Formed in the year 1956, LIC is the oldest insurance company in the market. It offers a range of life insurance plans to its customers, both individuals as well as corporates. Among the bouquet of plans offered by the company, there are Government directed insurance plans as well as micro insurance plans. Let us understand these categories of life insurance plans offered by the company as well as the plan (s) which are available in each category.
A Government directed life insurance plan is a plan which has been designed and prescribed by the Government of India for the welfare of the Indian population. Insurance companies have to offer such Government prescribed life insurance plans to their customers and LIC is no different. LIC also sells the life insurance plan prescribed by the Government to eligible customers.
A microinsurance plan is an insurance plan designed for the rural sectors of the country. These plans are meant to cover people living in rural areas. The sum assured under these plans is limited and premiums are extremely affordable so that the rural population can afford them.
Both Governments prescribed insurance plans and micro insurance plans have some unique features which are as follows –
There is one Government prescribed life insurance plan offered by the LIC. This plan is called the Aam Admi Bima Yojana and it came into effect from 1st January 2013. The features of the scheme are as follows –
In the microinsurance category, LIC offers three different types of plans which are discussed below –
No, Janashree Bima Yojana is not available under Government directed life insurance plans. The Aam Admi Bima Yojana has been launched merging the two schemes of social security which were Aam Admi Bima Yojana and Janashree Bima Yojana.
To buy Aam Admi Bima Yojana, any of the following age proofs can be submitted –
The accidental benefit rider covers accidental deaths. If the insured dies due to an accident during the term of the plan, an additional sum assured is paid along with the basic sum assured of LIC’s Government and micro insurance plans.
LIC allows you to pay premiums annually, half-yearly, quarterly or monthly whichever suits your finances.
Yes, LIC allows two years from the date of the last unpaid premium to revive a lapsed policy. For reviving the policy, the outstanding premium should be paid along with an interest and, in some cases, a declaration of good health might also be required.
If the premium is not paid within the due date, the insurance plan allows a grace period. Grace period is an additional time allowed to policyholders to pay the outstanding premium. You can, therefore, pay the premium within the grace period and the policy would not lapse.
LIC's Government directed scheme