Insurance forms an integral part of our hard and fast lives. Insurance is needed on the life of a person in order to protect the future interests of members of the family in case of death of the person. Insurance guarantees a certain amount to the family members of the insured in case of his death. Alternatively the whole sum is refunded to the insured at the end of the policy term or on maturity of the policy. Besides there are other form of plans like annuity or pension plans which guarantee a certain monthly return after retirement of the insured, besides life insurance in India also qualifies for tax- rebates which makes it a tax-saving device as well. Below are a selected few polices issued by the Life Insurance Corporation of India: -

This is the best form of life assurance for family provision since it enables the Life Assured to pay all the premiums during the ordinarily vigorous and most productive years of life, relieving him from the necessity of making payments later in life when they might become a burden.

Premiums are payable for selected period of years or until death if it occurs within this period, the Life Assured thus having the satisfaction of knowing the maximum amount he will be required to pay no matter how long he lives, if the Life Assured survives the premium paying period, the Policy continues in full force, provided all premiums have been paid, but no further premiums are required to be paid.

With Profits Limited Payments Policies do not cease to participate in profits after completion of the premium-paying period but continue to share in the periodical Bonus Distribution until the death of the Life Assured.

The Mode of payment of premium where the premium-paying tern is 40 years or more shall be yearly or half-yearly only.

This is the most popular form of life assurance since it not only makes provisions for the family of the Life Assured in the event of his early death, but also assured a lump sum at any desired age. The amount assured, if not paid by reason of his earlier death, becomes payable at the end of the endowment term when it may be invested to provide an annuity during the remainder of his life or in any other way he may think most suitable at the time.Premium are usually payable for a term of years equal to the endowment term or until death if it occurs within this period, but they may be limited to a shorter term of years, if so desired.

If payment of the premium ceases after at least three years premium have been paid, a free paid up Policy for an amount bearing the same proportion to the sum assured as the number of premium actually paid bears to the number stipulated for in the policy, will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than Rs.250/-.

No loan will be provided under this plan on the policies issued on the lives of children, until the policy vests in the life assured.

This plan is of special interest to persons who, besides desiring to provide for their own old age and family, feel the need for lump sum benefits at periodical intervals. Unlike ordinary Endowment assurance, where the full sum assured in the event of survivance is payable only at the end of the endowment period.

Under this policy the sum assured along with vested bonuses and final additional bonus, if any, will be payable on maturity or on earlier death.

Children Upto the age of 15 years are eligible to participate in this plan. If the child is above 5 year, then only those who are studying can avail of this plan. This policy is issued with profit, but bonus for Waiting period will vest immediately on the Policy anniversary from which risk is covered or at the end of 5 years from commencement of the policy whichever is later, provided the policy is in force.

The minimum basic sum assured for which the policy will be issued will be Rs. 10,000/- and the maximum sum assured will be Rs. 2,00,000/- subject to certain restrictions.

The policy perfectly suits the needs of employers to effect insurance on the lives of senior managers and keymen whose sudden exit could affect the profitability of the organisation.

An added attraction of policy is that one can limit the premium paying term and still have life insurance cover for a longer term.

Apart from the basic Sum Assured payable at maturity or death, the policy also provides for guaranteed addition at the rate of Rs. 75 per thousand Sum Assured per year and likely Loyalty Addition ranging from 5% to 75% of the basic Sum Assured.

Jeevan Sukanya is a plan designed exclusively for female child aged between 1 to 12 years. It is a limited premium paying plan which provides risk cover (after deferment period) on the life of the female child and when she gets married, extends her risk cover to the life of her husband also.

This Plan provides for a sum assured to be kept aside to meet the Marriage/Educational expenses of children. Under this plan, the sum assured together with vested bonuses shall be payable at the end of selected term either in a lump sum or in ten half-yearly installments, at the option of the life assured/nominee/beneficiary. The first installment will be payable on the date of maturity. These installments will be calculated at rate declared by the Corporation from time to time.

L.I.C. has introduced a PENSION PLAN. The plan is intended to help individuals to provide for retirement income through savings during their working life.

This plan provides pension from a chosen retirement date with life cover providing at least 50% of the target pension to the spouse of his/her death during deferment period.

On the vesting date-Normal pension (payable monthly) based on options selected as under:

1.Pension for life

2.Pension guaranteed for 5,10 & 15 years and life thereafter

3.Pension for life to the life assured, reducing to 50% to the Spouse on the Death of the life assured

On death of Life Assured before the vesting date-Life Cover:

1.Spouse gets 50% of the normal pension for life

2.If the spouse is not there, proportionate NOTIONAL CASH OPTION in lump sum will be payable to the nominee

The purchaser may also exercise option to commute 25% of NCO in lump sum (totally tax free) and balance in annuity as per selected option.

This is a immediate pension plan.

The rate of annuity will be payable ranges from 9.5% to 10.5%.

Annuity payable for

1. For life time,



2. 5 years certain and life time



3. 10 years certain & life time,



4. 15years certain & life time



5. 20 years certain & life time



6. Lifetime with return of purchase price

On amount invested rebate Upto 20% is allowed u/s 88 of income tax up to Rs.60000/-(This is inclusive of other Investments.)

Annuities are payable monthly, Quarterly, Half Yearly and Yearly.