IC-02 Practice of Life Insurance: Syllabus, Key Topics & Study Guide
IC-02 Practice of Life Insurance is the compulsory life-stream paper in the III Licentiate. If IC-01 Principles of Insurance teaches you why insurance works, IC-02 teaches you how life insurance works in practice — products, plans, premiums, policy conditions and the customer journey from proposal to claim. This guide covers the IC-02 syllabus, the topics that carry marks, and how to prepare efficiently.
Where IC-02 fits
Life-stream Licentiate candidates typically take IC-01, IC-02 Practice of Life Insurance, and an optional paper to complete their credits. (General-stream candidates take IC-11 instead of IC-02.) If you're unsure which stream or level you're on, start with our overview of the III certification path.
What IC-02 covers
The paper walks through the practice of life insurance end to end. Core areas include:
- The life insurance market and its structure in India.
- Types of life insurance plans — term, endowment, whole life, money-back, unit-linked (ULIPs) and annuities/pensions.
- Premiums and how they're determined — mortality, interest, expenses and bonuses at a foundational level.
- The proposal and underwriting stage — proposal forms, medical and non-medical underwriting.
- Policy conditions and documents — the policy, riders, nomination, assignment, surrender, loans and revival.
- Claims — maturity, survival benefit and death claims, and the settlement process.
- Customer service, grievance redressal and regulation touchpoints.
The topics that carry the most marks
Focus your effort where questions cluster:
- Plan types. Be able to compare term vs endowment vs whole life vs money-back vs ULIP — what each is for, who it suits and how benefits pay out.
- Policy conditions. Nomination vs assignment, surrender value, paid-up value, loans, lapse and revival — these are definition-heavy and heavily tested.
- Underwriting and proposal. The proposal form's role, and medical vs non-medical underwriting.
- Claims. Maturity, survival and death claims — and the documents each requires.
- Bonuses and benefits. Reversionary vs terminal bonus at a basic level.
Areas candidates find tricky
- Nomination vs assignment. These are constantly confused — learn them side by side: who gets rights, and what each actually transfers.
- Surrender value vs paid-up value. Know the difference and when each applies.
- ULIPs. Because they blend insurance and investment, questions test whether you understand charges, fund options and the risk sitting with the policyholder.
- Revival and lapse. The conditions and timelines are easy marks if you've memorised them precisely.
A focused IC-02 study plan
- Days 1–4: Market structure and the full range of plan types. Build a comparison table of the products.
- Days 5–8: Policy conditions and documents — make flashcards for nomination/assignment, surrender/paid-up, loans, lapse and revival.
- Days 9–11: Underwriting and claims, then start mixed-topic MCQs.
- Final days: Full-length timed mocks, then re-drill every trap you missed.
The paper is memory-heavy, so active recall beats re-reading — quiz yourself instead of highlighting. On Certena you can practise IC-02 questions with explanations, take a free mock, and follow a plan paced to your exam date. If you're preparing around a job, our guide to studying while working full-time will help you fit it in.
Quick FAQ
Is IC-02 mostly about products? Products are a big part, but policy conditions and claims are just as important — don't neglect the "operational" chapters.
How do I remember so many definitions? Learn confusing pairs by contrast, use spaced repetition, and test recall daily rather than cramming once.
The IC-02 syllabus and pass standard are set by the Insurance Institute of India and may change by edition. Confirm the current syllabus on the official III website. Certena is an independent study app, not affiliated with III or IRDAI.