
performance to the highest management. Organizations use this system to
assess the performance of an individual, a team, a function and then the
organization as a total. It works to accelerate the progression of the
organization. Organisation believes that the ability of the employees to
perform well depends on proper guidance, qualities, skills and competencies.

This project describes about the performance management system which is

followed inalfa engineering works. This project also describes the problems
faced by the employeesin this system. It also elaborates about the steps taken
by the management to improve the performance of employess.

In this project we study the developments made to prevailing performance

managementsystem for last 3 years. then also study satisfaction of employees
with respect to performance management system and analyse the effect of
performance management system in improvement of employee performance.

2
 1.
INTRODUCTION

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• 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 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

4
 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.
• 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.

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• 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 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

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 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 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

7
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.

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  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

.
 2.

INTRODUCTION OF THE COMPANY

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 “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.

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 3.
LIC MISSIONS AND VISSIONS

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 MISSION OF LIC: -

“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 andpride of

India.”

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 4.
General Insurance:

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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

15
 5.

PLANS AND POLICY:

16
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.

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

LIC Endowment Plan Name Entry Age Maturity Minimum Sum Assured (in
Age Rs.)
Bima Jyoti 90 days-60 years 70 years Rs. 1 Lakh

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

years
Single Premium Endowment Plan 90 days -65 75 years Rs. 50,000
years
New Jeevan Anand 18 Years -50 75 years Rs. 1 Lakh
years
Jeevan Labh 8 Years -59 75 years Rs. 2 Lakh
years
Aadhaar Shila 8 Years -55 70 years Rs. 2 Lakhs
years
Jeevan Lakshya 18 Years -50 65 years Rs. 1 Lakh
years
Aadhaar Stambh 8 Years -55 70 years Rs. 2 Lakhs
years
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

. Table No:-5.1 pension plans of Life Insurance Corporation of India

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 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:

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

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

Jeevan Utsav 90 days-65 years NA Rs.5 Lakhs

Table No:-5.2 whole-life plans offered by the company

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 3. LIC Unit-Linked Plans

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.

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

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

Plus years

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

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

years

Table No:-5.3 LIC UNIT LINKED PLAN

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 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.

LIC Pension Plan Name Entry Age Vesting Age Minimum Purchase
Price

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

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

Saral Pension 40 Years -80 years - -

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

annually

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

Table No:-5.4 LIC PENSION PLANS

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

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:

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 Back 0 Years -12 years 25 years Rs. 1 Lakh
Plan

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 years 80 years Rs. 2 Lakhs

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

years

Table No:-5.5 money-back plans

6. LIC Term Insurance Plans

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 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 deat h 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:

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

Table No:-5.6 term plans offered by the Life Insurance Corporation of India

7. LIC Riders

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

23
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

24
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.

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

Table No:-5.7 Sample Premium Illustration of LIC Plans

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 6.

SOME OF PLANS DETAIL OVERVIEW

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 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.

27
 ➢ LIC Jeevan Labh Plan Eligibility Criteria

Criteria Minimum Maximum

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

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

Maturity Age N/A 75 years

Policy Term 16, 21& 25 years

Premium Paying 10, 15 & 16 years

Term

➢ Table No:-6.1 LIC Jeevan Labh Plan Eligibility Criteria

➢ 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

28
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).

⚫ 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 Ac t.

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

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 Eligibility Criteria Minimum Maximum

Entry Age 90 days 55 years

Policy Term 100 years- Age at entry

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

➢ Table No:-6.2 Eligibility Criteria of LIC Jeevan Umang Plan

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

➢ 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

30
⚫ 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

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 -

31
 • 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 -

• 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

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

Table No:-6.3 LIC Kanyadan Policy Eligibility Criteria

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

32
 • 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.
• 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.

33
• 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.

• LIC’s New Children’s Money Back Plan's Benefits

34
Listed below are the three key benefits offered within LIC New Children’s Money Back Plan:

• 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.

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 years 7 pay, 10 pay or (term-5)

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

Premium 24,000 No limit

Sum Assured 100,000 No limit

Table No:-6.4 LIC’s New Children’s Money Back Plan's

• 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

35
 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

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

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

➢ Table No:-6.5 Details About Premium

➢ 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.

36
⚫ 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.

37
 7.

Insurance plans:

38
 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

 The Money Back Policy-20 Years The Money

Back Policy-25 Years Jeevan Surabhi-15

39
 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

40
 Two Year Temporary
Assurance Policy The
Convertible Term
Assurance Policy Anmol
Jeevan-I
Amulya Jeevan

Jeevan Saathi

41
 8.

Types of LIC Life Insurance Plans

42
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 atmaturity 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.

• 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.

43
• Maturity- A traditional endowment plan with the added feature that even after thematurity, the
plan continues to be in force.

• Tax Benefits- Premium paid and the maturity amount is exempted under section 80C and10(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 offersa 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 maturityage is 6 years.

44
• 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 ofthe policy
tenure, to half of the policy tenure.

• Money Back- After every 4th year of the policy, you get an assured amount as moneyback.

• Addition Cover Period- In the case of non-payment of the premium for full five policyyears, 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 thebasic sum
assured for 20 and 24 years.

• Riders Available:

• LIC’s Accidental death and disability benefit rider

• LIC New Term Insurance Rider.

• LIC’s New Money Back Plan -20 Years

• This plan is a money-back traditional endowment plan. It is a non-linked plan. The survivalbenefits
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/-

45
• Survival Benefits- 20% of the sum assured is paid on the 5th, 10th, and 15th year of thepolicy.

• Death Benefits- The nominee receives the sum playout plus the bonus and the FAB. It isten 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 thepolicyholder.

46
5. LIC's New Bima Bachat

• It is a traditional single premium endowment plan. However, the survival benefits are paid justlike in a
money back plan.

• Survival Benefits- After every three years, if the insured is alive, 15% of the basic sumassured 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 alongwith 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 caseof 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 startsone 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 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

47
 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 assuredat 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 and10(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 nomineegets the
sum assured or the death benefits.

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

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

• Tax Benefits - The Premium paid and the sum assured are exempted under the section80C and
10(10D).

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

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

48
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.

49
• 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

50
• 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

51
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
Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-, whichever is earlier.

52
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 “Period of revival”

53
or “revival period”.

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 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

54
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

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

55
.

9.
NEW PRODUCTS LAUNCHED

56
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.

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.

57
 10.
HUMAN
RESOURCE:(EMPLOYMENT)

58
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:

Table No:-10.1 EMPLOYEMENT DETAILS CHART

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

59
 12
SOCIAL ACTIVITY

60
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.

61
 13.
FINDINGS

62
QUESTIONNAIRE ANALYSIS

Respondents = 80

Respondents Responded = 60

Response Rate = 75%

Table NO:-13.1 DETAILS OF RESPONDENT

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:-13.2

No. of Respondents

Pvt. Employees Govt. Employees Business Man

LIC HDFC ICICI Others

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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Do you think insurance policy is in the direction of public welfare?

Pvt. Sector Govt. Sector Business Man

Yes 13 16 12
No 7 4 8

Table NO:-13.3

No. of Respondents

Yes
No

0
Pvt. Sector Govt. Sector Business Man

The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of 20 (21%) disagree,
from govt. sector 16 out of 20 (48%) think it right but 4 out of 20 (12%) don’t thick it so and from business
man 12 out of 20 (36%) are in favour of the above statement but 8 out of 20 (24%) don’t favour it.

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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:-13.4

Yes
No

Pvt. Sector Govt. Sector Business Man

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?

No. of Respondents

Pvt. Sector Govt. Sector Business Man

Yes 16 18 16
No 4 2 4

Table NO:-13.5

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.

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

Pvt. Sector Govt. Sector Business Man

Yes 18 20 19
No 2 - 1

Table NO:-13.6

20

15
Yes
No
10

0
Pvt. Sector Govt. Sector Business Man

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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 14.
PROFIT & LOSS REPORT;-

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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 -

Table NO:-14.1 HIGHLIGHTS OF FINANCIAL PERFORMANCE

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• 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.

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 15
MARETING STRATEGY OF LIC: -

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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 ofplans like Endowment plan (Jeevan
Utkarsh, Jeevan Rakshak), Whole life plan (JeevanUmang), Money Back plans (New Bima Bachat,
Jeevan Tarun), Term assurance plan (AnmolJeevan 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 equippedwith 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 andrural 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 hasused 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 fromit. The television commercials for LIC appeal to emotions
of consumer by depicting importanceof life insurance for the family when the earner of the family is no
more. It ends with the taglineof 'Zindagi Ke Sath Bhi, Zindagi Ke Baad Bhi' (With you during and after
your life). LIC alsoinvolved 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 marketingmix 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 involvingall 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 RedressedOffice, attend the customer without prior appointment. LIC insurances can
be availed throughthe 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. Thewebsite 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 formfor 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 forpayment 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 seatingand 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 formand 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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 16
CONCLUSION; -

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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 offeringthem with great new policy every
quarters.
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 andto 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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 17
RECOMMENDATIONS

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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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 18
BIBLIOGRAPHY

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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,

WEBSITES

w.w.w.liclndia.com

www.lrdaindia.org.com

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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

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