LIC term insurance plans cater to the needs of its customers in every segment of life. The mass reliability of this company makes it a household name. LIC term insurance plans are available at affordable premium rates with multiple choices in death benefit payout. In addition to this, customers have the option to personalize their plans according to their financial requirements.
At present, LIC offers 3 different plans under their LIC term insurance segment and they can be bought traditionally through their branches.
Continue for deep insights into LIC term insurance.
Key Features of LIC Term Insurance
This section gives a glance into the company’s performance based on several factors such as:
Annual Premium: The annual premium of the company allows the policyholder to get an idea of the company’s performance and growth. As per the IRDAI annual report of 2020-21, the annual premium of the company is 4,03,286.55 crores.
Claim Settlement Ratio: The CSR of the company helps the potential policyholder to understand the company’s claim settling ability. As per the IRDAI Annual Report, the CSR of LIC is 98.62%
Solvency Ratio: The Solvency Ratio of the company helps in assessing the company’s ability to settle its long-term expenses. LIC has a solvency ratio of 1.66. ( IRDAI mandates every insurance company to maintain a solvency ratio of 1.5).
All You Need To Know About LIC Term Insurance? Find complete details in one go!
Moving forward, let’s take a look below at some of the benefits available with LIC Term Insurance:
Avail high coverage @ affordable prices: LIC Term Insurance allows you to avail higher coverage of up to crores by paying a nominal price. For example, you can avail a LIC Tech Term Plan’s coverage of Rs. 1 Crore by paying Rs. 6,254/- yearly.
Special premium rates for non-smokers and females: To encourage a healthy lifestyle, LIC term plans offer special discounts for non-smokers and encourage people to quit smoking. Also, the plans offered by LIC offer special premium rates to females.
Enhanced coverage with rider benefits: LIC term plans allow you to enhance your basic coverage with the help of several available riders. You can opt for a rider benefit by paying an additional amount and can get coverage.
Protection against loans and other liabilities: With LIC term plans, you can ensure the safety of your outstanding loans and liabilities. The term plans offered by LIC help in clearing out the outstanding loans if something unfortunate happens to the policyholder.
Avail tax benefits: One can avail tax benefits against the premiums paid for their LIC term plan under section 80C of the Income Tax Act
Your absence should not make your loved ones financially handicapped. With LIC online Term Plans, provide complete protection to your loved ones.
LIC offers 3 term plans to secure the financial needs of your family. Check them out:
LIC Tech Term Plan
LIC Tech Term is a pure protection term plan that protects your family's financial needs after your demise. The plan is available online only, and comes with several benefits.
Flexibility to choose from two benefit options
Option to take death benefit in instalments
Different premium rates for non-smokers
LIC Jeevan Amar Term Plan
LIC Jeevan Amar is an offline and affordable term insurance plan that offers complete flexibility to the policyholder, allowing them to choose their death benefits.
Attractive high sum assured rebate
Separate premium for smoker & non-smoker
Accident benefit rider available
LIC Saral Jeevan Bima
LIC Saral Jeevan Bima is a standard term plan that offers financial security to your family at affordable rates. Unlike other term plans offered by LIC, the sum assured under Saral Jeevan Bima is limited to Rs. 25 Lakhs.
LIC Term insurance plan offers various riders to enhance coverage of the policy. While purchasing life-term insurance for you and your family, it is always a good idea to add an extra layer of protection to your plan. Let's take a look at the additional riders offered by the LIC term insurance plans.
LIC Accidental Death & Disability Benefit Rider
In the event of disability, this rider will pay the Accident Benefit Sum Assured in the form of monthly instalments for 10 years. Also, all the future premiums of the rider as well as the base plan, if any, will be waived under the policy to the extent of Accident Benefit Sum Assured.
Whereas, in case of death, the amount equal to Accident Benefit Sum Assured will be paid to the nominee.
LIC Accident Benefit Rider
The rider is available under ‘Regular Premium’ and ‘Limited Premium’ payment policies, wherein the beneficiary receives the additional sum assured plus the death benefit if the insured dies in an accident or within 180 days from the date of the accident.
LIC New Critical Illness Benefit Rider
This critical illness rider is a non-linked rider that will reduce the financial burden of the insured if they are diagnosed with any of the 15 pre-specified critical illnesses.
LIC Premium Waiver Benefit Rider
his rider can be opted with the base plan at the inception or at any time during the premium paying term of the base plan. It assists the insured with a waiver of future premiums payable under the base LIC life insurance plan till the expiry of the rider.
LIC Term Plan Exclusions
LIC Term Insurance plans exclude the suicidal death of the insurance holder during the tenure of the policy and are not covered under the plan.
However, if the policyholder commits suicide within the initial 12 months from the policy’s starting date in that case there is no death benefit paid to the beneficiary of the policy.
Procedure to Purchase LIC Term Insurance Plans
The company provides online buying options for only one of the LIC term insurance plans i.e. LIC Tech Term insurance plan. In order to buy the same from their website, please follow the steps:
Visit the official website of LIC.
Scroll down to the section 'Buy Policy Online.
Click on the tab 'Click here to buy' found at the end of the 'Buy Policy Online' section.
Scroll down and click on the tab 'Click to Buy Online.
Fill in the required details 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 a hard copy to the registered address.
** To buy other offline term insurance plans, you have to visit the nearest LIC branch to invest in the same.
Claim Settlement Process of LIC Term Insurance Plan
To file a claim for death benefits under the LIC Term Insurance plan, you need the following documents ready:
Original policy documents
Submit the death certificate of the policyholder which states the cause of the death.
The nominee needs to provide a mandate so that the LIC can transfer the claim amount to the beneficiary's account through NEFT.
The insurance company will verify the claim form when the beneficiary of the LIC term plan submits it along with the required documents. The insurance company processes the claim and transfers the benefit amount into the nominee's account after verifying the documents.