Life Insurance Corporation of India has its presence from 100 years in one form or other.
Many Indians do not understand
exactly the depth of insurance. In this website, i am trying to give you little bit of tips only.
As one's end is uncertain, it is important to cover your life by insurance so that your nearer and dearer will not suffer
in case of your absence. Every one is doing this. But, most of the people are misguided by private insurance companies
and making them spending money.
Here, in LIC OF INDIA, if you are not satisfied with me, immediately call the LIC OF INDIA office and get updated or visit
our site www.licindia.com for more information.
Life insurance is a contract that pledges payment
of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is
valid for payment of the insured amount during:
- The date of maturity, or
- Specified dates at periodic intervals, or
- Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder.
Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty
and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. It takes care of the
person who is in the older age and no income source.
A
contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all
material facts is embodied in this important principle, which applies to all forms of insurance.
The statement given by the policy holder should be true when the original form is filled.
Protection:
Savings through life insurance guarantee full protection against risk of death of the
saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses
wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.
Aid
To Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly
because of the 'easy instalment' facility built into the scheme. You can pay monthly, quarterly, half yearly and yearly.
There is salary saving scheme also is available (thru salary deductions). In this case the employer directly pays the deducted
premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides,
a life insurance policy is also generally accepted as security, even for a commercial loan.
Tax Relief:
For
those who are working or doing business, will have the advantage of tax exemptions once invested in LIC OF INDIA.
Money
When You Need It:
A policy that has a suitable insurance plan or a combination of different plans can be effectively
used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage
provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific
purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building
or for purchase of flats (subject to certain conditions).
Any person who is a major can attain the
policy. For Children, parents will be the proposer.
In certain cases depends on age especially, medical has to be done for approval of the policy proposal form and admission.
Prior to nationalisation (1956), many private insurance
companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation
of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time.
At
present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only
if the age of the female is up to 30 years and if she does not have an income attracting Income Tax.
Life insurance is normally offered after a medical examination of the life to be assured.
However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover
without any medical examination, subject to certain conditions.
An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after
periodical valuations are allotted to the policy and are payable along with the contracted amount.
In 'without' profit
plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore
higher than for a 'without' profit policy.
Various Employer-employee schemes are also available.
