LIC Full Form, All You Need to Know About LIC

LIC Full Form

LIC, or the Life Insurance Corporation of India, holds a pivotal position in the nation’s financial landscape. Established in 1956 through the Life Insurance Act, LIC’s foundation stems from the nationalization of the life insurance industry. This move aimed to place life insurance under government control, ensuring widespread financial security for citizens. The subsequent growth and evolution of LIC have solidified its standing as a leading government-owned insurance and investment entity.

History and Establishment of LIC

The Life Insurance Corporation of India came into existence on September 1, 1956, a defining moment marked by the government’s initiative to consolidate the private insurance sector under a unified, nationalized banner. This strategic move laid the groundwork for LIC to emerge as the cornerstone of India’s life insurance landscape.

Mission: Elevating Lives Through Financial Security

LIC’s mission statement reflects a commitment to enhancing the quality of life. Achieving this involves providing products and services characterized by competitive returns, thereby contributing to economic development. The focus is not merely on financial transactions but on the broader goal of fostering a particular quality of life for its clientele.

Vision: A Financial Conglomerate of Global Significance

LIC aspires to transcend national boundaries, positioning itself as a financial conglomerate that competes on the global stage. The vision emphasizes not just financial prowess but also the significance of contributing positively to societies and standing as a source of pride for India.

LIC’s Landscape

Headquarters and Operational Reach

LIC’s headquarters, situated in Bombay, symbolizes its operational hub. The company has transcended geographical boundaries, establishing a formidable presence in both urban and rural areas. As the largest life insurance company in India, LIC manages an extensive network, reaching individuals across diverse demographics.

Financial Prowess: Asset Value

LIC’s financial stature is underscored by its staggering asset value, exceeding 2,529,390 crores. This financial prowess not only underscores the company’s stability but also serves as a testament to its commitment to safeguarding the financial interests of its policyholders.

Fundamental Concepts of Life Insurance

The Essence of Life Insurance

At its core, life insurance is a contractual agreement that promises a payment to the insured person or their nominee upon the occurrence of specified events. These events include the date of maturity, specified dates at periodic intervals, or the unfortunate demise of the insured person.

Risk Elimination and Financial Support

Life insurance, universally acknowledged as a societal institution, addresses the inherent risks associated with life. It replaces uncertainty with certainty, providing timely financial support to the family in the unfortunate event of the breadwinner’s death. The two primary hazards that life insurance addresses are the risk of premature death and the risk of outliving one’s visible means of support.

Core Objectives of LIC

Propagating Life Insurance Awareness

One of LIC’s primary objectives is to spread awareness about the importance of life insurance, especially in rural areas and among socially and economically backward classes. The company aims to provide financial assistance against death at a reasonable cost, ensuring that a broad spectrum of individuals can access life insurance.

Addressing Diverse Life Insurance Needs

The dynamic socio-economic landscape necessitates that LIC adapts to the ever-changing life insurance needs of the community. Flexibility in offerings allows LIC to tailor its products to align with the diverse requirements arising from shifts in social and economic scenarios.

Safeguarding Interests and Maximizing Savings

As a key objective, LIC serves as a guardian of the life insurers’ interests. Functioning as a trustee, the company plays a pivotal role in maximizing savings by offering a wide variety of life insurance products. This not only encourages thrift but also empowers policyholders to choose plans that align with their financial goals.

Employee and Agent Involvement

Acknowledging the significance of human resources, LIC actively encourages the participation and involvement of its employees and agents. By fostering a collaborative approach, the company aims to ensure that every stakeholder contributes to the realization of LIC’s objectives.

Digitalization Initiatives taken by LIC

Pioneering Digital Integration

In tune with the digital age, LIC has seamlessly integrated its services into the online domain. This move caters to the evolving preferences of customers, making LIC’s products and services more accessible than ever before. The comprehensive online database serves as a centralized platform for customers to interact with LIC seamlessly.

Online Offerings: Convenience at Your Fingertips

LIC’s digital initiatives include a range of online services, offering unparalleled convenience to policyholders. Some of the notable features accessible through LIC’s online platform include:

  • Online forms for products and services
  • Registration for e-services
  • Policy schedule checks
  • Loan status inquiries
  • Claim status tracking
  • Premium payment details
  • Grievance registration

Reinventing Accessibility

The shift towards digitalization is not just a technological upgrade; it’s a strategic move to reinvent accessibility. LIC’s online presence ensures that customers, whether existing or potential, can engage with the company effortlessly, fostering a user-friendly and customer-centric approach.

Products Offered by LIC

Endowment Plans: Balancing Protection and Savings

LIC’s endowment plans strike a balance between protection and savings. These plans offer a lump-sum amount (sum assured) along with bonuses at the end of the policy term. Notable endowment plans include:

  1. LIC’s Bima Jyoti (Plan No: 860, UIN No: 512N339V02)
    • Description: An endowment plan that not only provides financial protection but also ensures savings with attractive returns. The policy offers a lump sum at maturity and bonuses, making it an ideal choice for long-term financial planning.
  2. LIC’s Bima Ratna (Plan No: 864, UIN No: 512N345V01)
    • Description: This endowment plan stands out with its dual benefit of protection and savings. It guarantees a lump sum amount along with bonuses to secure the policyholder’s financial future and that of their loved ones.
  3. LIC’s Dhan Sanchay (Plan No: 865, UIN No: 512N346V01)
    • Description: Dhan Sanchay is tailored for those seeking a disciplined savings approach along with life coverage. With various term options, this plan assures a sum assured and accrued bonuses, providing a comprehensive financial solution.
  4. LIC’s Jeevan Azad (Plan No: 868, UIN No: 512N348V01)
    • Description: Jeevan Azad is a unique endowment plan offering a blend of protection and flexibility. It allows policyholders to choose the premium payment term, ensuring financial security and adaptability to individual preferences.
  5. LIC’s Dhan Vriddhi (Plan No: 869, UIN No: 512N362V02)
    • Description: Dhan Vriddhi is crafted for those seeking substantial returns on their savings. With a single premium payment, this endowment plan ensures a lump sum amount along with bonuses at maturity, enhancing the policyholder’s financial portfolio.
  6. LIC’s Amritbaal (Plan No: 874, UIN No: 512N365V01)
    • Description: Amritbaal, as the name suggests, is a plan that nurtures financial well-being. This endowment plan caters to the policyholder’s protection needs while fostering disciplined savings for a secure future.
  7. LIC’s New Endowment Plan (Plan No: 914, UIN No: 512N277V02)
    • Description: This is a revamped version of the classic endowment plan, offering enhanced benefits and flexibility. The New Endowment Plan assures a lump sum amount with bonuses, providing a comprehensive financial safety net.
  8. LIC’s New Jeevan Anand (Plan No: 915, UIN No: 512N279V02)
    • Description: Combining endowment and whole life features, New Jeevan Anand ensures protection throughout life. Apart from the sum assured, this plan provides bonuses, making it a holistic solution for long-term financial goals.
  9. LIC’s Single Premium Endowment Plan (Plan No: 917, UIN No: 512N283V02)
    • Description: For those preferring a single premium payment, this endowment plan offers a lump sum at maturity along with bonuses. It’s a convenient choice for individuals looking to make a one-time investment for lifelong financial security.
  10. LIC’s Jeevan Lakshya (Plan No: 933, UIN No: 512N297V02)
    • Description: Jeevan Lakshya is designed with a focus on securing a child’s future education. This endowment plan not only provides life coverage but also assures annual income benefits and a lump sum amount to fulfill educational milestones.
  11. LIC’s Jeevan Labh (Plan No: 936, UIN No: 512N304V02)
    • Description: Jeevan Labh is a limited premium payment endowment plan that combines savings with protection. With attractive returns through bonuses, this plan ensures financial growth while safeguarding the policyholder’s life.
  12. LIC’s Aadhaar Stambh (Plan No: 943, UIN No: 512N310V03)
    • Description: Aadhaar Stambh is a unique endowment plan linked to the Aadhaar card. It provides financial security and savings benefits with added incentives for Aadhaar-linked policies, catering to the evolving needs of policyholders.
  13. LIC’s Aadhaar Shila (Plan No: 944, UIN No: 512N309V03)
    • Description: Similar to Aadhaar Stambh, Aadhaar Shila is designed exclusively for women. This endowment plan ensures financial protection and savings while offering additional benefits for Aadhaar-linked policies, promoting inclusivity.

Whole Life Plans: Lifelong Coverage

Designed to provide coverage throughout the policyholder’s life, LIC’s whole life plans ensure a financial cushion for the family. Key offerings include:

  1. LIC’s Jeevan Utsav (Plan No: 871, UIN No: 512N363V01)
    • Description: Jeevan Utsav is a whole life plan that not only provides coverage throughout one’s life but also offers bonuses, ensuring financial security and savings. This plan is ideal for those seeking a lifelong safety net.
  2. LIC’s Jeevan Umang (Plan No: 945, UIN No: 512N312V02)
    • Description: Jeevan Umang is a unique whole life plan with a dual benefit of lifelong coverage and regular payouts. With survival benefits and bonuses, this plan guarantees financial support, making it a comprehensive solution for long-term security.

Money Back Plans: Periodic Benefits with Life Coverage

LIC’s money-back plans offer periodic payments along with life coverage. These plans are structured to provide liquidity at specific intervals. Prominent money-back plans include:

  1. LIC’s Dhan Rekha (Plan No: 863, UIN No: 512N343V01)
    • Description: Dhan Rekha is a money-back plan that provides periodic payouts along with life coverage. With guaranteed survival benefits at specified intervals and bonuses, this plan ensures both liquidity and financial protection.
  2. LIC’s New Bima Bachat (Plan No: 916, UIN No: 512N284V02)
    • Description: New Bima Bachat is a single premium money-back plan offering financial protection along with periodic returns. With guaranteed survival benefits and the option to receive the entire sum assured without deductions, it provides flexibility and financial security.
  3. LIC’s NEW MONEY BACK PLAN – 20 YEARS (Plan No: 920, UIN No: 512N280V02)
    • Description: This money-back plan spans 20 years, providing periodic payouts to policyholders. With survival benefits at specified intervals and bonuses, it combines financial security with liquidity, catering to diverse financial needs.
  4. LIC’s NEW MONEY BACK PLAN – 25 YEARS (Plan No: 921, UIN No: 512N278V02)
    • Description: Similar to the 20-year variant, this plan extends the benefit period to 25 years. It ensures regular payouts, bonuses, and financial protection, making it suitable for those with longer-term financial goals.
  5. LIC’s Jeevan Umang (Plan No: 945, UIN No: 512N312V02)
    • Description: Jeevan Umang, apart from being a whole life plan, also falls under the money-back category. It provides periodic returns along with survival benefits and bonuses, offering a comprehensive financial solution.
  6. LIC’s NEW CHILDREN’S MONEY BACK PLAN (Plan No: 932, UIN No: 512N296V02)
    • Description: Specifically designed for children, this money-back plan ensures financial support at crucial milestones. With periodic payouts and bonuses, it not only provides protection but also promotes savings for a child’s future.
  7. LIC’s Jeevan Tarun (Plan No: 934, UIN No: 512N299V02)
    • Description: Jeevan Tarun is a money-back plan catering to the evolving needs of growing children. With survival benefits, educational payouts, and bonuses, it offers a unique combination of financial security and savings.
  8. LIC’s Jeevan Shiromani (Plan No: 947, UIN No: 512N315V02)
    • Description: Jeevan Shiromani is a plan that not only provides high coverage but also offers money-back benefits. With survival benefits, this plan ensures liquidity and financial protection for policyholders.
  9. LIC’s Bima Shree (Plan No: 948, UIN No: 512N316V02)
    • Description: Bima Shree is a money-back plan designed for high net-worth individuals. It provides regular payouts, survival benefits, and bonuses, offering a comprehensive financial solution with substantial coverage.

Term Assurance Plans: Pure Protection Cover

For those seeking pure protection without savings or investment components, LIC’s term assurance plans provide comprehensive coverage. These plans include:

  1. LIC’s Saral Jeevan Bima (Plan No: 859, UIN No: 512N341V01)
    • Description: Saral Jeevan Bima is a straightforward term assurance plan offering pure protection. With affordable premiums, this plan ensures that policyholders can enjoy peace of mind, knowing their loved ones are financially secure.
  2. LIC’s Jeevan Kiran (Plan No: 870, UIN No: 512N353V01)
    • Description: Jeevan Kiran is a term assurance plan providing high coverage for a specified term. With a focus on protection, this plan offers financial security to the policyholder’s family in case of an unfortunate event.
  3. LIC’s New TECH TERM (Plan No: 954, UIN No: 512N351V01)
    • Description: New TECH TERM is a term assurance plan that adapts to the changing times. With flexible premium payment options and high coverage, it ensures that policyholders can tailor their protection according to their evolving needs.
  4. LIC’s New Jeevan Amar (Plan No: 955, UIN No: 512N350N01)
    • Description: New Jeevan Amar is a term assurance plan offering pure protection with flexibility. With a choice of policy terms and coverage options, it caters to the diverse protection needs of policyholders.

Riders for Enhanced Benefits: Tailoring Coverage

LIC offers riders as add-on benefits to enhance coverage. These riders include:

  1. LIC’s Linked Accidental Death Benefit Rider
    • Description: This rider enhances protection by providing an additional sum assured in case of accidental death. It offers an extra layer of financial security to policyholders and their families.
  2. LIC’s Accidental Death and Disability Benefit Rider
    • Description: Providing coverage for both accidental death and disability, this rider ensures comprehensive protection. It offers financial support in the event of unforeseen accidents, ensuring the policyholder’s financial well-being.
  3. LIC’s Accident Benefit Rider
    • Description: This rider provides an additional benefit in case of death due to an accident. It adds an extra layer of protection, ensuring that the policyholder’s family receives enhanced financial support in challenging times.
  4. LIC’s Premium Waiver Benefit Rider
    • Description: The Premium Waiver Benefit Rider ensures that, in case of permanent disability, future premiums are waived off. This rider safeguards the policyholder’s financial commitment, allowing them to focus on recovery.
  5. LIC’s New Critical Illness Benefit Rider
    • Description: Focused on health protection, this rider provides a lump sum amount on the diagnosis of specified critical illnesses. It adds a layer of financial support to the policyholder in times of health-related challenges.
    • Description: This rider complements term assurance plans, providing an additional sum assured. It enhances the overall protection offered by the base term plan, ensuring that the policyholder’s loved ones receive increased financial support.
  7. LIC’s Premium Waiver Benefit Rider (With Auto Cover)
    • Description: With the added feature of auto cover, this rider ensures that, even after premium waiver, the base plan continues without interruption. It provides seamless protection and financial support to the policyholder’s family.

Key Advantages of Life Insurance

Comprehensive Protection Against Death

Life insurance, at its core, guarantees full protection against the risk of death. The assurance of the entire sum assured, along with bonuses where applicable, provides a safety net for the family.

Encouragement of Thrift and Long-Term Savings

Life insurance serves as a catalyst for thrift by facilitating long-term savings. The installment-based premium payment structure, such as the Salary Saving Scheme, allows for effortless contributions to savings.

Liquidity through Policy-Based Loans

A unique advantage of life insurance lies in its liquidity. Policyholders can easily secure loans against policies with loan value, providing a financial buffer when needed.

Tax Relief: A Financial Incentive

Life insurance stands out as an efficient way to enjoy tax deductions on income tax and wealth tax. Premium payments are eligible for deductions, making life insurance an attractive tax planning tool.

Money When You Need It: Flexibility in Usage

Life insurance policies, with suitable plans or combinations, become effective tools to meet various monetary needs. Whether it’s funding a child’s education, marriage expenses, or cash needs over time, life insurance adapts to changing financial requirements.

Who Can Buy a Policy?

Inclusive Eligibility Criteria

Any person who has attained majority and is eligible to enter into a valid contract can insure themselves and others in whom they have insurable interest. Policies can extend to spouses or children under certain conditions.

Special Considerations for Women

Post-nationalization in 1956, the terms for offering life insurance to women underwent positive transformations. Women with income are treated at par with men, fostering gender inclusivity in life insurance coverage.


In summary, the Life Insurance Corporation of India emerges not just as an insurance provider but as a stalwart institution safeguarding the financial present and future of millions. From its historical roots to embracing digitalization, from a diverse plan portfolio to inclusive eligibility criteria, LIC stands as a beacon of financial security in the dynamic landscape of life insurance. As individuals navigate life’s uncertainties, LIC remains a steadfast companion, offering comprehensive solutions and unwavering support.

FAQs – LIC Full Form

Q1: What is the full form of LIC?

Ans: The full form of LIC is the Life Insurance Corporation of India.

Q2: What is the full form of LIC in Hindi?

Ans: The full form of LIC in Hindi is “भारतीय जीवन बीमा निगम” (Bharatiya Jeevan Bima Nigam), which translates to “Life Insurance Corporation of India” in English.


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