A term insurance policy acts as a guardian for the family in the unforeseen demise of the policyholder. It enables his/her family to cope with the emotional turmoil due to the sudden loss of a loved one and serves as a stable source of income in their absence.
LIC, a public sector insurance company, is the oldest insurance company of the country. It is renowned for maintaining the highest claim settlement ratio for more than 3 consecutive years. LIC e-Term is one of its most acclaimed term insurance policies, among its wide range of product offerings. LIC e-Term plan is a pure insurance policy, which means that it offers Death Benefit only, i.e. the payment of the pre-determined sum assured to the beneficiary on the policyholder’s death. If the policyholder survives through the LIC e-Term plan tenure, the beneficiary shall not be paid anything as the Maturity Benefit.
LIC e-Term plan offers comprehensive coverages of varying amounts as per the requirement of the proposer, as we will discuss later here. The minimum sum assured that LIC e-Term plan offers is Rs.25 lakh for an aggregate category, while for a smoker it is Rs.50 lakh. LIC e-Term plan is a basic online term plan, ensuring customers the convenience and flexibility of purchasing it across geographical boundaries. This also implies that you don’t need the services of LIC agents and intermediaries to enable you to purchase the LIC e-Term plan. This regular premium paying non-participating online term insurance plan assures your family of financial stability, even when you are not around to provide for them.
All you need to do to be eligible for buying a LIC e-Term plan is hold an Indian citizenship, belong to the age of bracket of a minimum of 18 years and a maximum of 60 years and should have a stable source of income. The LIC e-Term plan is also available on a minimum policy term of 10 years and premium payment is applicable annually.
When a policyholder makes a claim against a LIC e-Term plan on the death of the policyholder, the Corporation will ask for the following documents to be submitted:
The below are the additional forms that may have to be filled up while making a claim in case of the policyholder’s demise within three years from the date of risk or from date of revival/reinstatement.
After verifying the authenticity of the documents submitted, LIC pays the pre-determined death benefit to the beneficiary.
| Parameters | Criteria |
|---|---|
| Plan Tenure | Minimum - 10 years
Maximum - 35 years |
| Sum assured | Minimum - Rs.25 lakhs for Aggregate category and Rs.50 lakhs for non-smokers
Maximum - No limit |
| Annual Premium | Based on the sum assured and application category |
| Premium payment mode | Annual with a grace period of 30 days |
| Covers | - Policy tenure applicable till the age of 75 years
- The policy will lapse if premiums are not paid within the grace period - Policy can be renewed within 2 years from its lapse - If the insurance plan is returned during the Free Look period, the premium paid will be returned without charges being levied for expenses towards stamp duty |
| Add-on Riders | Term Assurance Rider
- Coverage can be increased from a minimum of Rs.1 lakh to a maximum of Rs.25 lakhs - Premiums paid will include the premium for parent policy |
| Surrender Value | Surrender Value is not offered on LIC e-Term Plan |
| Free Look Period | 30 days |
Sample Premium Rates: The sample premium rates (exclusive of taxes) are as under:
| Annual Premium rates per Rs. 1000 Sum Assured | |||||
|---|---|---|---|---|---|
| Age(yrs.) | Term of the policy(years) | ||||
| 10 | Contnent R2C3 | 20 | 25 | 30 | |
| 20 | 0.92 | 0.92 | 0.93 | 1.00 | 1.11 |
| 30 | 1.10 | 1.20 | 1.39 | 1.66 | 1.97 |
| 40 | 2.02 | 2.48 | 3.00 | 3.56 | 4.19 |
| 50 | 4.86 | 5.72 | 6.73 | 7.90 | - |
| Annual Premium rates per Rs. 1000 Sum Assured | |||||
|---|---|---|---|---|---|
| Age(yrs.) | Term of the policy(years) | ||||
| 10 | Contnent R2C3 | 20 | 25 | 30 | |
| 20 | 0.63 | 0.63 | 0.65 | 0.70 | 0.79 |
| 30 | 0.77 | 0.85 | 1.00 | 1.21 | 1.46 |
| 40 | 1.48 | 1.84 | 2.25 | 2.69 | 3.18 |
| 50 | 3.67 | 4.34 | 5.13 | 6.06 | - |
Life Insurance Corporation of India (LIC) is the first and the oldest life insurance company in India. The range of term insurance plans from this state-owned insurance group caters to the varied insurance needs of their extensive customer base. These insurance plans, known for their affordable premiums, make the nominee eligible for a sum assured on the policyholder's demise during the policy tenure. This ensures financial security for the family even after the policyholder's absence. LIC e-Term plan further adds to the convenience of customers as they are available online. Not just these, a healthy claim settlement ratio adds to the reliability of LIC e-Term plan.
It is not compulsory to undergo medical tests for purchasing LIC e-Term plan. Requirement for medical test depends on the sum assured chosen and discretion of the underwriter. If asked for, these tests usually include basic diagnostic tests like blood test, urine test, etc.
LIC e-Term plan offers a Cooling-off Period of 30 days after the pre-determined due date for premium payments. This feature implies that when a policyholder is unable to make a premium payment within the pre-determined due date, he/she can make the payments within the grace period. Not paying within the grace period attracts penalty. The cooling-off period is also referred to as free-look period.
LIC e-Term plan offers a grace period of 30 days after the due date for premium payments. In case of the policyholder’s inability is to make a premium payment within the pre-decided due date, he/she can make the payments within the grace period. Non-payment of premiums within the grace period leads to the termination of the policy.
No, the premiums for LIC e-term plan cannot change.
No, the premiums for LIC e-term plan cannot change.
Yes, LIC e-Term covers accidental death.
