Interesting Facts about LIC
The slogan “Zindagi ke saath bhi, Zindagi ke baad bhi” must be familiar to you. It comes from the Life Insurance Corporation of India (LIC), the nation’s oldest, biggest, and most successful life insurance provider. These seven details regarding the insurance company can be of interest to you.
Fact No. 1: Formed by a huge merger
Prior to independence, India had a large number of regionally and industry-specific, loosely regulated insurance businesses. The Indian government nationalized 245 of these businesses in 1956 and combined them to create the Life Insurance Corporation. Life Insurance Corporation.
Fact No. 2: Only player in the industry for decades
Soon after the merger, the government limited the insurance industry to government-owned businesses. Therefore, until the government allowed private companies to enter the life insurance market in 2000, there was no competition for 44 years.
Fact No. 3: King institutional investor
As of December 31, 2020, Life Insurance Corporation of India has a net worth of more than Rs 38,000 cr with a portfolio of twenty stocks, including Gail India, Axis Bank, Canara Bank, Maruti Suzuki, Titan Company, and others. Government securities make up the bulk of its investments. With more than Rs 2.8 lakh cr invested in FY 2020 alone, LIC is the biggest institutional investor in the country.
Fact No. 4: Shares most of its profits
LIC invests most of its funds in government bonds, corporate bonds, and only a small portion in the stock market. 95% of the profit that comes from these investments goes to the policyholders in the form of returns and bonuses, and the remaining 5% goes to the owner, the government of India.
Fact No. 5: Multinational presence
As a joint venture, a wholly owned affiliated company, or through agents, Life Insurance Corporation of India has operated in several nations. Fiji, Mauritius, the United Kingdom, Singapore, Bahrain, Bangladesh, Abu Dhabi, Dubai, Kuwait, Oman, Qatar, Kenya, Sri Lanka, Nepal, and Saudi Arabia are currently home to them.
Fact No. 6: Massive customer base
If we try to make a country of LIC’s policyholders, it will be the 4th most populated country in the world. Yes, you read it right. It has a customer base of about 29 cr policyholders.
Fact No. 7: Guaranteed by the government of India
The government has promised to pay claims in the event that the Life Insurance Corporation of India defaults because it is a fully state-run business. Even though LIC’s term insurance rates are more expensive than those of commercial insurance companies, this is the reason why consumers favor LIC over private providers. The insurer is ranked second in the BFSI sector, behind SBI, and 19th on the list of India’s most sought-after brands.
Conclusion
LIC Life Insurance can be an important part of a family’s financial protection and long-term planning strategy. It can help protect loved ones from financial uncertainty while supporting important goals such as children’s education, retirement planning, and future financial security.
The best time to think about financial protection is before you need it.
Instead of asking, “Can I afford life insurance?”, consider asking, “Can my family afford to be without financial protection?”
Start by understanding your family’s financial needs, assess the protection required, and choose a suitable solution based on your goals and budget.
Your family depends on you today. Life insurance helps you plan for their tomorrow.
Disclaimer: LIC policies are subject to applicable terms and conditions. Benefits, premiums, eligibility, exclusions, and returns vary by plan. Please read the policy documents carefully and consult an authorized LIC representative before making a financial decision.