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Frequently Asked Questions (FAQs):

Why Life Insurance?

  • You can choose the amount you want to save
  • You can choose the duration
  • You can choose the mode of payment
  • It makes you save
  • It is tension-free
  • Financial advisors provide guidance according to your needs
  • It increases the value of your hard earned money
With LIC you and you alone are the creator of your wealth. Each insurance plan at LIC takes care of specific needs; so if you have a query it would be a good idea to call us at: 98220600797. We would be obliged to sit with you and take you on a journey that will prove beneficial to you in the long run.

Will I save tax if I invest in an insurance policy?
The good news is…yes! All investments that you make in the form of premiums are eligible for tax exemption under Section 80C of the Income Tax Act, subject to certain limitations. It is also important to note that all returns from the insurance proceeds are exempted from income tax under section10D, except for pension plans.

What is Life Insurance?
Life is guided by the hand of God so it is always a good idea to be ready for anything that comes our way. Keeping this in mind, LIC provides a life insurance policy which is a contract that pledges the payment of a certain amount to the person assured (or his nominee) on the event the insurance is made against.

The validity of the payment of the insured amount in based on the cases below:

  • The date of maturity
  • The specified dates (as stated in the contract) at periodic intervals
  • Unfortunate death (in case it occurs earlier)

Life Insurance is a blessing in disguise because it eliminates the risks usually associated with the untimely death of the breadwinner and also the problems associated with old age like living without means of livelihood and support.

What do I do when my policy matures?
LIC of India will send you a discharge form when your policy is about to mature. Once you receive this you will need to sign this document along with a witness signature and submit it at the branch along with the original policy document. If you do not receive the discharge form you can collect the same from any branch. Along with this you will need to submit a completed NEFT form along with a cancelled cheque of the bank account in which you wish the maturity proceeds shall be deposited.

How do I revive my lapsed policy?
Term Policies:

  • In the case of the above the premium needs to be paid within 15 grace days from the premium due date. If this does not happen the premium will fall into lapse condition.
  • If you pay the premium 15 to 2 months after the due date then you will be charged a late fee over the premium.
  • In case the premium payment is delayed more than 2 months then the policy can be revived only after the required medical test has been conducted.

ULIP Policies:
In the case of ULIP policies with life coverage there is a 2 months grace period from the due date payment.

Other Policies:

  • In policies apart from the ones listed above one has a grace period of 30 days for paying the premium after the due date.
  • In case the premium payment is delayed beyond 30 days but is done within 6 months then the premium will be accepted with late fees.
  • If the premium payment is delayed in the first 3 years then there will be no risk coverage for that period.
  • In a situation where the premium payment is delayed during 3 to 5 years after commencement of the policy there will be only 50% of the risk coverage of the basic policy amount and only up to the first 6 months.
  • If the payment of the premium is delayed from the 6th year of commencement of the policy then the risk coverage is covered for 12 months without the payment of the premium. Late fee and due premium is deductible. (Please see if this sounds ok or needs to be changed)
  • In case your policy is in lapse condition then you will be required to get a revival quotation from the LIC branch office or your agent. Along with this you would need to submit a health declaration and get a medical test done from the LIC’s panel doctor (if required). The policy can also be revived through loan or money back claim.

What are policy assignments?
It is important for you to know that your LIC policy is vital incase of assignment to the financial institution or any person in case of financial dealings. This tool can also be kept as a mortgage against your liabilities.

What should I know about nominations?
The person you nominate while opening your LIC policy is an important element of the policy. You can choose to change the nominee name as and when you want to.

Note: A LIC policy should carry an appropriate nomination at all times. We ask our customers to review the situation and make the changes to their policy nomination as and when required.

What is required to be submitted during a death claim?
The following documents will be required to make a death claim:

  • Original Policy Documents
  • Death certificate from the local authority
  • Intimation letter (intimating LIC about the death of the policy holder)

Once the above documents are in order you will be required to take the documents to the LIC branch and collect the necessary forms from the claim department. This form needs to be completed and submitted for the claim process to begin.

In case the death is caused by an accident a copy of the FIR, police panchnama and postmortem report needs to be carried along with the documents mentioned above.

How can I get a loan on my policy?
To get a loan on your policy you need to complete a minimum of 3 years of policy tenure. Once this time limit is complete the policy holder is eligible to raise funds from policies like - Money back, Endowment and Whole life.

In order to get a loan the policy holder would need to submit a prescribed form along with the original policy document at the LIC office. Along with this a cancelled cheque of your bank account (where you wants the funds to be deposited by LIC) would also need to be submitted.

What is the new NEFT requirement?
The World Wide Web has brought the world closer and made it possible to make payments online. With this facility LIC is now able to transfer the funds to your bank account in the case of claim settlement, maturity and money. If you want to avail of this facility you are required to submit a NEFT form along with a cancelled cheque of a reputed bank to the LIC office.


 
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