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Term Insurance 2382 views April 11, 2020
LIC Convertible Term Assurance plan is a term insurance plan which offers affordable and low premiums. The premium paid on the insurance plan can be converted later into a whole life policy or an endowment insurance policy. This plan is specifically designed for those individuals for whom a high premium is not affordable.
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This plan can be converted into a whole life or endowment plan during the specified term of the plan. The key features of the Convertible Term Assurance Plan of LIC are as follows:
The benefits of Plan are as follows:
Under the plan basic sum assured in the insurance plan is paid on the death of the insured individual during the term of the policy to the beneficiary or the nominee of the policy
As LIC Convertible Term Assurance plan is a pure protection insurance policy no maturity benefit is paid to the insured on the maturity of the plan
The premiums in the plan paid by the insured can be availed as an exemption under section 80C of the Income Tax Act up to a maximum of Rs.1,50,000. The death benefits received under the plan are also tax-exempt as provided under Section 10(10D) of the Income Tax Act.
It is necessary to check the eligibility criteria before making a proposal to the Insurance company. Eligibility Conditions of Plan are as follows:
LIC Convertible Term Assurance policy is best for those people who are teenagers or have recently started working or whose earnings are not very high but they want to purchase insurance for the protection of their family through a whole life insurance plan or an endowment insurance policy with a much higher amount of premium. Hence under this plan, the payment of premium is low initially before the conversion of the insurance plan. Convertible Term Assurance has been withdrawn by Life Insurance Corporation of India and is no more in force. Hence you can buy any other similar plan with the same features and benefits.