Twenty students in each division and 10 students in the special girl child section would be provided the scholarship.
LIC now has a market value of around Rs 5.54 lakh crore rupees ($71.54 billion) and is India's fifth-biggest company.
India priced LIC's record-breaking IPO last week at 949 Indian rupees ($12.20), the top of the indicated range.
Against 16,20,78,067 shares on offer, 16,68,60,765 bids were received – translating into a subscription of 1.03 times, as per data on stock exchanges as of 7 pm.
The insurance behemoth is eyeing to raise about Rs 21,000 crore through the initial public offering, which will close on May 9.
The timing for placing a bid for subscription is from 10 am to 5 pm. The IPO will conclude on May 9 at 3 pm.
The insurance giant will offer a Rs 60 discount for policyholders and Rs 40 for retail investors and employees.
The bankers have told the Indian government that launching LIC's stock offering would make sense in the coming months when investors are more confident.
LIC's initial public offering (IPO) is expected to obtain regulatory approval by the first week of March, after which an indicative marketing price band will be set.
LIC's assets under management (AUM) stood at Rs 39.56 trillion as of September 30, 2021 - more than three times the total AUM of all private life insurers.