1) Government guaranteed.
- Target amount or Sum Assured guaranteed by the Government of India. (LIC act 1956 http://www.licindia.in/images/licact.pdf )
2) Life Cover
- No other savings provide insurance cover for their investors.
3) Money in proper hands.
- Investor can choose for nomination, assignment and re-assignment. So maturity amount or claim amount will go to the right people.
4) Form of benefit can be pre-decided.
- Benefit of the insurance can be pre-decided under Marriage Women’s Property act (MWP Act).
5) Business successions.
- Partnership insurance
(i) Firm will be the policy holder or proposer.
(ii) Life assured will be the partners.
6) Default risk covered
- Key man insurance policy. : In Key-man insurance, company will be the policy holder and proposer but Life assured will be Key-man. On the death of the Key-man money will come to the company.
7) Encourage thrift.
- LIC encourages saving habit of the people, because LIC savings are compulsory savings.
8 ) Creation of large estate by investing small amount.
- SIP- Regular savings.
9) Raise money in emergency.
- Loan available
- Surrender available
10) Age group of 1 to 80 can invest.
11) Benefits with variety of options.
- Mode of payment options
- Settlement options.
- Premium can be paid in advance.
12) Easy accessible
- Like payment of premium, claim settlement etc. In LIC numbers of outlets are increasing but in other case, numbers of outlets are decreasing due to cost cutting.
13) Steady returns
14) Tax benefit
- Deduction allowable from income for payment of life insurance premium (sec.80.c)
- Deduction under section 80D. Health insurance premium up to 15000/p.a.
- Deduction under section 80D.D. Jeevan Adhar premium up to 50000/p.a.
- Exemption under section 10 (10) A
- Exemption under section 10 (10) D.