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How to Buy Life Insurance from LIC of India: A Step-by-Step Guide

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How to Buy Life Insurance from LIC of India: A Step-by-Step Guide

Life insurance is a contract between an insurance company and a policyholder, where the company agrees to pay a sum of money to the beneficiaries of the policyholder in the event of their death. Life insurance can provide financial protection and peace of mind for the loved ones of the policyholder, especially if they depend on their income or support.

Life Insurance Corporation of India (LIC) is one of the largest and most trusted life insurance providers in India. It offers a wide range of policies to suit different needs and budgets. If you want to buy a life insurance policy from LIC, you can follow these steps:

Step 1: Decide what kind of life insurance policy you need

LIC offers various types of policies, such as whole life, term, endowment, money back, market linked, and pension plans. Each type of policy has different features, benefits, and premiums. You should choose a policy that matches your needs and goals, such as:

  • How much coverage do you need?
  • How long do you need the coverage for?
  • How much can you afford to pay as premium?
  • What kind of benefits do you want to receive, such as lump sum, regular income, or both?
  • Do you want to invest your money in the market or get a guaranteed return?

You can compare the features, benefits, and premiums of different policies on LIC’s official website or use online tools like Savvy or Prudential to find the best policy for your needs and budget.

Step 2: Fill out the online application form

You can buy LIC policies online through LIC’s official website or through authorized agents or brokers. You will need to provide some personal and financial information, such as your name, age, gender, income, occupation, health status, and nominee details. You will also need to upload some documents, such as your identity proof, address proof, income proof, and medical reports (if required).

You should fill out the application form carefully and honestly, as any false or misleading information can lead to rejection or cancellation of your policy. You should also read the terms and conditions of the policy and the suicide clause, which is a provision that prevents the beneficiaries from receiving the death benefit if the policyholder dies by suicide within a certain period of time, usually one or two years, after buying or renewing the policy.

Step 3: Pay the premium

You can pay the premium online using various modes, such as credit card, debit card, net banking, UPI, or e-wallets. You will receive a confirmation message and an e-receipt after the payment is successful. You can also opt for auto-debit or ECS facility to pay the premium automatically from your bank account.

You should pay the premium on time and regularly, as any delay or default can result in lapse or termination of your policy. You should also keep the receipts and records of your payments for future reference.

Step 4: Receive the policy document

After verifying your application and payment, LIC will issue the policy document and send it to your registered email address. You can also download the policy document from LIC’s website or app. You should check the policy document carefully and ensure that all the details are correct. If you find any errors or discrepancies, you should contact LIC immediately and request for correction or cancellation.

You should also keep the policy document safely and securely, as it is the proof of your contract and your rights. You should also share the policy document and its details with your beneficiaries and family members, so they can be aware of your policy and its benefits.

Step 5: Enjoy the benefits of your policy

Once you have the policy document, you can enjoy the benefits of your policy, such as death benefit, maturity benefit, tax benefit, loan facility, surrender value, and bonus (if applicable). You should also keep track of your policy status, premium due dates, and claim process through LIC’s website or app.

You should also review your policy periodically and make any changes or adjustments if your needs or circumstances change. For example, you may want to increase or decrease your coverage, change your beneficiaries, or switch to a different policy. You should also inform LIC of any changes in your personal or financial information, such as your address, phone number, email, income, or health status.

Buying a life insurance policy from LIC of India is a simple and convenient process. By following these steps, you can secure your future and your family’s future with a reliable and trusted life insurance provider. If you have any questions or doubts, you can contact LIC’s customer care or visit their nearest branch.

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