LIC Assistant cheat sheet

Life insurance is a contract of utmost good faith: the proposer must disclose all material facts; non-disclosure or misstatement can make the policy voidable under Section 45 of the Insurance Act, 1938 (as amended), which bars repudiation after 3 years of policy life on any ground including fraud.

Insurable interest in life insurance must exist at the time of proposal only, not at claim time; a person is presumed to have unlimited insurable interest in his or her own life.

Key principles: indemnity (applies to general insurance, not life), subrogation and contribution (general insurance only), proximate cause, and mitigation of loss.

Premium components: mortality charge (risk), expense loading, and reserve/savings element; net premium excludes expenses, gross/office premium includes them plus any extra for substandard lives.

Mortality tables (e.g., LIC's Indian Assured Lives Mortality tables) give age-wise death rates; premiums rise with age because mortality rate increases.

Policy document components: proposal form, declaration, medical report, first premium receipt (risk commencement), policy schedule, and standard/special provisions.

Risk commences on the date of acceptance of risk and receipt of first premium (or as stated in the FPR), not necessarily the proposal date.

IRDAI (Insurance Regulatory and Development Authority of India) regulates insurers, agents, and intermediaries; the Insurance Act 1938, IRDA Act 1999, and LIC Act 1956 form the legal framework.

Types of life insurance: term (pure protection, no maturity benefit), whole life, endowment (survival + death benefit), money-back, ULIP (market-linked), and annuity/pension plans.

Endowment plans (e.g., New Endowment Plan 914) pay the sum assured plus bonuses on survival to maturity, or the sum assured plus bonuses on death before maturity; they combine protection and savings.

Money-back plans pay a percentage of the sum assured at fixed intervals during the term and the balance plus bonuses at maturity; on death, the full sum assured plus bonuses is paid regardless of earlier survival payouts.

Whole life plans (e.g., Whole Life Policy 945) cover the life assured for the entire lifetime; the sum assured is payable on death whenever it occurs, with a surrender/loan facility available after the policy acquires value.

Term assurance plans (e.g., LIC's New Term Assurance Plan) pay only on death during the term; no maturity benefit unless a return-of-premium option is chosen.

ULIPs (e.g., SIIP, New Endowment Plus) split each premium into investment and risk components; the fund value depends on NAV of the chosen fund, and IRDAI mandates a minimum lock-in of 5 years.

Annuity/pension products (e.g., Jeevan Akshay) convert a lump sum into periodic income; immediate annuities start at once, deferred annuities start after a deferment period.

Child plans (e.g., Jeevan Tarun, New Children's Money Back) provide periodic payouts for education/marriage and waive future premiums on the parent's death via the premium waiver benefit.

Micro-insurance and group products (e.g., group term, group savings-linked) cover low-income and employee groups; group insurance uses a master policyholder and typically requires no individual medicals.

LIC products carry a 15-day free-look period (30 days for distance marketing) from receipt of the policy document, during which the policy can be cancelled for a refund of premium less expenses.

A rider is an add-on benefit attached to a base policy for an extra premium; it cannot be taken standalone and cannot outlive the base policy.

Accidental Death and Disability Benefit Rider pays an additional sum on accidental death and a disability benefit on permanent disability; it usually requires the base policy to be in force.

Critical Illness Rider pays a lump sum on diagnosis of a listed critical illness (e.g., cancer, heart attack, stroke, kidney failure); it is paid in addition to the base sum assured.

Term Assurance Rider provides an additional death benefit equal to the rider sum assured, subject to a maximum limit set by the insurer.

Premium Waiver Benefit Rider waives future premiums of the base policy and attached riders if the proposer (usually the parent in child plans) dies or is disabled.

New Critical Illness Benefit Rider and LIC's Accident Benefit Rider have age limits and sum-assured caps (e.g., rider sum assured cannot exceed the base sum assured for some riders).

Rider premiums are usually level and payable with the base premium; riders can generally be added at proposal or at a later policy anniversary, subject to medical underwriting.

The sum of all rider benefits is capped by IRDAI-linked limits relative to the base sum assured, and the rider's term cannot exceed the base policy's remaining term.

A plan is chosen by need: pure protection for income replacement, endowment for savings goals, money-back for periodic liquidity, annuity for retirement income, ULIP for market-linked growth.

Grievance escalation: first raise with the insurer's Grievance Redressal Officer; if unresolved within 30 days, escalate to IRDAI's Bima Bharosa (IGMS) portal or the Insurance Ombudsman.

The Insurance Ombudsman handles complaints up to a specified monetary limit (currently ₹30 lakh for most cases) and can award compensation; its decision is binding on the insurer if accepted by the complainant.

Policyholders have a 15-day free-look period (30 days for distance marketing) from receipt of the policy document to return it for a refund of premium less proportionate risk and expenses.

Nomination under Section 39 of the Insurance Act 1938 lets the policyholder name a beneficiary; a nominee is a trustee for the legal heirs unless a beneficial nominee is appointed.

Assignment under Section 38 transfers policy rights; assignment can be conditional or absolute and must be endorsed on the policy or a separate instrument.

Service standards: insurers must issue the policy within 15 days of acceptance, settle death claims within 30 days of receiving all documents, and pay interest for delays beyond 30 days.

KYC is mandatory for all policies; PAN, Aadhaar, address proof, and photograph are standard requirements, and Aadhaar-based e-KYC is accepted.

Revival of a lapsed policy is possible within 5 years of the first unpaid premium, subject to payment of arrears with interest and evidence of insurability (good health declaration, medicals if required).

Customer touchpoints: LIC branch, agent, online portal (customer zone), SMS/IVR, and call centre; complaints can also be lodged via email or the insurer's website.

Death claim documents: claim form, death certificate, policy document, nominee's KYC and bank details, and, for early claims (within 3 years), additional proof such as hospital records and employer certificate.

Claim categories: early claim (within 3 years of commencement or revival) invites detailed investigation; non-early claims after 3 years are usually settled on documents.

Section 45 of the Insurance Act: no policy can be called in question after 3 years from issuance, revival, or rider addition on any ground including fraud or misstatement.

Maturity claim is paid on survival to maturity; the sum assured plus vested bonuses (and terminal bonus if any) are paid, and the policy document must be surrendered.

Surrender value is payable after the policy acquires surrender value (typically after 2-3 years of premium payment); guaranteed surrender value is a percentage of premiums paid, and special surrender value may be higher.

Policy loan is available up to a percentage (usually 80-90%) of the surrender value, subject to the policy being in force and having acquired surrender value; interest is charged and unpaid interest reduces the claim.

Nomination and assignment changes, duplicate policy issuance, change of address, and premium redirection are common servicing transactions, each requiring a prescribed form and KYC.

Non-forfeiture: if premiums stop after the policy acquires value, the policy continues on a reduced paid-up basis, or can be surrendered or revived; paid-up value = sum assured × (premiums paid / premiums payable).

Claims are settled via NEFT/bank transfer; the nominee's bank account must be active and KYC-compliant to avoid delays.

Simple interest SI = P × R × T / 100; compound interest CI = P[(1 + R/100)^T − 1]; for 2 years, CI − SI = P(R/100)².

Percentage change: increase of x% then decrease of y% gives net change = x − y − xy/100 percent.

Profit and loss: profit% = (SP − CP)/CP × 100; if two items are sold at the same price with x% profit and x% loss, the net result is a loss of x²/100 percent.

Time and work: if A does a job in a days and B in b days, together they take ab/(a + b) days; efficiency is inversely proportional to time.

Speed, time, distance: distance = speed × time; for a train of length L crossing a platform of length P, time = (L + P)/speed; relative speed adds when moving opposite, subtracts when same direction.

Average = sum of observations / number of observations; if a person's average age is A and a new member replaces one, use total sums to solve.

Permutation and combination: nPr = n!/(n−r)!; nCr = n!/[r!(n−r)!]; number of ways to arrange n items with repetitions = n!/(p!q!...).

Probability = favourable outcomes / total outcomes; for independent events, P(A and B) = P(A) × P(B); for mutually exclusive events, P(A or B) = P(A) + P(B).

Ratio and mixture: if two solutions are mixed in ratio a:b with concentrations c1 and c2, final concentration = (a·c1 + b·c2)/(a + b).

Syllogism: use Venn diagrams; a conclusion follows only if it is true in every possible diagram consistent with the premises; 'some' and 'no' statements need careful handling.

Blood relations: draw a family tree with symbols (male/female, married, sibling); solve from the innermost relation outward and avoid assuming gender from names.

Coding-decoding: identify the shift (letter position +/− n) or reversal pattern; for mixed alphanumeric codes, map each letter to a number or symbol consistently.

Seating arrangement: for linear rows, note left/right orientation; for circular arrangements, 'facing centre' means left is clockwise and right is anticlockwise; fix one person and arrange others relative to them.

Direction sense: use a coordinate grid; net displacement = √(horizontal² + vertical²); turns change heading by 90° unless stated otherwise.

Series completion: check differences, ratios, squares/cubes, and alternating patterns; for letter series, convert letters to positions (A=1 … Z=26).

English: subject-verb agreement - singular subject takes singular verb; collective nouns take singular verbs when acting as a unit; 'one of the + plural noun' takes a singular verb.

Reading comprehension: locate the main idea in the first or last paragraph; answer only from the passage; eliminate options that are true in general but not stated in the text.

Error spotting: check prepositions after verbs (e.g., 'discuss about' is wrong, 'discuss' is correct), articles, tense consistency, and parallel structure in lists.