LIC Term Insurance Plans

LIC term plans do not burn a hole in the pocket and help an individual to fund his/her need for income replacement. An individual can buy these plans online or offline as per their convenience.

Note: Know more about what is term life insurance first before reading this article.

Benefits of LIC Term Plan

Listed below are some of the major advantages of availing LIC term insurance plans. Have a look:

• High insurance coverage at an affordable premium rate.

• The policy provides a rebate on the premium amount for non-smokers.

• The policyholder has the flexibility to choose the sum assured amount of the policy.

• The LIC term plan fulfills the requirements of the policy buyers ranging from a minimum of 18 years to a maximum of 75 years of age.

• The LIC term insurance premium rates are flexible in terms of payment.

• Offers additional rider benefits to enhance the policy coverage.

• The policy enables the insured to have a good lifestyle while paying the premiums.

• LIC online term insurance plans can be purchased easily and hassle-free.

• LIC plans have a claim settlement ratio of 98.74%.

Types of LIC Term Insurance Plans

* You can use the LIC term insurance calculator to get an estimate of the premiums you would need to pay for the desired LIC term plan.

The Life Insurance Corporation of India offers the best term insurance plans with different features and benefits. LIC online term plans can be purchased online at lower premium rates by visiting the company’s website. The LIC term plans can be bought through intermediaries. Here we have discussed in detail the different LIC term insurance plan and their features and benefits.

LIC New Tech-Term Plan

LIC New Tech Term is an online complete risk-proof plan that offers financial security to the policyholder's family in case of his death in between the policy tenure. If one wishes to avail of this LIC online term insurance, he/she can avail of this at his/her convenience at any point in time from anywhere across the globe.

1. Features of LIC New Tech-Term Plan

   • The plan offers level sum assured and increasing sum assured options, you can select any of these.

   • You have the option to opt for a single premium, limited premium, or regular premium payment.

   • Option to choose the premium payment term and policy term. Besides, you also have the flexibility to pay in installment in regards to the payment of benefits.

   • The plan offers attractive premium rates for women.

   • You can avail of two categories of LIC term plan premium rates, namely smoker and non-smoker. Note that the rates in regards to the non-smoker category will depend upon the urinary test. Apart from this, in case of any other case, the smoker rates will be implied.

   • Have the alternative to opt for accident benefit rider and enhance the policy coverage by making an additional payment.

2. Eligibility Details of LIC Tech-Term

   	Minimum	Maximum
   Entry Age	18 years	65 years
   Maturity Age	NA	80 years
   Policy Term	10 years	40 years
   Sum Assured	50 lakhs	No Limit
   Premium Payment Term	Regular Premium- Same as Policy Term
   	Limited Premium: For 10-40 years Policy Term- Policy term minus 5 years
   	For 15-40 years Policy term- Policy Term minus 10 years
   	Single-Premium: NA
   Premium Payment Frequency	Yearly, Half-Yearly, Quarterly or Monthly

LIC New Jeevan Amar

LIC New Jeevan Amar is an offline pure protection plan that takes care of the financial liabilities of the insured's family in case of his/her demise while the policy is active.

1. Features of LIC New Jeevan Amar Plan:

   • One can avail the advantage of high sum assured rebate.

   • Separate categories of LIC term plan premium rates for both smokers and non-smokers.

   • The alternative is to choose either an increasing sum assured benefit or a level sum assured benefit.

   • Option to easily choose the suitable policy term as well as premium paying term.

2. Eligibility Details of LIC Jeevan Amar

   	Minimum	Maximum
   Entry Age	18 years	65 years
   Maturity Age	NA	80 years
   Policy Term	10 years	40 years
   Sum Assured	25 lakhs	No Limit
   Premium Payment Term	Regular Premium- Same as Policy Term
   	Limited Premium: For 10-40 years Policy Term- Policy term minus 5 years
   	For 15-40 years Policy term- Policy Term minus 10 years
   	Single-Premium: NA
   Premium Payment Frequency	Yearly, Half-Yearly, Quarterly or Monthly

LIC Jeevan Kiran

LIC Jeevan Kiran is a term insurance plan that offers financial protection along with the option of receiving the premiums at the end of the policy term. You can also choose to pay the premiums in regular or single premiums. This plan can be purchased online or offline at your convenience.

1. Features of LIC Jeevan Kiran Plan

   • The plan offers the benefit amount to the nominee in case of the policyholder’s unfortunate death during the policy term.

   • You will also be eligible to receive all the premiums paid on the survival or maturity of the policy term.

   • Enhance the policy cover with Accident Benefit Rider or Accidental Death Disability Benefit Riders.

   • The plan offers special premiums for non smoking customers.

2. Eligibility Details of LIC Jeevan Kiran Plan

   	Minimum	Maximum
   Entry Age	18 years	65 years
   Maturity Age	28	80 years
   Policy Term	10 years	40 years
   Sum Assured	15 lakhs	No Limit
   Premium Payment Term	Yearly, Half-Yearly or Monthly (only under ECS/NACH)

LIC Saral Jeevan Bima

Saral Jeevan Bima by LIC is the standard life insurance plan. The plan is geared towards affordability. It aims to help policyholders make informed decisions. One can purchase this plan both online and offline.

1. Features of LIC Saral Bima Plan

   • If the policyholder dies for any reason other than an accident and the policy is in the waiting period, the entire amount equivalent to all the premiums received apart from taxes will be paid.

   • If the policyholder dies due to an accident and has paid all the premiums, the sum assured will be paid to the nominee.

   • After 45 days (waiting period) of risk commencement, if the policyholder dies but has paid all the premiums, the sum assured will be paid to the nominee.

   • There is no maturity benefit applicable if the policyholder survives the policy term.

2. Eligibility Details of Saral Jeevan Bima

   	Minimum	Maximum
   Entry Age	18 years	65 years
   Maturity Age	NA	70 years
   Policy Term	5 years	40 years
   Sum Assured	5 lakhs	25 lakhs
   Premium Payment Term	NA	NA
   Premium Payment Frequency	Yearly, Half-Yearly or Monthly (only under ECS/NACH)

LIC Term Plan Exclusions

Similar to other insurance policies, LIC term insurance also comes with specific exclusions. These are as follows:

• One of the most important exclusions on the LIC term insurance plans is that the suicidal death of the insurance holder during the tenure of the policy is not covered under the plan.

• However, suppose the policyholder commits suicide within the initial 12 months from the policy's starting date or the revival date. In that case, there is no death benefit paid to the beneficiary of the policy.

• The beneficiary of the plan is eligible to receive 80% of the paid premium till then. Provides that all the LIC term insurance policy premiums are duly paid.

• Besides, while buying a LIC term plan online, it is always recommended to read the policy document and get a proper understanding of the exclusions and inclusions.

LIC Term Insurance Riders

LIC term insurance plan offers the rider benefits to enhance the coverage of the policy. While buying any LIC term plan, it is better to opt for that extra layer of security in your plan. Let's take a look at the riders offered by the policy.

1. LIC Accident Benefit Rider

   The Accidental Benefit Rider offered within LIC term plan can be decided on, by installment of extra premium, whenever inside the premium paying term of the Base Policy gave the remarkable premium paying term of the Base Policy just as Rider is, in any event, five years yet before the arrangement commemoration on, which the age closer birthday of Life Assured is 65 years.

   The advantage secured under this rider will be accessible during the remarkable premium paying term of the base policy or up to the policy commemoration on, which the age closer birthday of the Life Assured is 70 years, whichever is prior, given the LIC term insurance is in power on the date of the mishap.

2. LIC New Critical Illness Benefit Rider

   Under this rider benefit, the insured person gets coverage for 15 critical illnesses, including cancer for specific severity, kidney failure, open chest CABG, blindness, stroke, permanent paralysis of limbs, Alzheimer's, third-degree burn, etc.

   Entry Age	Maturity Age	Premium Payment	Sum Assured
   Minimum- 18 years	75 Years	Regular pay, limited pay	Minimum-Rs.1,00,000
   Maximum- 65 years			Maximum-Rs.25,00,000

3. LIC New Term Assurance Rider

   This is a death benefit rider, which can be purchased along with the basic policy coverage. Under this rider benefit, an extra sum assured amount will be paid to the beneficiary of the LIC term policy along with the basic life insurance coverage in case of uncertain demise of the insured during the policy term.

   Entry Age	Maturity Age	Premium Payment
   Minimum- 18 years	75 Years	Same as basic plan
   Maximum- 60 years

Claim Settlement Process of LIC Term Insurance Plan

You can file a claim for bought LIC online term plan as well as offline plans. To file a claim, the policyholder is required to fill the claim form thoroughly and provide certain important documents such as:

• Policy document of the LIC term plan.

• Death certificate, which states the cause of death

• Along with these documents, the nominee will have to provide a mandate so that the LIC can transfer the claim amount to the beneficiary's account through the NEFT process.

Once the beneficiary of the LIC term policy submits the claim form along with the important documents, the insurance company verifies the claim form. After verifying the form thoroughly, the insurance company processes the claim and transfer the benefit amount to the nominee's account.

Before zeroing in on the LIC term insurance plan, it is crucial to know the claim settlement process of the company so that an individual can easily process the claim in case of any eventuality.

Important Things to Consider When Buying a Term Insurance Plan

Term insurance is the only insurance product available in the pure insurance category. A term plan is the most basic life insurance plan since it covers only the risk of death. On the policyholder's death, the insurance company pays the sum assured to the nominees/beneficiaries.

If the policyholder survives the LIC term insurance policy term, he/she or his/her nominees do not receive anything. Term insurance is also the cheapest type of insurance available as the premiums cover the risk of one's life. The following things should be kept in mind while buying a LIC term insurance plan:

1. Coverage:

   One of the most important things for buying a LIC term plan is determining the amount of cover required. This depends on many factors, important ones being family's lifestyle, policy applicant's current life-stage, responsibilities, liabilities, inflation, etc. Assessed meticulously, one will be able to afford the plan such that the family will have sufficient funds in the unfortunate event of the policyholder passing away to continue living comfortably.

2. Life-Stage and Number of Family Members:

   One has to understand that when buying a LIC term insurance plan is purchased not for the benefit of the policyholder but that of his/her family. A term plan is bought to ensure the financial protection of loved ones in the absence of the family's breadwinner. Thus, one has to consider who all are there in the family as the number of dependents in a family may vary at different stages in life. The financial or any other responsibilities of an unmarried/single person are very different from that of a married person and one with children. A term plan should be able to provide for family members.

3. Ability to Maintain Lifestyle:

   The chosen LIC term plan should be such that it should allow the family to maintain the lifestyle they are used to even in the absence of the primary earning member of the family. The insurance amount (sum assured) under the LIC term insurance plan should adequately consider inflation, rising costs, expenses, and other such factors so that the needs and aspirations of the family are taken care of well.

4. Claim Settlement Ratio:

   Most prospective buyers of a term plan, for that matter of any life insurance plan, are unaware of it or, worse, ignore the Claim Settlement Ratio even though it has far-reaching ramifications. Simply put, Claim Settlement Ratio (CSR) is the ratio of claims settled by the insurance company and total claims received by the insured company in a financial year. A higher claim settlement ratio indicates higher chances of the nominee/family receiving the claim amount after the passing away of the policyholder. The ratio is published annually by the Insurance Regulatory and Development Authority (IRDAI) and is generally available on the insurance company's website.

5. Service Standards and Claim Settlement Process:

   A life insurance company should have an effective claim settlement process, i.e., it should settle claims quickly in a simple, hassle-free manner when the policyholder's family needs to help the most. This is important because the family will be under tremendous strain and emotional pain due to the loss of a family member. They require reassurance and support at this crucial time and no unpleasantness in claiming what is due to them. Quality customer service and positive experience at every customer touchpoint will go a long way in nurturing this long-term customer-insurance company relationship, adding trust and credibility.

How Can I Buy LIC Term Insurance Plan?

If you wish to buy a LIC term plan, it could be done in the following ways:

1. Online:

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

   Intermediaries: LIC term plans, which are not available online, can be bought from brokers, agents, banks, etc., where the mediators help with the application process.

   However, it is always better to buy the LIC term plan online as it is quick and involves less hassle.

2. Documents Required to Buy LIC Term Plan

   While buying the LIC online term insurance, certain documents should be kept handy. These are:

   • Age proof- passport, Aadhaar card, rental agreement, etc.

   • Identity proof- Aadhaar card, PAN card, passport, license.

   • Age proof- Aadhaar card, Matriculation certificate, and Birth certificate.

   • Income proof- salary slip or Income Tax Return.

   • Latest medical report.

LIC Term Insurance - FAQs