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Higher Maturity in LIC Plans
Posted by:V.K. sharma, April - 06 - 2016

Higher Maturity in LIC Plans

There are various life insurance companies operating in India but why there is higher maturity in LIC Plans on comparing with the plan or policies of other life insurance companies.

LIC India is operating since 1956. Over these long years, the total life fund of LIC has crossed Rs 20lakh Crores.

You name any reputed company or bank LIC has stake in that. LIC holds shares holding in a total of 27 Nifty companies. The major companies where LIC has raised its stake include Infosys, RIL,Coal India Ltd, Cairn India. ITC, Power Grid Corp, NTPC, Siemens, Bharti Airtel and Hero MotoCorp. Mahindra & Mahindra, HDFC Bank, ICICI Bank, Tata Motors, L&T, HDFC, Wipro, SBI, Maruti Suzuki, Dr Reddys, Bajaj Auto etc. Among the Nifty companies, LIC’s holding in terms of value is estimated to be highest in ITC (Rs 27,326 crore), followed by RIL (Rs 21,659 crore), ONGC (Rs 17,764 crore), SBI (Rs 17,058 crore), L&T (Rs 16,800 crore), and ICICI Bank (Rs 10,006 crore). These are companies which are growing and so it LIC.

In FY14, LIC invested Rs 2.25 lakh crore in government securities, bonds, infrastructure, debenture and equity. The insurer had booked Rs 21,000 crore profit from sale of equities and churning of the  portfolio.

With respect to the investment in infrastructure and the social sector, LIC invested Rs 10,995.33 crore in power, Rs 4,121.74 crore in housing, Rs 35.72 crore in water supply and sewerage, and Rs 5,012.13 crore in other infrastructure in FY13.

Higher Maturity in LIC Plans
Higher Maturity in LIC Plans

A whopping 25 per cent rally in the equity markets boosted the net profit, or valuation surplus in the official language, of Life Insurance Corporation by 10.4 per cent in 2014-15 at Rs 36,087 crore.

As per the LIC Act, the corporation has to distribute 95 per cent of its profits with the policyholders, and accordingly the financial powerhouse paid Rs 34,283 crore to its millions of policyholders in the year, while the remaining 5 per cent worth Rs 1,804.35 crore was paid to its owner, the government.

Now one can understand that when LIC is earning this much profit and 95% of that is going for its policyholders so the point is very much clear that there is higher maturity in LIC Plans. So buy today.

Higher Maturity in LIC Plans
Higher Maturity in LIC Plans
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