LIC Term Insurance Plans

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LICI was established through the Life Insurance Corporation Act passed by the Parliament of India on 1st September 1956 as a sole life insurance provider in the Indian insurance sector. This makes LICI the oldest and the most trusted Life Insurer in the insurance sector. Among 28 insurance companies in the insurance sector,LICI still enjoys the major part of the market share through an experience of years of efficient service. The company currently has a huge customer base comprising of more than 250 million people and is still providing excellent quality of service standards. The range of products the company offers include different types of term plans, Child Plans, traditional saving Plans,ULIPs and pension plans.

What are LIC Term Insurance Plans?

Term insurance plans offer protection to individuals at low cost. The plans promise considerable benefits if the policyholder dies during the tenure of the plan. There is usually no maturity value payable under the plan if the person survives till the end of the tenure. The plan comes cheap and offers high coverage at lower rates of premiums. These plans are called the basic form of insurance since they provide only for the death of the insured during the tenure of the plan and no maturity value.

Why LIC Term Insurance Plans?

Term insurance plans are favored by people even though there is usually no maturity benefit because it enables people to buy high amount of coverage levels ta very low premiums. This way, people can secure their family sufficiently against any loss of income which the family might face in the absence of the life insured. Moreover, with cheaper rates of premiums, these plans are not hard on the pocket and helps people to fund their income replacement requirement easily.

When Should a LIC Term Plan be taken?

It is always a good idea to buy a term plan early on in life. The younger the person is, the cheaper the plan will be for him or her. Also, it is a good idea to buy a term plan earlier because that would ensure the policyholder would be covered for a longer period of time. Since term plans are the cheapest types of life insurance, everyone can afford to have a term plan.

Why should a LIC term plan be bought at an early stage in life?

Buying a term plan at an earlier stage in life is a good idea. This is mainly because of two reasons:

  1. Health – A younger person is always healthier than an older person. The premiums charged for the term plans depend greatly on the age and health of the person and so a younger, healthier person pays a lot less. As a result, buy a term plan when you are younger and healthier to save money. 
  2. Saving – If you have your life covered from an early stage, you do not have to worry about a lot of things like saving money for your family members (to use in your absence) and so on. You can then invest the money you earn in other tools like property, savings bonds and so on. This will give you a longer shot at building your wealth up.

LIC Term Plans

The Life Insurance Corporation of India has a number of term insurance plans with different features and benefits. Some plans are available on the website of the company which come at low rates of premiums while other plans are available to be purchased through intermediaries. Let us take a look at the different plans offered by the company along with their respective features and benefits:

LIC’s Anmol Jeevan II

A term insurance plan which provides a lump sum in case of death of the insured. The LIC plan has the following features:

  • In case of death of the life insured during the chosen tenure of the plan, the death benefit is paid which is equal to the Sum Assured chosen by the policyholder at the time of inception of the policy
  • Being a pure Term Insurance Plan, no benefit will be payable to the life insured on maturity of this LIC plan if he or she survives the entire duration of the policy.
  • Regular premiums have to be paid during the entire term of this LIC plan.
  • LIC’s New Term Assurance Rider can be attached to the basic plan to increase the coverage under this LIC plan. The rider benefit promises to pay an extra amount which is the rider Sum Assured in case the insured dies during the term of the plan. Availed with the term plan, the rider promises double the amount of the Sum Assured paid to the nominee in case the policyholder dies during the chosen tenure of this LIC plan.
  • The amount of premiums paid and the amount of claim received are both exempted from tax under sections 80C and 10(10D).
  • Premiums can be paid either annually or semi-annually. By choosing a semi-annual mode of premium payment, the policyholder will have to pay an additional amount of premium which is an extra of 2% of the tabular premium for annual mode of premium payment.
  • In case of suicide committed within 12 months of policy inception or policy revival only 80% of premiums paid are returned to the nominee and no Death Benefit will be paid under the plan. The provision of payment of 80% of the premium will be applicable only if the LIC plan is in force meaning that all the due premiums have been paid till the date of suicide.

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

55 years

Maturity Age

-

65 years

Policy Term

5 years

25 years

Sum Assured

Rs.6 lakhs

Rs.24 lakhs

Premium Payment Term

Equal to the policy term

Premium Payment Frequency

Yearly or half-yearly

 

Sample Premium Rates

The table below depicts the sample rates of premium calculated assuming the Sum Assured to be Rs.10 lakhs. The premium rate is shown varying with the different age of the insured and the different term of the LIC plan chosen.

Age

Term of the Plan

5 years

10 years

15 years

20 years

25 years

20 years

2090

2090

2090

2160

2310

30 years

2310

2370

2650

3020

3540

40 years

3480

4100

5070

6030

7050

50 years

7910

9440

11, 210

-

-

 

LIC’s Amulya Jeevan II Plan

A pure LIC term insurance pan which provides for the payment of the death benefit in case of unfortunate death of the life insured so that the family can take care of their financial needs in the absence of the bread-winner. The features of this LIC plan are as follows:

  • If the life insured dies during the chosen tenure of this LIC plan, the death benefit is paid which is equal to the Sum Assured chosen by the policyholder at the time of inception of the policy
  • Being a pure Term Insurance Plan, no benefit will be payable to the life insured on maturity of this LIC plan if he or she survives the entire duration of the policy.
  • Regular premiums have to be paid during the entire term of this LIC plan.
  • Section 80C and Section 10(10D) of the Income Tax Act exempts the amount of premiums paid and the amount of claim received from the scope of tax respectively
  • Premiums can be paid either annually or semi-annually. By choosing a semi-annual mode of premium payment, the policyholder will have to pay an additional amount of premium which is an extra of 2% of the tabular premium for annual mode of premium payment.
  • LIC’s New Term Assurance Rider can be attached to the basic plan to increase the coverage under this LIC plan. The rider benefit promises to pay an extra amount which is the rider Sum Assured in case the insured dies during the term of the plan. Availed with the term plan, the rider promises double the amount of the Sum Assured paid to the nominee in case the policyholder dies during the chosen tenure of this LIC plan.
  • In case of suicide committed within 12 months of policy inception or policy revival only 80% of premiums paid are returned to the nominee and no Death Benefit will be paid under this LIC plan. The provision of payment of 80% of the premium will be applicable only if the plan is in force meaning that all the due premiums have been paid till the date of suicide.

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

60 years

Maturity Age

-

70 years

Policy Term

5 years

35 years

Sum Assured

Rs.25 lakhs

No limit

Premium Payment Term

Equal to the policy term

Premium Payment Frequency

Yearly or half-yearly

 

Sample Premium Rates

The table below depicts the sample rates of premium calculated assuming the Sum Assured to be Rs.50 lakhs. The premium rate is shown varying with the different age of the insured and the different term of this LIC plan chosen.

Age

Term of the Plan

5 years

10 years

15 years

20 years

25 years

20 years

5750

5750

5750

5750

5850

30 years

6400

6450

7100

8200

9800

40 years

10, 150

12, 050

14, 850

17, 850

21, 150

50 years

24, 250

29, 250

34, 450

40, 250

-

 

LIC’s e-Term Plan

Term insurance plan offered by the Life Insurance Corporation of India (LIC) through its website. The plan is a pure term plan which promises the payment of the Sum Assured only if the life insured faces death within the tenure of this LIC plan. The features of the plan are as follows:

  • The plan is available on the website of the company and can be bought online at lower rates of premiums
  • If the life insured dies during the term of this LIC plan chosen by him at the starting of the plan, the death benefit is paid which is equal to the Sum Assured chosen by the policyholder at the time of inception of the policy
  • There will be no maturity benefit payable to the policyholder if he survives till the end of the plan tenure because it is a pure LIC term insurance plan.
  • Regular premiums have to be paid during the entire term of this LIC plan.
  • The premiums paid under this LIC plan earn tax relief under Section 80C up to Rs.1.5 lakhs and any amount of claim received also earns tax relief under Section 10(10D) of the Income Tax Act.
  • The company promises differential premium rates for smokers and non-smoker where non-smokers are rewarded through lower rates of premium. The differential pricing is applicable for coverages amounts of Rs.50 lakhs and above only and below this amount the premium rate is similar for smokers and non-smokers. 
  • LIC’s New Term Assurance Rider can be attached to the basic plan to increase the coverage under this LIC plan. The rider benefit promises to pay an extra amount which is the rider Sum Assured in case the insured dies during the term of the plan. Availed with the term plan, the rider promises double the amount of the Sum Assured paid to the nominee in case the policyholder dies during the chosen tenure of this LIC term plan.
  • If the life insured commits suicide within 12 months of buying the plan, only 80% of the premiums paid will be returned to the nominee. There will be no payment of the Sum Assured under such a situation.

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

60 years

Maturity Age

-

75 years

Policy Term

10 years

35 years

Sum Assured

Rs.25 lakhs for aggregate category

Rs.50 lakhs for non-smoker category

No limit

Premium Payment Term

Equal to the policy term

Premium Payment Frequency

Yearly

 

Sample Premium Rates

The table below depicts the sample rates of premium calculated assuming the Sum Assured to be Rs.50 lakhs. The premium rate is shown varying with the different age of the insured and the different term of the plan chosen and is for the aggregate category which includes smokers.

Age

Term of the Plan

5 years

10 years

15 years

20 years

25 years

20 years

4600

4600

4650

5000

5550

30 years

5500

6000

6950

8300

9850

40 years

10, 100

12, 400

15, 000

17, 800

20, 950

50 years

24, 300

28, 600

33, 650

39, 500

-

 

Rates for Non-smokers

Age

Term of the Plan

5 years

10 years

15 years

20 years

25 years

20 years

3150

3150

3250

3500

3950

30 years

3850

4250

5000

6050

7300

40 years

7400

9200

11, 250

13, 450

15, 900

50 years

18, 350

21, 700

25, 650

30, 300

-

 

Applying for a LIC Term Insurance Plan from the company:

Online

The company offers the last plan called e-Term Plan which is available online only. The customer only needs to log into the company’s website, choose the required LIC plan, choose the coverage and provide the details. The premium of the LIC plan will be determined using the filled details. The customer then needs to pay the premium of the selected LIC plan online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

LIC Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

LIC Term Insurance Plans - FAQ

1. How to pay a premium? What are the modes of payment available?

The Life insurance Corporation of India Ltd. offers 6 modes of premium payment namely:

  • Cash/ cheque / DD payment at the branch and cash counters
  • Payment at the Axis Bank
  • Payment at the Corporation Bank
  • Online Payment
  • NEFT
  • ECS
  • AP online
  • MP Online
  • Suvidha Infoserve
  • Easy bill pay
  • Premium point by empowered agents
  • Life plus SBA
  • Retired LIC Employee collection
  • Phone banking
  • Authorized Service Provider (in selected cities)

For the online payment mode, the policyholder can pay via;

  • Credit Card,
  • Debit Card
  • Net banking

2. How can I check policy status for LIC term insurance plans?

For online registered users, they can check the policy status by loging into the e-Portal

For Individual policy enquiry through SMS, Type

ASKLIC < POLICY NO > PREMIUM/REVIVAL/BONUS/LOAN/NOM Send To 56767877

For others, you need to call your city’s branch office (BSNL/MTNL landline) and dial 1251 for IVR support.

Altrenatively, visit the branch personally to know the policy status.


3.
What is the policy renewal process for LIC term insurance plans?

For renewing online, follow these easy steps;

Step1: Enter your Client ID and Date of Birth to login into e-portal

Step2: Choose the policy and payment option (Net Banking/ Debit/Credit Card)

Step3: Print/save the premium deposit receipt on successful payment completion

Alterantively, you can pay via cash/cheque at any of the nearest LIC branch in your city.

Use the SMS facility too as mentioned above.

To inquire on how to pay offline, you need to call your city’s branch office (BSNL/MTNL landline) and dial 1251 for IVR support.


4. What is the company’s process to settle claim for LIC term insurance plans?

For the claim settlement nominee can visit the branch personally and the customer service desk will help you there.


5.
What is the policy cancellation process for LIC term insurance plans?

For the cancellation of the policy, you can visit the branch personally.

Reviews for LIC Term Insurance Plans

TOTAL REVIEWS (1)
Arati Bansal
Ahmedabad
December 20, 2015

LIC term plan a best option

After reading an article on best lic policy in 2015 at policybazaar, i inspired so much that I have bought an insurance and would recommend everyone to buy term plan to protect family members.