LIC, or Life Insurance Corporation of India, is a government-owned insurance and investment company. Established in 1956, LIC is the largest life insurance company in India and one of the largest in the world. This article will delve into the history, products, services, and impact of LIC in India.
History of LIC
LIC was formed by merging over 240 insurance companies and provident societies. Before the nationalization of the life insurance industry in India, the sector was dominated by foreign companies, making insurance products inaccessible to most of the Indian population. The nationalization of the life insurance industry in India in 1956 was aimed at making life insurance accessible to the masses and channeling people’s savings into productive investments.
Products and Services
LIC offers a wide range of insurance products and services to cater to the diverse needs of its customers. Its product portfolio includes life insurance plans, pension plans, health insurance plans, group insurance plans, and micro-insurance plans.
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Life insurance plans
LIC’s life insurance plans cater to its customers’ protection and savings needs. Some popular plans include term, endowment, money-back, and unit-linked insurance plans (ULIPs).
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Pension plans
LIC’s pension plans help customers to plan their retirement by building a corpus during their working years. Some popular plans include Jeevan Akshay VI, Jeevan Shanti, and New Jeevan Nidhi.
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Health insurance plans
LIC’s health insurance plans offer protection against medical expenses incurred due to illness or accidents. Some popular plans include Jeevan Arogya, Cancer Cover, and Arogya Sanjeevani.
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Group insurance plans
LIC’s group insurance plans provide insurance coverage to a group of people, typically employees of an organization. Some popular plans include Group Term Insurance, Group Gratuity Scheme, and Group Leave Encashment Scheme.
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Micro-insurance plans
LIC’s micro-insurance plans aim to cover the economically weaker sections of society. Some popular plans include Jeevan Madhur, Jeevan Mangal, and Jeevan Deep.
Impact of LIC
LIC has played a significant role in the development of the Indian economy by channelizing people’s savings into productive investments. It has also helped the insurance industry’s growth in India by making insurance products accessible to the masses. LIC’s products and services have played a vital role in the financial planning of individuals and families in India.
LIC has also contributed to developing the rural economy in India by providing insurance coverage to farmers and agricultural workers. Its micro-insurance plans have helped reduce the vulnerability of the economically weaker sections of society to financial shocks.
Conclusion
LIC has come a long way since its inception in 1956. From a small insurance company to the largest life insurance company in India, LIC has played a crucial role in developing the insurance industry and the Indian economy. Its products and services have provided financial security to millions in India. With its vast network of offices and agents, LIC continues to serve the insurance and investment needs of the people in India.
