LIC CEO and MD R Doraiswamy expects rising incomes and longer lifespans to drive demand for protection and retirement products. The comments came as LIC marked 70 years and moved to 10% public shareholding after the government’s August stake sale.
India’s low insurance penetration, economic growth, rising household incomes, greater financial awareness and longer life expectancy are expected to drive strong demand for protection, savings and retirement products, LIC CEO and MD R Doraiswamy told PTI on the insurer’s 70th foundation day.
“Meeting that demand, while adapting its distribution and product mix to a more competitive and digital market, will define LIC’s next chapter,” Doraiswamy said.
He also said customers now have more choices and technology has reshaped their expectations. Younger customers, in particular, increasingly expect insurance to be simple, personalised and available instantly. LIC is consequently focusing on its product portfolio, technology, persistency and distribution mix.
At the anniversary event, Doraiswamy also launched two new plans. LIC describes Bima Platinum as a non-participating, non-linked plan combining savings and protection, while Jeevan Raksha is a non-participating, non-linked pure-risk plan.
LIC’s Growth Plans Come With a Public Responsibility
The remarks came about a month after the government sold a 6.5% stake in LIC through an Offer for Sale. An official NSE disclosure records shares worth Rs 31,552.34 crore sold through the transaction. The government’s holding fell from 96.5% to 90%, taking public shareholding to 10%.
Doraiswamy said LIC must balance its historic social mandate of reaching rural and underserved India with public shareholders’ expectations for returns. LIC has operated as a listed company since its 2022 IPO. Its official anniversary release also says the corporation continues to focus on governance, transparency, digital transformation and customer service.
What Does Longevity Risk Mean for Buyers
Longer lifespans can increase the number of years for which retirement savings must provide income. Longevity risk refers to the possibility that a person outlives the savings or income set aside for retirement.
Term insurance addresses a different financial risk. IRDAI’s life insurance guidance says a term product provides a fixed amount on death during the contract period. It therefore helps protect dependants against the financial impact of death during the policy term.
An annuity focuses on retirement income instead. IRDAI says an annuity provides periodic payments while the insured person remains alive. Its Saral Pension framework includes lifetime single-life and joint-life annuity options with return of purchase price.
Also read: Term Insurance Explained
Choosing Between Term Cover and Retirement Income
If your family depends on your earnings, assess the sum assured, policy term, premium and exclusions on term cover. For retirement, review expected expenses, other income sources and how long your savings may need to last. If considering an annuity, compare the payout, payment frequency, joint-life option, liquidity and return-of-purchase-price terms. Most importantly, do not treat term insurance and retirement income as substitutes. They address different risks.
Need a second opinion on how life cover fits with your retirement planning? MyRupia offers independent insurance guidance without selling policies or earning insurer commissions. Talk to a MyRupia expert before choosing a policy.
Disclaimer: This MyRupia article is for informational purposes only and is based on publicly available government, regulatory and industry sources. It should not be treated as investment, financial, tax, insurance or legal advice. Information, examples, market data and expert views mentioned in the article may change over time and should not be considered a recommendation to buy, sell, invest in or surrender any financial product. Readers should evaluate their individual circumstances and consult a qualified financial professional before making decisions.