Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) is the largest insurance company in India with an association of over 245 insurance companies and provident societies. It was incorporated in 1956 and has its headquarter in Mumbai, India. The company has completed 64 years and today, it stands proud of the fact that it has become what was envisioned way back at the time of its establishment.
Let's discuss all the LIC Life Insurance Plans in detail-
1. LIC Endowment Plans
This plan provides financial assistance to the family in case of the death of the life insured before maturity. It also offers a provision of payment of lump sum at the end of the selected policy term in case of policyholder's survival.
Eligibility Criteria:
Entry Age | 18 years-50 years |
Maximum maturity age | 75 years |
Policy term | 15-35 years |
Sum assured | Rs. 1,00,000- No Limit |
**Last updated on 05-11-2020
ii) LIC Jeevan Labh
LIC Jeevan Labh is a limited premium paying, non-linked, with-profits endowment plan that provides a combination of protection and savings. It also provides financial assistance to the family in case of unfortunate death of the insured and in case of maturity, a lump sum amount is payable.
Eligibility Criteria:
Entry Age | Min: 8 years Max: 59 years for Policy Term 16 years 54 years for Policy Term 21 years 50 years for Policy Term 25 years |
Maximum maturity age | 75 years |
Policy term | 16 years, 21 years, 25 years |
Sum assured | Rs. 2,00,000- No Limit |
**Last updated on 05-11-2020
iii) LIC New Endowment Plan
LIC New Endowment Plan is a participating non-linked plan, which provides an exclusive combination of protection and saving features. This plan offers financial support to your family, so they can live a stable life in case of your death. Also, at the time of maturity, the insured is liable to receive a lump sum amount.
Eligibility Criteria:
Entry Age | 8 years-55 years |
Maximum maturity age | 75 years |
Policy term | 12-35 years |
Sum assured | Rs. 1,00,000- No Limit |
**Last updated on 05-11-2020
iv) LIC Single Premium Endowment Plan
LIC Single Premium Endowment Plan is a participating, non-linked, savings individual life assurance plan in which the premium is paid in a lump sum at the outset of the policy. This combination provides financial assistance against death during the policy tenure by paying a lump sum at the end of the chosen policy term (in the event of policyholder's survival).
Eligibility Criteria:
Entry Age | 90 days- 65 years |
Maximum maturity age | 75 years |
Minimum Policy term | 10 years |
Minimum sum assured | Rs. 50,000 |
**Last updated on 05-11-2020
v) LIC New Bima Bachat Plan
LIC New Bima Bachat Plan is a participating, non-linked, savings cum protection plan in which the premium is paid in a lump sum at the outset of the plan. It is a money-back plan that offers financial protection to the family of the insured in case of his/her death during the policy tenure.
Eligibility Criteria:
Entry age | 15-50 years |
Maximum maturity age | - 59 years for term 9 years
- 62 years for term 12 years
- 65 years for term 15 years
|
Minimum sum assured | - Rs.35,000 for term 9 years
- Rs.50,000 for term 12 years
- Rs.70,000 for term 15 years
|
Premium payment mode | Single premium only |
Policy term | 9, 12, or 15 years |
**Last updated on 05-11-2020
vi) LIC Jeevan Lakshya
LIC Jeevan Lakshya is a participating, non-linked life assurance plan that provides a combination of savings and protection. This plan offers annual income benefit, which helps to fulfil the family requirements (in case of an unfortunate demise of the policyholder) any time before maturity. If the person survives the maturity period, a lump sum amount is paid to the policyholder.
Eligibility Criteria:
Entry Age | 18 years-50 years |
Maximum maturity age | 65 years |
Policy term | 13-25 years |
Minimum sum assured | Rs. 1,00,000 |
**Last updated on 05-11-2020
vii) LIC Aadhaar Shila Plan
Exclusively designed for females, LIC Aadhaar Shila Plan offers a combination of protection and savings. Under this plan, your family will receive death benefits to deal with all requirements and liabilities in case of your demise.
Eligibility Criteria:
Entry Age | 8 years-55 years |
Maximum maturity age | 70 years |
Policy term | 10-20 years |
Minimum sum assured | Rs. 75,000 |
**Last updated on 05-11-2020
viii) LIC Aadhaar Stambh Plan
Exclusively designed for male lives, LIC Aadhaar Stambh Plan is a mixture of protection and savings. This plan offers financial assistance to your family in case of the unfortunate death of the insured.
Eligibility Criteria:
Entry Age | 8 years- 55 years |
Maximum maturity age | 70 years |
Policy term | 10-20 years |
Minimum sum assured | Rs. 75,000 |
**Last updated on 05-11-2020
2. LIC Whole Life Plan
i) LIC Jeevan Umang Plan
LIC Jeevan Umang Plan is a non-linked, with-profit, whole life assurance plan. It provides a combination of income and protection to the policyholder and his/her family. The plan provides annual survival benefits from the end of the premium paying term until maturity.
Eligibility Criteria:
Entry Age | 90 days-55 years |
Maximum maturity age | 100 years |
Policy term | (100 – age at entry) years |
Minimum sum assured | Rs. 2,00,000 |
Premium Paying term | 15, 20, 25 and 30 years |
**Last updated on 05-11-2020
3. LIC Money Back Plans
i) LIC Bima Shree Plan
LIC Bima Shree is a non-linked, participating, individual life assurance savings plan that comes out with guaranteed and loyalty additions. This plan is designed for individuals who have a high net worth.
Eligibility Criteria:
Entry Age | Minimum: 8 years Maximum: - 55 years for policy term 14 years
- 51 years for policy term 16 years
- 48 years for policy term 18 years
- 45 years) for policy term 20 years
|
Maturity age | - 69 years for policy term 14 years
- 67 years for policy term 16 years
- 66 years for policy term 18 years
- 65 years for policy term 20 years
|
Policy tenure | 14,16,18 & 20 years |
Minimum sum assured | Rs. 10,00,000 |
**Last updated on 05-11-2020
ii) LIC Jeevan Shiromani Plan
LIC Jeevan Shiromani is a non-linked, participating, individual life assurance savings plan that offers a limited premium payment plan with minimum basic sum assured of Rs. 1 crore. The plan provides the required financial assistance to your family in case of your unfortunate demise during the policy tenure.
Eligibility Criteria:
Entry Age | Minimum: 18 years Maximum: - 55 years for policy term 14 years
- 51 years for policy term 16 years
- 48 years for policy term 18 years
- 45 years for policy term 20 years
|
Maximum maturity age | - 69 years for policy term 14 years
- 67 years for policy term 16 years
- 66 years for policy term 18 years
- 65 years for policy term 20 years
|
Policy term | 14 years, 16 years, 18 years, 20 years |
**Last updated on 05-11-2020
iii) LIC New Money Back Plan-20 Years
LIC New Money Back Plan-20 Years is a participating, non-linked, limited premium plan that provides a financial cover against death during the whole policy tenure and offers benefits by paying survival benefits.
Eligibility Criteria:
Entry Age | 13 years-50 years |
Maximum maturity age | 70 years |
Policy term | 20 years |
Minimum sum assured | Rs. 1,00,000 |
**Last updated on 05-11-2020
iv) LIC New Money Back Plan-25 Years
LIC New Money Back Plan-25 Years is a participating non-linked plan that offers financial support against the death of the insured for the entire policy tenure, along with the periodic payment on survival at specified durations during the term.
Eligibility Criteria:
Entry Age | 13 years-45 years |
Maximum maturity age | 70 years |
Policy term | 25 years |
Minimum sum assured | Rs. 1,00,000 |
**Last updated on 05-11-2020
v) LIC New Children's Money Back Plan
LIC New Children's Money Back Plan is a non-linked, participating, individual life assurance money back that is designed to cater to your financial needs while meeting the important milestones of your child such as education, marriage, etc.
Eligibility Criteria:
Entry Age | 0 years- 12 years |
Maximum maturity age | 25 years |
Policy term | 25 years minus age at entry |
Minimum sum assured | Rs. 1 lakh |
**Last updated on 05-11-2020
vi). LIC Jeevan Tarun
LIC Jeevan Tarun is a participating non-linked plan that comes with a limited premium payment and provides an exclusive combination of protection and saving features, especially for children. This plan is designed to cater to the educational and associated needs of your growing child via annual survival benefit payments (from ages 20 to 24 years) and maturity benefit at the age of 25 years
Eligibility Criteria:
Entry Age | 90 days-12 years |
Maximum maturity age | 25 years |
Policy term | 25 years minus age at entry |
Sum assured | Rs. 75,000- No Limit |
**Last updated on 05-11-2020
4. LIC Term Insurance Plans
i) LIC Tech Term
LIC Tech-Term is a non-linked, non-participating, online pure risk premium plan that offers financial protection to the policyholder's family in case of his/her unfortunate demise during the policy tenure.
Eligibility Criteria:
Entry Age | 18 years-65 years |
Maximum maturity age | 80 years |
Policy term | 10-40 years |
Minimum sum assured | Rs.50 lakhs |
**Last updated on 05-11-2020
ii) LIC Jeevan Amar plan
LIC Jeevan Amar plan is a non-linked, non-participating, offline term assurance plan. It offers the flexibility to choose from two death benefit options- level sum assured and increasing sum assured. The plan offers financial protection to your family in case of your unfortunate demise.
Eligibility Criteria:
Entry age | 18-65 years |
Maturity age | 80 years |
Minimum sum assured | Rs. 25,00,000 |
Policy term | 10-40 years |
**Last updated on 05-11-2020
5. LIC Pension Plans
i) Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana is a non-linked, non-participating, pension scheme subsidized by the Government of India that can be bought by paying a lump sum purchase price.
Eligibility Criteria:
Entry Age | 60 years to no limit |
Policy tenure | 10 years |
Minimum pension | Rs. 1,000/- per month Rs. 3,000/- per quarter Rs. 6,000/- per half-year Rs.12,000/- per year |
Mode of pension | Yearly, half-yearly, quarterly, and monthly |
**Last updated on 05-11-2020
ii) LIC Jeevan Shanti
LIC Jeevan Shanti is a single premium plan under which the insured has the option to select an immediate or deferred annuity. The plan comes out with 9 different annuity options to choose from that can go well with your needs.
Eligibility Criteria:
| | Immediate Annuity | Deferred Annuity |
Maximum Entry Age | 85 years | 79 years |
Minimum Deferment Period | Not Applicable | 1 year |
Maximum Deferment Period | 20 years subject to Maximum Vesting Age |
Minimum Vesting Age | 31 years (completed) |
Maximum Vesting Age | 80 years (completed) |
**Last updated on 05-11-2020
iii) LIC Jeevan Akshay-VII
LIC Jeevan Akshay-VII is a non-linked, non-participating, individual immediate annuity plan where the policyholder can choose his/her type of annuity from 10 available options on payment of a lump sum amount. Moreover, the plan can be purchased offline as well as online.
Eligibility Criteria:
Entry Age | 30 years to 85 years |
Maximum Purchase Price | No Limit |
Minimum Annuity | Rs. 1,000 per month Rs. 3,000 per quarter Rs. 6,000 per half year Rs. 12,000 per annum |
Mode of pension | Yearly, half-yearly, quarterly and monthly |
**Last updated on 05-11-2020
6. LIC Unit Plans
i) LIC New Endowment Plus
LIC New Endowment Plus is a unit-linked, non-participating, regular premium individual life insurance plan that offers investment cum insurance cover during the policy term. This plan is developed to provide a perfect combination of protection, long-term savings, and offer greater flexibility that lets you live your life independently.
Eligibility Criteria:
Entry Age | 90 days - 50 years |
Maturity age | 18 years - 60 years |
Policy term | 10 years -20 years |
Premium paying term | Same as the policy term |
**Last updated on 05-11-2020
ii) LIC Nivesh Plus
LIC Nivesh Plus is a unit-linked, non-participating, single premium life insurance plan that offers insurance cum investment benefits that allow you to stay protected and earn great returns.
Eligibility Criteria:
Entry Age | 90 days - 70 years |
Maximum Maturity age | 85 years |
Sum Assured | Option 1- 1.25 times of single premium Option 2- 10 times of single premium |
**Last updated on 05-11-2020
iii) LIC SIIP
LIC SIIP is a unit-linked, non-participating, individual life insurance plan. A policyholder can choose his/her preferred type of investment fund out of the four options: Bond Fund, Secured Fund, Balanced Fund, and Growth Fund.
Eligibility Criteria:
Entry Age | 90 days - 65 years |
Maturity age | 18 years - 85 years |
Policy term | 10 years - 25 years |
Premium paying term | Same as the policy term |
**Last updated on 05-11-2020
7. LIC Health Plans
i) LIC Jeevan Arogya
LIC Jeevan Arogya is a unique, non-participating, non-linked health insurance plan that offers health cover against listed health problems and provides you with financial support during medical emergencies.
Eligibility Criteria:
Entry Age | Minimum: - Self / spouse- 18 years
- Parents / parents-in-law: 18 years
- Children: 91 days
Maximum - Self / spouse- 65 years
- Parents / parents-in-law: 75 years
- Children: 17 years
|
Payment of premium | Yearly or half-yearly |
Mode rebate | Yearly mode: 2% of tabular premium Half-yearly mode: 1% of the tabular premium |
Quick cash facility | Available |
**Last updated on 05-11-2020
ii) LIC Cancer Cover
LIC Cancer Cover is a traditional premium payment health insurance plan that offers financial assistance if the policyholder is diagnosed with the listed early/major stage cancer during the policy term.
Eligibility Criteria:
Entry Age | 20 years - 65 years |
Policy term | 10 - 30 years |
Maturity age | 50 years- 75 years |
**Last updated on 05-11-2020
8. Withdrawn Plans (Recent)
i) LIC Jeevan Pragati
LIC Jeevan Pragati Plan is a non-linked, with-profit plan, which offers a combination of savings and protection, with an automatic increase in risk cover every five years during the policy term.
Benefit:
- In an unfortunate event of policyholder's death, death benefit (defined as the sum of "Sum Assured on Death"), vested simple reversionary bonuses, and final additional bonus (if any) shall be payable, provided all due premiums have been paid.
ii) LIC Jeevan Rakshak Plan
LIC Jeevan Rakshak Plan is a non-linked plan that provides a combination of protection and savings. This plan provides financial support to the family in case of the insured's death before maturity.
Benefit:
- In an unfortunate event of the death of the policyholder during the policy term, "Sum Assured on Death" shall be payable. The amount would be the highest of:
» Basic Sum Assured or
» 10 times of annualized premium or
» 105% of all the premiums paid as on date of death.
iii) LIC Limited Premium Endowment Plan
LIC Limited Premium Endowment Plan is a participating non-linked plan that comes with a combination of savings and protection. The plan also allows you to avail of the loan facility.
Benefit:
- Under this plan, a policyholder has an option to avail the rider benefits:
- LIC Accidental Death and Disability Benefit Rider
- LIC New Term Assurance Rider
iv) LIC Jeevan Utkarsh
LIC Jeevan Utkarsh offers a combo of protection and savings, in which the risk cover is 10 times of the single premium. The single premium paid is based on selected basic sum assured and age at entry of the policyholder.
Benefit:
- Under this plan, the policyholder is eligible for loyalty addition at the time of exit, only after completion of five policy years in the form of the death benefit.
v) LIC Bima Diamond Plan
Bima Diamond Life Insurance Plan is a non-linked, limited premium payment plan that provides the benefit of savings and protection and also offers financial assistance to the insured's family in case of his/her death.
Benefit:
- If the policyholder survived until the end of each of the specified durations during the policy term, then (s)he is eligible for a fixed percentage of Basic Sum Assured.
The fixed percentage for various policy terms is as below:
- For policy term 16 years: 15% of Basic Sum Assured at the end of each of 4th, 8th, and 12th policy years.
- For policy term 20 years: 15% of Basic Sum Assured at the end of each of 4th, 8th, 12th, and 16th policy year.
- For policy term 24 years: 12% of Basic Sum Assured at the end of each of 4th, 8th, 12th, 16th, and 20th policy year.
vi) LIC New Bima Bachat
LIC New Bima Bachat is a participating, non-linked savings cum protection plan in which the premium is paid in a lump sum at the beginning of the policy.
Benefit:
- In the event where the policyholder survives till the end of the policy term, the payment of a single premium (excluding taxes and extra premium), along with loyalty addition will be paid to the policyholder.
vii) LIC Anmol Jeevan-II
LIC Anmol Jeevan-II offers financial protection to the family of the policyholder in the event of his/her miserable death.
Benefit:
- If the policyholder dies during the policy term, the sum assured shall be payable.
viii) LIC Amulya Jeevan-II
LIC Amulya Jeevan-II is a pure protection plan, which is designed to protect your family in case of your demise.
Benefit:
- In an unfortunate case of the death of the policyholder during the policy term, the sum assured shall be payable.
ix) LIC New Jeevan Nidhi
LIC New Jeevan Nidhi is a conventional, with-profits pension plan that comes with a combination of protection and savings features. The plan also offers death cover during the deferment period.
Benefit:
- On vesting, an amount equal to the basic sum assured along with accrued guaranteed additions, final additional bonus (if any), and vested simple reversionary bonuses will be paid to the Life Assured, provided the policy is in full force.
x) LIC Jeevan Akshay-VI
LIC Jeevan Akshay-VI is an instant annuity plan that can be bought with a payment of a lump sum amount. The plan offers annuity payments of a specified amount (every year) to the annuitant for a lifetime. Different options are there to choose the type and mode of payment.
Benefit:
- There are 7 types of the annuity payable under this plan.
Why Buy Life Insurance From LIC?
LIC of India was formed as an outcome of a national movement to safeguard the well-being of the citizens of our country and to equip its diverse nation with at least basic life cover to enable its citizens to attain financial security for themselves as well as their family members (in the case of crisis).
LIC ensure that-
- Life insurance products are made widely available all over India, especially in the rural and backward regions and for the socially and economically deprived segment.
- It offers basic, enhanced, and free life cover options to suit the differential requirements of the diverse nation and maximize the mobility of the policyholder's savings.
- It places the utmost importance on safeguarding the interests of policyholders.
- While investing policyholders' money, LIC keeps in mind that the money belongs to policyholders and invests in the best possible way.
- Participation and involvement of employees and agents so that they provide the best services to the people of the nation.
LIC Claim Settlement Procedure:
Step 1: Intimation of Claim
The claimant needs to inform the insurance company as early as possible. The details should consist of the policy number, name of the insured, date of death, place of death, name of the claimant, etc.
Step 2: Submission of Documents
The claimant will be asked to present the below documents to the insurer:
- Claim form
- Death Certificate
- Age of the Insured (Birth Certificate)
- Original Policy Document
- Any other document requested by the insurer
Step 3: Claim Settlement
Once all the documents are submitted and checked by the insurer, your claim will be settled (if approved) very soon by the company.
Note: LIC Insurance Policy also offers coverage against COVID-19. The death claims arising due to Coronavirus are treated on par with other causes of death and are processed as per the terms and conditions of the policy.
LIC Login Process
LIC website offers services with a single click. With the online services available, one doesn't have to visit the branch office. Apart from basic services, LIC offers additional benefits and discounts. But to avail such discounts and online services, you have to register yourself on LIC online portal. Online registration is vital to avail required service from the comfort of your home.
New User LIC Login Registration
The step-by-step process to login and register as a fresh user to check the policy status online are as follows:
- Login to the LIC official website (www.licindia.in) and select the 'Customer Portal' tab under 'Online Services'.
- On the official page of the LIC 'e-services' page, click on the 'New User' button.
- Submit your policy details for the successful completion of the registration process. After this, click on the 'Proceed' button.
- Create a 'Username' and 'Password' for the completion of the LIC online registration process.
- Now, you can log in with the new username and password. Click on the 'Submit' button.
- Register your policy and get the required details from the tab 'Enroll Policies' that is available on the left-hand side of the screen.
- Select the 'View Enrolled Policies' option.
- Verify the 'Captcha' to check the status of registered policies.
How To Pay LIC Policy Premium?
Payment of Life Insurance Corporation (LIC) premium online or offline is easy.
Offline Payment LIC of India Premium
Following are the ways by which you can pay the premium for LIC policy offline:
- The premium of LIC policy can be paid offline at the cash counter at any nearest LIC branch office.
- The premium can also be paid in cheque or demand draft.
Online Payment LIC of India Premium
To make the process more convenient, LIC of India has now started LIC 'e-services'. The e-service portal lets you pay online and also avail of other services.
Go to the official website: www.licindia.in/Home/Pay-Premium-Online.
The premium can be paid directly without logging in or can be paid through the LIC of India customer login, i.e. 'e-services' portal.
To Pay Directly Without Login in LIC of India
- Select renewal premium/revival
- Click on 'Proceed'
- Enter your policy number, date of birth, mobile number, premium amount, and email ID.
- The policyholder can then proceed with making the payment.
- The payment can be made via net banking, Debit Card (VISA, Master, and Rupay), Credit Card (VISA, Master and Amex), BHIM, or UPI.
- On making the payment, a receipt would be mailed to your Email ID.
To Pay Through Customer Portal of LIC of India
You will be directed to
- Select role
- Enter your LIC policy login i.e., valid user ID/mobile, or email ID
- Password
- And the date of birth
- Proceed ahead to make the payment.
How To Revive Lapsed Insurance Policy?
If a policyholder is unable to make the payment of premiums on time or within the grace period, the policy will get lapsed. However, to revive the LIC lapsed policy, one can opt for different types of revival schemes such as:
- Ordinary Revival
- Special Revival
- Instalment Revival
- Survival Benefits Cum-Revival Scheme
- Loan Cum Revival Scheme
You can also check our article on this for more information.
LIC Life Insurance: Contact Details
Customer Support:
Contact LIC Call Center at 022 6827 6827 (24*7)
For any policy-related grievance, please feel free to contact our Grievance Redressal Officers at Branch / Division / Zonal / Corporate Level.
SMS LIC HELP :
SMS LICHELP to 9222492224 or SMS LICHELP to 56767877.
Toll-free no. 18004259876 for Health Insurance policies from 10 AM to 5 PM on all working days
Get in touch through our Live Chat Option- "LIC MITRA"
LIC News
Government likely to sell 25% stake in LIC
The Modi government is planning to sell a 25% stake in LIC (Life Corporation Of India) in one or more tranches. Retail investors have much to cheer, thanks to IPO discount and bonus planned by the government. The Department of Financial Services (under the Finance Ministry) has released a draft cabinet note to the concerned ministries (like IRDA, NITI and SEBI) for the stake sale in LIC.
With this sale, the government is hoping to fill the huge budget gap, which has grown in the last few months because of the lockdown. The market borrowings will control the sink in revenues (due to lockdown) that has destroyed several businesses. LIC stake sale is expected to play a crucial role in the success of this strategy.
LIC new annuity plan (Jeevan Akshay VII) is in the market
Life Insurance Corporation of India has announced the launch of its new Jeevan Akshay- VII annuity plan. The plan comes out with a few enhancements and changes. It is a single premium annuity plan, which is non-participating and non-linked in nature. As it is an immediate annuity plan, it will start paying annuity or pension to the insured on annuity age.
Under the same, the insured will get to select a type of annuity from 10 listed options (on payment of a lump sum amount).
The options that a policyholder can consider are immediate annuity for life, immediate annuity for life with return of purchase price, an immediate annuity with a guaranteed period, and life, among others. The minimum purchase price under the new Jeevan Akshay VII is Rs. 1 lakh.
LIC confirms that a loan facility will be available after three months from the issuance date or once the free-look period expires, whichever is late.
A person can buy this plan through online and offline modes. The different modes of annuity payments are yearly, half-yearly, quarterly, and monthly. LIC has not yet declared the rate of interest payable on the plan.
LIC Campaign To Jumpstart Lapsed Policies
LIC has launched a new campaign, where policyholders can restart their lapsed policies. This will be active from 10th August to 9th October 2020. There are two things about this campaign that policyholders should keep in mind.
Firstly, the company will offer discounts on late fees to the policyholders, whose policies have lapsed due to non-avoidable circumstances. Some special schemes (plans) can also be resumed only on one condition- the time frame of the lapsed policy should not exceed five years.
Secondly, high-risk plans such as health insurance, term insurance, etc. are not exempted from late fees. Such policies (lapsed in the premium paying term and whose policy term is not complete till the revival date) can be revived under this campaign.
25% Jump In LIC New Business Premiums in FY20
Life Insurance Corporation Of India, India's largest life insurer, has reported a growth of 25% (Rs.1,77,977.07 crore) in its first year of premium for the year 2019-20. Its group superannuation and pension business have collected Rs.1,26,696.21 crore (income of new business premium) as compared to Rs.90848.86 crore in the previous year, showing significant growth of 39.46%.
As of March-end 2020, LIC collection of the total premium income stands at Rs.3,79,062.56 crore as compared to the collection of Rs.3,37,185.40 crore in the previous year, showing a growth of 12.42%. As far as the total policy payouts are concerned, the amount stands to Rs.2,54,222.27 crore (for March-end 2020) in comparison to Rs.2,50,936.23 crore in the previous year, displaying a growth of 1.31%.
LIC gross total income also showed a growth of over 9.83%, as its collection grew from Rs.5,60,784.39 crore (in the previous year) to Rs.6,15,882.94 crore for March-end 2020. LIC total assets increased from Rs.31,11,847.28 crore (in the previous year) to Rs.31,96,214,81 crore for March-end 2020, with a growth of over 2.71%.
On December 2019, LIC waived off convenience fee on all digital transactions (policy-related) paid by credit cards. This is applicable till 30th November 2020. Thanks to this facility, LIC recorded a growth of 36% on digital transactions for policies for the year 2019-20.
LIC Launches Modified PMVVY Pension Plan
Life Insurance Corporation of India has announced the launch of the modified Pradhan Mantri Vaya Vandana Yojana (PMVVY) for senior citizens. LIC has the sole privilege to operate this scheme. It has come out with the details of the Pradhan Mantri Vaya Vandana Yojana (Modified 2020). Earlier, the government of India closed the sales of PMVVY in March 2020 and now they have decided to restart the sale of the same for another three financial years.
The customer can directly invest in PMVVY through the official website of the LIC. The extension has provided a big relief to senior citizens of the country as the interest rate on bank fixed deposits is falling rapidly.
PMVVY– New Rules
The biggest change in the new avatar of PMVVY is the reduced pension rate. It will carry a lesser interest rate as compared to before. Unlike the older version of PMVVY, the interest rate of the modified PMVVY will keep varying, which depends on the chosen financial year.
The government has announced the revised interest rate of 7.4% payable monthly i.e. 7.66% per annum for the entire 10 years of the plan. The government will keep on sharing the revised interest rate at the start of each financial year. For the Modified PMVVY, the maximum rate of interest is capped at 7.75% at any point.
