When it comes to securing the financial future of your loved ones, one of the most trusted names in India is the Life Insurance Corporation of India (LIC). For decades, LIC has been providing people with insurance plans that not only offer protection but also help in saving and investment. With a wide range of policies to choose from, LIC caters to different needs such as family protection, retirement planning, children’s education, and wealth creation.

But many people still find themselves confused about how to buy a policy from LIC. The process may look complicated at first, but it is actually quite simple once you know the steps. In this blog, we will explain everything in detail so that you can make an informed decision without any hassle.

Why Choose LIC for Insurance?

Before we jump into the buying process, let’s understand why LIC remains the first choice for millions of Indians:

  • Trustworthy Brand: With decades of experience, LIC has earned the trust of people across the country.
  • Wide Range of Policies: From term insurance and endowment plans to pension schemes and child policies, there’s something for everyone.
  • Affordable Premiums: Policies are designed keeping in mind different income groups.
  • Strong Claim Settlement Ratio: LIC is known for its high claim settlement record, which gives peace of mind to policyholders.

Steps to Buy a Policy from LIC

Now, let’s go step by step to understand how you can buy a policy from the Life Insurance Corporation of India.

Step 1: Identify Your Needs

The first step is to figure out why you need insurance. Ask yourself questions like:

  • Do you need financial protection for your family in case of emergencies?
  • Are you planning for retirement?
  • Do you want to save for your child’s future?
  • Do you need tax-saving benefits?

Understanding your requirements will help you choose the right policy

Step 2: Choose the Right Policy

LIC offers different types of policies, such as:

  • Term Insurance Plans: Pure protection policies with high coverage at low premiums.
  • Endowment Plans: Provide insurance along with savings.
  • Money-Back Plans: Offer periodic returns along with life cover.
  • Pension/Retirement Plans: Secure your financial future after retirement.
  • Child Plans: Designed to support your child’s education and future needs.

Based on your goals, pick the policy that suits you best.

Step 3: Decide the Coverage Amount and Policy Term

Once you select the type of policy, the next step is to choose:

  • Sum Assured (Coverage Amount): The amount your family will receive in case of an unfortunate event.
  • Policy Term: The number of years you want the policy to remain active.

Always ensure that the coverage is sufficient to meet your family’s financial needs. Experts recommend coverage of at least 10–15 times your annual income.

Step 4: Calculate the Premium

The premium is the amount you pay regularly (monthly, quarterly, or yearly) to keep your policy active. The premium amount depends on factors like:

  • Your age.
  • The type of policy.
  • Coverage amount.
  • Policy term.
  • Your health status.

Use LIC’s premium calculators or consult an advisor to know the exact premium for your chosen plan.

Step 5: Collect the Necessary Documents

Before applying, keep the required documents ready. Typically, you will need:

  • Proof of Identity (Aadhaar card, PAN card, Passport, Voter ID).
  • Proof of Address (Electricity bill, Driving License, Aadhaar, Passport).
  • Age Proof (Birth certificate, Aadhaar, or school certificate).
  • Income Proof (Salary slip, ITR, Form 16 – for higher coverage).
  • Recent Passport-size Photographs

Step 6: Fill Out the Application Form

After choosing the policy and gathering documents, fill out the application form carefully. Make sure all the details such as your personal information, nominee details, and health history are accurate. Giving false information may lead to rejection of claims later.

Step 7: Medical Examination (if required)

For certain policies or higher coverage amounts, LIC may ask you to undergo a medical test. This is to assess your health condition and determine the risk involved. The results of this test may also affect your premium.

Step 8: Pay the Premium

Once your form and documents are verified, you will need to pay the first premium to activate the policy. You can choose to pay premiums monthly, quarterly, half-yearly, or annually as per your convenience.

Step 9: Policy Issuance

After successful payment and verification, LIC will issue your policy. You will receive a policy bond, which is an important legal document. Keep it safe, as it contains all the details of your policy

Things to Keep in Mind While Buying a Policy

  • Read the Terms and Conditions Carefully: Always go through the policy document to understand inclusions, exclusions, and benefits.
  • Select the Right Nominee: Ensure that your nominee details are correct, as this person will receive the benefits.
  • Don’t Delay Buying: Premiums are lower when you buy policies at a younger age.
  • Be Honest About Health and Habits: Disclose smoking, drinking, or any existing health issues honestly to avoid claim rejections.
  • Review Your Policy Regularly: As your income and responsibilities grow, consider increasing your coverage.

Benefits of Buying a LIC Policy

  1. Financial Protection: Your family stays financially secure in case of uncertainties.
  2. Tax Savings: Premiums paid are eligible for tax deductions under Section 80C.
  3. Savings and Investment: Some policies also help you build a financial corpus over time.
  4. Peace of Mind: You can focus on your goals without worrying about the future.

Why Timely Purchase Matters

The earlier you buy a policy, the better it is. With age, the risk of health issues increases, which leads to higher premiums. Buying a policy early in life ensures you get maximum coverage at affordable rates

Conclusion

Buying a policy from the Life Insurance Corporation of India is a simple and straightforward process. All you need is a clear understanding of your needs, the right documents, and some time to review your options. From choosing the right policy to receiving your policy bond, each step is designed to ensure that you and your family are financially protected.

Remember, insurance is not just a financial product, it is a promise to your loved ones that their future is secure, no matter what.

And once you have purchased your LIC policy, you can further strengthen your financial safety net by exploring insurance options with trusted providers like Square Insurance, who can guide you to the best coverage suited to your needs.