Understanding LIC Policy Rules: Everything You Need to Know!

Life Insurance Corporation of India (LIC) offers various insurance policies to cater to the diverse needs of its customers. While the specific rules and terms may vary depending on the type of policy, there are some general rules that apply to most LIC policies. Please note that these rules are based on information available up to my last update in September 2021, and there might have been changes since then. It is essential to refer to the official LIC website or contact LIC directly for the most current and accurate information. Here are some common rules applicable to LIC policies:

General LIC Policy Rules:

1. Policy Application:
• Customers need to fill out the application form accurately and provide all necessary documents as proof of identity, address, and income.
• The acceptance of the policy is subject to underwriting guidelines and medical examination if required.
2. Premium Payments:
• Premiums can be paid annually, half-yearly, quarterly, or monthly, as chosen by the policyholder.
• There is a grace period for premium payment, typically 30 days. If the premium is not paid within this period, the policy may lapse.
3. Policy Term:
• Policies have a specific term, and the policyholder must pay premiums for the entire duration to avail of the benefits.
4. Nomination:
• Policyholders can nominate a person to receive the benefits in case of their demise.
5. Policy Revival:
• If a policy lapses due to non-payment of premiums, it can usually be revived within a specific period by paying the overdue premiums and fulfilling other requirements.
6. Surrender Value:
• Policies might acquire a surrender value after the payment of premiums for a certain number of years. If the policyholder decides to surrender the policy, they receive a surrender value.
7. Loan Against Policy:
• Policyholders might be eligible for a loan against the policy after it acquires a surrender value.
8. Maturity Benefits:
• Upon maturity, the policyholder or the nominee is entitled to receive the maturity amount, which includes the sum assured and bonuses, if any.
9. Death Benefits:
• In the event of the policyholder's demise during the policy term, the nominee is entitled to receive the death benefits, including the sum assured and bonuses, if any.
10. Riders and Add-ons:
• Policyholders can enhance their coverage by adding riders such as accidental death benefit, critical illness cover, etc., by paying an additional premium.
11. Tax Benefits:
• Premiums paid and benefits received are eligible for tax benefits under Section 80C and Section 10(10D) respectively, of the Income Tax Act, 1961.
12. Free Look Period:
• LIC policies usually come with a free look period of 15 days from the date of receipt of the policy document. If the policyholder is not satisfied, they can return the policy within this period for a refund.

Remember, the terms and conditions can vary based on the specific type of policy you choose. It's crucial to thoroughly read the policy document and understand all terms and conditions before making a purchase. For the most accurate and updated information, it's advisable to directly consult with LIC or visit their official website.

{ Note : This is isn't lic website. The only shear things. }

Here is youtube video in Hindi language

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