Is LIC Policy a Good Investment?

Evaluating LIC Policy as an Investment Option

LIC is a reputable public sector insurance company in India, catering to diverse insurance requirements of customers for several decades.

About LIC

LIC or life insurance corporation of India was established in the year 1956 and it functions with a customer base of 250 million. With a 60% market share in the insurance sector, the company is serving its huge customer base with varied plans and products.

Why should you purchase LIC policies?

Being a government backed insurance provider, LIC policies have always been regarded as safe insurance schemes. The company has also consistently reported a high claim settlement ratio (CSR) over the years. The CSR portrays the total number of claims being settled by the insurer as compared to the total claims raised by customers within a year. LIC has reported a CSR of 98.62% in FY 2020-21.

Are LIC Policies Promising Avenues of Investment?

For people who want to maximize savings and to receive good returns on investments, Life investment plans by LIC may or may not suit their purpose as they are mostly available with a low rate of interest. So, to tackle the high inflation rate in the best possible manner, LIC has come up with ULIP and other lucrative plans that serve the purpose of both insurance and investments for the policyholder. LIC also offers other medium to high-risk plans to customers for them to gain better.

Benefits of purchasing LIC Policy

There are multiple benefits of LIC policies as mentioned below:

Government backed plans

Tax Benefits

Additional Returns

Financial Security

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