LIC Term Insurance Plans

LIC term plans can secure your family sufficiently against any loss of income, which the family might face in the absence of the life insured. These plans are favoured by people even though they do not offer any  maturity. The LIC term plan allows the insurance buyers  to buy a high amount of coverage levels at very low premiums. This way, people Buying LIC online term plan is an easy and time-saving process.

Moreover, LIC term insurance plans come with affordable premium rates, these plans does not burn a hole in the pocket and help individual to fund their need of income replacement easily. You can buy LIC term policy online and offline.

Benefits of LIC Term 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 premium rate.
  • The policy provides a rebate on premium amount for the non-smokers.
  • The policyholder has the flexibility to choose the sum assured amount of the policy.
  • The LIC term plan fulfil the requirements of the policy buyers ranging from a minimum of 18 years of age to 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 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 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 can be purchased online at a lower premium rates by visiting the company’s website whereas, the LIC term plans can be bought through the intermediaries. Here we have discussed in details the different LIC term insurance plan and their features and benefits.

1. LIC Tech-Term Plan

A LIC term 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

2. LIC Jeevan Amar

A LIC term insurance plan that is an offline non-participating, non-linked 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.

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

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 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 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 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 the 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

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

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 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 account of the beneficiary 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 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 term insurance plan:

  • Coverage: One of the most important things when it comes to 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.
  • 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 ensure financial protection of loved ones in the absence of the breadwinner of the family. 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 a 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.
  • 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 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 (CSR) is stated as 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 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 Buy LIC Term Insurance Plan?

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 policy buyers only needs to log into the website of the company, 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 LIC term plan online as the process is quick and involves less hassle.

Documents Required to Buy LIC Term Plan

While buying the LIC online term insurance, there are certain documents that should be kept handy 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 - FAQ's

More Useful Resources

LIC Online Services

LIC Other Plans

LIC Policy Status Online 

LIC Investment Schemes

LIC Premium Payment

LIC Retirement Plans

LIC Online Registration

LIC ULIP Plans

LIC Login

LIC Child Plans

LIC Maturity Calculator

LIC Single Premium Investment Plan

Written By: PolicyBazaar - Updated: 04 November 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 15 Reviews)
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LIC Term Insurance Plans Reviews & Ratings

4.6 / 5 (Based on 15 Reviews)
(Showing Newest 15 reviews)
Sharad
Malpur, November 05, 2020
Beneficial plan
My LIC India term insurance plan is really good and beneficial in nature. They have provided with certain features and my life has been protective to me and my family.
Nitesh
Latur, November 05, 2020
Low premium
I got my term insurance plan of LIC India. It is really easy to attain and my term plan is really good as it has several add on features included into the same. The premium rate of my plan is really affordable in nature.
Manu
Dehradun, November 05, 2020
Tax benefits
Somebody into my circle recommended me to get the LIC India term insurance policy. So, I gave it a try and started searching for some plans. Quite easy to check features and benefits of all LIC term plans.
Gauri
Garhmukteshwar, October 21, 2020
Amazing plans
It is a really good and amazing plan and I took the LIC term insurance plan for the safety and security of my plan needs and wants.I took the plan online and have checked good number of plans of LIC term plan.
Bhushan
Faridabad, October 21, 2020
Best policy
My lic term insurance plan which I bought recently have given me so much of help and satisfaction. It is a good plan with sense of safety and security. Claims are easy to go and basically it is a best plan for your future needs.
Trilok
Haldwani, October 21, 2020
Good plans
I have got the lic India term insurance. The maturity year is pretty good and I am much happy with my term plan.
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.
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