Insurance

Important Things to Know about paying Life Insurance Premium

Overview

Purchasing LIC policies is very common among the average Indian as the benefits of doing so are numerous. The Life Insurance Corporation of India has been around for awhile now and has earned a good reputation of providing customers with sound life insurance and other LIC plans that have been easy to claim as and when needed.

 

LIC Policies

 

 

Plan Type

 

Entry Age

 

Maximum Maturity Age

 

 

Jeevan Akshay

 

Immediate Annuity Pension Plan

 

 

30 – 85 years

 

N/A

 

 

LIC E term Plans

 

Pure Term Plan

 

18 – 60 years

 

75 years

 

 

LIC New Children’s Money Back Plan

 

Traditional Money Back Child Plan

 

 

0 – 12 years

 

25 years

 

 

Why to Buy

Signing up for LIC plans can be a great thing to do as life is unpredictable and the best way an individual can protect his or her family is to make sure they have financial coverage after his or her death. The LIC policies are quite easy to purchase as well and interested customers can go ahead and buy these policies online at any given hour of the day.

Features and Benefits

A good reason to opt for LIC plans is the fact that there are many annuity options that customers can choose from. The annuity starts quite quickly and there are single premium plans that customers can opt for as well.

There are income tax benefits that customers of LIC policies can enjoy when they sign up for LIC plans. Income tax exemptions can be availed under section 80 c of the Income Tax Act.

At times customers can also enjoy a rebate of 1% through an increase in the basic annuity rate. The annuity for LIC policies can be paid for five, ten, fifteen or twenty years irrespective of whether the policy customer is alive or not.

There can be maturity benefits that customers can experience when they go ahead and buy LIC policies online. However, customers also have no need to undergo any medical examination if they are looking to buy LIC plans at any point of time.

Eligibility

The LIC policies can be bought for insuring any person in the age group between 0 to 85 years. Therefore both the young and the old can be beneficiaries of the LIC plans.

All those who buy LIC plans need to make sure that they are Indian citizens and that they live in India for the most part of the year. The LIC policies never apply to non residential Indians.

Inclusions

The LIC plans cover any person who dies a natural death or of illness at home or in a hospital. Coverage related to LIC policies can be easily claimed by the survivors of the deceased if the death occurs suddenly as well.

Exclusions

If the person whose life is insured dies an unnatural death or by committing suicide then  the LIC plans become null and void. No coverage is made available to insured persons who take their own life.

Some LIC policies also don’t apply for person who dies from accidents. There are separate accident insurance policies that can be purchased for this purpose.

Documents Required

The most important document that needs to be produced in order to be able to buy life insurance plans is proof of income. A salary certificate is often required and customers may also have to provide of any savings or investments that they may have through which they earn an income.

Along with evidence of income, customers who want to avail LIC policies also need to provide some proof of identity. The proof of identity for LIC plans can be a photo copy of a passport or a PAN card.

At times, customers may also have to provide proof of address like an electricity bill or telephone bill in order for them to be able to buy LIC plans in a smooth and hassle free manner.

Claim Process

The claim process with regard to LIC plans is quite easy. There are claim forms that customers can download from the website in order to be able to process claims for LIC policies.

It takes a week or two for the claims for LIC plans to get processed. Claimants of LIC policies never have to wait for more than a few months in order to get the money disbursed to them fully.

If there are discrepancies between the disbursed amount and what was promised at the time of signing up for the policy, then there are useful customer services that claimants can get in touch with to get their queries answered or grievances resolved.

 

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