The primary objective of LIC of India is to spread the importance of life insurance widely in the rural areas and people belonging to socially and economically backward classes. The company functions with a view of providing such individuals with financial cover against death at a reasonable cost.

What are the features of LIC?

Features of LIC

• As a Savings Institution. Life insurance mobilizes as well as promotes the savings in the country.
• Investment Institution. A large part of an investment by LIC is in government securities.
• Stabilizes the Share Market.
• Loan finance defects.
• Dependency on institutional sources.

  What do you mean by LIC?

  Life Insurance Corporation of India
  Life Insurance Corporation of India (abbreviated as LIC) is an Indian government owned insurance and investment corporation. The Life insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India.

  What is the benefit of LIC?

  Unlike any term plan, it also offers Maturity Benefits to the surviving policyholder. Death Benefit- In case of sudden death of the policyholder within the policy tenure, the nominee gets the assured sum. Maturity Benefits- A total of 110% of the premium paid is paid to the live policyholder at the time of maturity.

  Which is the best LIC policy 2020?

  Top 6 LIC Plans In India 2020

  LIC Plans	Type of Plan	Policy Term (in years)
  LIC New Children’s money-back Plan	Traditional money-back Child Plan	25 years – Age at Entry
  LIC New Jeevan Anand	Endowment Plan	15 – 35
  LIC Jeevan Umang	Whole Life + Endowment Plan	100 – Age at Entr
  LIC Jeevan Labh	Endowment Plan	16/21/25

  What is the main purpose of Life Insurance Corporation of India?

  The main role of LIC is to invest in global financial markets and different government securities after gathering funds from people through their various life insurance policies. At least 75% of these gathered funds are to be invested in Central and State Government securities, as stated by one of the LIC rules.

  Which is the largest life insurance company in India?

  LIC is known as India’s largest government-owned life insurance and investment corporation. The main role of LIC is to invest in global financial markets and different government securities after gathering funds from people through their various life insurance policies.

  What was the purpose of Life Insurance Act 1956?

  The Life Insurance Corporation Act 1956 provides for the nationalization of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto.

  When did the Life Insurance Corporation come into existence?

  This short article is aimed at explaining the concept of Establishment & Functions of LIC (The Life Insurance Corporation, Act, 1956). This Act came into existence on 1 st July 1956 and started functioning on 1 st September 1956.