Common Questions

1. What is LIC and why should I choose it?

Life Insurance Corporation of India (LIC) is India’s most trusted life insurance company, backed by the Government of India. LIC is known for safety, guaranteed benefits, long-term stability, and timely claim settlement.

2. Is LIC insurance safe?

Yes. LIC policies are considered one of the safest financial instruments in India because LIC is government-backed and has a strong claim settlement record.

3. What types of insurance plans does LIC offer?

LIC offers:

• Term Insurance

• Endowment Plans

• Money Back Plans

• Child Plans

• Pension / Retirement Plans

• ULIPs

• Whole Life Plans

Each plan is designed for different financial goals.

4. What happens if I miss a premium payment?

If you miss a premium, your policy may lapse after the grace period. A lapsed policy loses its insurance protection. However, it can usually be revived within a specified period by paying due premiums with interest.

5. How many days is the grace period in LIC?

• Monthly premium: 15 days

• Quarterly / Half-yearly / Yearly premium: 30 days

Insurance cover continues during the grace period.

6. Can I revive my lapsed LIC policy?

Yes. Most LIC policies can be revived within 5 years from the date of first unpaid premium, subject to terms and conditions.

7. Is LIC maturity amount taxable?

Maturity proceeds are generally tax-free under Section 10(10D) of the Income Tax Act, subject to prevailing income tax rules and conditions.

8. Can I claim tax benefits on LIC premiums?

Yes. Premiums paid for LIC policies are eligible for tax deduction under Section 80C, subject to limits as per current income tax laws.

9. What is the minimum and maximum age for LIC policies?

Age limits vary by plan:

• Minimum: from 0 years (child plans)

• Maximum: up to 65–75 years, depending on the policy

10. Can I take a loan on my LIC policy?

Yes. Loans are available on most traditional LIC policies once they acquire surrender value.

11. How long does LIC take to settle claims?

LIC usually settles valid claims quickly, often within 7–30 days, provided all required documents are submitted correctly.

12. What documents are required for LIC claim settlement?

Common documents include:

• Policy document

• Death certificate (for death claim)

• Claim forms

• Identity proof

• Bank details

Additional documents may be requested if needed.

13. Can I buy LIC policy online?

Yes, some LIC plans can be purchased online. However, buying through an LIC agent helps you choose the right plan, avoid mistakes, and get lifelong service support.

14. Is LIC good for long-term savings?

Yes. LIC plans are ideal for long-term disciplined savings, protection, and guaranteed benefits, especially for families who prefer stability over market risk.

15. Which LIC policy is best for me?

There is no single best policy for everyone. The right LIC policy depends on your:

• Age

• Income

• Family responsibilities

• Financial goals

A personal consultation helps in selecting the most suitable plan.

16. What happens if the policyholder dies during the policy term?

In case of the policyholder’s death, LIC pays the death benefit to the nominee as per policy terms, providing financial security to the family.

17. Can I change my nominee in LIC policy?

Yes. Nominee details can be changed anytime during the policy term by submitting a simple request.

18. Why should I buy LIC through an agent?

An LIC agent helps with:

• Right plan selection

• Premium reminders

• Policy servicing

• Claim support

• Long-term guidance

Insurance is not just a product, it’s a relationship.

19. Is LIC suitable for children’s future planning?

Yes. LIC child plans help build funds for education, marriage, and future goals, even if the parent is not around.

20. How can I check my LIC policy status?

You can check policy status:

• Online through LIC portal

• Through LIC customer care

• With the help of your LIC agent

📌 Need Personal Guidance?

Every family’s financial needs are different.
For clear, honest LIC guidance, feel free to contact us for a personal consultation.