LIC Life Insurance

LIC Life Insurance

LIC is an India-based insurance company that has established its subsidiary company with the name of LIC International in the UAE. It offers a huge range of plans that suit the basic needs of individuals- provision for their kid’s marriage or education, retirement, or the planning for their family or their future. 

Overview of the LIC Life Insurance Policy Benefits

The following table shows an overview of the benefits offered by different life insurance plans by LIC International.

Benefits

Renewable Term Assurance

Participating Whole Life Plan

Pure Term Assurance

Double Cover Joint Life Policy

Accidental Benefit

Yes

Yes

Yes

Yes

Portability

No

Yes

No

Yes

Loan Facility

No

Yes

No

Yes

Flexible Premium Option

No

Yes

No

Yes

Policy Renewal Options

Yes

No

No

No

Types of LIC Life Insurance Plans

Listed below are the different types of LIC plans and their features and benefits.

Renewable Term Assurance

Such a category of insurance is a pure risk plan that is suitable for those people who want to offer huge amounts as protection for their loved ones at an affordable insurance premium amount. All the males as well as females having an earned income qualify for this policy. 

Features and Benefits of this LIC Policy

Here are the main features & benefits of this policy.

1. Death Benefit

Since the policy is a pure term insurance policy, the amount of sum assured will be payable after the demise of the policyholder within the tenure of the plan. In case, the policyholder survives the plan, then nothing is payable at the time of maturity.

2. Options for Renewing

This plan has a unique feature wherein the policyholder may renew the plan for a further tenure of five to 15 years without undergoing a medical test. The condition is that he or she needs to quality the eligibility requirements that apply on the renewal date and his or her stay in the Gulf countries is supposed to be extended. The extension for the request of policy renewal may be exercised 6 months before the original term expires along with the proof for the extended stay.

3. Benefit for Accidental Disability or Death

An additional nominal amount (of one per 1,000 sum assured for the entire term) to the premium entitles the policyholder to certain additional special privileges as mentioned below. These benefits, however, may be subject to some conditions.

  • The coverage included in this LIC insurance plan becomes double in case the reason for the death is an accident. The maximum amount payable for Double Accident Benefit is 100,000 US dollars.
  • In case a total and permanent disability arises because of an accident, the insured person will get the following benefits.
  1. All the future insurance premiums are waived off.
  2. An amount equivalent to the sum assured amount is paid in 120 EMIs or equal monthly installments additionally, which is spread over ten years.
  • At the time of the maturity of the life insurance plan or in case of a death claim, the original amount of sum assured along with vested bonuses is paid to the policyholder, including the unpaid installments for disability (if any).

Participating Whole Life Plan

This insurance plan guarantees the policyholders with coverage throughout their lifetime. The insurance premium is lower than most of the other policies and is to be paid only for a certain period of time. The bonuses are added to the amount of sum assured each year even post the end of the premium-paying term.

Features and Benefits of this LIC Life Insurance Plan

Here are the main features & benefits of this policy.

1. Sum Assured

After the demise of the insured individual, the entire sum assured including the bonus is paid to the beneficiary. In case the policyholders can’t continue the payment of premiums after paying it for 3 years, the insurance plan will continue for a proportionately lesser sum assured. However, they will not receive any bonuses further.

2. Portability

If the policyholder is an Indian citizen, the policy will get transferred to the LIC of India at the time of his or her repatriation to India. The policy transfer will take place only if the premium for the entire year is paid and upon completing a year from the acceptance date, considering that the LIC insurance plan is an incomplete force for the entire sum assured and on a written request receipt from the policyholder.

The total amount of sum assured along with bonuses (if any), will stand altered to an equivalent amount in Indian Rupee at the exchange rate, as on the date of receiving the transfer request by the insurance company. It is also subjective to the current instructions of the Reserve Bank of India on that date. 

3. Facility of Loan

The policyholders may receive a loan against the security of their plan after it has acquired the paid-up value by LIC policy premium payment for at least three years for full term plans and two years for limited term plans, from the commencement date.

The maximum amount of loan will be 90% of the eligible surrender value and will be paid off in half-yearly installments at the interest rate then prevalent. In the case of the LIC single premium policy, a loan can be received after two years from the commencement date of the plan. 

4. Benefit for Accidental Disability or Death

An additional nominal amount (of one per 1,000 sum assured for the entire term) to the premium entitles the policyholder to certain additional special privileges as mentioned below. These benefits, however, may be subject to some conditions.

  • The coverage included in this LIC insurance plan becomes double in case the reason for the death is an accident. The maximum amount payable for Double Accident Benefit is 100,000 US dollars.
  • In case a total and permanent disability arises because of an accident, the insured person will get the following benefits.
  1. All the future insurance premiums are waived off.
  2. An amount equivalent to the sum assured amount is paid in 120 EMIs or equal monthly installments additionally, which is spread over ten years.
  • At the time of the maturity of the plan or in case of a death claim, the original amount of sum assured along with vested bonuses is paid to the policyholder, including the unpaid installments for disability (if any).

5. Flexible Premium Options

The policyholders do not need to invest huge amounts of funds to purchase a plan. They can pay yearly, half-yearly, quarterly, and monthly for the full term of the plan or limited to five years as per their choice. However, the standard conditions will be applied. The following are different options.

  • The facility of limited payment of premium is available to the policyholders for helping them fulfill their obligation of premium payment within the duration of five years and hence, earn a good discount.
  • The facility of premium sealing or communication allows the policyholders to make payment of the advance premium at a good discount and continue the plan in force.

PTA or Pure Term Assurance

Such a term plan is no-profit term insurance with high coverage and regular payments of premium. It offers financial protection from death throughout the tenure of the policy. 

Features and Benefits of this LIC Life Policy

Here are the main features & benefits of this policy.

1. Life Coverage

The amount of sum assured will be paid in a lump sum in the event of the demise of the insured individual within the tenure of the policy. 

2. Paid-Up Value

In case the premium for at least two full years has been paid, and the subsequent amount of premium within the grace period has not been paid then the insurance plan will be transformed to a reduced paid-up plan.

The company depending upon the regulator’s approval will then reduce the amount of sum assured under the LIC plan to an amount, which should bear the ratio as the full amount of sum assured as the premium amount actually paid should bear to the entire amount stipulated for the policy originally. The reduced policy will thereafter be independent of all the obligations for payment. 

3. Benefit for Accidental Disability or Death

An additional nominal amount (of one per 1,000 sum assured for the entire term) to the premium entitles the policyholder to certain additional special privileges as mentioned below. These benefits, however, may be subject to some conditions.

  • The coverage included in this LIC insurance plan becomes double in case the reason for the death is an accident. The maximum amount payable for Double Accident Benefit is 100,000 US dollars.
  • In case a total and permanent disability arises because of an accident, the insured person will get the following benefits.
  1. All the future insurance premiums are waived off.
  2. An amount equivalent to the sum assured amount is paid in 120 EMIs or equal monthly installments additionally, which is spread over ten years.
  • At the time of the maturity of the plan or in case of a death claim, the original amount of sum assured along with vested bonuses is paid to the policyholder, including the unpaid installments for disability (if any).

Double Cover Joint Life Policy

Marriage is not only a contract but a sacred bond between two people that unites them and both of them responsible for their children as well as their mutual welfare.

Traditionally, it has always been considered as the responsibility of the man to secure the life of this wife and children. However, the change in time, the present economic constraints, and the need to maintain an improved living standard have motivated both husbands as well as wives to earn a living for the family. Therefore, in a lot of families these days, both the partners play the part of breadwinners in the family,

The demise of any one of the partners may not only affect the family mentally but also financially, disturbing their living standard too. To come out of such loss financially at least, LIC international life insurance in UAE includes a joint plan called Double Cover Joint Policy. This plan covers both- the husband and the wife in one plan. 

Features and Benefits of this LIC Online Policy

Here are the main features & benefits of this policy.

1. Sum Assured

The sum assured in the insurance plan is payable immediately to the surviving partner in case of the demise of any of the partners. The surviving partner does not have to pay insurance premiums further; however, the plan remains in force and continues to earn bonuses that are declared on the basis of the valuations.

The basic sum assured including the bonuses will be payable to the surviving partner on the maturity date of this LIC policy or to the beneficiary in the case of the demise of the surviving partner before the policy expires. In case, both the partners end up surviving the tenure of the policy, the basic sum assured with the bonuses will be payable to them on the maturity date of the policy.

It is clear from the benefits related to the payment of the sum assured on the policy that this joint plan offers complete and total insurance protection to the entire family.

2. Portability

If the policyholder is an Indian citizen, the policy will get transferred to the LIC of India at the time of his or her repatriation to India. The policy transfer will take place only if the premium for the entire year is paid and upon completing a year from the acceptance date, considering that the LIC insurance plan is in complete force for the entire sum assured and on a written request receipt from the policyholder.

The total amount of sum assured along with bonuses (if any), will stand altered to an equivalent amount in Indian Rupee at the exchange rate, as on the date of receiving the transfer request by the insurance company. It is also subjective to the current instructions of the Reserve Bank of India on that date. 

3. Facility of Loan

The policyholders may receive a loan against the security of their plan after it has acquired the paid-up value by LIC policy premium payment for at least three years for full term plans and two years for limited term plans, from the commencement date.

The maximum amount of loan will be 90% of the eligible surrender value and will be paid off in half-yearly installments at the interest rate then prevalent. In the case of the LIC single premium policy, a loan can be received after two years from the commencement date of the plan. 

4. Benefit for Accidental Disability or Death

An additional nominal amount (of one per 1,000 sum assured for the entire term) to the premium entitles the policyholder to certain additional special privileges as mentioned below. These benefits, however, may be subject to some conditions.

  • The coverage included in this LIC insurance plan becomes double in case the reason for the death is an accident. The maximum amount payable for Double Accident Benefit is 100,000 US dollars.
  • In case a total and permanent disability arises because of an accident, the insured person will get the following benefits.
  1. All the future insurance premiums are waived off.
  2. An amount equivalent to the sum assured amount is paid in 120 EMIs or equal monthly installments additionally, which is spread over ten years.
  3. At the time of the maturity of the plan or in case of a death claim, the original amount of sum assured along with vested bonuses is paid to the policyholder, including the unpaid installments for disability (if any). 

5. Flexible Premium Options

The policyholders do not need to invest huge amounts of funds to purchase a plan. They can pay yearly, half-yearly, quarterly, and monthly for the full term of the plan or limited to five years as per their choice. However, the standard conditions will be applied. The following are different options.

  • The facility of limited payment of premium is available to the policyholders for helping them fulfill their obligation of premium payment within the duration of five years and hence, earn a good discount.
  • The facility of premium sealing or communication allows the policyholders to make payment of the advance premium at a good discount and continue the plan in force. 

LIC Life Insurance Policy - FAQs

Q 1: What is the purpose of life insurance?

Ans: Virtually, each working expatriate in the UAE has one or more members of their family who are dependent on their income, and such dependents usually need the safety, which an insurance plan can offer. 

Q 2: How soon would a claim amount be paid?

Ans: Any claim amount paid by the LIC (International), no matter which kind, will get immediately paid on completing the documentation satisfactorily that the insurance provider requires. The claim payment will be done either from the United Arab Emirates or from Bahrain. The payment can be made anywhere throughout the world in any major currency. 

Q 3: Where do I make the LIC policy premium payment?

Ans: You can make the payment for the insurance premium at any of the branches of LIC (International), any of the branches of the National Bank of Dubai, or Kingstar Insurance Agencies. Additionally, the premium payment can be done via the LIC chief agents in the 5 other GCC countries, or through TT (Telegraphic Transfer) or bank draft no matter where you are in the world.

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