As mentioned earlier in the life insurance industry, apart from LIC India Several private companies are also involved in selling life policies to general public living in different corners of our country. The policies of private players have already been given in the previous chapter. The policies of LIC of India have great have been grouped under the following nine major heads.
1) Whole life policies. 2) Endowment policies 3) Children�s policies 4) Joint life policy 5) women�s policy 6) Term policies 7) Special policies 8) Group insurance policies 9) Pension policies.
(1) whole life policies:
The risk is covered for the entire of the policy holder which is why they are known as whole life policies. They policy amount and the bonus are payable only to the nominee or the beneficiary upon the death of the policy holder. The policy holder is not entitled to any money during his or her own life time i.e., there is no survival benefit. This represents a serious drawback in the case of whole life policies for they go on covering a policy holder�s life even after his life has no further economic value for others. One the other hand a policy holder would probably require the money for himself and his spouse during retired life but this would not be possible since the sum assured is payable only when the policy holder dies. In his sense whole life policy are fairly rigid and suitable only in a few very specific cases. The important whole life policies offered by LIC of India are as follows:
1) Single premium whole life plan No.8: Under this policy the total amount of premium payable is paid in one lumpsum by the assured. The time element is the predominating feature and protection element is substantially less than the face value of the policy . The policy is not so popular but is purchased for investment purpose. It suits those persons who get windfall income like lotteries etc. and who can afford such single payment. The minimum sum assured is Rs. 20,000 and there is no limit maximum sum assured.
(2) Convertible whole life plan No-27: This policy is suitable to young man who is on the thresh hold of his career and has prospects of increase in income after some times. The object of this is to provide maximum protection at minimum cost. It is a whole life without profit plan, premiums payable up to age of 70 yearsof the assured. The premium charged is that of whole life without profits and therefore sufficiently low. This risk is however covered for the full sum assured. After 5 years, the life assured can convert this policy into an endowment with or without profits choosing that term without having to go on in for a medical examination In case the conversion option is not exercised at the end of 5 years the policy continues as a whole life plan without profits with the premium payments ceasing at the age of 70. The minimum sum assured is Rs. 20 000, and the maximum age at the entry is 45 years. 3) Limited payment whole life plan No-5: In this policy the life assured required to pay premium for a fixed period from 5 to 55 years. The life assured shall have
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