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LIC E-Term Plan
  • Hassle Free Online Process
  • Cooling Period of 30 Days
  • Non Participating Term Plan
  • Tax Benefit Under 80C & 10D
  • Lower Rates for Non-Smokers

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LIC E-Term Plan

LIC e-Term plan (UIN:512N288V01) is a regular non-participating "Online-Term Assurance Policy" which can be bought only through the online mode without the involvement of any intermediaries. Non-participating policy means that the policy does not participate in the profits through unit-linked schemes and no dividends are paid in this policy.

If the policyholder happens to die during the tenure of the plan, then the beneficiaries of the policyholder are given the sum assured. If the policyholder survives the tenure of the e-Term plan, then nothing is given to the policyholder and his/her beneficiaries.

Categories of LIC e-Term Plan

The e-Term plan has two categories with respect to premium amounts:

  1. The aggregates
  2. The non-smokers

For Sum Assured upto Rs. 49 lakhs Aggregate category rates only would apply. Below Rs. 49 lakhs cover value all policyholders, irrespective of whether they are smokers or non-smokers, have to pay the aggregate premium rates.

For Sum Assured Rs. 50 lakhs and above there is an option to choose the differential premium rate for Non-smoker category. However, in order to qualify for non-smoker category, policy proposers have to clear the prescribed Urinary Cotinine tests.

Key Features of LIC e-Term Plan

  • Non Smokers; as they have a higher possibility of enjoying long life, that makes them a low-risk seeker.
  • Females are eligible for lower premiums than male seekers as they live longer.
  • e-Term plan provides a cooling period of 30 days .
  • Conventinal and non-participating term insurance plan.
  • No Maturity Benefit and offers Death Benefit only.
  • Death Benefit will be paid to the nominee(s) if the policyholder dies.
  • Includes tax benefits on premium payments and sum assured under Section 80C and Section 10(10D) of the Income Tax Act, 1961, respectively.

Benefits of LIC e-Term Plan

  • Substantial life cover at nominal premium rates
  • Lower rates for non-smokers
  • Hassle free online processes
  • Assistance through a phone call, toll-free, email and chat facilities
  • Tax benefits under section 80 of the Income Tax Act, 1961
  • Claim settlement is their top priority
  • The company has a claim settlement ratio of 98.04 (IRDA 2017-18 Annual Report Data)
  • The e-Term policy provides cooling and grace period.

Who Should Buy Online e-Term Plan and Why?

Any Indian resident and non-resident Indian who has attained the age of maturity can buy the e-Term policy. Non-resident Indians can apply for the e-Term policy during their stay in India and also if they reside in any of the countries among the list of permissible countries.

The ‘Know Your Premium' section provides information on the list of permissible countries.

Minimum Sum Assured Rs. 25 lakhs for Aggregate category and Rs. 50 lakhs for Non-smoker category
Maximum Sum Assured No limit
Minimum Age at Entry 18 years (completed)
Maximum Age at Entry 60 years (nearest birthday)
Maximum Cover Ceasing Age 75 years (nearest birthday)
Minimum Policy Term 10 years
Maximum Policy Term 35 years
Premium Payment Frequency Only annual
Mode of Payment Premiums are to be paid annually.
Person Covered The person must be income earner/salaried. One cannot propose for anyone other than self. Key Man Insurance (KMI)/Partnership/Employer-Employee Cover will not be allowed.

Premium Details of LIC e-Term Plan

Basic premium in rupees (annual) for a policy tenure of 15 years (exclusive of taxes) is mentioned below:

Age (in years) Rs. 50 Lakhs Sum Assured Rs. 1 Crore Sum Assured
30 6000 12000
40 12400 24800
50 28600 57200

The sample premium rates (exclusive of taxes) are as under:

For Aggregate Category-

Annual Premium Rates Per Rs. 1000 Sum Assured
Age (in years) Term of the policy (in years)
10 15 20 25 30
20 0.92 0.92 0.93 1.00 1.11
30 1.10 1.20 1.39 1.66 1.97
40 2.02 2.48 3.00 3.56 4.19
50 4.86 4.72 4.73 4.90 -

For Non-Smoker Category-

Annual Premium Rates Per Rs. 1000 Sum Assured
Age (in years) Term of the policy (in years)
10 15 20 25 30
20 0.92 0.92 0.93 1.00 1.11
30 1.10 1.20 1.39 1.66 1.97
40 2.02 2.48 3.00 3.56 4.19
50 4.86 4.72 4.73 4.90 -

Documents Required for Purchasing e-Term Plan

The documents that need to be submitted by the proposer of the e-Term plan would include the proposer's age, identity, address and income proof.

  • Age proof: Matriculation certificate, birth certificate.
  • Identity proof: Aadhaar, Pan, License, Passport.
  • Address proof: Passport, Aadhaar, electricity bill, gas bill, possession/rent document.
  • Income proof: Source of the income statement. If employed, then income statement attested by the employer.
  • Medical certification: All medical proofs, wherever applicable and as prescribed by us.

Exclusions of e-Term Plan

In certain non-normal cases, the company does not pay the claimed amount, which is the assured sum, and this includes suicide by policyholder within 12 months of purchasing or renewing the policy. However, there is a provision that allows nominees to raise a claim up to 80 % of the total amount of premiums paid by the policyholder before committing suicide if at the time of suicide the policy has not expired, after deducting taxes and extra premium if applicable.

FAQs

1. What is Cooling Period in LIC e-Term plan?

The life insurance policies have provisions for a cooling period. The e-Term policy has a cooling period of 30 days. This is a period provided to policy subscribers to read the policy document thoroughly and clarify any doubts which may arise.

If the subscriber is not in sync with the-Terms and conditions mentioned in the policy document and overall is not satisfied with the policy, then he/she may return the policy within this cooling period upon which the company will refund the first premium paid by the subscriber after making the applicable deductions.

A policy once returned cannot be subscribed again by the same proposer as per the rules and regulations.

2. What is Grace Period in LIC e-Term plan?

All the policies have a grace period. For the e-Term policy, the company has provided a grace period of 30 days. The grace period is a period which is provided to policyholders to pay up their pending premiums. Suppose a policyholder does not pay a premium for e-term policy subscribed by him/her on the due date then the policy will still remain in force for the grace period that is 30 days in this case.

The policyholder can make a premium payment any time during this grace period even after the due date. If the policyholder does not pay due premium amount even within this time then after the grace period is over the policy lapses and can be only revived as per the rules and regulations and on the grounds of genuine reasons within two years of a policy lapse.

3. Can the premium for the e-Term policy change?

The premiums of the policies remain the same throughout the tenure of the policy, once the policy has been issued to the proposer, and this includes the e-Term policy as well. The premium amounts can only change due to the service tax regulation that is only the service tax component of the premium amount can change as per government rules and regulations regarding the same.

4. Is the e-Term Policy valid across the globe?

Once the company issues the e-Term policy to a subscriber, then the subscriber becomes the policyholder, and the company provides him/her cover in any part of the world where the policyholder may have to go for work and other reasons.

5. Is It necessary to undergo medical tests to purchase the e-Term plan?

Medical tests may or may not be necessary. It depends on the information furnished by the proposer regarding his/her health status and also on the underwriting requirements for the particular policy.

Proposers who propose policies under the non-smoking category and the medical categories need to undergo the prescribed medical tests.

The company mostly prescribe only basic medical tests like blood and urine tests. Proposers should truthfully disclose all required information including information related to health status as if found to be deliberately hiding information or giving false information at any stage; then policy benefits can get canceled.

If the proposer's proposal is accepted by both the parties then all the medical expenses incurred to purchase the e-Term plan shall be borne by LIC of India.

Last updated on 2-07-2019