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Post Office Life Insurance vs LIC (Understand the key differences)

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Post Office Life Insurance vs LIC (Understand the key differences)

When you think about a government-backed life insurance scheme for yourself, LIC and Post Office Life Insurance schemes stand out immediately.

Both LIC and PLI offer a wide range of insurance products to choose from. You may be wondering if you should opt for a LIC policy or a PLI policy. This article will give you clarity by highlighting the benefits, features, and distinctions between LIC and PLI policies. So, let us begin.

Lets us check out a few investigative differences between Post office Life insurance vs LIC schemes

Differences between Post Office Life Insurance vs LIC schemes

Postal Life Insurance (PLI)Life Insurance Corporation of India (LIC)
Plan TypesPLI offers conventional life insurance schemes that provide assured sum + accrued bonus.LIC offers all kinds of insurance products and schemes, including market linked investment plans as well as retirement oriented plans and schemes.
EligibilityAll Indians are eligible for their plans.Provides policies to each and every citizen of India.
Maximum age limit for people opting for PLI’s policies is 55 years.Maximum age limit for people opting for LIC policies is 75 years.
Age limit
Health plansPLI does not provide health insurance plans.LIC offers various health insurance plans to its customers.
Plans such as LIC’s Cancer cover and Jeevan Arogya are just 2 of LIC’s many health plans.
Sum assuredPLI offers a maximum sum assured up to Rs 50 LakhsThere is no Limitation to the assured sum. The policyholder can decide on the coverage according to his needs.
Coverage customizationPLI do not have additional ridders that can customize a person’s insurance plan.LIC offers a vast range of optional add-on riders that can help you expand your coverage accordingly
Lic’s New Critical Illness Rider.
LIC’s Accidental Benefit Rider.
LIC’s Accidental Death and Disability
LIC’s New Term Assurance Rider
BonusAvailableAvailable
PremiumThe premium cost of PLI’s policies are lower when compared to LIC.The premium cost of LIC is slightly higher compared to PLI.
You also get a discount of 2% if you pay advance premium of 12 months
How to avail policy?You can only purchase the policies by visiting the post office branch directly.LIC policies can be bought by visiting their branches, online as well as through agents.
Premium payment modePremium payment can be done by visiting the Postal Office branch only.Premium payment can be done through visiting s LIC branch, LIC collection centers, and even online on their website.

Now, let us quickly dive into the plans and schemes offered by Postal Life Insurance (PLI) And Life Corporation of India (LIC).

Plans offered by PLI

Type of plan

Name of the plan

Whole life insurance plan

  • PLI Suvidha (convertible whole Life plan)
  • PLI Suraksha

Money back insurance plan

PLI Sumangal

Endowment insurance plan

PLI Santosh

Joint life insurance plan

PLI Yugal Suraksha

Child insurance plan

PLI Bal Jeevan Bima

Plans offered by LIC

Type of plan

Name of the plan

Whole insurance plan

LIC Jeevan Umang

Term life insurance plan

  • LIC Anmol Jeevan
  • LIC  Jeevan Amar

Endowment insurance plan

  • LIC Single Premium Endowment Plan
  • LIC Jeevan Rakshak
  • LIC Limited Premium Endowment Plan
  • LIC Jeevan Lakshya
  • LIC Jeevan Pragati
  • LIC Jeevan Labh
  • LIC Aadhar Shila
  • LIC Aadhar Stambh

Unit linked plan

LIC New Endowment Plan

Pension plans

  •  LIC New Jeevan Nidhi
  • Pradhan Mantri Vaya Vandana Yojana

Money back insurance plan

  • LIC New Money Back Plan – 20 years
  • LIC New Money Back Plan – 25 years
  • LIC New Children’s Money Back Plan
  • LIC Jeevan Tarun
  • LIC Bima Shree
  • LIC Jeevan Shiromani

What should you opt for?

The plan that would be best suitable for you would ultimately depend on your requirements and needs. However, we could give you some suggestions.

  • If you are eligible for Postal Life Insurance Plan and wish to opt for good coverage at nominal rates, you can opt for a PLI policy.
  • If you are interested in investing in a unit-linked plan, retirement, or a term insurance plan then LIC may be a prudent choice.
  • Further, If you want a policy that provides the highest coverage, you may consider a LIC policy, as the maximum coverage via PLI is Rs.50 Lakhs.
  • If you want a health plan, LIC also has you covered.

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Meaning of life Insurance (Understand the concept of life insurance)

Meaning of life Insurance (Understand the concept of life insurance)

So, you want to understand the meaning of life insurance? This article will talk about its concept, benefits, features, types, and more.

  • Meaning of life insurance
  • Features of life insurance
  • Benefits of life insurance
  • Types of life insurance
  • Companies that provide life insurance plans

Meaning of life insurance

In simple words, Life insurance is a contractual agreement between the insurance company and the insured, where the insurance company will be liable to pay a sum assured to the nominees or legal heirs of the insured in the event of policyholder’s demise. The insurance company provides this life coverage in exchange for a premium amount.

Features of life insurance

Now, let us talk about the features of a life insurance policy so that you can understand it better

Insured – The individual who is provided life coverage by the insurer is called an insured. After his/her demise, the insurance company will be liable to pay the sum assured to the nominees or legal heirs of the insured person.

 

Premium – A premium is a fee that the insured pays to the insurance company to obtain the benefit of a life cover. Maturity- Maturity is the period at which the policy term is completed and the life insurance contract concludes.

 

Sum assured – It is a pre-determined amount that the insurance company will have to pay to the insured’s family in the unfortunate event of his death.

 

Nominee– A nominee is an individual who is entitled to receive the sum assured. The nominee’s name and details will be mentioned in the policy contract by the insured individual. Usually, spouses, children, parents are taken as nominees in most cases.

 

Policy term – A policy term is a specified period of time during which the insurance company provides life coverage to the insured. The policy is said to be in force during this period.

 

Claim– In the unfortunate event of the insured’s demise, the nominees file a claim with the insurance company in order to receive the sum assured.

Benefits of life insurance

The purpose of life insurance is to financially protect your loved ones from the monetary loss that they may have to face in your absence. Let us look at some of the most important benefits of a life insurance policy.

Financial security– A life insurance policy will provide your loved ones financial safety from any kind of monetary loss that they may face in the event of your demise. A good life insurance plan can help your family repay any kind of financial liabilities such as personal loans, auto loans, home loans, etc.

 

Wealth creation – Certain life insurance policies such as ULIP policies offer the benefit of both life coverage as well as investment.
A certain portion of your premium will be used to provide you a life cover while the rest will be invested in debt and equity markets, depending on your risk appetite. Such plans not only provide you a life cover but also invests your money systematically and grows your corpus to beat inflation.

The sum assured along with the return from your investments will be paid to the loved ones of the policyholder in the event of his death.

 

Tax benefit – The premium paid towards your life insurance can be claimed for income tax deduction under Section 80C of the Income Tax Act, 1961. The premium paid for your life insurance is eligible to a maximum tax deduction of up to Rs.1.5 lakh. Also, any payouts received from the insurance company are tax-free.

 

Maturity benefit – Certain life insurance policies also provide you savings benefits. If the policyholder survives the policy period and no claims have been made, the total premium paid will be returned to the insured as savings benefit at the end of the policy term.

 

Loan facility – You can also avail of a loan against certain life insurance policies.

Types of life insurance plans

There are various types of life insurance policies. Let us discuss them in detail.

Term insurance plans

A Term insurance plan is a traditional and most basic plan. This plan provides a life cover to the insured for a specified policy term. In case of death of the insured during this policy term, the sum assured will be paid to the nominees of the policy.

Some term insurance plans also come with survival benefits. In such a case, if the policyholder survives during the policy term, he will receive a certain sum as a survival benefit.

Features of term insurance

  • Provides you a high life cover at an affordable premium
  • Provides coverage for a longer duration (up to 30-year policy term)

Whole life insurance

Whole life insurance provides coverage to the insured for the entirety of his life (generally up to 100 years of age).

Features of whole life insurance plans

  • Coverage is provided up to 100 years of age.
  • Premium under a whole life plan is generally paid for a limited period.
  • Whole life insurance plans come with different variants such as endowment assurance plans, money back plans, unit-linked plans, and more.

Unit-linked insurance plans

Unit-linked plans are also known as market-linked plans. It is a hybrid plan that provides you the benefit of life cover as well as investment returns. A part of your premium paid is used to provide you life coverage and the remaining is invested in debt/equity markets. The legal heir/nominee shall receive the assured sum as a death benefit if the policyholder dies during the policy term. On maturity of the policy, you will be paid the fund value which is equal to the premiums invested along with the returns generated by it over the term.

Features of ULIP

  • You can choose the type of investment fund to invest in according to your risk appetite.
  • You can withdraw your funds after the completion of 5 years of policy in certain plans.
  • You can switch from one investment fund to another.
  • Higher of the sum assured or fund value shall be paid to the nominee on the death of the policyholder. However, on maturity, the fund value will be paid.

Endowment assurance plans

Endowment assurance plans provide the benefit of a life cover along with guaranteed savings benefits. The policyholder will receive a lump sum amount if he/she survives until the maturity period of the policy, or the nominees shall receive the sum assured on the demise of the policyholder, whichever occurs first.

Features of endowment assurance plans

  • The life cover provided is relatively lower than other plans.
  • Coverage can be provided ranging from 10 years to 30 years

There are 2 types of Endowment Plans- Participating plans and Non-participating plans. The former earns a bonus will the latter plan does not.

Money Back Plan

Under this plan, the policyholder will receive a certain percentage of his sum assured at fixed intervals. This will provide the policyholder with stable financial resources along with the benefit of a life cover. In case of the death of the policyholder, the entire assured sum shall be paid to the nominee of the policyholder irrespective of the survival benefits paid earlier.

Features of money back plan

  • The tenure of a money-back plan ranges from 12- 15 years or 20-25 years.
  • The Money-back benefits can also be termed as survival benefits.
  • They are participating plans where the bonus is added.

Child insurance plan

Child insurance plans are designed to protect and safeguard your child’s future. Under this policy, life cover is provided until the end of the policy tenure. These plans also offer coverage to your child along with flexible payouts at important milestones during your child’s lifetime such as their 18th birthday or graduation, etc.

Not only that, if the insured parent dies during the policy term a death benefit is immediately paid to the child and the policy remains in force.

Features of child insurance plans

  • In case of the death of the insured parent, all premiums are waived off and the policy remains in force until its maturity date.
  • The insured can be a parent or a minor child, however, the primary policyholder will be the parent.
  • The child will become the policyholder when he turns 18 years of age and the policy will turn in his name.
  • Only parents of minor children are eligible for the plan.

Annuity plans/ pension plans

These plans are suitable for persons reaching the age of retirement and want to build a corpus for their life ahead. Under this plan, you can create a corpus for your retirement or avail lifelong income benefits from the accumulated sum. They are ideal plans for people looking to cater to their financial needs post-retirement.

Features of annuity/ pension plans

These plans come in 2 variants – a) Deferred annuity plans b) Immediate annuity plans

Under deferred annuity plans you choose a policy tenure and pay the premiums to generate your retirement corpus
Under immediate annuity plans, annuity payouts begin as soon as you buy the plan.

Life insurance riders

These are additional ride-on covers that you can buy along with the above-said policies to avail of better coverage benefits as per your needs. You will have to pay a little extra premium to avail the riders.

Features of life insurance riders

  • You can choose multiple riders on your base policy.
  • Riders have their own sum assured, lower or equal to the base life insurance policy.
  • They do not come with maturity benefit and come to for force when the specified event takes place.

Types of rider cover available

  • Critical illness rider
  • Hospital cash rider
  • Premium waiver rider
  • Accidental death and disability rider
  • Term rider

Name of insurance companies in India that provide life insurance

  • Life Insurance Corporation of India
  • Max Life Insurance Company Limited
  • HDFC Life Insurance Company Limited
  • ICICI Prudential Life Insurance Company Limited
  • Kotak Mahindra Life Insurance Company Limited
  • Aditya Birla Sun Life Insurance Company Limited
  • Exide Life Insurance Company Limited
  • Bajaj Allianz Life Insurance Company Limited
  • PNB MetLife India Insurance Company Limited
  • Reliance Nippon Life Insurance Company Limited
  • TATA AIA Life Insurance Company Limited
  • SBI Life Insurance Company Limited
  • Aviva Life Insurance Company Limited
  • Bharti AXA Life Insurance Company Limited
  • Future Generali India Life Insurance Company Limited
  • IDBI Federal Life Insurance Company Limited
  • Canara HSBC OBC Life Insurance Company Limited
  • Aegon Life Insurance Company Limited
  • Pramerica Life Insurance Company Limited
  • Star Union Dai-ichi Life Insurance Company Limited
  • IndiaFirst Life Insurance Company Limited
  • Edelweiss Tokio Life Insurance Company Limited

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Benefits of life Insurance (Top 8 noteworthy benefits)

Benefits on life insurance (Top 8 Noteworthy Benefits)

Is your family financially dependent on you? Do you want to financially protect your family against all odds of life? If your answer is yes to the above questions, then this article is certainly for you.
Let us understand the benefits of life insurance. When you buy a life insurance policy, you not only gift your loved ones a financially secured future but also a stress-free life ahead.

Let us jump into the importance of life insurance. The benefits of life insurance are as follows:

 

  1. Provides financial stability
  2. Better investment returns
  3. Loan provision
  4. Tax advantage
  5. Income benefits
  6. Annuity benefits
  7. Loan repayment
  8. Life insurance riders

1.) Provides Financial Security

Having a life insurance policy provides you with life coverage. In the event of the sudden demise of the insured, the nominees of the policy will be paid the sum assured as a death benefit.

The nominees of the policy will be paid the full amount of sum assured as well as any accrued bonus over time, keeping your family’s finances secured even in your absence.

2.) Better Investment Returns

Many life insurance plans in the market offer you the additional benefit of generating additional wealth for your family. They are generally known as ULIP or Unit Linked Life Insurance Plans. These plans, along with providing you a life coverage, also invest a certain portion of your premium into various investment classes such as debt, equities, and hybrid investments to garner better returns and grow your capital.

3.) Loan Provision

People who have a life insurance policy can also avail themselves of mortgages based on their life insurance policy. You can borrow the sum assured or a certain percentage of cash value according to the policy provisions. This advantage helps you in sudden times of crisis when you are in urgent need of money.

4.) Tax Advantage

Almost all life insurance policies come with the advantage of tax benefits under Section 80C and 10(10D) of The Income Tax Act 1961. It offers you a tax deduction on premiums and provides a tax-free sum assured to the policyholder. You can get a maximum tax deduction of Rs.1,50,000 under Section 80C.

5.) Income Benefits

Certain life insurance policies provide the policyholder with regular income payouts at certain intervals. In this case, your family will receive guaranteed income regularly that will help them in their daily expenses like rent, daily bills, educational expenses, household expenses, and so on in the absence/death of the insured individual.

6.) Annuity Benefits

This is a very beneficial point for citizens nearing retirement. Your life insurance policy can be a source of regular income in the form of an annuity during your retirement. Many life insurance policies provide this benefit.

7.) Loan Repayment

In the event, the policyholder is unable to repay his loan due to an unforeseen incident like death or disability, his/her family may repay the loan amount using the money received from the policyholder’s life insurance policy.

8.) Life Insurance Riders

Riders can be bought additionally with the base life insurance plan. These riders provide deeper financial security or coverage to the policyholder. It covers extra risks that are not covered in the initial base policy.

Some of the common insurance riders are:

  • Accident death benefit rider: if the insured dies due to an accident, the insured’s nominee will be paid the sum assured.
  • Critical illness rider: This rider provides coverage against critical life-threatening diseases like heart attack, stroke, kidney failure, cancer, etc.
  • Accidental or permanent disability rider: This rider provides coverage to the policyholder in case of an accident where he/she suffers from permanent partial or total disability.
  • Accelerated death benefit rider: This rider will pay a part of the death benefit in advance. This sum can then be used in the treatment of the policyholder in severe illnesses like cancer, brain tumor, etc.
  • Surgical rider: This cover provides financial compensation against specified surgical procedures.
  • Term rider: This rider provides fixed or monthly income to the nominee of the policy in the event of the insured’s death. This will be equal to the predetermined amount mentioned in the base policy.
  • Waiver of premium rider: If the policyholder fails to pay his premium due to any unfortunate event such as an accident or other pre-determined conditions, the insurance company will waive off his premium. The policy will remain in effect.

Due to the above-mentioned benefits, it is important to provide financial safety and peace of mind to you and your loved ones by buying a life insurance policy. Life is a valuable gift, it is imperative to secure every part of it as much as possible. Invest in your peace of mind today!

Author Bio

This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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How to get LIC policy status by SMS (Simple Guide)

How to get LIC policy status by SMS

Checking your LIC insurance policy status is important. Knowing the status of your policy is essential as you can confirm whether your LIC policy is registered within the LIC database or no.

As a LIC policyholder, you can check your policy status via SMS. This provides much-needed comfort to policyholders as they don’t need to visit LIC offices to do the same. Policyholders can simply know their policy status by sending a simple SMS.

Let us now understand the type of details you can get via LIC through SMS.

Check your LIC policy status

Type of Enquiry to be made

SMS Code

Number

Know your premium amount

ASKLIC <your policy number> PREMIUM

9222492224

Revival amount inquiry

ASKLIC <your policy number> REVIVAL

9222492224

Bonus amount

ASKLIC <your policy number> BONUS

9222492224

Loan amount

ASKLIC <your policy number> LOAN

9222492224

Nomination

ASKLIC <your policy number> NOM

9222492224

Check status of your LIC policy

ASKLIC <your policy number> STAT

9222492224

Existence certificate

ASKLIC <your policy number> ECDUE

9222492224

Check return status

ASKLIC <your policy number> CHQRET

9222492224

Annuity amount inquiry

ASKLIC <your policy number> AMOUNT

9222492224

Annuity release date

ASKLIC <your policy number> ANNPD

9222492224

Illustration: Let us assume Mr. Durgesh wants to find out his premium due. All he needs to do is send the following SMS from his registered phone number:

ASKLIC <his policy number> PREMIUM to 9222492224
Post this, LIC will send the premium details via SMS shortly. Other similar requests can be made by following the same procedure (as shown above).

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LIC e-Services (Best Services for LIC Policyholders)

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LIC e-Services (Best Services for LIC Policyholders)

LIC e-Services are online services offered to LIC policyholders via their LIC e-Services portal. LIC provides a vast array of helpful services to its customers through this portal. This article will aim to articulate the type of services offered to LIC policyholders and how to access them.

This content piece will discuss the following:

  • Features and benefits of LIC e-Services
  • Registration and login process
  • Services offered under LIC e-Services

Features and Benefits of LIC e-Services

Following are the important features and benefits of the e-Service platform:

  • Ease of access: A policyholder can access the LIC e-Service platform by simply visiting the e-Services website and logging into their account. They can access the platform from desktop, mobile, and tablet devices.
  • Easy to track: A policyholder can track all his policies under one roof. All his LIC policies will be visible under the e-Services dashboard for easy access and editing.
  • Ease of location: An LIC policyholder can access the services from any location in the world. Distance and location is no barrier.
  • Grievance addressal: Complaints and grievances can be raised within the portal.
  • Free services: All the services provided by LIC within their portal are free of charge and for the convenience of its policyholders.

Registration and login process

LIC account login
LIC account login
  • The registration process is quite straightforward and simple.
  • A policyholder can easily register with the LIC and avail of their e-Services. Please check out the LIC new user registration page for a comprehensive and detailed guide on new user registrations.
  • Once you have registered, you can log in to their portal and access their dashboard.

Services offered under LIC e-Services

The above image depicts the list of services offered under the LIC e-Service dashboard.

  • Policy status: You can check the status of your policy under the dashboard. Just click on the ‘Policy Status’ button under the ‘Basic Services’ tab. (check image above)
  • Policy bonus status: Policyholders can also check the bonus status of their respective policies through the platform. The updated bonus amount will be reflected on the site.
  • Nomination: Policyholder can also check their respective nominations and even apply for editions if required.
  • Claim status: It is important to keep an eye on your claims status once you have applied for a claim. You can find out which stage your claim is at on the portal.
  • Premium payment: Policyholders can pay their premiums online through the portal. No need to physically visit a branch. All premium payments can be made online.
  • Premium receipt: You can also download the updated premium receipt from the website.
  • Grievances and complaints: You can also raise complaints and grievances through the portal in case you feel the need.
  • Loan payment: Loan repayments can also be made through the portal.

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LIC Senior Citizen Schemes (Top 5 Schemes)

LIC Senior Citizen Schemes (Top 5 Schemes)

 

Our elders are our jewels, we need to do everything possible to ensure a smooth post-retirement for our elders. The Government of India in tandem with LIC has initiated a variety of senior citizen schemes that the elderly can avail of and make their life easier.
We will have a detailed look at some of the primary LIC senior citizen schemes below.

  • Pradhan Mantri Vaya Vandana Yojna
  • LIC Varishtha Pension Bima Yojna
  • LIC New Jeevan Shanti
  • LIC Jeevan Akshay 7
  • LIC New Jeevan Nidhi

Pradhan Mantri Vaya Vandana Yojana (Plan No. 856 )

The Pradhan Mantri Vaya Vandana Yojana is a pension scheme subsidized by the Government of India and managed by the LIC. Under the terms of this scheme, a senior citizen can pay a single one-time premium to the LIC and avail of a continuous monthly pension at a rate of 7.4% P.A.

Features of Pradhan Mantri Vaya Vandana Yojana

Only seniors over the age of 60 can avail of this scheme

  • Maximum investment of 15 lakhs per senior citizen
  • Maximum term of 10 years
  • Pension can be availed monthly, quarterly, half-yearly, and yearly (ROI will be 7.4% for monthly, 7.45% for quarterly, 7.55% for half-yearly, and 7.66% for yearly)
  • Policy can be prematurely surrendered after paying a 2% penalty on the purchase price
  • A person can also avail of a loan on this policy at 75% of policy value
  • The policy comes with a 15 day free-look period

LIC New Jeevan Shanti (Plan No.858)

This is another single premium annuity plan provided by the LIC. The person has to pay a single premium throughout the policy tenure to enjoy its benefits. The plan comes in 2 variants:

  • Option 1: Deferred annuity for Single life
  • Option 2: Deferred annuity for Joint life

Let us understand both options clearly.

Option 1: Deferred annuity for Single life

  • In this plan, the policyholder will not be paid a maturity amount on survival.
  • The nominee will be paid the lump sum amount in the event of the policyholder’s demise
  • The Annuitant will continue to receive his annuity as long as he lives

Option 2: Deferred annuity for Joint life

  • Here too there will be no maturity amount payable upon the survival of the annuitant
  • The nominee will be paid the death benefit upon the demise of the last joint annuitant
  • Both joint annuitants shall continue to receive their annuity as long as they live

Features of LIC New Jeevan Shanti

  • Nominee will receive the purchase price along with the additional death benefit payable on the annuitant’s demise
  • Minimum purchase price of this plan is Rs.1.5 Lakhs. There is no upper limit.
  • Minimum age requirement for participation is 30 years.
  • Annuity can be paid to the annuitants via monthly, quarterly, half-yearly, or yearly annuity.
  • Annuitant can avail a loan on this plan.
  • Free-look period of 15 days.

LIC Jeevan Akshay 7 (Plan No. 857)

LIC’s Jeevan Akshay 7 is another single premium immediate annuity plan. This plan provides 10 different annuity options that an annuitant can choose from. This provides more flexibility than some of the above plans. Let us understand all of the annuity options below:

  • Option A: Annuity is paid to the annuitant immediately for life.
  • Option B: Annuity is paid for a period of 5 years guaranteed, and life thereafter.
  • Option C: Annuity is paid for a period of 10 years guaranteed, and life thereafter.
  • Option D: Annuity is paid for a period of 15 years guaranteed, and life thereafter.
  • Option E: Annuity is paid for a period of 20 years guaranteed, and life thereafter.
  • Option F: Annuity is paid immediately and the purchase price is returned to the nominee at the annuitant’s death.
  • Option G: Immediate annuity payment (increasing at 3% simple interest)
  • Option H: Immediate annuity with half the annuity payable paid to the spouse in case of annuitant’s death.
  • Option I: Immediate annuity with the entire annuity payable paid to the spouse in case of annuitant’s death.
  • Option J: Immediate annuity with the entire annuity payable paid to the spouse in case of annuitant’s death. The purchase price will be returned to the nominee on the demise of the last annuitant.

LIC New Jeevan Nidhi

The New Jeevan Nidhi Plan is LIC’s deferred annuity plan. Unlike the above plans, this plan is not a compulsory single premium plan and the annuitant has the option of making regular premium payments. The advantage of this is that the annuitant can participate in this plan with a relatively low amount, he does not need to make a large upfront payment in the way of a single premium.

Features of LIC New Jeevan Nidhi

Premium can be paid once or through the policy tenure

  • Individuals above the age of 20 are eligible for participation in this scheme
  • Availability of premium discounts (2% discount if paid annually. 1% discount if paid half-yearly)
  • Death benefit will be paid to the nominee in case the annuitant passes away
  • Guaranteed additions for the first 5 years
  • Bonus’s from the 6th year onwards
  • Annuitant can avail an additional Accidental Death and Disability Benefit Rider

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LIC Kanyadan Policy (Benefits, Premium, Eligibility & more)

LIC Kanyadan Policy (Benefits, Premium, Eligibility & more)

LIC Kanyadan policy is specially designed with keeping your daughter in mind. The policy provides a lump sum amount during your daughter’s wedding along with additional insurance coverage if something happens to the daughter’s guardian (policyholder).
Let us discuss this policy in detail and answer any queries that you may have. This article will cover the following points:

  • Eligibility
  • How does LIC Kanyadan Policy work?
  • Benefits
  • Documents required

Eligibility for LIC Kanyadan Policy

  • This policy can only be bought by the daughter’s guardian
  • The daughter needs to be at least 1 year old at the time of policy purchase
  • The age of the guardian needs to be between 18-50
  • Policy tenure is between 13-25 years
  • Minimum sum assured is 1 lac and maximum sum assured is unlimited (based on premium paid)

How does LIC Kanyadan Policy work?

This policy can be availed by the guardian of a daughter. The guardian will have to pay a premium to LIC, and in exchange for the premium, LIC will provide a lump sum amount at maturity. You can use this amount during your daughter’s wedding. Further, if the daughter’s guardian passes away during the policy term, LIC will provide an additional amount to the daughter along with the maturity amount at policy maturity. You can understand this policy much better with an example.

LIC Kanyadan Policy Examples

Example 1

Let us say that Mr. Rishi has taken a Kanyadan Policy for his 5-year-old daughter. He selected a policy term of 15 years. Mr. Rishi will now be eligible to receive the maturity amount when his daughter is 20 years old. He can use this amount towards his daughter’s marriage or even other affairs like further education, etc.

Example 2

Let us say that Mr.Rajesh has taken a Kanyadan Policy for his 2-year-old daughter. He selected a policy term of 25 years. Let us assume that Mr. Rajesh met with an unfortunate accident and passed away when his daughter was 10 years old. His daughter would immediately get a Rs 10 Lakh death benefit. Along with this the daughter would also Rs.50000 every year till the policy matures, plus the daughter will also be eligible for the entire maturity amount on policy maturity. Further, all future premiums will be waived off.


Benefits of LIC Kanyadan Policy

  • Provides a lump sum amount on maturity that you can use towards your daughter’s marriage.
  • Last 3 years premium will be waived off. (For example, if you have taken a 15-year policy, you will only need to pay a premium for 12 years)
  • If the guardian passes away, all future policy premiums will be waived off.
  • If the guardian passes away, the daughter will be eligible to immediately get Rs.5 Lakhs in case of normal death and Rs.10 Lakhs in case of accidental death. Further, the daughter will also get an additional Rs.50000/year till policy maturity.
  • Further, the daughter will get the entire maturity benefit as well along with the death benefits.
  • NRI’s can avail of this policy
  • Policyholder can also avail of a disability rider
  • The policyholder can also avail a loan against the policy (after paying premium continuously for 3 years or more)
  • Taxes are exempt under this policy
  • Policyholder is provided with a 15 day free look period

Documents Required

Following documents are required while enrolling in this policy:

  • Daughter’s birth certificate
  • Identification and address proof
  • Income Certificate
  • Passport size photos

Further documents can be requested by the LIC officer.

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Life Insurance Corporation

Pay LIC Premium Online (Complete and simple guide)

Pay LIC Premium Online (Complete and simple guide)

Are you tired of paying your LIC premium offline? Tiered of the long-ques, hassles, and traffic? Did you know you can also pay your LIC premium online? Be it through credit cards, debit cards, PayTM, net banking, and even LIC’s online portal.

We will be walking you through each of these payment options in detail so you can choose the most convenient way to pay your LIC premium online. This article will discuss the following:

  • How to pay LIC premium online
  • How to get a receipt of LIC premium online

How to Pay LIC Premium Online

At the outset, let us talk about some of the modes of LIC online premium payment. Payments can be made in the following modes:

  • LIC portal (using credit/debit cards)
  • LIC App

Make LIC Premium Payment through LIC portal (using credit/debit cards)

Pay Direct (without login)

Step 1: Go on the LIC website

pay direct without login
pay direct without login

You can go on the LIC premium payment page by clicking here or by visiting https://licindia.in/Home/Pay-Premium-Online

Step 2: Click on ’Pay Direct (Without Login)’

Click on pay direct without login
Click on pay direct without login

Step 3: Select ‘Renewal Premium/Revival from the drop-down box’

pay direct without login page
pay direct without login page

Step 4: Click on ‘Proceed’

premium payment page
premium payment page

Step 5: Enter your details

Customer validation page
Customer validation page

You will need to enter your policy number, date of birth, phone number, email ID, and premium payable. Once you enter these details you would need to check the ‘I agree’ box and press ‘submit’

Step 6: Select your policy

Select the policy you wish to pay the premium for and click on ‘Pay Premium online’.

Step 7: Make Payment

This is where you will need to fill in your payment details. Enter your credit card/debit card details and initiate the payment. Put in the bank OTP and conclude the payment.

Pay Through Customer Portal (login required)

Step 1: Go on the LIC website

LIC premium payment portal
LIC premium payment portal

You can go on the LIC premium payment page.

Step 2: Click on “Through Customer Portal”

pay direct through customer portal
pay direct through customer portal

Step 3: Enter your login credentials

pay through LIC account
pay through LIC account

You will need to enter your user ID/Email/Mobile Number along with your password and your date of birth. Press “Sign In”.

Step 4: Click on “Online Payments”

click on online payments
click on online payments

Step 5: Select your policy

Select your LIC policy
Select your LIC policy

Select your policy and verify your policy details. Once you’ve done this, click on “Check & Pay”

Step 6: Make Payment

Enter your payment details and make your payment through the payment gateway.

Pay Premium through LIC App

Step 1: Download the LIC PayDirect App

download the lic paydirect app
download the lic paydirect app

Go to your Phone’s Google Pay Store and download the LIC PayDirect App.

Step 2: Open the App and click on “Proceed”

LIC PayDirect App
Click on proceed in the LIC PayDirect App

Step 3: Select “Renewal Premium” from drop-down menu and click on “Proceed”

Select Renewal Premium from drop down menu
Select Renewal Premium from drop down menu

Step 4: Enter your policy details

Enter your policy details like your name, policy number, email ID, phone number.

Step 5: Select your policy

This is where you need to select the policy you wish to pay the premium of. Once you’ve selected the policy, move ahead.

Step 6: Make Payment

You will need to enter your payment details within the payment gateway and click on submit. Ensure that all details are correct before progressing. You will get an OTP from your bank to verify the transaction. Verify the transaction and complete the payment.

How to download LIC premium receipt online

Step 1: Login to your LIC customer portal

LIC account login
LIC account login

Enter your login credentials like user ID/Email/Phone number, password, and date of birth and click on ‘sign in’.

Step 2: Click on ‘individual policy details’

individual policy details
Click on individual policy details

Step 3: Click on ‘All Policies’

LIC all policies
Click on all policies

Step 4: Click on ‘Online Payment Receipts’

online payment receipts
Click on online payment receipts

Step 5: Select period

Select period for generating receipts
Select period for generating receipts

Step 6: Download LIC policy receipt

download LIC receipt
download LIC receipt

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Life Insurance

Star Union Dai-ichi Life Insurance (SUD Life)

Star Union Dai-ichi life insurance (SUD Life)

Star Union Dai-ichi life insurance (SUD Life) is a 3-way joint venture between Japanese insurance giant Dai-ichi, Union Bank of India, and Bank of India.

SUD Life was founded in 2009 and currently operates over 15000 branches in India. The majority of its insurance business is handled within the bank branches of Union Bank and Bank of India, respectively. As of 2021, The company has a total of over 64 million customers.

This article will be discussing the following aspects of SUD Life insurance:-

  • SUD Life shareholding pattern
  • SUD Life management team
  • SUD Life insurance products
  • SUD Life claims settlement ratio
  • SUD Life customer care number
  • SUD Life Forms
  • SUD Life insurance careers
  • SUD Life surrender form

SUD Life shareholding pattern

The company has an authorized capital of 250 Cr, with the following shareholding pattern:-

  • Dai-ichi Life Holding: 45.94%
  • Union Bank of India: 25.10%
  • Bank of India: 28.96%

SUD Life management team

Mr. GIRISH KULKARN is the company’s Managing Director and CEO, followed by Mr. KIMIHISA
HARADA (Deputy CEO & CFO), Mr. Abhay Tewari (JOINT PRESIDENT & CHIEF ACTUARY), Daiju Saski (Chief Risk Office). The complete list can be found here.

SUD Life insurance products

The company offers an abundance of insurance products to its clientele. Their products are broadly classified into the following:-

  • Protection plans
  • Retirement plans
  • Wealth Plans
  • Savings Plans
  • Child Plans

Let us decompress these plans further and get into the details of each SUD Life insurance plan.


SUD Life Protection plans

SUD Life protection Plans or term plan comprises of 2 products, they are:-

  1. SUD Life Saral Jeevan Bima plan
  2. SUD Life Abhay plan.

SUD Life Saral Jeevan Bima 


SUD Life Saral Jeevan Bima plan is the company’s standard term insurance plan. It provides life insurance coverage to individuals in case of an unfortunate demise of the policyholder. The policy provides a lump sum amount in the event of the policyholder’s death.

  • Maximum Coverage: Rs 25 Lakhs
  • Minimum and maximum entry age:18-65 years
  • Maximum maturity age: 75 years
  • Payment terms: Single, regular, 5 years and 10 years
  • Policy brochure

SUD Life Abhay 

This plan provides more flexibility compared to the Saral Jeevan Bima plan, as it offers lump sum payment, monthly payment, or a combination of the two In the event of the policyholder’s unfortunate demise. It also provides substantially greater coverage compared to their Saral Jeevan Bima plan

  • Maximum Coverage: 100 crores
  • Minimum and maximum entry age:18-65
  • Maximum maturity age: 80 years
  • Payment terms: Annual premium, single premium, or Limited premium
  • Policy term: Max 40 years
  • Policy brochure

SUD Life Retirement Plans

According to the Population Census held in 2011, there are over 10 crore senior citizens in India. This number is expected to rise to over 17 crores by 2026. As the number of elderly increase in the country, so do their post-retirement financial requirements. SUD Life provides 3 retirement plans for the elderly. They are:-

  • SUD Life Assured Income Plan
  • SUD Life Guaranteed Pension Plan
  • SUD Life Immediate Annuity Plus Plan

SUD Life Assured Income Plan 

The company’s Life Assured Income Plan provides a unique blend of benefits to the policyholder. The plan provides financial security to the insured by way of annual payouts plus it provides a life cover to the policyholder in case of an unforeseen death. The plan also guarantees that the company will return all of the premium paid to the policyholder on maturity.

  • Maximum annual payout: 50 lakhs
  • Minimum and maximum entry age:18-55
  • Maximum maturity age: 75 years
  • Payment terms: Annual premium, single premium, or Limited premium
  • Policy term: Max 35 years
  • Policy brochure


SUD Life Guaranteed Pension Plan 

The SUD Life Guaranteed Pension Plan provides many of the benefits of SUD Life Assured Income Plan, along with additional benefits like No medical checkup and flexible payment options.

  • Minimum and maximum entry age:35-65
  • Maximum maturity age: 70 years
  • Payment terms: Annual premium, single premium, or Limited premium
  • Policy brochure

SUD Life Wealth Plans (Unit Linked Life Insurance Plans)

The company also provides a host of ULIP-type plans that are linked with the financial market. These plans provide the potential for greater returns through exposure to the stock market, along with general death benefits, incase of unfortunate demise of the policyholder. Plans include:-

  • SUD Life Wealth Builder Plan
  • SUD Life Wealth Creator Plan


SUD Life Wealth Builder Plan

The Wealth Builder Plan provides Unit-linked maturity benefits along with death benefits in case of untimely death. The premium payment structure is very simple. The insured only needs to pay a single one-time premium to enroll in this policy.

  • Minimum and maximum entry age:8-60
  • Maximum maturity age: 70 years
  • Payment terms: single premium
  • Policy Term: 5-30 years
  • Minimum Premium: 1 Lakh

SUD Life Wealth Creator Plan 

The SUD Life Wealth Creator Plan provides benefits similar to the Wealth Builder Plan, along with the opportunity to invest in 2 specialized investment strategies.

  • Minimum and maximum entry age:8-55
  • Payment terms: Flexible
  • Max premium: Rs 100 Crores


SUD Life Savings Plans

Star Union Dai-ichi provides 6 savings plans to augment your income sustain your lifestyle. They are:-

  • SUD Life Guaranteed Money Back Plan
  • SUD Life Praptee Plan
  • SUD Life Aayushmaan Plan
  • SUD Life Sanchay Plan
  • SUD Life Samriddhi Plan
  • SUD Life Akshay Plan
  • SUD Life Aadarsh Plan


SUD Life Guaranteed Money Back Plan

This plan advertises “guaranteed happiness every 5 years”. This means the company will provide 200% of your paid premium back to you every 5 years as a survival benefit. This policy pays the policyholder 200% of his or her premium back every 5 years and also provides a death benefit to the holder. This policy provides a balance between savings and security.

  • Minimum and maximum entry age:13-50
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Max sum insured: Rs 10 Crores
  • Maturity age: 70
  • Max Policy Term: 20 years

SUD Life Praptee Plan

The company’s Praptee Plan assures increasing payouts every 3 years, guaranteed maturity benefits, and also provides a death benefit for the policyholder.

  • Minimum and maximum entry age:8-50
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Max sum insured: Rs 100 Crores
  • Maturity age: 68


SUD Life Aayushmaan Plan

This plan provides a cumulative lump sum amount at the end of the policy term with additional bonuses.

  • Minimum and maximum entry age:18-50
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Max sum insured: Rs 100 Crores
  • Maturity age: 70


SUD Life Sanchay Plan

SUD Life Sanchay Plan is a low-ticket (minimum sum insured INR 90000) life cover plan. This plan provides ease of enrollment as the company does not require you to undergo a medical test before buying the policy. The holder will receive a maturity benefit of 150% of the premium paid during policy maturity.

  • Minimum and maximum entry age:18-45
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Max sum insured: Rs 9 Lakhs
  • Maturity age: 55


SUD Life Samriddhi Plan

Their Samriddhi Plan provides life cover along with accidental coverage to the policyholder. This plan also provides guaranteed additions and bonuses. The holder will receive all the benefits on maturity or death.

  • Minimum and maximum entry age:8-55
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Max sum insured: Rs 1 crores
  • Maturity age: 70


SUD Life Akshay Plan

his plan provides an extended life cover (up to 95 years) along with guaranteed cashback and maturity benefits.

  • Minimum and maximum entry age: 25-50
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Maturity age: 95

SUD Life Aadarsh Plan

The Aadarsh Plan is a short-term savings plan offered by SUD Life. The plan provides maturity benefits, life coverage, and accidental coverage. An additional advantage of this plan is that in case of accidental death, the sum assured is doubled.

  • Minimum and maximum entry age:8-55
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Maturity age: 65
  • Max sum insured: Rs 5 Lakhs

SUD Life Child Plans

The company currently provides a single-child plan. It is a non-Unit-linked endowment plan.

SUD Life Aashirwaad Plan

This plan ensures that there is no compromise in your children’s lifestyle, education, and wellbeing even in the event of the policyholder’s death. The plan provides guaranteed benefits at maturity, flexible payout options, and guaranteed additions.

  • Minimum and maximum entry age:18-50
  • Payment terms: annual, quarterly, bi-annually, and monthly
  • Maturity age: 70
  • Max sum insured: Rs100 Crores

SUD Life claims settlement ratio

The company has proven itself to steadily increase its claim settlement ratio in the last 5 years

Year

Claim settlement ratio

2015-2016

80.73 %

2016-2017

84.05 %

2017-2018

92.26 %

2018-2019

96.74 %

2019-2020

96.96 %


SUD Life customer care

Toll-free number

1800 266 8833

Regular number

+91 22 7196 6200

Email ID

Email- customercare@sudlife.in

SUD Life Forms 

You can download the requisite SUD Life claim forms based on the type of claim you want to make.

SUD Life insurance careers

The company generally opens up a large number of job positions throughout the year. You can view the complete list of job listings here.


SUD Life surrender form 

In case you wish to surrender your policy and make a partial withdrawal, you can download the surrender form, fill it and send it across to the designated officer at the company.

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sbi life insurance

Is SBI Life insurance a private or government company?

Is SBI Life Insurance a private or government company?

There is some confusion in the minds of the general public when it comes to the ownership of SBI Life Insurance Company. This article will aim to resolve all those queries.

SBI Life Insurance is a joint venture between Indian banking giant SBI and foreign company BNP Paribas Cardif.

SBI Life Is a Publicly traded company that is listed on the BSE and NSE stock exchanges.

SBI Life shareholding pattern

The identity of the company can be made out of its shareholding pattern. Below is SBI Life’s shareholding pattern:

  • 55.50% shares owned by SBI – No of shares 555,000,000
  • 5.20% shares owned by BNP Paribas Cardif – No of shares 52,007,092
  • 32.92% shares owned by institutions – No of shares 329,214,588
  • 6.37% shares owned by the general public – No of shares 63,836,997

As you can see the majority ownership is with the State Bank of India (SBI), hence the decision-making authority when it comes to the direction of the company will be SBI. That being said, SBI Life is being run like a professionally managed company and not like a Public Sector Unit (PSU).

This means that majority of the employment opportunities within SBI Life will be private in nature and not through Government exams and reservations.

Difference between a PSU and a privately run company

As mentioned above, even though the majority ownership of SBI Life is government owned, the company is run like a private professionally run company. Let us learn about the 5 most important differences between a PSU and a Privately run company.

Employee hiring

A PSU will generally hire through general government exams and specific government exams. Hiring is based on quotas and reservations. PSU’s hire through exams like SBI Probationary Officer (PO) Exam, SBI Clerk Exam, SBI SO Exam, etc. Other PSU’s like BHEL, DRDO, ONGC have their own set of exams.

A privately-owned company will hire based on their own internally formulated yardsticks.

Goals

The end goal of a public sector company is to uplift the people of the nation. This can be done by employing a quota system, reservations, etc. The end goal of a privately run company is to make profits for its shareholders

Ownership

The ownership of a government company lies with the state or central government. Ownership of a private company lies with a private entity.

Restricted sectors

Private ownership in certain sectors is restricted by the government. For instance, only state-owned corporations can partake in the following sectors:
Atomic energy
Space

Examples of privately owned vs Government owned companies

  • Example of a government undertakings can be SBI, IOC, BHEL, etc.
  • Privately-owned companies include ITC, Reliance Industries, Wipro, Infosys, L&T, L&T Finance, etc.

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