LIC Life Protect Term Plan 278

About LIC Life Protect Term Plan 278

LIC Life Protect Term Plan 278 is designed around pure protection rather than investment or savings, keeping the premium low relative to the sum assured on offer. It is a non-profit term plan with no investment component, where premium rates differ by smoking status, with non-smokers charged lower rates than smokers, verified through a urine cotinine test.

Key Features of LIC Life Protect Term Plan 278

The plan is built around a few defining features that separate it from a savings-linked policy:

• Non-profit term plan offering a high sum assured at a low premium, with no investment component

• Minimum sum assured of USD 100,000 under the base policy

• Premium rates differ by smoking status, verified through a urine cotinine test

• An optional Accelerated Critical Illness rider can be added to the base policy, covering 37 defined critical illnesses

• A high sum assured rebate of 10% on the base gross tabular premium applies for a sum assured of USD 500,001 and above

Eligibility Criteria for LIC Life Protect Term Plan 278

Eligibility under LIC Life Protect Term Plan 278 is set by age, sum assured, and policy term, and these limits shape how much cover can be taken and for how long:

Benefits of LIC Life Protect Term Plan 278

LIC Life Protect Term Plan 278 benefits are as follows:

Death Benefit

The sum assured is paid to the nominee on the death of the life assured during the policy term, provided premiums have been paid up to date. The policy terminates once this payment is made.

Optional Rider

Accelerated Critical Illness Rider

The Accelerated Critical Illness Benefit provides a lump sum on the diagnosis of a covered critical illness.

• Provides coverage for 37 critical illnesses like cancer, stroke, heart attack, coronary artery bypass surgery, end-stage renal disease, major organ transplant, heart valve surgery, paralysis of limb(s), amputation of limb(s), total blindness, coma, third-degree burns, and major head injury

• Rider sum assured starts from a minimum of USD 100,000 and goes up to 50% of the basic sum assured or USD 500,000

• Premium of rider needs to be paid throughout the tenure of the policy along with the premium of the basic policy until the policyholder dies or makes a claim under the rider

• Waiting period of six months starts from either the inception date or date of reinstatement, whichever is later for making claim of critical illness

How the Accelerated Structure Affects the Death Benefit?

As the CI rider is accelerated, a payout under it directly reduces the sum assured available under the base policy. The example below shows how this works:

• A life assured takes LIC Life Protect Term Plan 278 for $300,000 with a 15-year period, along with CI rider of $100,000

• In the 10th year, a critical illness is found out, and hence the benefit of $100,000 rider is paid to the life assured

• After that, the benefit and its premium cease, and the reduced sum assured becomes $200,000

• If the death takes place after that within the term period, $200,000 would be payable, if the policy continues

• If the life assured survives throughout the term, no benefits would be payable and premium will not be refundable

Policy Details of LIC Life Protect Term Plan 278

LIC Life Protect Term Plan 278 is structured as pure protection, which shapes how it behaves around surrender, loans, and lapses. Below are the policy details discussed briefly:

Grace Period

A grace period of 30 days applies to yearly and half-yearly premiums, and 15 days to monthly premiums. This is the window given to pay an overdue premium without losing cover, and once it lapses without payment, the policy lapses along with it, and all benefits under the base plan and any attached rider cease from that point.

Surrender and Maturity Value

LIC Life Protect Term Plan 278 carries no surrender value and no maturity value. Because the plan is built purely for protection rather than savings, the premium goes entirely towards funding the life cover and the optional critical illness rider, with nothing set aside to build a cash or investment value that could be withdrawn or paid out on survival.

Paid Up Value

A paid-up value does not apply under this plan. Since there is no accumulated fund to convert into a reduced, ongoing benefit, a missed premium after the grace period simply results in the policy lapsing rather than continuing at a lower cover level.

Loan Facility

Policy loans are not available under LIC Life Protect Term Plan 278 at any stage of the term. Policyholders looking to borrow against a policy would need a savings-linked or unit-linked product instead, since a pure term plan carries no surrender value against which a loan could be secured.

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