INDEX

Sr. No. Particulars Page No.

1. Introduction

Industry Profile/Company Profile

2.

3. Need and Objectives of the Study

4 PLANS AND POLICY

5 MARKETING STRATEGY 18-21

6
WHY TO OPT FOR LIC PLANS

7 AWARDS AND ACHEIVEMENTS

8 Literature review

9 Research Methodology

10 Analysis & Interpretation of Data

11 Hypothesis Testing

12 Limitations

13 Conclusion

14 Bibliography
 Introduction
Life insurance is a contract between an insurer and a policyholder. A life
insurance policy guarantees the insurer pays a sum of money to named
beneficiaries when the insured policyholder dies, in exchange for the
premiums paid by the policyholder during their lifetime.

 Life insurance is a legally binding contract.

 For the contract to be enforceable, the life insurance application must
accurately disclose the insured’s past and current health conditions
and high-risk activities.
 For a life insurance policy to remain in force, the policyholder must
pay a single premium up front or pay regular premiums over time. 
 When the insured dies, the policy’s named beneficiaries will receive
the policy’s face value, or death benefit. 
 Term life insurance policies expire after a certain number of years.
Permanent life insurance policies remain active until the insured dies,
stops paying premiums, or surrenders the policy.
 A life insurance policy is only as good as the financial strength of the
company that issues it. State guaranty funds may pay claims if the
issuer can’t.

 Who Should Buy Life Insurance?

Life insurance provides financial support to surviving dependents or other

beneficiaries after the death of an insured. Here are some examples of
people who may need life insurance:
 Parents with minor children—If a parent dies, the loss of their
income or caregiving skills could create a financial hardship. Life
insurance can make sure the kids will have the financial resources
they need until they can support themselves.
 Parents with special-needs adult children—For children who
require lifelong care and will never be self-sufficient, life insurance can
make sure their needs will be met after their parents pass away. The
death benefit can be used to fund a special needs trust that a fiduciary
will manage for the adult child’s benefit.1
 Adults who own property together—Married or not, if the death of
one adult would mean that the other could no longer afford loan
payments, upkeep, and taxes on the property, life insurance may be
a good idea. An example would be an engaged couple who took out
a joint mortgage to buy their first house.
 Elderly parents who want to leave money to adult children who
provide their care—Many adult children sacrifice by taking time off
work to care for an elderly parent who needs help. This help may also
include direct financial support. Life insurance can help reimburse the
adult child’s costs when the parent passes away. 
 Young adults whose parents incurred private student loan debt
or cosigned a loan for them—Young adults without dependents
rarely need life insurance, but if a parent will be on the hook for a
child’s debt after their death, the child may want to carry enough life
insurance to pay off that debt. 
 Young adults who want to lock in low rates—The younger and
healthier you are, the lower your insurance premiums. A 20- 
 something adult might buy a policy even without having dependents
if there is an expectation to have them in the future.
 Wealthy families who expect to owe estate taxes—Life insurance
can provide funds to cover the taxes and keep the full value of the
estate intact.
 Families who can’t afford burial and funeral expenses—A small
life insurance policy can provide funds to honor a loved one’s passing.
 Businesses with key employees—If the death of a key employee,
such as a CEO, would create a severe financial hardship for a firm,
that firm may have an insurable interest that will allow it to purchase
a life insurance policy on that employee.
 Married pensioners—Instead of choosing between a pension payout
that offers a spousal benefit and one that doesn’t, pensioners can
choose to accept their full pension and use some of the money to buy
life insurance to benefit their spouse. This strategy is called pension
maximization.

 Types of Life Insurance

Many different types of life insurance are available to meet all sorts of
needs and preferences.

 Term Life—Term life insurance lasts a certain number of years, then

ends. You choose the term when you take out the policy. Common
terms are 10, 20, or 30 years. The best term life insurance policies
balance affordability with long-term financial strength. 
 Level Term—The premiums are the same every year.
 Increasing Term—The premiums are lower when you're younger and
increase as you get older. This is also called “yearly renewable term.”
 Return of Premium—Return of premium (ROP) policies include a
built-in savings mechanism. You'll pay a flat rate for the duration of
your policy, but unlike traditional term life insurance, you'll get your
money back at the end of the term.
 Permanent—This stays in force for the insured’s entire life unless the
policyholder stops paying the premiums or surrenders the policy. It’s
typically more expensive than term.
 Single Premium—In this case the policyholder pays the entire
premium up front instead of making monthly, quarterly, or annual
payments.
 Whole Life—Whole life insurance is a type of permanent life
insurance that accumulates cash value.
 Universal Life—A type of permanent life insurance with a cash value
component that earns interest, universal life insurance has premiums
that are comparable to term life insurance. Unlike term and whole life,
the premiums and death benefit can be adjusted over time.
 Guaranteed Universal—This is a type of universal life insurance that
does not build cash value and typically has lower premiums than
whole life.
 Variable Universal—With variable universal life insurance, the 
policyholder is allowed to invest the policy’s cash value.
 Indexed Universal—This is a type of universal life insurance that lets
the policyholder earn a fixed or equity-indexed rate of return on the
cash value component.
 Burial or Final Expense—This is a type of permanent life insurance
that has a small death benefit. Despite the names, beneficiaries can
use the death benefit as they wish.
 Guaranteed Issue—A type of permanent life insurance available to
people with medical issues that would otherwise make them
uninsurable, guaranteed issue life insurance will not pay a death
benefit during the first two years the policy is in force (unless the death
is accidental) due to the high risk of insuring the person. However, the
insurer will return the policy premiums plus interest to the beneficiaries
if the insured dies during that period.

 Additional Uses for Life Insurance

 Most people use life insurance to provide money to beneficiaries who
would suffer a financial hardship upon the insured’s death. However,
for wealthy individuals, the tax advantages of life insurance, including
tax-deferred growth of cash value, tax-free dividends, and tax-free
death benefits, can provide additional strategic opportunities. 
 Funding Retirement—Policies with a cash value or investment
component can provide a source of retirement income. This
opportunity can come with high fees and a lower death benefit, so it
may only be a good option for individuals who have maxed out other
tax-advantaged savings and investment accounts. The pension
maximization strategy described earlier is another way life insurance
can be used to fund retirement.
 Avoiding Taxes—The death benefit of a life insurance policy is
usually tax free.4 Wealthy individuals sometimes buy permanent life
insurance within a trust to help pay the estate taxes that will be due
upon their death. This strategy helps to preserve the value of the
estate for their heirs. Tax avoidance is a law-abiding strategy for
minimizing one’s tax liability and should not be confused with tax
evasion, which is illegal.
  Borrowing Money—Most permanent life insurance accumulates
cash value that the policyholder can borrow against. Technically, you
are borrowing money from the insurance company and using your
cash value as collateral. Unlike with other types of loans, the
policyholder’s credit score is not a factor. Repayment terms can be
flexible, and the loan interest goes back into the policyholder’s cash
value account. Policy loans can reduce the policy’s death benefit,
however.

 How Life Insurance Works

A life insurance policy has two main components—a death benefit and a
premium. Term life insurance has these two components, but permanent
or whole life insurance policies also have a cash value component.

1. Death Benefit—The death benefit or face value is the amount of

money the insurance company guarantees to the beneficiaries
identified in the policy when the insured dies. The insured might be a
parent, and the beneficiaries might be their children, for example. The
insured will choose the desired death benefit amount based on the
beneficiaries’ estimated future needs. The insurance company will
determine whether there is an insurable interest and if the proposed
insured qualifies for the coverage based on the
company’s underwriting requirements related to age, health, and
any hazardous activities in which the proposed insured participates.
2. Premium—Premiums are the money the policyholder pays for
insurance. The insurer must pay the death benefit when the insured
dies if the policyholder pays the premiums as required, and premiums
are determined in part by how likely it is that the insurer will have to
 pay the policy’s death benefit based on the insured’s life expectancy.
Factors that influence life expectancy include the insured’s age,
gender, medical history, occupational hazards, and high-risk
hobbies.2 Part of the premium also goes toward the insurance
company’s operating expenses. Premiums are higher on policies with
larger death benefits, individuals who are higher risk, and permanent
policies that accumulate cash value.
3. Cash Value—The cash value of permanent life insurance serves two
purposes. It is a savings account that the policyholder can use during
the life of the insured; the cash accumulates on a tax-deferred basis.
Some policies may have restrictions on withdrawals depending on
how the money is to be used. For example, the policyholder might
take out a loan against the policy’s cash value and have to pay interest
on the loan principal. The policyholder can also use the cash value to
pay premiums or purchase additional insurance. The cash value is a
living benefit that remains with the insurance company when the
insured dies. Any outstanding loans against the cash value will reduce
the policy’s death benefit.
 COMPANY PROFILE

Life Insurance Corporation of India (abbreviated as LIC) is an

Indian government owned insurance and investment corporation. It is
under the ownership of Ministry of Finance , Government of India .

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. Over 245 insurance
companies and provident societies were merged to create the state-owned
Life Insurance Corporation of India.

As of 2024, Life Insurance Corporation of India had total life fund of ₹52.85
lakh crore. The total value of sold policies in the year 2023–24 is
₹2,03,92,973 crore. Life Insurance Corporation of India settled 26 million
claims in 2018–19. Ithas 290 million policy holders.

The LIC's executive board consists of Chairman and Managing Directors

currently , Siddhartha Mohanty.
The Central Office of LIC is based out of Mumbai which sits The Chairman,
Managing Directors, and all Executive Directors (Department Heads). LIC
has a total of 8 Zonal Offices namely Delhi, Chennai, Mumbai, Hyderabad,
Kanpur, Kolkata, Bhopal & Patna.
 Founding organisations

The Oriental Life Insurance Company, the first company in India offering
life insurance coverage, was established in Kolkata in 1818. Its primary
target market was the Europeans based in India, and it charged Indians
heftier premiums.[ Surendranath Tagore had founded Hindustan
Insurance Society, which later became Life Insurance
CorporationCheck Special Policy Of LIC.

The Bombay Mutual Life Assurance Society, formed in 1870, was the first
native insurance provider. Other insurance companies established in the
pre-independence era included

 Postal Life Insurance (PLI) was introduced on 1 February 1884

 Bharat Insurance Company (1896)
 United India (1906)
 National Indian (1906)
 National Insurance (1906)
 Co-operative Assurance (1906)
 Hindustan Co-operatives (1907)
 The New India Assurance Co Ltd (1919)
 Indian Mercantile
 General Assurance
 Swadeshi Life (later Bombay Life)
The first 150 years were marked mostly by turbulent economic conditions.
It witnessed India's First War of Independence, adverse effects of
the World War I and World War II on the economy of India, and in between
them the period of worldwide economic crises triggered by the Great
depression. The first half of the 20th century saw a heightened struggle
for India's independence. The aggregate effect of these events led to a high
rate of and liquidation of life insurance companies in India. This had
adversely affected the faith of the general in the utility of obtaining life
cover.
 Need of study

Life insurance is needed:

 To ensure that your immediate family has some financial support in the
event of your demise.

 To finance your children’s education and other need.

 To have a saving plan for the future so that you have a constant sources of
income after retirement.

 To ensure that you have extra income when your earnings are reduced due
to serious illness or accident.

 To provide for other financial contingencies and life style requirement

 Objective of Study:

 To study various life insurance product of LIC of India.

 To identify the factors affecting the investment in products of LIC

of India.

 To identify the most preferred and viable products

and servicescategorically.

 To analyse the financial accounts of LIC of India.

 To study the customer perception and satisfaction of life

insurance productsof LIC of India.
 The maximization of mobilization of people’s savings for
nation building
activities.
 Provide complete security and promote efficient service to
the policy-holder at economic premium rate.
PLANS AND POLICY: -

Types of LIC Life Insurance Plans

 LIC's Jeevan Pragati
A non-linked plan constituted in such a way that after every five years
of the policy, the risk cover will automatically increase. It is best
suitable for retirement collection with the cover against accident. An
endowment plan with profits makes it a combination of savings and
financial protection.
 Entry Age- This policy is available for individuals from 12 years
to 45 years.
 Term Period- The term period is from 12 years to 20 years.
 Death Benefits- In the case of the death of the policyholder, the
nominee gets the sum assured with the bonus, and is either ten
times the total annual premium or is calculated as per the terms of
the policy.
 Maturity Benefits- The sum assured is paid with the bonus and
the reversionary bonus for the full term of the policy. Minimum
sum assured is Rs.1, 50,000/-. Maximum age at maturity is
65years. Maturity amount is tax-free under section 10 (10D).
 Tax Benefit - The amount of premium paid is exempted under
section 80C.
 Loan Facility- It is available after you have paid a
premium for three years. Riders Available: The optional
riders are for accidental death and disability.

 LIC’s Jeevan Labh

This policy is limited premium paying and is not linked to share
markets. It is an endowment plan with profits and hence the holder
gets the sum assured with bonus and other benefits.
 Premium- Premium paying period is lesser than the policy term.
 Entry Age – The age of the policyholder should be between 8
 years and 59 years.
 Term Period- The Policy has a term period of 16 years to 25
years.
 Grace Period- There is a grace period of 30days for paying
yearly, half yearly and quarterly premium, and a grace period of
15days in case of monthly premium.
 Loan Facility- Once you have paid the premium for three years,
you can avail the loan.
 Tax Benefits- The amount of premium paid is exempted under
section 80C and the maturity amount is tax-free.


This plan asks the policyholder to pay the lump sum of the premium as
a single payment at the start of the plan. This is an endowment plan
with bonus, in addition to other benefits.
 Entry Age- The plan is available for individuals between the age
of 90days and 65years.
 Sum Assured- The sum assured is paid in both the cases – once
the policy tenure is complete and in the case of sudden demise of
the policyholder. The sum assured is paid with a bonus in both the
cases.
 Loan Facility- Loan facility is available after the first year of the
policy.
 Guaranteed Surrender Value- The holder gets 70% of the single
premium paid if the policy is surrendered within 12months of the
commencement of the policy; and receives 90% of the premium
paid from the second year onwards.
 Tax Benefits- The premium paid is exempted under the section
 80C and the maturity amount is tax-free under the section
10(10D).
 Term Period– The policy has a term period of 10years to 25 years.
 Maturity Age - The age of the insured should be between 18 years
and 75years.
 LIC’s New Jeevan Anand
The plan is a combination of whole life plan and an endowment plan.
The plan continues to provide coverage in case of the sudden death of
the insured and even after the maturity of the plan.
 Maturity- A traditional endowment plan with the added feature
that even after the maturity, the plan continues to be in force.
 Tax Benefits- Premium paid and the maturity amount is exempted
under section 80C and 10(10D).
 Entry Age- It is available for individuals between the age of 18
years and 50years.
 Grace Period- A grace period of 30days is applicable.
Rider Available: LIC’s Accidental death and disability benefit rider are
applicable.
 LIC’s Jeevan Lakshya
This is a conventional endowment plan with profits. The policy is
useful for minors and offers a lump-sum amount irrespective of the
survival of the insured at the time of policy maturity
 Sum Assured- Minimum sum assured is Rs.1,00,000/-.
 Entry Age – The insured should be between 18 years and 50years
of age and the maturity age is 65years.
  Premium Tenure- Irrespective of the tenure of the policy, the
premium tenure is 3 years.
 Maturity Benefits- Sum Assured plus Bonus and the Final
Additional Bonus (FAB).
 Death Benefits- Sum assured (110% of the premium paid)

plus bonus and FAB. Riders Available:

 LIC’s Accidental death and disability benefit rider

 LIC New Term Insurance Rider

 LIC’s Bima Diamond

It is a perfect plan for individuals who are looking for a short-term
investment with periodic guaranteed return and added benefits.
 Extended Protection Period- Your protection is extended, even
after the completion of the policy tenure, to half of the policy
tenure.
 Money Back- After every 4th year of the policy, you get an
assured amount as money back.
 Addition Cover Period- In the case of non-payment of the
premium for full five policy years, an Auto Cover Period of two
years is offered.
 Maturity Benefits- The sum assured and the loyal additions are
paid at maturity.
 Maturity is calculated as – 55% of the basic sum assured for 16
years and 45% of the basic sum assured for 20 and 24 years.
Riders Available:

 LIC’s Accidental death and disability benefit rider

  LIC New Term Insurance Rider.

LIC’s New Money Back Plan -20 Years

This plan is a money-back traditional endowment plan. It is a non-
linked plan. The survival benefits are disbursed after the completion of
every fifth year of the policy.
 Policy Term– The policy is valid for 20 years
 Minimum Sum Assured – Minimum sum assured is Rs.100,000/-
 Survival Benefits- 20% of the sum assured is paid on the 5th,
10th, and 15th year of the policy.
 Death Benefits- The nominee receives the sum playout plus the
bonus and the FAB. It is ten times the total sum of the annual
premium or 125% of the basic sum assured.
 Maturity Benefits- The balance 40% of the sum is paid with
Bonus plus FAB to the policyholder.
 LIC's New BimaBachat
It is a traditional single premium endowment plan. However, the
survival benefits are paid just like in a money back plan.
 Survival Benefits- After every three years, if the insured is alive,
15% of the basic sum assured is paid as survival benefit.
 Maturity Benefits- The complete single premium along with
Loyalty Addition is paid.
 Death Benefits- In the case of death of the policy tenure the
complete, sum assured along with the Loyalty addition are paid to
the nominee.
  LIC’s New Children’s Money Back plan
A traditional money back policy specially designed for the benefit of
children, even in the case of the absence of parents. The child’s life is
also covered.
 Life Cover of Child- If the age of the life assured is less than 8
years, the risk cover starts one day before the commencement date
of two years.
 Survival Benefits- The survival benefits are disbursed once the
life assured has attained the age of 18years and is paid @20% of
the sum assured. It is paid every policy anniversary year.
 Death Benefits- If the life assured dies before the commencement
of the risk, the paid premiums are returned. The benefits of sum
assured plus bonus and FAB is paid in case the death is after the
commencement of risk.
 Tax Benefits- The premium paid and the sum assured are
exempted under the section 80C and 10(10D).
 Entry Age- 0 years to 12 years.
 Policy Term- 25years.

 LIC’s Jeevan Tarun

This is a participating endowment plan for children up to the age of
twelve years. There are four options to receive the maturity and
survival benefits. It is best suited for a child’s education.
 Premium Period- 20 years but the policy continues till 25 years.
  Risk Cover- Either at the age of 8years or two years after the
commencement of the policy.
 Survival Benefits- The last five years, when the policyholder is
not paying the premium, he has the option of receiving the
survival benefits in four different forms- 0%, 5%, 10% and 15%
of the sum assured.
 Maturity Benefits- The balance sum assured and the bonus are
paid as the maturity benefits after the completion of tenure of the
policy.
 Death Benefits- In the case of the death of policyholder, the
nominee gets the sum assured at the time of death and the acquired
bonus. This is irrespective of the amount paid as the “survival
benefit”.
 Tax Benefits- The premium paid and sum assured are exempted
under section of 80C and 10(10D).
Riders Available:

 LIC’s Premium Waiver Benefit Rider is offered.

 LIC's Amulya Jeevan 2

This is purely a term plan whereby in case the insured dies within the
policy tenure, the nominee gets the sum assured or the death benefits.
 Sum Assured - Minimum Sum Assured is Rs.25Lacs. However,
it can be as high as 1 crore.
 Tenure - The tenure can be as long as 35years.
 Tax Benefits - The Premium paid and the sum assured are
exempted under the section 80C and 10(10D).
  Entry Age - Entry Age is 18 years to 60years.
 Grace Period - Grace Period of 30days is available to pay the
premium.
 LIC Bhagya Lakshmi Plan
This micro insurance policy is specially designed for lower- income
groups and has features of investment, savings, and insurance. 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.
 Surrender Value- Depending on the premium paying term of
below or above ten years, the surrender value is calculated. If
surrendered after paying a premium for ten years or more, the
surrender value is calculated @ after three full year’s premiums. If
the surrendered within ten years, then the SA is calculated @ after
two full year’s premiums.
Marketing Mix of LIC analyses the brand/company which covers 4Ps
(Product, Price, Place, Promotion) and explains the LIC marketing
strategy. There are several marketing strategies like product/service
innovation, marketing investment, customer experience etc. which
have helped the brand grow.
Marketing strategy helps companies achieve business goals &
objectives, and marketing mix (4Ps) is the widely used framework to
define the strategies. This article elaborates the product, pricing,
advertising & distribution strategies used by LIC.
Let us start the LIC Marketing Mix & Strategy:
 LIC Product Strategy:

The product strategy and mix in LIC marketing strategy can be

explained as follows:
LIC or Life Insurance Corporation of India, is the biggest insurance
company in India. LIC offers a range of financial and investment
products in its marketing mix like insurance, special, unit, pension,
Micro investment, withdrawn and health plans. LIC also offers
participation in the government scheme of Aam Admi Bima Yojana.
Insurance plans include different types of plans like Endowment plan
(Jeevan Utkarsh, Jeevan Rakshak), Whole life plan (Jeevan Umang),
Money Back plans (New Bima Bachat, Jeevan Tarun), Term assurance
plan (Anmol Jeevan I & II) and Riders like New Critical Illness Benefit
Rider. The special plans are combinations of insurance, investment and
the security because of it. Pension plans are more suited for senior
citizens for secure future. Through pension plan, LIC also gives access to
government plan of Pradhan Mantri Vaya Vandana Yojana. Unit plans
are the schemes for people with inconsistent income and has benefits
of rich returns and tax savings. It also offers group schemes for
employers, families, societies or associations. Life Insurance
Corporation has different subsidiaries for specialized services. These
are; LIC Housing Finance, LIC Pension Fund Ltd, LIC International, LIC
Cards Services and LIC Mutual Fund.
  LIC Price/Pricing Strategy:

Below is the pricing strategy in LIC marketing strategy:

The main objective of LIC is to offer adequate financial cover to all
insurable persons at reasonable and affordable cost.

In 2017, LIC's market share for number of policies was 76.09% and
sold 20 million new policies. The product range of LIC is varied and
so is the price range. The website is equipped with a 'Premium
Calculator ' service wherein the premium for each scheme of Life
Insurance Corporation can be calculated. It depends on variables like
age, term and sum assured. The payment of the premium can be paid
by cash, cheque or DD at cash counter of any LIC branch. Apart from
this for ease of customers, premium can also be paid through Alternate
channels as described on website. Keeping up with the
implementation of GST by Government of India, LIC has replaced the
service tax from earlier transaction with GST. The Tax rate will be
different for different schemes. It will also be charged on interest of
delayed payments.

 LIC Place & Distribution Strategy:

Following is the distribution strategy of LIC:

LIC of India operates on the principle of providing life insurance on
wider scale and urban and rural areas so all the insurable individuals
have access to it. When Life Insurance Corporation was established, it
had 5 zonal offices, 33 divisional offices and 212 branch offices
governed by corporate office. To maintain long term accessibility for
the consumers and build up the trust with them, LIC expanded their
operations and opened the branches in each district. Due to this lot of
organizational changes were initiated and branches got more
functionality and acted as accounting units. Presently, LIC
headquarter is located in financial capital of India, Mumbai with 2048
computerized branch offices, 113 divisional offices 8 zonal offices,
1381 satellite offices. In tier 1 and 2 cities like Mumbai, Bangalore,
Ahmedabad, Chennai, New Delhi, Pune on line kiosks and IVRS info
centres have been specially made. The new initiative called 'Satellite
Sam Park' offices have been opened for easy access to policy holders.
Thus, LIC has thoroughly penetrated the Indian market with reach in
all the segments. Outside India, LIC operated in 13 countries through
joint ventures or subsidiaries.

These countries include Bahrain, Qatar, Nepal, Singapore etc.

  LIC Price/Pricing Strategy:

Below is the pricing strategy in LIC marketing strategy:

The main objective of LIC is to offer adequate financial cover to all
insurable persons at reasonable and affordable cost.

In 2017, LIC's market share for number of policies was 76.09% and
sold 20 million new policies. The product range of LIC is varied and
so is the price range. The website is equipped with a 'Premium
Calculator ' service wherein the premium for each scheme of Life
Insurance Corporation can be calculated. It depends on variables like
age, term and sum assured. The payment of the premium can be paid
by cash, cheque or DD at cash counter of any LIC branch. Apart from
this for ease of customers, premium can also be paid through Alternate
channels as described on website. Keeping up with the
implementation of GST by Government of India, LIC has replaced the
service tax from earlier transaction with GST. The Tax rate will be
different for different schemes. It will also be charged on interest of
delayed payments.

 LIC Place & Distribution Strategy:

Following is the distribution strategy of LIC:

LIC of India operates on the principle of providing life insurance on
wider scale and urban and rural areas so all the insurable individuals
have access to it. When Life Insurance Corporation was established, it
had 5 zonal offices, 33 divisional offices and 212 branch offices
governed by corporate office. To maintain long term accessibility for
the consumers and build up the trust with them, LIC expanded their
operations and opened the branches in each district. Due to this lot of
organizational changes were initiated and branches got more
functionality and acted as accounting units. Presently, LIC
headquarter is located in financial capital of India, Mumbai with 2048
computerized branch offices, 113 divisional offices 8 zonal offices,
1381 satellite offices. In tier 1 and 2 cities like Mumbai, Bangalore,
Ahmedabad, Chennai, New Delhi, Pune on line kiosks and IVRS info
centres have been specially made. The new initiative called 'Satellite
Sam Park' offices have been opened for easy access to policy holders.
Thus, LIC has thoroughly penetrated the Indian market with reach in
all the segments. Outside India, LIC operated in 13 countries through
joint ventures or subsidiaries.

These countries include Bahrain, Qatar, Nepal, Singapore etc.

  LIC Promotion & Advertising Strategy:

The promotional and advertising strategy in the LIC marketing strategy

is as follows:
The product of LIC is intangible in nature involving customer
involvement and loyalty in highly competitive market. Life Insurance
Corporation has strong market share. With the emergence of new
insurance organizations, LIC has to maintain its dominant position.
LIC has used print and broadcast media exclusively. LIC
advertisements feature in many national as well as local newspapers
and magazines. It shows returns on the product and tax benefits from
it. The television commercials for LIC appeal to emotions of consumer
by depicting importance of life insurance for the family when the
earner of the family is no more. It ends with the tagline of 'Zindagi Ke
Sath Bhi, Zindagi Ke Baad Bhi' (With you during and after your life).
LIC also involved in co-promotion at various exhibitions, seminars
for other products like real estate, medical services. The
communication with customer is maintained through multiple
channels like IVRS, Call centres, Customer zone, SMS, e-mail,
website and social networking sites.

Since this is a service marketing brand, here are the other three Ps to
make it the 7Ps marketing mix of LIC (Life Insurance Corporation of
India).
  People:

LIC believes in insurance for all, i.e., all the insurable persons from
rural and economically backward class should receive financial
security of insurance. It has the objective of involving all their
employees to their fullest capacity to serve the customers better. They
also believe in integrating the corporate objective of organization with
personal objective of employees leading to job satisfaction and pride.
Life Insurance Corporation has a separate portal for its customers to
submit their grievances. The grievance officers at respective Grievance
Redressed Office, attend the customer without prior appointment. LIC
insurances can be availed through the authorized LIC agents. The
agents undergo exclusive training by LIC and have access to the
infrastructure access in the branch offices and sales-marketing
support. Domestic as well as NRI customers have information portal
on the website providing guidance on services like premium
calculation, bonus information, policy status etc.
  Process:

LIC is a pioneer in the insurance industry. It is highly respected and

trusted organization. The website of Life Insurance Corporation is
very informative and starts the customer education right from the need
for insurance, enlists its benefits and describes detailed information
regarding all aspects of insurance and other related financial services.
It also gives detailed information about all the products and allows
calculation of cost and benefits of each. The form for the policy can be
procured from the website or the agent or the nearest branch of LIC.
Application for policy requires the documents from the applicant.
There are multiple ways for payment of the premium making the
process easy for consumer. The claim for the policy can also be made
by submission of formal request through form and producing
necessary documentation. Thus, over the years LIC has improved and
adjusted its operations as per the changing times, keeping them
customer centric.

 Physical Evidence:

The offices of Life Insurance Corporation are in every district. The

contracts for infrastructure developments of the offices are invited
through the Tender Notices. These notices are circulated in the
newspapers and website and bids are invited. The infrastructure is
congenial to the requirements of customer having spacious building
with proper layout, adequate seating and waiting arrangements,
pleasing ambiance, clear sign boards for assistance, availability of the
informative material and literature, telephone and basic restroom and
drinking water facilities. The physical proofs of all the necessary
documents are required for the application and availing of the policy.
After the policy is acquired, it can be procured in the physical form
and for some of the official purposes, it is considered as a proof of
address and date of birth. LIC logo consists of joined hands holding a
lamp.

Hence this completes the marketing mix of Life Insurance Corporation

(LIC).
WHY TO OPT FOR LIC LIFE INSURANCE PLANS:-
LIC is said to be the largest life insurance company in the world with
23 crore customers and counting. It offers some of the most reasonably
rated premiums and adequate coverage options,
regardless of which walk of life an individual belongs to. The brand
name is not the sole reason one should opt for LIC since it is not ideal
to rely on life insurance products from a single brand. Here is why one
should opt for LIC as a life insurance provider:

 Technologically superior Network: LIC has been the leader as an

insurance provider for its efforts to stay ahead of the game by
being at par if not better in terms of its network when it comes
to providing advanced and efficient services with over 2000
branch offices and 156 satellite branches. The company uses
technology such as WAN, IVRS, LAN, IVRS & even EDMS
that allow people to go paperless when dealing with insurance
documentation.

 Not Alone in the Game: The company does not work alone but
partners with insurance and financial tycoons including NSE,
LIC Mutual Fund, NCDEX, Stock Holding Corporation of
India, Insurance institute of India and National insurance
Academy among many similar organizations. Hence, it is
working through convergence as well.

 Going International: It has fully functional offices in countries

such as Nepal, Sri Lanka, Saudi Arabia and Bahrain. LIC has
also been ambitious enough to plan opening offices in
 Australia, Canada and USA.

 Product Variety: You will soon discover from the below given
list that this company boasts of one of the highest numbers of
policy types available in life insurance alone. It has the largest
portfolios when it comes to life insurance group schemes to be
one of their highlights. They have a huge clientele of
corporates for group insurance.

 Innovation in the Industry: The company launches new products

every other quarter and they are mostly to serve the society
than to make profits although they are doing pretty well as an
insurance company, financially. They were the first to
 launch micro-insurance products so that people living below the poverty
line in India could afford insurance for a certain amount of discount.

 Performance in The Stock Market: When it comes to stock market

positioning, LIC stocks are one of the most stable stocks available in the
BSE. Some of the most well-performing stock lists almost always feature
this company especially when it comes to insurance providers.

AWARDS AND ACHIEVEMENTS: -

LIC which was founded in 1956 was awarded as the Life Insurance
Company of the Year in 2014.Some of awards won by
LIC are: Pitch Top 50 Brands 2014

 Indian Insurance Awards 2014 - Claims Leader

 Indian Insurance awards 2014 - Life Insurance Company of the year
 Lok mat BFSI Awards 2014 - Highest Claim Settlement
 Lok mat BFSI Awards 2014 - Best Life Insurance Company
 Global Brand Excellence Awards Brand Excellence in BFSI
 Global Brand Excellence Awards - Best Use of social media in
Marketing
 Asia BFSI Best CSR Practices
 Asia BFSI Best Life Insurance Company
 Hindustan Times Mumbai Hot 50
 Readers Digest 2014 Trusted Brand
 ET Best Brands
 2nd Bright Awards
 Super Brands 2014
 ABP News Brand Excellence Awards
 Indira Gandhi Award from President of India
 West Bengal State Award 2014
 BFSI Vision CSR Award - Community Development
 BFSI Vision CSR Award - HealthCare and Combating Diseases
 IPSE Awards 2014 - Insurance PSE of the year
 NASEOH - Sri Vijay Merchant Memorial Award
 Greentech CSR Award
 Money Today FPCIL.
 The Economic Times Brand Equity Survey 2012 rated LIC as the
 No. 6 Most Trusted Service Brand of India.
 From the year 2006, LIC has been continuously winning the
Readers' Digest Trusted brand award.
 LITERATURE REVIEW

Introduction to Insurance:

Insurance refers to a contract in which one party (known as insurer) promises to

bear the financial loss of another party (known as insured) in case of any such
event, in return of consideration /payment (known as premium). The loss can or
cannot be financial, but it should be reducible to financial terms, and must involve
something in which the one who has paid the premium (insured) has an insurable
interest established by possession, ownership, or some pre-existing relationship.
The one who paid the premium receives a contract, called as the insurance policy,
which provide details regarding conditions and circumstances under which the
one who received the premium (insurer) will compensate for the losses of the
insured. The amount of money charged called as the premium amount is set by
the insurer for the coverage set in the insurance policy. If the insured person
experiences a loss which is covered in the insurance policy, the insured submits a
claim to the insurer for processing by the claims adjuster. The insurer can hedge
his own risk by taking reinsurance, where another insurance company agrees to
bear some of the risk, especially the primary insurer deems the risk too large for
it to carry.

Risks in Life Insurance:

There are various types of risks in Life Insurance. Some of them are as follows:

1) Longevity Risk& Mortality Risk:

Longevity risk is the risk that a person, or persons, lives longer. In the
corporate world, this affects pension funds and insurance companies.
 The corporate sponsor of a pension plan, or insurer providing life
assurance facilities, has the risk of higher than expected pay-outs as a
result of the increasing longevity of pension plan or insurance policy
holders. Mortality risk covers not only the risks associated with
recipients of annuities who are living longer than expected, but also
the opposite risk that the holder of a life insurance policy dies earlier
than expected during the term of the policy.
2) Liquidity Risk:
Liquidity Risk is the risk of failing to maintain requisite levels of cash
and cash equivalents and being unable to pay the claims of the
policyholders in full.
3) Asset Liability Mismatch:
The present value of assets should be greater than the present value
of present value of liabilities so as to ensure that the company would
be able to meet the liabilities by 23 liquidating the assets. These
present values are not fixed and keep on changing according to the
interest rates prevailing in the market. If the interest rates are high,
the present values would decrease and vice versa. So, the assets to be
invested in have to be carefully selected so as to achieve proper
AssetLiability matching. There are various techniques that can be used
to minimize this interest rate risk like Reddington's Immunization in
which assets are chosen in such a way that irrespective of the interest
fluctuations, the present value of assets remains larger than that of
the liabilities.
4) Technological Advancements:
In the world of ever changing technology, its of utmost importance to
be conversant and well versed with the current technology. AI
(Artificial Intelligence) is becoming increasingly popularly in the world,
which affects insurance industry as well. The way people approach
insurance from “insured” side as well as “insurer” side would have to
adapt if AI was to become prominent in the future.
5) Competitors In Life Insurance Industry:
LIC (Life Insurance Corporation) is a major market player with which
other life insurance companies such as IDBI Federal Life competes for
capturing the market share. The strategies, policies launched by the
competitors tend to affect the company in consideration.
6) Political Situation:
The political situation of the country majorly affects the way policies,
and operations are executed. In corporate world, lobbying
(influencing political parties directly or 24 indirectly to get the work
done) plays an important role in smooth operations of the company.
If the political scenario is chaotic, the business may be adversely
affected.
7) Law and Order:
The Insurance business in India is regulated by IRDAI (Insurance
Regulatory and Development Authority of India) which is responsible
for setting rules and standards for the insurance companies in the
country.
8) Investment Risk:
Investment risk is the risk of incurring loss due to fluctuations in the
market value of the investments. These fluctuations may be due to
market factors which affect the entire market like inflation, rate of
interest or firm/industry specific factors. The investment is mainly
done in 3 types of funds: Debt, Equity, and Hybrid
 Research Methodology:

Research is endless quest for knowledge or unending search for truth. It

brings to light new knowledge or corrects previous errors and
misconceptions and adds in an orderly way to the existing body of
knowledge.

Research methodology is a way to systematically solve the research

problem

Research methodology:
 Research Design - Descriptive
 Instrument - Questionnaire
 Technique - Survey
 Sources of data - Primary and Secondary

1. Primary Data:
Primary Data is that which is collected from primary sources, it is
original data which will be collected from officers and staff of life.
LIC of India by conducting interviews on the basis of objectives of
the study.
It will also be collected from the investor customers by canvassing
pre-designed questionnaire.
2. Secondary Data:
The secondary data is already published data available through
books periodicals, annual reports, diaries, magazines and news
papers, journal and websites.
 DATA ANALYSIS AND INTERPRETATION

Total premium includes single as well as non-single premium collected. Each of

these premium groups comprises of individual and group premiums.

Life Insurance companies market share India
HYPOTHESIS TESTING:
Following are the statements of hypothesis in this research work.

 The products of LIC are most preferred by the customer.

 The products of LIC of India provides life risk coverage to the
insured in addition to tax rebate.
 Customers have become conscious and aware of product mix of the
products of LIC of India.

From the said research study it was found that alternate

hypothesis that is the concern is not facing difficulty in paying
short term debt has been accepted and null hypothesis is
rejected.

-Interpretation of hypothesis testing:

After testing the hypothesis the researchers comes out with his
conclusion. The explanation of theory can also be considered as
interpretation.
 Limitation:

 no printing and binding work of the project can be

done due to covid crises.
 Cost effective
 Life insurance acquisition process can be annoying
and perplexing.
  CONCLUSION

Insurance is a large investment and you will most likely

purchase multiple policies throughout your lifetime. It is
essential that you know what each type of insurance
covers and how it works so you can make the best
decision about what to buy. Do not base your decision
on just what is cheapest, but look at what it provides.

Take the time to shop around and find the right

insurance for your situation. People often say they
cannot afford insurance, but the reality is that they
cannot afford not to have it. It can save them from
thousands or more dollars in unplanned expenses
when unexpected situations arise. You do not want to
waste your money on policies that do not meet your
needs, but the right insurance policy can protect you
and your family from unforeseen disasters.

The important thing is to choose the right life insurance for

your budget and your needs. Over the years, your needs,
your family situation and your life goals will evolve. When
that happens, it will be time for you to re-evaluate the right
type of insurance for you to ensure you are covered
properly.

Remember that you are never too young to buy life

insurance, since the younger you are, the lower the cost of
your premium. Your financial security advisor is there to
provide some guidance in this process, based on your
reality and your goals.

BIBLIOGRAPHY
 www.wikipedia.com
 www.licindia.in
 www.ask.com
 www.bimabazar.com
 Newspapers: The Economic Times, Daily Dainik Baskar,
Daily Nav Bharat, The times of India.