LIC Digi Term Plan Review

LIC Digi Term Plan: Pure Term Insurance Plan 

Mr. Anuj had carefully evaluated different term insurance plan options before choosing the LIC Digi Term Plan. He was looking for a simple, affordable plan focused only on protecting his family’s future. With flexible coverage options and guaranteed death benefits, he felt this plan gave him the peace of mind he needed. His main goal was to ensure that, in case something happened to him, his family would not face financial stress.

LIC Digi Term Plan 876 is a pure term insurance plan offered by LIC of India. It provides financial protection to the policyholder’s family during the policy term with fixed and guaranteed death benefits. The LIC Digi term policy can be purchased online and offers multiple options for sum assured, premium payments, and benefit payouts. If you want to buy the LIC Digi term policy, it is available directly on LIC's official website.

Let’s explore the LIC Digi Term Plan review by examining the key features and benefits that helped Mr. Anuj decide.

Key Features of the LIC Digi Term Plan

Here’s a quick look at the main features that make LIC Digi Term Plan 876 a powerful term insurance option:

• Flexible Death Benefit Options: You can choose between Option I – Level Sum Assured or Option II – Increasing Sum Assured, depending on your family’s future needs.

• Multiple Premium Payment Options: You can pick from Single Premium, Regular Premium, or Limited Premium terms, allowing you to align the payment schedule with your income and budget.

• Customizable Policy Term: You can choose coverage for any period between 15 to 40 years, with the flexibility to stay protected up to 75 years.

• Online Purchase Only: You can buy the LIC Digi Term Plan online directly from LIC’s official website, making it a quick, secure, and hassle-free process.

• Special Premium Rates: You may get lower premium rates if you're a non-smoker (verified by a cotinine test) or a female policyholder, making the plan even more affordable.

• Installment Payout Option: You can opt to have the death benefit paid in monthly, quarterly, half-yearly, or yearly installments, giving your nominee better control over finances instead of a one-time lump sum.

Benefits of the LIC Digi Term Plan

Here’s what makes this plan beneficial for families and individuals looking for life cover:

1. Guaranteed Death Benefit

   If the policyholder dies during the term, the nominee receives the Sum Assured on Death, which is calculated as follows:

   For Regular/Limited Premium:
   Highest of:

   • 7 times the Annualized Premium

   • 105% of premiums paid till death

   • Absolute amount assured on death

   For Single Premium:
   Higher of:

   • 125% of the single premium

   • Absolute amount assured on death

   The Absolute Amount Assured on Death depends on the benefit option selected:

   • Level Sum Assured: Basic Sum Assured remains constant throughout.

   • Increasing Sum Assured: Starts with the Basic Sum Assured and increases by 10% every year from the 6th policy year. By the 15th year, it doubles and remains that way till the end.

   You can use the LIC Digi Term Plan premium calculator to estimate the benefit based on your selection.

2. Installment Option

   You can choose for your nominee to receive the death benefit in installments over 5, 10, or 15 years. This helps them manage finances gradually and reduces the risk of spending the full amount quickly. Installments are flexible and can be monthly, quarterly, half-yearly, or yearly.

3. Affordability & Flexibility

   The LIC Digi term policy is affordable, especially for young non-smokers. You can see from the sample premiums how even a Rs. 50 lakh coverage is within reach. For instance, a 30-year-old non-smoker can get Rs. 50 lakh cover with Option I for just ₹4,700 annually under the regular premium option. To check your premium accurately, use the LIC Digi Term Plan calculator.

4. High Sum Assured Rebate

   LIC Digi Term Plan offers premium discounts when you choose a higher Sum Assured, starting from LIC term insurance 1 crore and above. This benefit is called the High Sum Assured Rebate and can reduce your premium significantly.

   The rebate depends on your age, premium type, and whether you choose the Level or Increasing Sum Assured option.

   For example:

   • A person under 30 choosing ₹2 crore cover with Level Sum Assured and regular premium could get up to 30% discount.

   • The same person choosing Increasing Sum Assured might get up to 26% discount.

   • For ₹5 crore and above, the rebate could go even higher—up to 37%, depending on the option and age group.

Final Thoughts

If you are looking for the LIC Digi Term Plan review Policybazaar provides a comprehensive comparison of features, benefits, premiums, and eligibility criteria to help you make an informed decision. You can also look for the plan’s details in the LIC Digi Term brochure. 

Like Mr. Anuj, many others have chosen the LIC Digi Term insurance plan after thinking deeply about what truly matters in a life insurance policy: simplicity, flexibility, and the assurance that their family will be protected. With its high life cover, multiple payout options, and the trusted backing of LIC, the Digi Term Plan 876 is becoming a preferred choice for those who value clear, no-nonsense life insurance.

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