Definition
The full form of LIC is Life Insurance Corporation. It is a state-owned insurance and investment company based in India. LIC offers a variety of insurance products such as life insurance, health insurance, and investment management services.
Key Takeaways
- The full form of LIC is Life Insurance Corporation. It is a prominent state-owned insurance and investment corporation in India.
- LIC offers a diverse product range that includes insurance plans, pension plans, unit-linked plans, special plans, and group schemes providing coverage and investment growth opportunities to millions of people.
- Established in 1956, LIC has been a significant contributor towards facilitating financial security and providing investment solutions in India, making it an essential pillar in the country’s financial framework.
Importance
The term “Full Form of LIC” refers to the Life Insurance Corporation, which is critical in the finance industry, primarily in India.
Life Insurance Corporation is one of the largest and most trusted insurance companies globally, providing a scope of insurance services to millions of users.
The importance lies in its primary function of offering individuals coverage against life risks, long-term investment opportunities, and securing financial futures.
Understanding its full form and its functionality creates awareness about life insurance services, financial planning, and risk management services and promotes financially responsible behavior among individuals and businesses.
Explanation
Life Insurance Corporation (LIC) is a prominent term in the finance sector, particularly in the insurance field. Established in 1956, LIC has been a stalwart in the Indian financial scenario providing insurance coverage and securing the financial well-being of a vast number of populations.
The primary purpose of LIC is to offer life insurance policies to individuals, which would offer a significant financial payout to the beneficiaries in the event of the policyholder’s death. The importance of LIC comes into play in the form of its products and policies which are targeted to cater to different needs such as financial security, educational funding, retirement funding, mortgage loans, and other similar financial requirements of an individual or a family.
The corporation not only provides life insurance but also deals in investment, pension funds, and mutual funds. By operating within the life insurance domain, it acts as a stabilizing factor in the lives of many people and plays a vital role in offering them financial security.
Examples of Full Form of LIC
LIC stands for Life Insurance Corporation, which is the largest state-owned life insurance company in India. Here are three examples of its real-world application:
Life Insurance Policies: LIC offers a number of life insurance policies to suit the needs of different individuals. For example, their “Jeevan Anand” policy provides life cover for the entire lifetime of the insured, with a maturity benefit payable after the policy term has completed.
Pension Plans: LIC offers several pension plans for individuals who want to secure their retirement years. For example, their “Jeevan Shanti” plan is an annuity plan which provides a series of regular payments to the policyholder after retirement.
Investments: LIC also deals in mutual funds and investments. LIC Mutual Fund, a part of LIC, offers various types of mutual fund schemes to cater to the different financial goals of individuals. Investors can choose from equity, debt or hybrid mutual funds based on their risk appetite and financial goals.
FAQ Section: Full Form of LIC
What does LIC stand for?
LIC stands for Life Insurance Corporation. It is an Indian state-owned insurance group and investment corporation, and it is the largest insurance company in India.
When was LIC established?
LIC was established on September 1, 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India.
What services does LIC offer?
LIC offers various services like insurance plans, pension plans, unit-linked plans, special plans, and group schemes. Since its creation, it has created various insurance products to cater to different groups and subgroups of customers.
How can one buy Lic policies?
LIC policies can be bought directly from the LIC website, through a registered LIC agent, or through partnered banks and other financial institutions. Some LIC policies are also available through online marketplaces.
How can one claim their LIC policy?
To claim an LIC policy, a policyholder needs to fill up a claim form and submit it with all necessary documentations to the nearest LIC office. Alternatively, claims can be filed online via LIC’s official website.
Related Entrepreneurship Terms
- Life Insurance Corporation of India
- Insurance Policy
- Policy Premium
- Nominee
- Policy Term
