LIC Term Plan

LIC Term Plan

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Life Insurance Corporation Of India - LIC

The oldest participant within the insurance sector, LIC has been catering to the insurance needs of the whole country for a long time. Being the best participant, LIC grabbed most of the market shares and continue to be the biggest participant in the market. The Life Insurance Corporation of India was created on 1st September 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reaching all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices and the Corporate office. LIC's Wide Area Network covers 113 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

Awards

  1. Greentech HR Award 2016.
  2. India's Brand No 1 Awards 2016.
  3. Dainik Bhaskar Awards 2015-16.
  4. Skoch order of Merit.
  5. Magzimise Awards.
  6. Indian Insurance Awards 2016.
  7. Fame Excellence Awards 2016.
  8. Skoch order of Merit.
  9. Zee Mindspace Awards 2016.
  10. D & B BFSI Awards 2016.
  11. Superbrands 2016.
  12. Money Today Financial Awards.
  13. D B India Pride Awards 2016.
  14. Readers Digest Awards 2016.
  15. Hindustan Awards 2017.
  16. Best Indian Brands.
  17. Golden Peacock Award 2017.
  18. ABP News Brand.
  19. Brand Icon.
  20. My FM Stars of the Industry Awards.
  21. Best Employer Awards.
  22. Dun & Bradstreet PSU Awards 2016.
  23. Best Employer Awards.
  24. India's Most Trusted Brand Awards 2016
  25. Ashirwad Rajbhasha Puraskar.
  26. ABCI Awards.

Basic Features & Benefits of LIC Term Plans

Terms plans are the most affordable form of life insurance which make it the most convenient one to avail for teh complete security of family.

  1. He oldest life isnurance company of the India and the most trusted one as well
  2. Offer amazing and flexible options in terms of term, coverage and premium payment also
  3. Allow customers to buy effective life insurance plan from the comfort of their home
  4. It also provide certain tax benefits under section of the IT Act, 1961
  5. Some plans can be converted to other plans offered by LIC

How to claim LIC Term insurance?

To claim death benefits, you will need to fulfil certain formalities. They are:

  1. Process: The claim process is quite simple and effective. To file claim, you have to first collect document and then submit the same to the LIC office. Ince you have submitted all documents and the claim verified, the policy being in effect and the claimant being the beneficiary, LIC will process the claim and release the sum assured.
  2. Documents required:
    • You have to submit three documents to file the claim
    • The original policy document.
    • The death certificate of the policyholder
    • The claim form, also known as Claim Form A or Form No.3783.
    • An NEFT mandate that will allow LIC to transfer the amount to your account.

Exclusions of LIC Term Plan

Eaxh and every insurance plans including term insurance plan has a few conditions under which your claims will not be entertained. These conditions are popular by the term exclusions. The main exclusions that you will get in almost alll insuranec polices by LIC is related to suicide committed by the insured. In such scenario, if the policy is not old then 12 months then LIC will not be liable to apy anything to the beneficiary. If it is more than 12 months old then the company will pay 80% of the premiums paid to the beneficiary and not entertain any claims for the sum assured.

Why Choose LIC Term Insurance Plans?

LIC is said to be the most important life insurance company. In India, LIC is synonymous with life insurance with some of the fairly premium and enough insurance options. Here is why one has to choose LIC as a life insurance company:

Technologically Sound: LIC has been the leader as an insurance issuer for its efforts to live in advance of the game by using being at par if no longer in phrases of its community with regards to imparting superior services. The company uses great technology, which includes WAN, IVRS, LAN, IVRS & even EDMS which allows humans to go paperless when handling coverage documentation.

Partner Companies: The organization does no longer work alone, however, companions with coverage and financial tycoons such as NSE, LIC Mutual Fund, NCDEX, and National Insurance Company among many comparable groups. Subsequently, it's operating through convergence as properly

Going International: It has its branches in Nepal, Sri Lanka, Saudi Arabia and Bahrain. LIC has also been bold enough for commencing workplaces in Australia, Canada, and the United States.

LIC Term Insurance Plans

1. LIC's Anmol Jeevan – II

LIC's Anmol Jeevan – II is a protection plan which provides financial protection to the insured’s family in case of his/her unfortunate demise. In case of unfortunate death of the life assured during the policy term sum assured shall be payable. On survival to the end of the policy term, nothing shall be payable.

Death benefit The plan offers death benefit to the policyholder's nominee which equals to the sum assured chosen at the inception of the policy. Once the death benefit is paid, the policy will be terminated and no further benefits will be payable.
Maturity benefit This plan doesn't offer any maturity benefit to the beneficiary at the end of the policy term.
Survival benefit There is no survival benefit offered under this plan.
Paid-up value The policy is not subject to a paid-up value.
Nomination The policyholder can contact Life Insurance Corporation of India at any time during the policy term to change the details of the nominee.
Features Description
Entry Age Minimum – 18 years
Maximum – 55 years
Maturity Age Maximum of 65 years
Premium Minimum – Depends on policy term and age of the insured subject to sum assured
Maximum – No limit
Premium Payment Term Regular Pay – Premium paid throughout policy term
Policy Term Minimum - 5 years
Maximum – 25 years
Premium Payment Mode Annual or semi-annual
Sum Assured Minimum – INR 600000
Maximum – INR 2400000
Death Benefit The entire Sum Assured value will be paid to the nominee
2. LIC's Amulya Jeevan - II

LIC's Amulya Jeevan - II is a protection plan which provides financial protection to the insured's family in case of his/her unfortunate demise. In case of unfortunate death of the life assured during the policy term sum assured shall be payable. On survival to the end of the policy term, nothing shall be payable.

Benefits
Cover Large cover at affordable premiums
Life cover Life Cover 25 lakhs onwards
Death Benefit The entire Sum Assured is paid to the nominee on death of the Life Insured during the policy term.
Maturity Benefit No benefit is payable on maturity as this is a pure protection plan.
Income Tax Benefit Life Insurance premiums paid up to Rs.1,00,000 are allowed as a deduction from the taxable income each year under section 80C. Death Benefit is also tax free.
Features Description
Entry Age Minimum – 18 years
Maximum – 60 years
Maturity Age Maximum of 70 years
Premium Minimum - Based on the minimum sum assured value and the age of the insured
Maximum – No limit
Premium Payment Term Regular Pay – Premium paid throughout policy term (5 years to 35 years)
Policy Term Minimum - 5 years
Maximum – 35 years
Premium Payment Mode Annual or semi-annual
Sum Assured Minimum – INR 2500000
Maximum – No limit
Death Benefit The entire Sum Assured value will be paid to the nominee
3. LIC e-term

LIC e-term is a regular premium non-participating "Online Term Assurance Policy" which provides financial protection to the insured's family in case of his/her unfortunate demise. This plan will be available through the online application process only and no intermediaries will be involved.

Benefits
Medical No medical examination is required.
Surrender Value Premature exit is allowed during policy term under exceptional circumstances like Critical/Terminal illness of self or spouse . Surrender Value payable in such cases is 98% of the Purchase Price.
Loan Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75% of the purchase price.
Features Description
Entry Age Minimum – 18 years
Maximum – 60 years
Maturity Age Maximum of 75 years
Premium Minimum - depends on factors decided by the insurer
Maximum – No limit subject to the Sum Assured amount chosen
Premium Payment Term Limited Pay – Premium paid for 5 years
Single Pay – One time lump sum payment of premium
Sum Assured Minimum
  1. Aggregate Category – INR 25 lakhs
  2. Non-smoker Category – INR 50 lakhs

Maximum - No limit
Policy Term Minimum – 10 years
Maximum – 35 years
Premium Payment Mode Annual only
Death Benefit Sum Assured on Death

Effective LIC Term Insurance Riders Offered by LIC

Currently LIC is providing two special featured packed riders, in which you can invest along with any non-linked term insurance plan. The two riders are:

1. Features of LIC’s New Critical Illness Benefit Plan Rider

This effective rider will provide coverage against 15 critical diseases that includes Cancer of specific severity, Open Chest CABG, Kidney Failure requiring regular dialysis, Stroke, Permanent paralysis of limbs, Blindness, Third degree burns, Alzheimer’s, etc.

Entry Age Min. 18 years and Max. 65 years
Premium Payment Mode Limited pay, Regular pay
Maturity Age Max.75 years
Min. Sum Assured Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Payment Frequency Same as base plan
Min. Sum Assured Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Paying Term Regular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 5 years to (Policy year – 1) years
Policy Term Regular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 10 years to 35 years
2. Features of LIC’s New Critical Illness Benefit Plan Rider 

LIC’s New Term Assurance Rider is basically a pure death benefit rider. By paying a nominal additional premium, the policyholder can invest in the same along with their basic term insurance plan. In case of the death of the insured, the nominee will surely get the life cover and rider sum assured. You can invest in this rider only at the inception of the base policy.

  • Death Benefit: In case of the demise of the life assured during the policy term, the nominee will get the amount which is equal to the rider sum assured, that can be equivalent to the base policy sum assured.
  • Maturity Benefit: There is no maturity benefit.
Entry Age Min. 18 years and Max. 60 years
Maturity Age Max.75 years
Premium Payment Mode Same as base plan
Premium Payment Frequency Same as base plan
Min. Sum Assured and Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Paying Term Same as base plan
Policy Term Same as base plan

Claim Process - LIC Term Life Insurance

As it is clear from the above data that you have to follow a proper process and it requires you to fill in certain documentation and submit proofs, etc.

The documents you would need to claim under LIC term insurance plan:

For the death benefit claim, the nominee or claimant of the policy has to submit the following documents:

The LIC term insurance policy document.

The certificate of death which clearly states the cause of death.

These documents have to be accompanied with a mandate that gives LIC permission to transfer the claim amount through NEFT to your account.

Once you have submitted all your documents, you have to submit them to the closest LIC office, after which the company will start its work and verify all details. When it comes to selecting the right term insurance plan then it is advisable for you to first compare all the available options and then go for the best one accordingly.

FAQ's

1
How can I make a claim?

You'll need to fill in a claim form and call the financial adviser from whom to procure the policy. You must submit the relevant files to help your claim. If the claim application is accepted, you may get a cheque within 7 working days. If the claim is rejected, then you'll be receiving a letter explaining the reason for rejection.

2
Will I get maturity benefits with my life insurance policy?

Yes, you will get maturity as described in your plan. Refer the policy document to know more.

3
What kind of LIC term coverage policy should I opt for?

Each LIC term insurance policy has its very own benefits and drawbacks. You need to choose the term policy according to your requirements, long-term desires and of the direction of your affordability. You need to examine multiple policies and their rates and in shape them together with your goals to get the best term plan. It additionally depends on the lifestyle which you want for your family and many of dependents you have.

4
Is there any difference within the LIC term insurance premium charges when buying LIC term coverage plan online and offline?

You may discover a little variance in the rates between LIC term insurance plan sold online and offline. You may notice that online term plans are very cheap as compared to the offline one. It will also come out with several benefits and discounts.

5
What if I neglect to pay the premium for a month?

In case you don't pay the premium on or earlier than the due date, the company will offer you a grace duration of 30 days to make it (in case of month-to-month premiums, the grace period is handiest for 15 days). If the premium remains no longer paid in this era, then the policy is considered as lapsed and you have to revive your policy. If you do not revive the coverage in the course of the revival length, then the policy is null and void. And there can not be any claims made on the same in future.

6
Can I get LIC term insurance of Rs.1 crore?

Whether or not you may purchase LIC's term plan with the sum assured of Rs.1 crore relies upon for your annual income and premium paying capability. You could use term insurance premium calculator to calculate the premium of LIC term plan for a sum assured of Rs.1 crore.

7
What form of tax advantages can I've on my LIC term insurance plan?

Like every other term coverage, you could get tax exemptions below the sections 80(C) and 10(10D) of Income Tax Act. All of the charges paid to maintain the LIC term coverage in force is tax deductible. The sum assured obtained with the aid of the nominee is also exempted from tax.

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