LIC Term Plans
LIC Term Plans
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LIC Term Insurance Plans

LIC is the oldest life insurance company in India. The company was founded on 1st September 1956. It is the best platform for your life insurance purchase, operating with 2048 branches located across India. It has gained much popularity and gathered the trust of the Indian population by providing a permanent solution to their financial insecurities. The company offers a wide range of life insurance products, among which, term plans are always in demand.

Types of Term Insurance Plans By LIC

To cater to the various needs of customers, LIC offers two term insurance plans with great features. Let's discuss both of them in detail.

1. LIC’s Jeevan Amar Plan

Lic Jeevan Amar is a non-linked and without profit (returns on investment) pure protection plan. The plan offers the flexibility to choose from two death benefit options viz: Level Sum Assured and increasing Sum Assured. On the death of the life assured, the family will get full payment of the sum assured either in the lump sum or in the form of annual income.

Key Features:

  • Lower premium for those who do not smoke tobacco or any other hallucinogenic substance.
  • Special premium discount (starting from Rs. 3,000 per year) to female policyholders.
  • Rebates on choosing the higher sum assured i.e. more than 50 lakhs. The maximum amount of rebates offered is 20%. The discount will fluctuate according to the type of sum assured opted.
  • Freedom to enhance your coverage on payment of additional premium for rider benefit.

Eligibility Criteria:

Minimum Age of the Policyholder18 years
Maximum Age of the Policyholder65 years
Maximum Age of Maturity80 years
Minimum Policy Term10 years
Maximum Policy Term40 years
Minimum Sum AssuredRs. 25 lakhs
Maximum Sum AssuredUnlimited
Premium Paying TermSingle premium, regular premium and limited premium

**Last Updated on 16-09-2020

2. LIC Tech-Term Plan

LIC Tech-Term Plan is a traditional term plan that provides financial help to the family in case of an insured’s unfortunate death. It is a non-linked and non-participating online pure risk premium plan. This plan is only available through the online application process and can be purchased with a click of a button.

Key Features:

  • Option to choose from two benefit options: Level Sum Assured and Increasing Sum Assured.
  • The option of receiving benefits in installments.
  • Lower premium rates for non-smoker category who maintain a healthy lifestyle throughout the policy.
  • The company will pay the sum assured to the beneficiaries.
  • All types of death are covered under this term plan.
  • Tax benefits up to 1.5 lakhs against the premium paid for the term plan, subject to continuation of policy.

Eligibility Criteria:

LIC E Term Plan
Minimum Age of Entry18 years
Maximum Age of Entry65 years
Maximum Age of Maturity80 years
Minimum Term of the Policy10 years
Maximum Term of the Policy40 years
Minimum Sum AssuredRs. 50 lakhs
Maximum Sum AssuredNo limitations (regards to underwriting process of the company)

**Last Updated on 16-09-2020

LIC Term Insurance Riders

To assist you with additional coverage in the hour of need, the company provides a wide range of term insurance riders that you can avail by paying an additional premium. Below is the list of such riders for your reference.

New Term Assurance Rider: LIC's New Term Assurance Rider offers life cover in case of death of the insured during the policy tenure. You can easily attach this rider with the basic plan to provide add-on benefits at a nominal premium.

LIC’s New Critical Illness Benefit Rider: It is a non-linked rider that is great at reducing the financial burden in the case the life assured is diagnosed/suffering from any of the pre-specified critical illnesses.

PWB Rider: It assists the insured with a waiver of future premiums payable under the base plan till the expiry of the rider in case of the insured’s death during the rider tenure.

LIC’s Premium Waiver Benefit Rider: It is a non-linked and non-participating individual rider. You can attach this rider with the base plan. It will waive future premiums payable under the base plan during the tenure.

LIC’s Accident Benefit Rider: If the insured died due to an accident during the chosen tenure, this rider will pay an additional sum assured along with the death benefit paid under the base plan. Thus, it enhances the death benefit in case of accidental death and provides better coverage.

LIC’s Accidental Death and Disability Benefit Rider: This rider provides coverage against accidental death and disability. The rider pays a benefit in case of accidental death or disability suffered by the insured during the term of the policy.

How To Buy LIC Term Insurance Plans?

You can invest in the LIC term insurance plan through two different ways -the official website of the company or through PolicyX.com. Let's explore the process in detail-

Buy via Life Insurance Corporation ( LIC)

  • Visit the official website of the LIC.
  • Scroll slightly down to the section ‘Buy Policy Online’.
  • Click on the tab ‘ Click here to buy’ present at the end of the ‘Buy Policy Online’ section.
  • Scroll down and click on the tab ‘ Buy Online’ under section ‘LIC’s Tech-Term’.
  • Scroll down and select the tab ‘Click to Buy Online’.
  • Fill the required details such as your name, DOB, mobile number, city, email address, etc. and confirm the details.
  • Click on the tab ‘Calculate Premium’.
  • Submit the OTP.
  • Analyze the details and add riders if you want to.
  • Pay using available payment modes.
  • The company will share the policy documents over a registered e-mail Id. It will also send the hard copy to the registered address.

LIC Jeevan Amar is not available online. You have to visit the nearest LIC branch to invest in the same.

What Is The Claim Process of LIC Term Insurance?

To file a LIC term insurance claim, you have to visit the nearest branch of the company. Ask for the claim form and speak to a representative of the company. He/she will guide you throughout the process. Don’t forget to carry the required documents along with you.

Documents Required To Register LIC Term Insurance Claim-

  • Claimant Statement/Claim intimation form duly filled and attested by the claimant.
  • Death certificate original as well as photocopies issued by Local Municipal bodies located in your area.
  • Identity proof and address proof of the nominee/claimant.
  • Cancelled cheque or the photocopy of the passbook (of the nominee).

LIC Term Insurance : FAQs

1. Is it possible to use a single mandate for all multiple policies?

No, a separate mandate is to be used for each policy.

2. How much time taken by LIC to settle a claim?

As per IRDA regulations, after receiving the documents, LIC would settle the claim within 30 days, provided it is non-early & natural death and no investigation is required.

3. What additional documents are required for an accidental death claim?

The claimant/nominee must carry the certified photocopies of-

  • First Information Report
  • Post-mortem Report
  • Police Investigation Report

Apart from the basic documents, you have to submit the above-mentioned documents.

4. What is the claim settlement ratio of LIC?

The claim settlement ratio of LIC is 97.79%.

5. Will I receive a discount if I pay my LIC premium online?

Yes, you will be liable to receive a discount if you pay the premium online. The amount of discount varies from one policy to another.

6. Will I have to inform the company in case I change my residence during the policy term?

Yes, you will have to update your address to the insurer.

7. What should I do in case I lose my original LIC term policy document?

In case you lose the original LIC term policy document, you will have to visit the nearest LIC’s branch and apply for a new one.

8. How is LIC term plans different from other private companies?

Both LIC and private companies offer effective term insurance plans. However, the major difference between them is the premium. The premium of LIC term insurance plans is usually high as compared to the plans of private insurance companies due to the high claim settlement ratio.

9. I am an occasional smoker. Do I need to still declare myself as a tobacco user?

You might be an occasional smoker but if you have smoked in the last 12 months, then you have to declare yourself as a tobacco user. If information is withheld and later revealed to the insurance company, there are chances that they may charge you with an insurance charge. Your policy may be considered null and void. Your insurance company may also deny you of the policy benefits.

10. How much do I need to pay for LIC 1 crore term insurance?

Here is the premium amount- 11,000 (for a non-smoker) with a policy term of 38 years.

11. How much life cover should I buy in a Term plan?

Based on this formula, you can calculate your required life cover.

Minimum sum assured = Annual Income x 10 times + Loans/Liabilities

Last updated on 16-09-2020