LIC Digi Term Plan

LIC Digi Term Plan 876 focuses on risk coverage, therefore it is a practically good choice for long-term financial security.

LIC Digi Term Plan - An Overview

LIC Digi Term Plan is a newly launched term insurance plan offered by the LIC of India that provides financial protection to your loved ones after your unfortunate demise. The plan offers flexibility in choosing the death benefit option. In addition to this, this LIC term plan also allows the policyholder to select policy terms and premium paying terms as per their requirements.

Key Features of LIC Digi Term Plan

• Choose between Level Sum Assured and Increasing Sum Assured Death Benefit options.

• Select from Single, Regular, or Limited Premium Payment and decide on Policy Term/Premium Paying Term.

• Opt for benefit payment in installments for added flexibility for your life insurance.

• Special rates for women and an attractive High Sum Assured Rebate.

• Benefit from non-smoker premium rates, determined by a urinary cotinine test, with smoker rates applied otherwise.

Eligibility Criteria of LIC Digi Term Plan 876

What are the Benefits of LIC Digi Term Plan?

Below are some benefits of the LIC New Digi Term plan that the nominee will receive after the policyholder's death.

Death Benefit

The Death Benefit is payable to the nominee on the death of the life assured during the policy term, provided the policy is in force and premiums are duly paid.

The "Sum Assured on Death" for Regular and Limited Premium Payment policies is the highest of:

• 7 times the Annualized Premium

• 105% of Total Premiums Paid up to the date of death

• Absolute amount assured to be paid on death.

The "Sum Assured on Death" for Single Premium Payment policies is the higher of:

• 125% of the Single Premium

• Absolute amount assured to be paid on death.

The Absolute amount assured to be paid on death depends on the chosen Death Benefit Option:
Option I Level Sum Assured: The Absolute amount is equal to the Basic Sum Assured, which remains constant throughout the policy term.
Option II Increasing Sum Assured: The Absolute amount starts as the Basic Sum Assured and increases by 10% of the Basic Sum Assured each year from the sixth policy year until it reaches twice the Basic Sum Assured by the fifteenth policy year. From the sixteenth year onwards, it remains at twice the Basic Sum Assured until the end of the policy term or the Date of Death, whichever is earlier. The chosen Death Benefit Option cannot be changed later.

Maturity Benefit

Digi Term LIC plan is a pure term insurance policy. No maturity benefit is payable on survival of the Life Assured to the end of the policy term.

Death Benefit in Installments

The Death Benefit for LIC Digi Term can be received in installments over a period of 5, 10, or 15 years instead of a lump sum amount. This option can be exercised during the Life Assured's lifetime for full or part of the Death Benefits. Installments can be paid yearly, half-yearly, quarterly, or monthly. Minimum installment amounts are Rs. 5,000 monthly, Rs. 15,000 quarterly, Rs. 25,000 for half-yearly, and Rs. 50,000 for yearly payments. The claim proceeds will be paid as a lump sum if the Net Claim Amount does not meet the minimum installment amount.

Sample Premium Illustration of Digi Term LIC Plan 876

The sample illustrative premiums of the LIC new Digi Term plan for Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for Basic Sum Assured of Rs. 50 Lakh for Non-Smoker, Male under different Premium Payment options are as under:

Option I (Level Sum Assured):

Option II (Increasing Sum Assured):

Note: The LIC Digi Term plan 876 calculator works like any LIC Calculator and can be easily found on the LIC official website.

LIC Digi Term Plan Premium Calculator

This LIC Term Plan Premium Calculator helps you estimate the premium payable for the desired life cover under the LIC Digiterm policy. It is a free digital tool provided by LIC of India on their official website to help you understand the approximate premium before you purchase the policy. The calculation of this tool is based on policy details like your age, gender, smoking status, sum assured, policy term and premium payment frequency.

You can use the LIC Premium Calculator for calculating premiums for multiple sum assured values and then choose a suitable one so that your premium is within your budget. However, the actual premium may vary sometimes as the tool only calculates based on provided policy details and not on the basis of underwriting terms which are applicable at the time of purchase.

How to Use LIC Digi Term Premium Calculator?

Here are the steps to use the LIC Digi Term Premium Calculator.

• First open the LIC of India official website.

• There is no need to login or create any account, just scroll down to find the Premium Calculator and click on Calculate Premium.

• You will have to now enter some basic details about you and then select the LIC Digi Term Plan 876 from the list.

• Enter the policy term, sum assured and other relevant details that are asked.

• Once you submit all the details, the calculator will give you a detailed illustration of the premium payable.

Digi Term LIC Plan 876 Details

Grace Period

The LIC new Digi Term plan offers a 30-day grace period to pay the due premium. The policy will continue during this period, but will cease if it expires and the premiums remain outstanding.

Free-Look Period

If the policyholder is not satisfied with the terms and conditions of their digi term LIC plan, they can return it within 30 days from the date of receipt. LIC of India will refund the amount paid after a few deductions.

Rebates

The following rebates shall be applicable on High Sum Assured:

Option 1 Level Sum Assured

Regular / Limited Premium

Single Premium:

Option 2 Increasing Sum Assured

Regular / Limited Premium

Single Premium

Revival

If premiums aren’t paid within the grace period, the policy will lapse. Can be brought back to life within 5 years if all premiums and interest are paid (subject to approval). The policy otherwise expires and some plans may have only limited benefits.

Policy Termination

The LIC Digi Term policy will end automatically when any of the following happens first:

• The death benefit is fully paid,

• The policy is surrendered and its value is settled,

• The policy reaches its maturity date,

• The revival period ends without the policy being revived,

• The policy is cancelled during the free look period, or

• The policy is forfeited.

What is Not Covered in the LIC Digiterm Plan?

Suicide within 12 Months is not covered in the LIC Digi Term Plan 876. If the life assured commits suicide within 12 months from the date of commencement of risk or the date of policy revival (for Regular/Limited Premium Policies) or within 12 months from the commencement of risk (for Single Premium Policies), only 80% of the total premiums paid (excluding extra premiums, rider premiums, and taxes) will be refunded.

Note: You should also check the term insurance benefits if you are planning to purchase the term insurance plan.

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