REEMA PUNJABI- 38

Presents

LIC of India is the largest state-owned life insurance company 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 trillion It deals in products such as life insurance, pensions ,mutual funds etc

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, and contributed around 7 % of India's GDP in 2006.

It was founded in 1956 with the merger of 243 insurance companies and provident societies established in the preindependence 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..

To spread life insurance in rural areas To cover the people financially against death at a reasonable cost To maximize mobilization of peoples savings To gain the trust and confidence of the policy holder

To make use of the funds to the best advantage of the investors as well as the community as a whole To make positive changes in the environment socially and economically To provide best service to the investors To make profit is not the main objective of LIC.

The corporation has developed the funds to the best advantage of the policy holder as well as society as a whole The total funds so invested for the benefits of the community at large accumulated to Rs 10,95,841.34 crore as on 31st march 2010

Central government securities

State government and other government marketable securities

Housing and infrastructure investment

Housing
Others (including telecom)

Power

Housing and infrastructure

Bridges and railways Roads ,ports Irrigation and water supply

Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.

A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.

MARKET SHARE
2% 1% 2% 3% 3% 3% LIC ICICI Prudential Bajaj Allianz SBI Life Reliance HDFC Standard Life Birla Sun Life Max Newyork Kotak Mahindra Others

6%

7%

9%

64%

There are various tax benefits provided under following 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

GROUP SCHEME SOCIAL SECURITY SCHEME CHILD PLAN PLANS FOR HANDICAPPED DEPENDENTS ENDOWMENT ASSURANCE PLANS PLANS FOR HIGH WORTH INDIVIDUALS MONEY BACK PLANS

SPECIAL MONEY BACK PLAN FOR WOMEN

WHOLE LIFE PLANS TERM ASSURANCE PLANS JOINT LIFE PLANS

PENSION PLANS
HEALTH PALN

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 monthly premium + 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

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%)

LIC Monthly Recurring type Scheme This is like a Post office or Recurring Deposit Scheme. You can deposit Yearly, Hly, Quarterly or Monthly in LIC scheme Maturity amount received is Tax Free under section 10-10d of income Tax act. Any number of partial withdrawals through partial 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

Death benefit: 250 times the monthly

premium + 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

High life cover at very low premium Extended risk cover for one year after 3 years premium payment. Optional higher cover available through Term Riders The policyholder can choose a maximum term but can surrender at any time without any surrender penalty or loss after 5 years

Age at entry: Min.12 yrs (completed) Max. 60 yrs (NBD) Term: Min.10 yrs Max. 35 yrs Min. premium Age 12 to 49:Rs.250 P.M Age 15 to 60: Rs.400 P.M Max. Premium: No. Limits. Mode of payment: YLY/ HLY/ OLY/ SSS Policy loan: yes @ 10.5% Housing loan: yes Assignment: yes Revival: yes Surrender of policy: yes Risk coverage: Death benefit S.A. + return of premium paid + LA (if any)

Example: Mr. ashok is 25 years old and is working in auto industry. He opts for jeevan saral plan for 15 years term and chooses monthly basic premium of Rs.500/- after adding DAB premium of Rs.510 (500 x 250 = 1,25,000 x 1/1000 x 1/12 = 10 + 510). On maturity he will receive Rs.97655/- as maturity sum assured (MSA) + Loyalty Addition which will be decided by the corporation. If he dies after 4 years, his nominee 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/- + Loyalty Addition, if any

Any questions???