Life Insurance Corporation of India or LIC is the largest life insurance company in India and also the largest investor company in the country.

It is wholly owned by the Government of India. It was established in the year 1956. It is headquartered in Mumbai, the financial capital of India.

Life Insurance Corporation of India or LIC is the largest life insurance company in India and also the largest investor company in the country. It is wholly owned by the Government of India. It was established in the year 1956. It is headquartered in Mumbai, the financial capital of India.

If we talk about L.I.C. If we talk about it, then it is a company or corporation which is very old, insurance is done in it, but it is the first company to win the trust of the people, on which people have got a lot of trusts.

Benefits of Insurance

There are many advantages to insurance, which secures you for your future. Some of its benefits are as follows. for example:

1. When you get any type of insurance, you have to pay certain installments after an interval. So that whenever there is a loss according to your insurance rules, you can get the right payment for it, which can help you in your troubled days.

2. You can get any type of insurance like car insurance, life insurance, health insurance, etc. In which you have to pay a fixed small amount monthly, half-yearly, or annually. And whenever there is a loss of the thing you have insured, then the insurer compensates for it. You don’t have to pay money for that.

3. If you have insured yourself and you die under some emergency circumstances and there is no other source of income in your house, then it is paid by insurance.

4. If you have insured your car or bike and it meets with an accident, then it is fully compensated through insurance. But in this, your insurance should be full-party insurance and not third-party insurance.

5. There are many such benefits that provide a lot of help to you and your family in the days of your troubles.

Loss of insurance

Its advantages are many but they also have some disadvantages like:

1 If you have taken any kind of insurance, then you have to work according to the rules of the policy and when your policy expires, you have to pay for it so that you can take advantage of that facility further.

2. If you want to terminate your insurance (i.e. surrender the policy) then you are paid an amount much less than the amount deposited.

3. If you have got yourself insured, then your family or your nominee gets its benefit after your death, but you do not get its benefit.

4. If you have got your own medical insurance means health insurance then it is not available for a long time, thus you have to get insurance every year. And during this time if you do not get sick then you do not get the money back without a claim.

If seen from more sides, the benefits of insurance are more and the disadvantages are less. If you are unable to spend more then insurance is the best solution for you. And if you also use any type of vehicle, then you should get it insured, it is in the interest of both you and your pocket.

Types of Life Insurance:

1. Term Insurance Plan

This plan can be bought for a fixed time, such as 10, 20, or 30 years. In this plan, coverage is available for a selected tenor ie period. There is no maturity benefit in such a life insurance policy. Provides life cover without savings/profits component.

2. Moneyback Insurance Policy

This policy is a type of endowment policy. In this policy also there is a combination of investment and insurance. The difference is that in this life insurance policy, the sum assured along with the bonus is returned in installments only during the policy term. The last installment is payable at the end of the policy. If the policyholder dies during the policy term, the entire assured sum is received by the beneficiary. Although the premium of this policy is the highest.

3. Endowment Policy

This type of life insurance policy consists of both insurance and investment. This policy has risk cover for a fixed period and at the end of that period, the sum assured along with the bonus is returned to the policyholder. Under an endowment policy, the face value of the policy amount is paid on the death of the policyholder or after a specified number of years. Some policies also pay in case of critical illness.

4. Savings and Investment Plans

This type of life insurance plan assures a lump sum fund for future expenses to the insured and his family. Such plans not only provide excellent savings tools for short-term and long-term financial goals but also assure a fixed amount of money to your family in the form of insurance coverage. This type of life insurance category covers both traditional and unique linked plans.

5. ULIP

In this plan also, both protection and investment remain. The returns received in traditional i.e. endowment insurance policy and money-back policy is assured to an extent, while there is no guarantee of return in ULIP. This is because the investment portion in ULIP is invested in bonds and shares and you get units like mutual funds. In this case, the returns are based on the ups and downs of the market. However, you can decide how much of your money should be invested in shares and how much money should be invested in bonds.

6. Life Insurance

In Life Insurance i.e. Whole Life Insurance Plan, you get lifetime protection. That is, there is no term for the policy. In case of the death of the policyholder, the nominee gets the insurance claim. Other life insurance policies have a maximum age limit, which is usually 65-70 years. After that, on death, the nominee cannot take the death claim. But under whole life insurance, even if the policyholder dies at the age of 95, the nominee can claim. The premium of this policy remains very high.

7. Child Insurance Policy

These plans have been designed keeping in view the expenses and other needs of the children’s education. In a child plan, a lump sum amount is paid after the death of the policyholder but the policy does not lapse. All future premiums are waived off and the insurance company continues to invest on behalf of the policyholder. The child gets money for a certain period.

8. Retirement Plan

Life insurance coverage is not available in this plan. This is a retirement solution plan. Under this, you can create a retirement fund by assessing your risk. After a fixed period, a fixed amount will be paid to you or your subsequent beneficiary as a pension. This payment can be on a monthly, half-yearly, or yearly basis.