Insurance Plans 5665 views February 26, 2020

LIC Term Insurance 1 Crore

Life Insurance Corporation of India (LIC) is one of the oldest life insurance companies in India. The company is owned by the Government of India. The company offers a wide range of insurance plans to maximise mobilization of people’s savings. The most attractive plans offered by the company are term insurance plans.

Term Insurance

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What is a Term Insurance Plan?

Term Insurance Plans are protection oriented insurance policy which protects and covers the risk of the sudden death of insured under the policy terms for a fixed sum insured. If the policyholder dies then the sums assured amount is paid to the nominee or the beneficiary of the insurance plan and the policy comes to end. Term insurance plans usually do not pay any maturity benefits and lapse at the end of the term of the plan.

Features of Term Insurance

The key features of the term insurance plan are listed below:-

  1. Term plans let the insured enjoy coverage up to old age by allowing long coverage tenure.
  2. Term plans offer low premiums as only death risk is covered.
    After the death of the insured, it protects the family financially. The insured can also choose a very high level of sum insured for this.
  3. Benefits are mostly covered in case of the death of the insured although refund of premium after maturity also exists in some of the plans.
  4. Earning of bonus is not available under term insurance as they are traditional life insurance Policy.
  5. Riders provide additional coverage under the term insurance. The riders are covered at the payment of additional premium or can be inbuilt in plan’s coverage.

LIC Term Insurance 1 crore

LIC offers three types of term insurance plans whereas two of them only offer coverage of sum assured of INR 1 crore. Let’s have a look at them:–

1. LIC’s Tech Term

LIC Tech term is an online plan that provides financial protection to the insured’s family in case of his/her untimely death. It can only be purchased online. Its features are-

  1. The insured can choose between the options to have a uniform sum assured during the policy term or increasing sum assured.
  2. If the insured chooses the option of increasing sum assured than the coverage of the policy increases by 10% every year from 6th to 15 years.
  3. The option of choosing the ways of paying premiums is available like single, regular or limited.
  4. Women are given the privilege of lower rates of premium.
  5. Non-smokers are given the privilege of low premium rates whereas smokers need to pay a higher premium.
  6. The option of getting an additional benefit by payment of additional premium in case of death in an accident is available through a rider
  7. The insured person has the right to choose the option of receiving the payments monthly, quarterly, half-yearly or yearly as per suitability.
  8. If the insured chooses higher levels of sum assured, he/she can get discounts on premium rates.
  9. The family of the insured can get the death benefit in instalments after the death of the insured for a regular source of income.

Eligibility of LIC Tech Term Plans

The eligibility criteria for purchasing this insurance plan are as follows:

  1. The minimum age for entering this plan is 18 years and the maximum age is 65 years
  2. The term period of these plans is a minimum 10 years to a maximum of 40 years
  3. The sum assured should not be less than 50 lakhs.
    Premium payment term can be as follows –
    Single premium – once
    Limited premium – 5 to 10 years less than chosen term
    Regular premium – equal to the policy term

2. LIC’S Amar Jeevan

Under this plan, the amount of insurance is only received if the insured person dies during the tenure. Flexibility for payment of premiums either in regular, limited or single-mode is available under this scheme. Special features for the same are as follows:-

  1. The plan offers two coverage options – the level of sum assured and increasing sum assured.
  2. If the insured chooses the increasing sum assured option, the sum increases by 10% till it doubles itself. This increase is allowed from the 6th policy year.
  3. Women are given the privilege of lower rates of premium.
  4. If the insured chooses the option of sum assured of 50 lakhs or above they can get premium discounts.
  5. Non-smokers are charged low premium rates
  6. The plan also gives the insurer an option to enhance their coverage by an optional accidental benefit rider. In case of accidental death, this rider pays an additional sum assured.
  7. The death benefit can be taken in equal instalments by the insured over a period of 5 years, 10 years or 15 years. The instalment can be availed monthly as a source of income for the insured’s family.

Eligibility of LIC Amar Jeevan Plan

The eligibility conditions for purchasing this insurance plan are as follows:

  1. The minimum age for entering this plan is 18 years and maximum age is 65 years.
  2. The term period of these plans is a minimum of 10 years to a maximum of 40 years.
  3. The assured amount should not be less than 25 lakhs.
  4. Premium payment term can be any of these: Single premium – once, limited premium – 5 to 10 years less than chosen term and regular premium – equal to the policy term.

Conclusion

LIC term insurance plan is an ideal option for those who want a pure protection plan and want to secure the future of their family in their absence. Term insurance plans ensure financial stability to the family of the insured in the event of any unfortunate happening. LIC term insurance 1 crore plans provide higher coverage and better benefits and ensure better financial support. Higher risk must be covered by a higher amount of coverage. Both the LIC term insurance plans 1 crore sum assured has different features and benefits the holder in different ways. You can buy one as per your need and requirement.

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