LIC Term Insurance Plan is a type of life insurance policy offered by Life Insurance Corporation of India (LIC). It is a pure protection plan that provides coverage for a specified period of time or term. In case the policyholder dies during the term of the policy, the death benefit is paid out to the nominee.
Ever since its establishment nearly 6 decades ago, the LIC has been a huge market share holder in the insurance industry. The company offers plans to match every requirement of a policyholder.
LIC is the oldest, largest and the most profitable Life Insurance Company in India
Established by the government as a sole insurance provider, this company has expanded exponentially over the years with respect to its services and customer centric insurance plans. At one point of time, LIC was the only insurer which had successfully penetrated to the most remote and rural parts of India. With over 250 million customers PAN India with a wide range of products such as term plans, child plans, life and health insurance plans, traditional saving plans, pension plans and ULIPs.
LIC, a firmly trusted brand, has the biggest market share in the Indian life insurance industry. Since its inception 60 years ago, the company strives to provide insurance buyers with the best customer-centric plans to fit their every requirement and need. as well as in providing exceptional customer service.
If you’re looking to buy a life insurance plan, always look at the features and benefits you get along with the plan. Buying a LIC life insurance plan gives you unbelievable personal benefits - let’s look at some below:
LIC offers two special featured packed riders, which you can buy along with any non-linked term insurance plan. Riders are beneficial to any insurance policyholder as they increase the coverage of your plan and provide added insurance protection. Some of the best riders to take if you have an insurance term plan are:
It covers 15 Critical Illnesses, including Cancer of specific severity, Open Chest CABG, Kidney Failure requiring regular dialysis, Stroke, Permanent paralysis of limbs, Blindness, Third-degree burns, Alzheimer’s, etc.
| Head 1 | Eligibility |
|---|---|
| Entry Age | Min. 18 years and Max. 65 years |
| Maturity Age | Max.75 years |
| Premium Payment Mode | Limited pay, Regular pay |
| Premium Payment Frequency | Same as base plan |
| Min. Sum Assured Max. Sum Assured | Rs.1,00,000 Rs.25,00,000 |
| Premium Paying Term | Regular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 5 years to (Policy year – 1) years |
| Policy Term | Regular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 10 years to 35 years |
It is a pure death benefit rider. In case of life assured’s death, the nominee will receive the life cover and rider sum assured. This rider can be bought only at the inception of the base policy.
In case of unfortunate death of the life assured during the policy term, the claimant will receive an amount equal to the rider sum assured, which can be equivalent to the base policy sum assured.
There is no maturity benefit.
| Head 1 | Eligibility |
|---|---|
| Entry Age | Min. 18 years and Max. 60 years |
| Maturity Age | Max.75 years |
| Premium Payment Mode | Same as base plan |
| Premium Payment Frequency | Same as base plan |
| Min. Sum Assured and Max. Sum Assured | Rs.1,00,000 Rs.25,00,000 |
| Premium Paying Term | Same as base plan |
| Policy Term | Same as base plan |
To claim a death benefit, you need to follow a strict process, which requires careful documentation and proofs. Though a very long task, the process helps verify real claimants from bogus ones.
The claims process requires a nominee to file a claim while having the following documents ready:
When it comes to choosing the right term insurance policy, you don’t want to be left with one that takes an overly long time to settle the claims. No other term life insurer has a better Claims Settlement Ratio than LIC.
There are two ways to apply for a term insurance plan:
Like every other insurance plan, LIC term insurance also has certain exclusions under which LIC is not liable to settle the claims.
A notable exception of term insurance is suicide of policyholder during the first policy year. No death benefit is distributed in this case. However, a nominee is eligible for a refund of 80% of the premiums paid, if the policyholder commits suicide within one year of starting the policy.
Mandatory checks are completed to ensure all dues between the policyholder and the insurer have been cleared.
LIC, being the first insurance company in India, has been a pioneer in the insurance industry with an experience of over 6 decades. Their customized, customer-centric plans help fulfill every insurance buyer’s goal for protection. Without doubt, they’re the best in the industry.
LIC term insurance plans may be cheaper when bought online versus offline. There is a variance in the premiums. This is because of reduced cost in the processing and issuance fee.
It depends on your ability to pay premiums for the plan from your current annual income. Use our Term insurance plan calculator to assess if you can afford the plan that gives you a Rs. 1 Crore sum assured. Make your decision hassle-free.
LIC Term Plan premiums and sum assured paid to nominee are tax-exempt under sections 80(C) and 10(10D) of the Income Tax Act, 1961.
