- Whole Life Assurance Plan:
A low cost insurance plan where Sum Assured is payable on death
of the life assured and premiums are payable throughout life.
- Endowment Assurance Plan:
Under this plan Sum Assured is payable on the date of maturity
or on death of the life assured, if earlier.
Both these plans are
available with facility of paying the premiums for a limited
Term Assurance Plans
- Two Year Temporary
Term assurance for 2 years is available under this plan. Sum
assured is payable only on death of the life assured during the
- Convertible Term Assurance
It provides term assurance for 5 to 7 years with an option to
purchase a new Limited Payment Whole Life Policy or an Endowment
Assurance Policy at the end of the selected term provided the
policy is in full force.
- Bima Sandesh:
This is basically a Term Assurance Plan with the provision for
return of premiums paid on surviving the term.
- Bima Kiran:
This plan is an improved version of Bima Sandesh with an added
attraction of Loyalty Addition, in built accident cover and Free
Term Cover after maturity, provided the policy is, then in full
Various children's Deferred Assurance Plans are available viz CDA,
CAP, Jeevan Balya, New CDA and Jeevan Kishore. Jeevan Sukanya is a
plan especially designed for girls. Children's Money Back ssurance
Plan is especially designed to provide for children's higher
educational expenses with added attractions of Guaranteed
additions, Loyalty Additions and optional family benefit.
These plans provide for either immediate or deferred pension for
life. The pension payments are made till the death of the
annuitant (unless the policy has provision of guaranteed period).
Both the Deferred Annuity and Immediate Annuity Plans are
available with return of GIVE amount on death after vesting under
Jeevan Dhara Plan and return of Purchase Price on death under
Jeevan Akshay Plan.
Joint life last Survival Annuity-cum-Assurance Plan (for husband
and wife) where claim amount is payable partly in lumpsum and
party in the form of an annuity with return of balance sum assured
on the death of survivor.
Special plans to meet
- Jeevan Griha Plan
(Double cover & triple cover):
For people desirous of obtaining a housing loan with the policy
acting as collateral security and to ensure repayment of loan in
the event of premature death of the borrower.
- Mortgage Redemption:
Suitable width=450 for borrowers as it ensures that the
outstanding loan is automatically repaid in the event of the
- Bhavishya Jeevan:
Ideal plan for professionals with a limited span of high income.
- New Jana Raksha:
Ideal for people with no regular income. It provides for death
cover for a period of 3 years from first unpaid premium,
provided at least 2 full years premiums have been paid.
- Double Endowment:
Ideal for people with physical disability who are otherwise not
acceptable width=450 for other plans of assurance at normal
- Fixed Term (Marriage)
A plan suitable width=450 for making provision for start in
life, marriage or education of children.
- Convertible Whole Life:
The policy is issued as a whole life plan with an option to
convert it into an Endowment Assurance at the end of 5 years. A
plan suitable for those who cannot afford high premium in the
initial years but have prospects of increased income within a
- Money Back Plan:
Beside providing life cover during the term of the policy, the
maturity benefits are paid in instalments by way of survival
Improved version of Money Back Plan where premiums are payable
for a limited period with an added attraction of periodical
increase in insurance cover.
- Jeevan Sathi:
This is a double cover Joint Life Endowment Assurance plan with
profits for husband and wife.
- Jeevan Chhaya:
The plan ideal to provide for child's higher education.
Basically an endowment assurance plan with payment of an
additional sum assured on death of the life assured during the
term of the policy.
- Jeevan Shree:
Jeevan Shree is basically a limited payment endowment assurance
plan with attractive Guaranteed Addition and Loyalty Additions.
- Asha Deep II:
This plan provides besides death and maturity payment, benefits
in case the life assured suffers from any of the four defined
- Jeevan Aadhar:
Especially designed for handicapped dependents. This is a
limited payment whole life policy where claim amount is paid
partly in lumpsum and partly in the form of an annuity. Income
Tax relief under Section 80 DDA is also available.
This is a new pension plan which will fulfill one's financial
needs during old age. Income Tax relief under Section 80 CCC(I)
is also available.
This is a without profit Money Back type plan with provision for
Guaranteed Additions and Loyalty Additions. While the plan
provides full life cover during the term of the policy, the sum
assured is payable in instalments at various durations.
Guaranteed Addition at the rate of Rs.70 p.a. per thousand sum
assured alongwith Loyalty Addition is payable on the date of
maturity or at death.
This plan has been prepared specially for females. This is
basically a Money Back Type Plan without participating in
profits but with Guaranteed Additions and Loyalty Additions.
While the plan provides full life cover during the term of the
policy, the sum assured is payable in instalments at various
durations. Guaranteed Addition at the rate of Rs.70 p.a. per
thousand sum assured together with Loyalty Addition is payable
on the date of maturity or at death. In addition it provides for
inbuilt accident benefit and some other benefits details of
which can be obtained from Branch Office.
Jeevan Mitra (Triple Cover):
For a small extra cost it provides a risk cover of 3 times the
basic Sum Assured. Incase of accidents, the risk cover goes up to
4 times. It is thus an attractive plan that provides a high risk
cover for a comparitively lower cost.
A new life insurance plan, which provides for risk cover on the
life of the breadwinner and a regular income to the handicapped
dependant. It thus enables the breadwinner to provide security to
his handicapped dependant.
Most parents, however may not be satisfied with what they provide
to the child. They may aspire to give the child financial
security, the best of education and support for the launch of a
career. In the context of today's increasing costs, offering these
is easier said than done. This is where LIC's Bal Vidya
comes in handy. It provides not only life insurance for the bread
winner but also money in regular monthly instalments and in lump
sums at specific points of time. These can take care of most of
the expenses of the family - on school, college and professional
education, health care, starting a career etc.
To take care of some of the problems of old age, LIC has, in the 'Year
of Senior citizens', come out with "Nav Prabhat".
It provides for risk cover at a comparatively low cost and relief
for disability due to accident or illness and an option for a life
pension after the maturity of the policy. It is a plan that not
only takes care of old age needs but also provides for dependants.
- Insurance protection at the
lowest possible premium cost.
Extend cover to large
segments of the population including those who cannot afford
insurance cover with simple procedures.
reduced further if experience is favourable.
Cost mostly borne by
Tax benefits for
both employer and employee.
LIC of India has
designed various group schemes to employer-employee
groups either to meet the statutory liability of the
employer or to provide some additional benefits for the
welfare of the employees and their families. Basic
advantages under these plans are :
- Low cost of
underwritting procedure, and
- Tax benefits to
the Employer/Employees (if it is contributory scheme).
Insurance Scheme provides for the benefit in case of death of
the member during the policy-year. This cover is granted under
one year renewable group term assurance plan. The various
types of this Group Insurance Scheme are as follows :
Insurance Scheme in lieu of EDLI, 1976
Insurance Scheme in Conjunction with Superannuation Scheme
Insurance Scheme covering Housing Loan
Insurance Scheme covering Vehicle Loan
Savings Linked Insurance Scheme : (GSLI)
Savings Linked Insurance Scheme
Annuity Scheme : (GA)
Scheme For Voluntary Retirement Scheme : (VRS)
Leave Encashment Scheme : (GLES)
Insurance Scheme :
provides for insurance cover, either flat or graded, depending
upon the choice of the Master Policyholder.The gradation
depends on the designation of the employees. This scheme may
create a goodwill among the employees for the employer since
it will be an additional benefit providedby employer for
Insurance Scheme in lieu of EDLI, 1976 :
has to subscribe for the insurance cover to the employees, who
are members of P. F., to Provident Fund Authorities. LIC
offers better cover than offered by RPFC. This can be a flat
cover of Rs.37,000/- or graded cover from Rs.11,000/- to
Rs.37,000/- depending upon the notional balance in the P. F.
account of the employee. If employer opts for LIC's scheme, he
can be exempted from paying premium to RPFC for which an
application is made.
Insurance Scheme in Conjunction with Superannuation Scheme :
provides for life cover depending upon the outstanding service
of the employee for the members of Superannuation Scheme. This
provides lumpsum benefit in case of unfortunate death of the
member before superannuation age.
Insurance Scheme covering Housing Loan :
employers are granting Housing Loan to their employees. In
case of unfortunate death of the employee, the outstanding
loan is recovered from terminal dues, which will hardly leave
anything for the family members. This scheme is to cover the
outstanding housing loan of the employee which will be paid to
the employer in case of his unfortunate death and the family
members of the employee will be entitled for full terminal
Insurance Scheme covering Vehicle Loan :
employers are granting Vehicle Loan to their employees. Like
Housing Loan, the outstanding vehicle loan granted to the
employees can be covered under group insurance Scheme.
Group Savings Linked
Insurance Scheme : (GSLI)
To offer higher
savings/death benefits at lower cost.
This scheme provides
for benefit on maturity, leaving service or in case of
death. This can be a contributory or non-contributory
scheme. Part of the premium collected is the savings
premium which is accumulated at the rate declared from
time to time; and, part is utilised as OYRGTA premium to
provide life cover in case of death.
- Assured payment
of full retirement gratuity to employees even to those
who die prematurely.
- Scientific funding
of employers' statutory liability.
Gratuity is a
statutory liability of an employer who employs 10 or
more employees. As per the Gratuity Act, employer has to
pay 15 days' salary for each year of service subject to
maximum of Rs.2.5 Lakhs. The fair practice is to provide
for the gratuity liability on yearly basis, as per the
advice of the Actuary. LIC offers a gratuity scheme to
the employer and advises the Master Policyholder about
the yearly contributions (including premium for the Term
Assurance) to be made to the Gratuity Fund. On the
contributions received towards the gratuity fund,
interest as declared from time to time is allowed and
all the claims are settled out of this fund. The unique
feature of LIC's scheme is that in case of death of the
employee, LIC pays gratuity for the accrued as well as
anticipated years of service.
Group Savings Linked
The object is to
offer much higher lump sum death benefits than those
secured under individual assurances.
provide for Pension benefit to all the employees or a
particular section of employees on thier retirement. This
is not a statutory liability of the employer. LIC's
superannuation scheme provides for this pension benefit to
the employees on their retirement, resignation or death.
The employer can contribute to the superannuation fund to
the extent of 27% of annual salary less contributions
towards the PF. These contributions are accumulated for
each individual member at the rate declared by LIC from
time to time and the accumulated amount available as on
the date of retirement, resignation or death will be
utilised to pay the pension to the beneficiary under
various options as mentioned below :
- Life/Jt. Life
- Life/Jt. Life
Annuity guaranteed for 5, 10, 15, 20 years ;
- Life/Jt. Life
Annuity with return of capital.
If the employer so
desires, arrangement for the pension based on the terminal
salary can be made. In such case the rate of annual
contribution will be quoted by LIC every year after
evaluating the liability for the year.
Group Annuity Scheme : (GA)
The employers who are
managing the superannuation or pension fund themselves
have to purchase annuities, as and when the contingency
arises, from LIC. Lumpsum payment can be made to LIC to
purchase the annuities in respect of the member and the
pension will be paid to the member/beneficiary as per the
choice of the plans above.
In case of voluntary
retirement scheme the pension payable to employees, will
be paid by LIC as per the terms and conditions of the
voluntary scheme. The purchase price required will be
quoted by LIC as per the data of employees who have opted
for voluntary retirement.
Encashment Scheme : (GLES)
As per the amended
section 209 (3) of the Companies "Act, 1957, and
Accounting Standard 15 of January '95, the employer has to
provide for the liability of leave encashment facilities
available to the employees in the annual accounts. The LIC
Scheme will enable the employer to fund this leave
encashment as per the advice given by LIC from time to
time and will also provide for flat insurance cover from
Rs.5,000/- to Rs.25,000/-. On the funding premium,
interest will be allowed as per the interest rate declared
from time to time and all the claims will be settled out
of this fund. In case of death, the life cover available
will also be paid