Insurance Plans 1268 views April 1, 2020

LIC is the most trusted and oldest life insurance company in India. LIC has recently introduced a new insurance policy that is LIC e-Term plan. It is a term insurance plan and is available to be brought only online. The plan is not available offline. The policy provides protection cover at low and affordable rates of premium which enables you to opt for a high level of coverage and higher sum assured will be paid as death benefit on the death of the insured during the term of the insurance plan.

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Key features of LIC e-Term Plan

LIC e-term is a flexible tech term plan which offers the flexibility to the policyholder to choose the sum assured under the policy as well as the method of payment of the premiums on the plan. The features of the plan are stated below: 

  1. This insurance plan offers flexibility to choose the method of payment of premium for the plan. There are three options of premium payment which include the single premium option, limited premium option or regular premium option. 
  2. The plan also offers flexibility for choosing the sum assured under the plan. You can choose either increasing sum assured or fixed sum assured. 
  3. Under the increasing sum assured option, the sum assured under the plan starts increasing @10% from 6th year of the policy. 
  4. The increasing of sum assured is allowed up to 15th year of the policy when the sum assured under the plan would be double of the basic sum assured at the starting of the plan
  5. If the policyholder wants to avail the death benefit in instalment he/she can choose from availing it yearly, quarterly, half-yearly or monthly. 
  6. The pay-out period for availing the death benefit in instalment can be selected from 5 years, 10 years or 15 years.
  7. The premiums for the plan can be paid either half-yearly or yearly. 
  8. The plan allows a 30-days grace period for payment of the due premium for all the modes of premium payment.
  9. The plan charges a loading of 2% if the premiums are paid by the policyholder on a half-yearly basis. 
  10. The plan under the increasing sum assured option provides a maximum increase of up to 100% of the sum assured under the plan. No further increase is allowed after the plan doubles its sum assured by the end of 5th year of the policy.

Benefits of LIC e-Term Plan

The benefits available under the LIC e-Term plan are as follows:

Maturity benefit

The plan does not provide any maturity benefit as it is a pure protection insurance policy.

Death benefit

On the death of the insured individual during the term of the insurance plan, the death benefit will be paid to the nominee/beneficiary of the plan. The death benefit to be paid depends on the method of payment of premiums under the plan. It is calculated differently for regular and limited premium payment option and for a single premium payment option. 

Rider benefit

This insurance policy also offers the policyholder to enhance the coverage of the policy through an add-on optional rider. You can avail accidental benefit rider on the insurance plan which will pay additional benefit and provide additional sum assured on death of the policyholder in an accident. The rider increases the coverage of the plan and provides additional finances. 

Premium discounts

Different premiums discounts are offered under LIC e-term insurance plan. The types of premium discounts include lower premium amounts for women and also lower premiums are charged from non-smokers.

Premium discounts are offered under the plan only for sum assured which is INR 1 crore or more. The premium discounts depend on the age of the insured and on the sum assured under the plan.

Eligibility Conditions of LIC e-Term Plan

Before buying LIC e-Term plan, it is necessary to ensure that you satisfy the eligibility conditions of the plan. The Eligibility Criteria of the plan are as follows:

  1. Minimum entry age is 18 years and maximum entry age is 65 years 
  2. Maximum Maturity age of the plan is 80 years 
  3. Minimum sum assured under the plan is INR 50 lakhs and there is no maximum limit on the sum assured under the plan
  4. Minimum term of the plan is 10 years and the maximum term of the plan is 40 years 
  5. Term of premium payment- For single pay option the premium is paid once, for regular pay option the premiums are paid during the term of the plan and for limited pay option the term is 10 years to 40 years – (term – 5) years and 15 years to 40 years – (term – 10) years.
  6. The minimum amount of premium payment is INR 3000 per year for limited or regular pay option and INR 30,000 for single pay option.
  7. The maximum amount of premium to be paid under the plan would depend on the term of the plan, age of the insured, the sum assured under the plan and the coverage option selected by the policyholder

Conclusion

LIC e-Term Plan is an online plan and can only be brought online. It is suitable for those who wish to buy the insurance plan online with ease and also want a higher sum assured by paying low premiums.

It is to be noted that this plan is a pure term plan and does not provide any maturity benefits but offers attractive and higher death benefits, as well as premium discounts for higher sum, assured insurance plans. 

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