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REEMA PUNJABI- 38

Presents

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LIC of India is the largest state-owned life

insurancecompany in India.

It took birth on 1st september 1956.

It is fully owned by the Government of

India.

It has assets estimated of 13.25 trillionIt deals in products such as life

insurance, pensions ,mutual funds etc

http://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Life_insurance

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The slogan of LIC is "Yogakshemam

Vahamyaham" - Your welfare is our

responsibility

Over its existence of around 50 years,

Life Insurance Corporation of India,which commanded a monopoly of

soliciting and selling life insurance in

India, created huge surpluses, andcontributed around 7 % of India's GDP in

2006.

http://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Gross_Domestic_Producthttp://en.wikipedia.org/wiki/Gross_Domestic_Producthttp://en.wikipedia.org/wiki/Monopoly

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It was founded in 1956 with the merger of

243 insurance companies and providentsocieties established in the pre-independence era which included:

Bharat Insurance Company (1896)United India (1906)

National Indian (1906)

National Insurance (1906)

Co-operative Assurance (1906)Hindustan Co-operatives (1907)

Indian Mercantile

General Assurance

Swadeshi Life (later Bombay Life) etc..

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To spread life insurance in rural areasTo cover the people financially against

death at a reasonable cost

To maximize mobilization of peoplessavings

To gain the trust and confidence of the

policy holder

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To make use of the funds to the bestadvantage of the investors as well as the

community as a whole

To make positive changes in theenvironment socially and economically

To provide best service to the investors

To make profit is not the main objectiveof LIC.

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The corporation has developed the funds tothe best advantage of the policy holder aswell as society as a whole

The total funds so invested for the benefits

of the community at large accumulated toRs 10,95,841.34 crore as on 31st march 2010

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Centralgovernment

securities

State

governmentand other

governmentmarketable

securities

Housing andinfrastructure

investment

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Housing andinfrastructure

Housing

Power

Irrigationand water

supply

Roads,ports

Bridges andrailways

Others(includingtelecom)

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Explore and enhance the quality of life of

people through financial security by

providing products and services of aspiredattributes with competitive returns, and by

rendering resources for economic

development.

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A trans-nationally competitive

financial conglomerate ofsignificance to societies and Pride

of India.

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64%9%

7%

3%

3%

3%

2%

2% 1%6%

MARKET SHARE

LIC

ICICI Prudential

Bajaj Allianz

SBI LifeReliance

HDFC Standard Life

Birla Sun Life

Max Newyork

Kotak MahindraOthers

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There are various tax benefits provided underfollowing sections:

80C

10(10D) 80CCC

80D etc.

The aggregate amount of deduction

under all the relevant sections viz. section 80C,section 80CCC and section 80CCD shall not,exceed rs.1Lakh

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GROUP SCHEME

SOCIAL SECURITY SCHEME

CHILD PLAN

PLANS FOR HANDICAPPED DEPENDENTS

ENDOWMENT ASSURANCE PLANS

PLANS FOR HIGH WORTH INDIVIDUALS

MONEY BACK PLANS

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SPECIAL MONEY BACK PLAN FOR WOMEN

WHOLE LIFE PLANS

TERM ASSURANCE PLANS

JOINT LIFE PLANS

PENSION PLANS

HEALTH PALN

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IT is a unique plan by Life Insurance

Corporation of India . This is a Monthly

Recurring Life Insurance Plan by LIC of India

where the proposor get 250 times monthlypremium + total premium paid + LA if any in

case of death. To the policyholder it provides :

Higher life cover

A smooth return,

Liquidity & a lot of flexibility

http://www.lifeinsurancecorporationofindia.in/http://www.lifeinsurancecorporationofindia.in/http://www.lifeinsurancecorporationofindia.in/http://www.lifeinsurancecorporationofindia.in/

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No.1 company in the world in terms of

claims settelment

LIC settels 2.21 claims per second ie, it

settels 139 claims during a year

97% maturity claims are settled on or

before the due date

One of the lowest outstanding claim ratio in

the world (maturity + S B claim = 0.07%)

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LIC Monthly Recurring type SchemeThis is like a Post office or Recurring DepositScheme. You can deposit Yearly, Hly, Quarterly orMonthly in LIC scheme

Maturity amount received is Tax Free undersection 10-10d of income Tax act.

Any number of partial withdrawals throughpartial surrendering after 10 years

The amount deposited in LIC is exempted under

section 80c of income Tax act.In case of death 250 times monthly premium +Total Premium paid - (1st years premium &Extra premium paid ) + LA if any payable

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Death benefit: 250 times the monthlypremium + Return of premiums(Excluding extra/rider premium and first year

premium),+ the Loyalty Addition, if any

Death benefit S.A. will be 250 times the

monthly basic premium. To arrive at DAB we

have to calculate death benefit S.A. e.g. if yearly

premium is Rs.6000

The death benefit S.A. = 6000/12 x 250 =1,25,000 for this DAB will be @ Re.1per

thousand which come out to be Rs.125

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High life cover at very low premiumExtended risk cover for one year after 3

years premium payment.

Optional higher cover available throughTerm Riders

The policyholder can choose a maximum

term but can surrender at any time

without any surrender penalty or loss after

5 years

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Age at entry: Min.12 yrs (completed) Max. 60 yrs(NBD)Term: Min.10 yrs Max. 35 yrsMin. premiumAge 12 to 49:Rs.250 P.MAge 15 to 60: Rs.400 P.MMax. Premium: No. Limits.Mode of payment: YLY/ HLY/ OLY/ SSSPolicy loan: yes @ 10.5%Housing loan: yesAssignment: yes

Revival: yesSurrender of policy: yesRisk coverage: Death benefit S.A. + return ofpremium paid + LA (if any)

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Example: Mr. ashok is 25 years old and is

working in auto industry. He opts for jeevansaral plan for 15 years term and choosesmonthly basic premium of Rs.500/- after addingDAB premium of Rs.510 (500 x 250 = 1,25,000 x

1/1000 x 1/12 = 10 + 510). On maturity he willreceive Rs.97655/- as maturity sum assured(MSA) + Loyalty Addition which will be decidedby the corporation. If he dies after 4 years, hisnominee will get Rs.1,25,000 (250 x 500) +premium paid for 4 years - first year premium =1,25,000 + 24,480 - 6120 = 1,43,360/- + LoyaltyAddition, if any

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Any questions???