LIC Term Insurance Plans

  • Tax Benefit

    Upto Rs. 75000

  • Life Cover Till Age

    99 Years

  • 8 Lakh+

    Happy Customers

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Please note that the quotes shown will be from our partners

LIC term insurance plans are favoured by people even though there is usually no maturity benefit because it enables people to buy a high amount of coverage levels at very low LIC term plan 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. Buying LIC online term plan is an easy and time-saving process.

Moreover, LIC term plans come with affordable rates of premiums, these plans are not hard on the pocket and help people to fund their income replacement requirement easily. You can buy LIC term policy online and offline.

Why Should You Consider Buying Term Insurance Plan at an Early Stage in Life?

It is always a good idea to buy a LIC 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. The LIC term plans are the most pocket-friendly types of life insurance, and everyone can afford to have a term plan.

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

  • Health – A younger person is always healthier than an older person. The LIC term plan premiums charged 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 LIC online term insurance plan when you are younger and healthier to save money.
  • 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. LIC term plans will give you a longer shot at building your wealth up.

Benefits of Buying LIC Term Insurance Plan

When intending to buy a plan, look for different LIC term insurance online to get the maximum benefits. Listed below are some of the major advantages of availing LIC term insurance plans:

  • High insurance coverage at an affordable LIC term insurance premium rate.
  • The policy provides a premium rebate for non-smokers.
  • The policyholder has the flexibility to choose the sum assured amount of the policy.
  • The LIC term insurance policy caters the requirement of the insurance buyers ranging from 18 -75 years of age.
  • The LIC term insurance premium rates are flexible in terms of payment
  • Offers additional rider benefits to enhance the coverage of the policy.
  • Provides variable options of sum assured.
  • Available for everyone from young to old.
  • The policy enables the insured to have a good lifestyle while paying a premium.
  • LIC online term insurance plans can be purchased in an easy and hassle free-way.
  • LIC term insurance plans offer a claims settlement ratio of 98%.

Types of LIC Term Insurance Plans

Plan Names Entry Age (Minimum to Maximum) Maturity Age Policy Term (Minimum to Maximum) Tax Benefits
LIC Tech-Term 18-65 years 80 years 10-40 years Offers tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act
LIC Jeevan Amar 18-65 years 80 years 10-40 years Offers tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act

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

LIC Tech-Term Plan

A LIC term insurance plan, which is non-linked and a non-participant online complete risk-proof plan that offers financial security to the family of the policyholder in case of demise of the policyholder in between the policy tenure. In case you wish to avail this LIC online term insurance it can be availed at your convenience at any point in time from anywhere across the globe.

Features of LIC Tech-Term Plan

  • You have the ease to opt from either of the benefit options that are level sum assured and increasing sum assured.
  • 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 instalment in regards to the payment of benefit.
  • Attractive rates for women.
  • You avail two categories of LIC term plan premium rates namely smoker and non-smoker. It is to be noted 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.

Eligibility Details of LIC Tech-Term

 

Minimum

Maximum

Entry Age

18 years

65 years

Maturity Age

--

80 years

Policy Term

10 years

40 years

Sum Assured

Rs. 50,00,000

No Limit

Premium Payment Term

RegularPremium- 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

Monthly, quarterly, half-yearly or yearly

LIC Jeevan Amar

A LIC term insurance plan that is a non-linked and offline non-participating term assurance plan that takes care of the financial needs of the policyholder’s family in case of his/her demise while the policy is active.

Features of LIC Jeevan Amar Plan:

  • The alternative to enhance your policy by making an additional payment to avail accident benefit rider.
  • Advantage of high sum assured rebate.
  • Separate categories of LIC term plan premium rates for both and non-smoker.
  • The alternative to either choose an increasing sum assured benefit and level sum assured benefit.
  • Option to easily choose the suitable policy term as well as premium paying term.

Eligibility Details of LIC Jeevan Amar

 

Minimum

Maximum

Entry Age

18 years

65 years

Maturity Age

--

80 years

Policy Term

10 years

40 years

Sum Assured

Rs. 25,00,000

No Limit

Premium Payment Term

RegularPremium- 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

Monthly, quarterly, half-yearly or yearly

LIC Term Insurance 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, if the policyholder commits suicide within the initial 12 months from the starting date of the policy or the revival date of the policy, then there is no death benefit is paid to the beneficiary of the policy.
  • The beneficiary of the policy is entitled to 80% of the paid premium till then. Provides, that the premiums of the LIC term insurance policy have been duly paid and there is no due payment on the policy. 

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

Riders Offered by LIC Term Insurance

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

LIC Accident Benefit Rider

The Accidental Benefit Rider offered within LIC term plan can be decided on, by instalment 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 online term insurance is in power on the date of the mishap.

LIC New Critical Illness Benefit Rider

The new critical illness benefit rider offered by LIC term insurance plan provides coverage for 15 critical illnesses, which include 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

Policy Term

Minimum- 18 years

Maximum- 65 years

75 years

Regular pay, limited pay

Minimum-Rs.1,00,000

Maximum-Rs.25,00,000

Regular Premium- 5- 35 years

Limited Pay- 10-35 years

LIC New Term Assurance Rider

This is a pure death benefit rider that can be bought along with the basic coverage of the policy. Under this rider benefit, an extra sum assured amount will be paid to the beneficiary of the 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

Sum Assured

Policy Term

Minimum- 18 years

Maximum- 60 years

75 years

Same as basic plan

Minimum-Rs.1,00,000

Maximum-Rs.25,00,000

Claim Settlement Process of LIC Term Insurance

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 insurance
  • 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 account of the beneficiary through the NEFT process.

Once, the beneficiary of the LIC term insurance 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 transfers the sum assured amount to the beneficiaries account.

Before zeroing in on the LIC term insurance plan it is very important 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 death of the policyholder, 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 go only towards covering the risk on one’s life. The following things should be kept in mind while buying a LIC online term insurance plan:

  • Coverage: One of the most important things when it comes to buying a LIC term insurance 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.
  • Life-Stage and Number of Family Members: One has to understand that when buying 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 secure the financial future of one’s loved ones when one is no longer around. Thus, one has to consider who all are there in the family. The number of members in a family differs at different stages in life. The responsibilities of a single/unmarried person – financial and otherwise, are very different from that of a married person, and one with children. A term plan should be able to provide for family members.
  • Ability to Maintain Lifestyle: The chosen LIC online term insurance 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 take into account – inflation, rising costs, expenses and other such factors so that needs and aspirations of the family are taken care of well.
  • Claim Settlement Ratio: Most prospective buyers of a term plan, for that matter of any life insurance plan, are unaware about it or worse ignore the Claim Settlement Ratio even though it has far-reaching ramifications. Simply put, Claim Settlement Ratio or Claim Clearance Ratio is defined as the ratio of claims paid to the nominees by the insurance company and total claims received by it from customers. 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 also generally available on the website of the insurance company.
  • 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 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 apply for LIC Term Insurance?

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

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 online term plan, choose the coverage 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 purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

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

Documents Required to Buy LIC Term Plan

The important documents that should be kept handy while purchasing LIC online term insurance are:

  • Age proof- Aadhaar card, passport, rental agreement, etc.
  • Identity proof- Aadhaar card, PAN card, passport, license.
  • Age proof- Birth certificate, aadhaar card, Matriculation certificate
  • Latest medical report.
  • Income proof- Income Tax Return, salary slip.

LIC Term Insurance Plan - FAQ's

Written By: PolicyBazaar - Updated: 17 September 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 9 Reviews)
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LIC Term Insurance Plans Reviews & Ratings
4.5 / 5 (Based on 9 Reviews)
(Showing Newest 9 reviews)
Ajeet
Basanti, January 08, 2019
Very Good Plan
Recently I took the Term insurance of LIC and found it too useful. The maturity year is good which 75 years. I feel it is good as it can used by my family after me if by chance some problem may occur. We should always secure our life so it was a good experience and I am getting good benefits too. Thank you.
Jayant
Buxar, July 20, 2016
Excellent Work
The premium is low but the paybacks are high. Service is fast and because of that the claiming is simple to sanctioned. The lic term plan is suggested by my father and after seeing the terms and conditions i buy it.
Saurabh
Ahmedabad, July 20, 2016
Super Policy
My lic term plan is providing the best services. Policy covers maximum expenditures and good returns. Claims are easy to sanctioned, updates of the plan is mailed to email address. Best investment which reduces taxes.
Devesh
Uttamnagar, July 19, 2016
Perfect Policy
LIC online term plan is very easy to buy and renewals is also simple. The updates regarding policy can be visit on the website of the insurance company. Service is fast and behaviour of the staff is nice. The investment is less and the returns are high.
Lokesh
Jaipur, July 19, 2016
Trustworthy
The lic term insurance plan is fantastic which i have seen comes from ages and providing good policies to the customers. Service is the best no doubt in that, online portal is also easy to access and anyone can operate it easily.
Gautam
Hyderabad, July 19, 2016
Good Service
I have lic term insurance plan which is very beneficial for me and my family members from last few years. The policy coverage is high and the premium is less. Service is fantastic which is facilitate by the executives and members.
Arun
Ahmednagar, March 09, 2016
term
help me, plane choose
Sanjeev
Noida, January 02, 2016
plan
life insurance
Arati
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.