LIC a Successful Company in Insurance Sector

Insurance in India is still a growing sector with huge potential. This sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up this sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global company in this sector wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government

Almost all Banks like SBI, Indian Bank, ICICI Bank, HDFC Bank and Big Business Houses like Tata, Birla, and Bajaj etc. entered into this new type of business to provide new service to Indian population.

Keeping in mind the peculiarities of Indian Economy, to give it boost, and also set aside evil effects of foreign capital, the Indian Government allowed limited partnership to foreign players and Indian Banks or Business houses were the main contributors in respect of Capital, Manpower, Distribution, Service etc. What was expected was introduction of new products tested worldwide, using experience and expertise of international insurance companies and providing wider option of alternatives to Indian citizens?

Basically the Monopoly of Government owned life Insurance Company- Life Insurance Corporation of India is broken and challenged in the process. Entry of very experienced, intelligent, customer-caring foreign players in the field compelled LIC to change its stance drastically. Foreseeing the immense competition from the foreign players, it had to amend its ways, concentrate on customer service, and improve upon its way of working and delivery system. That was the great advantage to the Indian population of these changed circumstances.

Insurance Regulatory and Development Authority (IRDA) shows the fall in the life insurance sector in the forth quarter. The down has been noted in the collection of life insurance premium about 6%.
The major player in the sector Life Insurance Corporation (LIC) whose share was about 60% to 63% has gone about 10% down. According to the officials it is being said that sale of new policies and collection of old policies premium has gone tremendously down this year.

Get Here some LIC Popular Policies and Plans.

LIC Jeevan Dhara: A Pension Plan

The Life Insurance market in India is a weak one that be tapped by the state-owned LIC until the entry of private players in the market. Insurance products reached only 19 percent of the 400 million of the insurable population. The state owned Life Insurance Corporation sold insurance only as a tax instrument and not as a product that gave protection. Most customers were under-insured with no transparency in the products. With the coming of the private insurers the rules of the game has changed.

 

LIC’s New invest a Pension plan in your old age. Here are some benefits on this

NEW Jeevan Dhara-1

Premiums are payable yearly, half-yearly, quarterly, monthly Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.

It is a pure pension plan where in one pays single premium or regular premium over
the deferment period to secure a pension starting at a future date.

Annuity rates on the vesting date will be equal to that available under the New
Jeevan Akshaya plan on the date of vesting.

• Bonus is payable under the policy.
• Contributions rank for IT rebate under section 88, though income benefits are
   taxable.

• Premium paying period is between 2 and 35 years.
• Policyholder has the option to pay a single premium or pay regular premium
  annually, half yearly, quarter or monthly (including SSS).

• Minimum age at entry : 18 years.
• Maximum age at entry: 65 years
• Minimum vesting age : 50 years
• Maximum vesting age : 79 years
• Minimum deferment period : 2 years
• Maximum deferment period : 35 years
• Minimum Notional cash option for regular premium policies :Rs.50,000/-
• Minimum premium : Rs.2,500/- p.a for regular premiumRs.10,000/- for single premium policies

Once declared, they form part of the guaranteed benefits of the plan. Final (Additional)
Bonuses may also be payable provided policy has run for a certain minimum period.
The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under
Section 88

LIC the Famous Insurance Policy in the Market

Generally, insurance is a contract between the company and the policy holder, according to which, against a sum of money the company promises to pay back a specific amount after a certain period of time. Generally, premium is based of monthly installments. There are several kinds of insurance plans available in the present day market. Home policy, travel, car, medical policy, accident and general indemnity policy are some of the most famous policies among the people.

The life insurance policy is one of the famous policies in the market. Basically, this policy is an agreement between two parties to compensate on uncertainty of life in exchange of a fixed amount of monthly, quarterly, half-yearly or annual premium. It is a risk mitigation tool as well as a tax saving tool. Some years before, indemnity services in India were limited to big cities and towns with only LIC (Life Insurance Corporation of India). There were also lack of other agencies and corporations at that time. With the rise of Private Corporation in the insurance sector, the market has seen a drastic boom. Now, all the big financial companies are providing insurance plans to the people.

LIC has deployed the funds to the best advantage of the policy holders as well as the community as the whole, true to the spirit of nationalization. National priorities and obligation of reasonable returns to the policyholders are the main criteria of their investments.

Your investment in LIC's funds is governed by Section 27A of the Insurance Act, 1938 subsequent guidelines/instructions by the Government of India from time to time and the IRDA by way of regulations.

HERE Some Feathers on LIC Chandigarh

1. Critical Illness Benefit
2. Accident Benefit
3. Partial withdrawals
4. Loan on policy

There also another benefits on The Web Page.

LIC Insurance for all age peoples in India

When privatization of the Insurance sector started in 2000, numerous experts were predicting the measured deteriorating and ultimate termination of Life Insurance Corporation of India (LIC0). The state owned life insurance monopoly was professed to be slow, unproductive and behind the curve. But the circumstances have turned out drastically different.

So what then is LIC's worth? With 2 core policy holders, assts of Rs 11 lakh corers and 71 % market share in a growth market, LIC's embedded value has been estimated to be at Rs 2.5 lakh crores, give or take a few thousand crores. Embedded value is essentially the present value of profits from the future, and adjusted net asset value. The recent capping on ULIP charges that IRDA has mandated will help LIC in sales as they have a huge bouquet of traditional products.

 

At that Time LIC Chandigarh Comes in

Welcome to Life Insurance Chandigarh

Life Insurance is a lot more than just an investment to save taxes. From providing financial security for your family to protection cover when life springs up unpleasant surprises, insurance provides it all. It even takes care of the educational needs of your loved ones. Unlike other investment avenues, Insurance give you the much needed all round protection throughout life.

Some Useful Plans here:

LIC Life Insurance Plans

• Children LIC Policies & Plans
• LIC Policies & Plans for Handicapped  Dependents
• LIC Pension  Policies & Plans
• LIC Policies & Plans for High Worth Individuals
• LIC Whole  Life  Policies & Plans
• LIC Money Back  Plans & Policies
• LIC Term  Assurnce Plans & Policies
• LIC Endowment Assurance Plans & Policies
• LIC Joint  Life Plans & Policies
• LIC Unit Plans & Policies

On the Website you can get more information about these policies and plans.