The Largest Insurance Company of the country Life Insurance corporation of India
LIC
Why LIC is the best among the rest of the insurance in India?
One of the largest insurance companies in the world in terms of customer base, LIC is one of the most trusted brands in the Indian Market. Being the single largest investor in government securities, LIC forms the backbone of the Indian Economy.
Payment of premiums on life insurance policies and health insurance policies not only gives insurance coverage to a taxpayer but also offers certain tax benefits. In this part, you can gain knowledge about deductions available to a taxpayer for payment of life insurance premiums.
Life insurance in India made its debut well over 100 years ago.
In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with particular reference to LIC.
It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of a LIC policy or its benefits or privileges.
What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during the following:
» The date of maturity, or
» Specified dates at periodic intervals, or
» Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premiums periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty, and comes to the timely aid of the family in the unfortunate event of the death of the breadwinner.
By and large, life insurance is civilization's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life path of every person:
- That of dying prematurely leaving a dependent family to fend for itself.
- That of living till old age without visible means of support.