Term Insurance 8069 views February 25, 2020

LIC Term Insurance

Life Insurance Corporation is one of the most prominent insurance providers in India offering unique insurance products. LIC was formed by merging various insurance companies and provident societies in India due to which the company has a wide reach. Established in 1956, the LIC has its presence in urban, rural as well as the remotest areas of India. Since its inception, LIC has been successful in maintaining its predominance in the Indian Insurance Sector.

Term Insurance

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Life Insurance Corporation of India (LIC) not only has a wide presence across India but also has a wide network of agents and insurance brokers. The unmatched agent and broker network helps LIC’s products reach people residing at the remotest corners of India. The insurance plans of LIC are simple yet very unique. The company offers top-notch support to its customers and has insurance plans for every need – protection plans, endowment plans, pension plans, etc. LIC  term insurance plans have been one of the most popular insurance products. Let us have a look at various LIC term plan details.

Eligibility Criteria for all LIC Term Insurance Plans

ParticularsJeevan Amar PlanTech-Term PlanAnmol Jeevan IIAmulya Jeevan IIe-Term Plan
Age at EntryMin: 18 Years
Max: 65 Years
Min: 18 Years
Max: 65 Years
Min: 18 Years
Max: 55 Years
Min: 18 Years
Max: 60 Years
Min: 18 Years
Max: 60 Years
Maturity AgeMax: 80 YearsMax: 80 YearsMax: 65 YearsMax: 70 YearsMax: 75 Years
Sum AssuredMin: 25.00 Lakhs
Max: No Limit
Min: Rs 50.00 Lakhs
Max: No Limit
Min: 6.00 Lakhs
Max: 24.00 Lakhs
Min: 25.00 Lakhs
Max: No Limit
Min: 25.00 Lakhs (50.00 Lakh for non-smokers)
Max: No Limit
Policy Term10 to 40 Years10 to 40 Years5 to 25 years5 years to 35 years10 to 35 years

Benefits of Buying LIC Term Insurance Plans

  1. LIC term insurance plans offer higher insurance cover at lower premium rates i.e. higher insurance cover at a low premium and if you are a non-smoker, the premium amount will reduce further.
  2. All the term insurance plans of LIC offer flexibility in terms of sum assured, policy tenure, premium payment frequency, etc.
  3. Policyholders can avail flexible premium payment mode as per their convenience
  4. All term insurance plans cater to a wide age group from young to old individuals
  5. The policyholder can widen the scope of coverage with the help of available riders.
  6. LIC term insurance plans can be purchased via both online and offline modes
  7. LIC has the highest claim settlement ratio in India’s Insurance Sector.

List of LIC Term Insurance Plans

LIC term insurance plans are one of the most popular term insurance products in the market. The higher coverage and cheaper premium amount make its term insurance plans popular amongst people. The following is an in-depth analysis of the LIC Term Insurance plan.

LIC Jeevan Amar Plan

LIC Jeevan Amar Plan is designed to provide financial protection to the entire family in the event of the unfortunate demise of the insured. The key features of the plan are as under:

  1. The plan offers two Death Benefit Options: Level Sum Assured and Increasing Sum Assured
  2. Death Benefit: Under Level Sum Assured, the death benefit payable is equivalent to the sum assured while in case of Increasing Sum Assured, the death benefit amount shall increase the basic sum assured amount by 10% starting from the 6th policy year.
  3. Maturity Benefit: No maturity benefit is payable on the survival of the life assured until the end of the policy tenure

LIC Tech Term Plan

LIC has expanded its business via online channels. One of the best term insurance plans is LIC Tech Term, a pure protection plan designed to offer life cover and financial protection during the policy tenure. The key benefits of the plan are as under:

  1. The plan offers two benefit options namely level sum assured and Increasing sum assured. The insured has the flexibility to choose any one benefit option
  2. Death Benefit: is payable in the event of the death of the insured during the policy term provided the policy is in force.
  3. Maturity Benefit: Being a term insurance plan, NO maturity benefit is payable.

LIC Anmol Jeevan II Plan

LIC Anmol Jeevan II is one of the most popular protection plans offered by LIC. This LIC term insurance plan is designed to offer financial protection to the insured’s family in the eventuality of his/her death. The following are the key features of the plan.

  1. Death Benefit: Death benefit equivalent to the sum assured shall be paid to the nominee in the event of the demise of the insured during the policy tenure.
  2. Maturity Benefit: In the event of survival of the insured till the end of the policy tenure, no maturity benefit is payable under this plan
  3. Tax Benefit: All the premiums paid are eligible for tax deductions under section 80C and Section 10(10D) of the Income Tax Act, 1961
  4. The plan offers high insurance cover at an affordable premium amount
  5. The life cover available under the plan ranges between INR 6 Lakh and INR 24 Lakh

LIC Amulya Jeevan II Plan

LIC Amulya Jeevan II is a pure protection plan by LIC. This term insurance plan is designed to offer higher insurance coverage to individuals at an affordable premium amount. The key benefits of the plan are as under:

  1. Death Benefit: In the event of death of the life insured, the entire sum assured amount is paid to the nominee. The death benefit is payable if death occurs during the policy tenure. However, death after the end of policy tenure is not covered.
  2. Maturity Benefit: No maturity benefit is payable in the event of survival of the insured till the end of the policy term
  3. Tax Benefit: Insurance premiums paid are allowed as a deduction under section 80C of the Income Tax Act, 1961
  4. The Life Cover offered under this plan is higher and starts from INR 25 Lakh. Such a high insurance cover is offered at an affordable premium amount.

LIC e-Term Plan

LIC e term is a pure protection plan that can be purchased via the online channel. The plan offers insurance protection upon the death of the life insured. However, no insurance coverage is offered in the event of death after the end of the policy term. This plan offers no maturity benefit in the event of survival of the life insured. The following are key benefits of the plan

  1. Death Benefit: the entire sum assured is paid to the nominee as a death benefit in the event of the death of the life insured only during the policy tenure.
  2. Maturity Benefit: Being a pure term plan, no maturity benefit is payable i.e. in the event of survival of the life insured throughout the policy tenure.
  3. Tax Benefit: Insured can avail income tax benefits on the premiums paid under section 80C of the Income tax Act.
  4. The plan can be purchased through online mode only, therefore, the premium amount is considerably lower as compared to other term insurance plans.

LIC Term Insurance Riders

Having additional cover further secures an individual against unfortunate events such as accidental death, critical illness, etc. All these can be ensured by having a rider at an additional premium. These riders will have a separate sum assured, besides the one for the base plan. Let’s check the riders and their offerings below.

LIC’s New Term Assurance Rider

This rider comes with the payment as shown below.

Upon Death – Upon the death of the policyholder before the expiry date of the rider, an amount highest of the following will be paid to the nominee.

  • Rider Sum Assured
  • 10 times the annualized premium
  • 105% of the total premiums paid till the date of death

Note – The premium mentioned above is the one applicable to the rider, without any taxes and extra premium, if any.

Accidental Death Benefit Rider

If the life assured meets with an accident and dies within 180 days from the same, the accident death benefit rider sum assured shall be payable to the nominee. However, the death should happen solely and directly from an accident for the disbursal to happen successfully.

Accident Death and Disability Benefit Rider

If the accident results in death or disability of the policyholder within 180 days of meeting the same, an applicable amount will be payable. However, the benefit amount could differ based on the accidental outcomes. Let’s learn more about the same.

Disability of the Life Assured – An amount equal to the accident sum assured will be payable to you over a period of 10 months in equal monthly installments. Subsequent to the disability, the insurer will waive all your future premiums.

Death of the Life Assured – In such a case, the sum assured for accident benefit shall be payable to the nominee.

Critical Illness Benefit Rider

Upon diagnosis of any of the 15 specified critical illnesses, the sum assured for this rider will be payable to you. The payment can be made once during the policy period. Upon the payment, the rider will cease to exist. The critical illnesses covered under this rider are –

  • Cancer of specified severity
  • Open Chest CABG
  • Myocardial Infarction
  • Constant dialysis due to kidney failure
  • Transplantation of major organ/bone marrow
  • Permanent symptoms resulting from stroke
  • Permanently paralyzed limbs
  • Multiple Sclerosis with persisting symptoms
  • Primary Pulmonary Hypertension
  • Aortic Surgery
  • Alzheimer’s Disease/Dementia
  • Third Degree Burns
  • Blindness
  • Benign Brain Tumour
  • Open Heart Replacement or Heart Valve Repair

LIC Term Insurance Premium Payment Services

You need to pay the LIC term insurance premium on time so that you could enjoy policy benefits without any interruption. At the time of claim settlement, LIC will check thoroughly your premium payment track. In case you have missed out on a payment or two, it might delay the claim approval. It will only mount concerns for your dependents who would rather expect a quick disbursal of the claim amount. That gives you an idea about the importance of LIC premium payments.

The payment can be done through online and offline modes. Choose the mode that you feel comfortable with to pay the premium and secure the future of your dependents in your absence.

Let’s Talk About Online Premium Payment Modes

Go to the official website of LIC and pay the premium through any of the options – Net Banking, Debit/Credit Card, UPI, Wallet, etc. You can also make the payment through authorized banks – Axis Bank, IDBI Bank and City Union Bank. The same thing can happen on LIC’s merchant portal too.

Offline Modes of LIC Premium Payment

You can pay the premium via NACH, Bill Pay and ATM. For NACH, you need to send a duly filled and signed mandate along with a cancelled cheque to LIC. So on the due date, the payment will be debited automatically from your bank account. You can also register for Bill Pay wherein the bill amount and payment date will be intimated to you in advance. You could thus keep the required amount in the paying bank account.

Final Words

LIC term insurance plans are best in the industry by ensuring the financial security of your loved ones in your absence. Buy LIC term plan to protect your family against financial crises and stay stress-free.

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