1) What is Insurance?

Insurance is an arrangement, by which an insurer undertakes to provide a compensation for specified loss, damage, illness, or death in return for payment of a specified premium

2) What is Life Insurance?

Insurance that pays out a sum of money either after a set period or on the death of the insured person.

3) What are the types of Insurance?


An endowment is a life insurance policy designed to pay a lump sum after a specific term (on its maturity) or on death.

Whole life:

A whole life is a life insurance policy which is guaranteed to remain in force for the insured entire lifetime, provided required premiums are paid, or to the maturity date.


Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified term of years. If the insured dies during the time period specified in the policy and the policy is active or in force then a death benefit will be paid.


Health insurance is insurance against the risk of incurring medical expenses among individuals.


Group insurance is an insurance that covers a defined group of people, for example the members of a society or professional association, or the employees of a particular employer who belong to the group for reasons other than the wish to buy insurance.

4) How much Life Insurance I need?

Determining how much life insurance you need requires an examination of your current and future financial obligations, along with the resources your family could tap.
Your future obligations are a combination of what it would cost to help your surviving family members meet immediate and ongoing needs like food, clothing, utilities, mortgage payments, funeral costs, taxes and your future obligations like college and retirement funding.
The resources that your surviving family members could draw on to meet those obligations include your spouse’s or partner’s income, savings and investments, other income producing assets, and any life insurance you might already own.
The difference between the two, your financial obligations minus the resources your family has to meet those obligations is the approximate amount of additional life insurance you need. If this sounds confusing, you’re not alone. That’s why most people turn to a qualified insurance professional when they want to figure out how much insurance they need.

5) What products are available with LIC Bangladesh Ltd?

At present LIC offers nine plans. Please go through our products section for full details.

6) What are the modes of premium payment option available with the products of LIC Bangladesh Ltd?

Premium payment option presently available with our products are monthly, quarterly, half yearly , yearly and Single.

7) What is policy bond and what should I do with the policy bond ?

The policy bond is the document that is given to you after the company accepts your proposal for insurance. The risk coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond. Please check that policy bonds are in conformity with your proposals submitted to the company. This is an important document which would be referred to for various servicing interactions with you. It will be required at the time of settlement of claims on the policy. You will also require it if you are availing a loan or want to assign the policy. Inform your spouse/Parents/Children as to where the policy is kept. In case you are handing over the policy bond to any person or office, please take a written acknowledgement. Also keep a copy of the policy for your reference.

8) What should I do when the policy lapsed?

If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived by payment of the accumulated premiums with late fee as well as giving the health requirements if required. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy.
However certain concessions dependent on the term for which you have paid the premiums are available with the exception of some plans for claims concession.

9) What should I do if I change my address?

Your address is very important for us. Without your latest address we would not be in a position to contact you for any service. We would not like to keep any benefit that is due to you pending for want of this very important information. Whenever you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you.
LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and email addresses in your contact addresses information. Kindly inform any of our LIC branch to incorporate the same in your policy records.

10) What should I do if policy is lost?

Kindly make a thorough search before concluding that you have lost the policy bond. Look for the same within your residence, among your investment papers, at your office and even with your agent to whom you might have entrusted the document for some reason.
It could have been even pledged with LIC /any other financial institution for availing a loan by you. LIC retains the policy bond when you avail for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution. If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC , while applying for a duplicate policy. In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy.

11) Whether loans is available against policies?

Many of our plans are of endowment/savings type and you would be allowed to raise a loan against your policy should you require funds. You repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments. Further loans on policies are also allowed after deduction of earlier outstanding loan. Most financial institutions also allow loans against LIC policies based on the value LIC quotes on request from you.

12) Please explain assignment related to life insurance policies.

In case you are raising a loan against your policy from LIC or any other financial institution, your policy would have to be assigned to LIC or the financial institution. When you assign the policy the title of the policy is shifted from your name to that of the institution. The policy would be reassigned to you on the repayment of the loan. Assignment of policies can be done even when a loan is not required or for some special purposes.

13) What is surrender of policies? Please explain in details.

This is the value which is payable to you should you decide to discontinue the policy and encash the same from LIC Bangladesh Ltd. Surrender value is payable depending on terms and condition for particular product. Surrender of policy is not recommended since the surrender value would always be proportionately low. Should you decide to take insurance at this stage it would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy. Therefore retention of earlier policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection.

14) How death claims are settled?

Death of the life assured should be intimated to the respective branch wherefrom the policy was issued along with original/certified death certificate. Depending on terms and condition of the policy, beneficiary as recorded in policy document may be asked to submit additional forms and certificates if required. After submission of required documents claims for death will be settled.