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.
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.
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:
Eligibility Criteria:
Minimum Age of the Policyholder | 18 years |
Maximum Age of the Policyholder | 65 years |
Maximum Age of Maturity | 80 years |
Minimum Policy Term | 10 years |
Maximum Policy Term | 40 years |
Minimum Sum Assured | Rs. 25 lakhs |
Maximum Sum Assured | Unlimited |
Premium Paying Term | Single premium, regular premium and limited premium |
**Last Updated on 21-12-2020
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:
Eligibility Criteria:
LIC E Term Plan | |
Minimum Age of Entry | 18 years |
Maximum Age of Entry | 65 years |
Maximum Age of Maturity | 80 years |
Minimum Term of the Policy | 10 years |
Maximum Term of the Policy | 40 years |
Minimum Sum Assured | Rs. 50 lakhs |
Maximum Sum Assured | No limitations (regards to underwriting process of the company) |
**Last Updated on 21-12-2020
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.
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)
LIC Jeevan Amar is not available online. You have to visit the nearest LIC branch to invest in the same.
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-
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-
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 21-12-2020