LIC is India’s largest provider of life insurance. In the interests of running things smoothly, the Life Insurance Corporation of India, as the company is officially known, makes minor changes to rules so that its policies are more customer-friendly.
Now, LIC has made it compulsory to appoint a nominee at the time of purchasing a policy. Failure to do so might result in…
A nominee is the beneficiary of the policy, should the policyholder pass away unfortunately during the tenure of the policy. The nominee can be any family member; spouse, child, parent, or sibling.
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LIC’s ‘Nomination Form’ can be downloaded from its official website or obtained from its branch. This nomination form should be filled out and submitted at the office. Should the need arise, you can even change the nominee through the same process. In the case of multiple nominees, it is prudent to allocate their shares in the policy amount beforehand.
Far from choosing any dependent family member, it is wise to choose somebody who is able to take care of other dependents – if there are any – in your absence. In the event that your relationship with the nominee ceases to be, you should update the nominee’s name immediately. Otherwise, you might end up losing your insurance amount. Moreover, you simply cannot purchase a life insurance policy if you do not appoint a nominee.
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LIC offers dozens of options to choose from; endowment plans, whole life plans, money back plans and term assurance plans. India’s oldest insurance provider had over 290 million policyholders as of 2019. For the year 2018-19, the company reported having settled 26 million claims.
The insurance provider had a revenue of Rs 7,75,283 crore and reported a profit of Rs 4,415 crore in 2022. It has also been in the news for an initial public offering and was listed on May 17 earlier this year.
