LIC ie Life Insurance Corporation is known as the largest and oldest insurance life insurance provider in India. LIC has a large market share in the insurance industry as well as a trusted brand in the insurance market. Various types of insurance plans are offered by LIC, one of them is LIC term insurance plan.
LIC Term Insurance Plan is designed for such customers who want to get a term insurance plan coverage at a very affordable rate. In LIC term insurance plan, if the life assured dies during the policy term then the death benefit is provided to the person nominated by the life assured.
It is worth noting that in LIC Term Insurance Plan , if the insured survives till the policy term, then no maturity benefit is provided to the insured.
LIC Best Term Insurance Plan Details
Life insurance products are being offered to the people by the Life Insurance Corporation of India from a very old time. It has introduced a wide range of insurance products keeping in mind the diverse needs of the customers.
Currently there are 2 term insurance plans designed by LIC which provide term insurance coverage to the customers at a very affordable price. While you can get term coverage through LIC term insurance plans, you can further enhance your term coverage by adding riders to it.
The following 2 term insurance plans are currently being made available to the customers by LIC-
- LIC Jeevan Amar Plan
- LIC Tech Term Plan
- LIC Jeevan Amar Plan
- This is a type of term insurance plan offered by LIC. In this, in the event of the death of the insured person, a minimum death benefit of ₹ 25 lakh is provided to the nominee by the insured person. There is no limit on the maximum sum assured you can get.
- The policy term of this term plan is minimum 10 years and maximum 40 years. To get this policy, the age of the customer should be minimum 18 years and 65 years.
- In this term plan, you also get the option of adding accident benefit rider, through which you can further enhance your term insurance plan coverage.
- In terms of premium, this term insurance plan gives you the option of paying single premium, regular premium and limited premium.
- In this time insurance plan, you also get a free look period of 15 days and a grace period of 30 days. Being a term insurance plan, you are not provided with any kind of maturity benefit.
- You can also get tax benefits under income tax laws under this term insurance plan in that you get the benefit of tax exemption under section 80C and 10 (10D) of the Income Tax Act.
- LIC Tech Term Plan
- There is an online term insurance plan provided by LIC. You can buy this term insurance plan only through online medium. This plan is not available for purchase through offline mode.
- It is purely a term insurance plan wherein a minimum sum assured benefit of ₹5 lakh is provided in case of death of the life assured during the policy term. In this, no limit has been set for getting the maximum insurance benefit.
- The policy term of this term insurance policy has been fixed for a minimum of 10 years and a maximum of 40 years.
- To avail this termination plan, the minimum age of the subscriber should be 18 years and the maximum age should be 65 years.
- In this, you also get the option of adding riders to increase the coverage. You can further enhance your term coverage by adding an accident benefit rider. However, you have to pay an additional premium for this.
- In this, you get a grace period of 30 days and a free look period of 30 days.
- No maturity benefit is provided to you in this term. If the life assured survives the policy term then no benefit is provided to him.
- Under this plan, you can apply for tax exemption under Section 80C and 10 (10D) of the Income Tax Act, 1961.
Features And Benefits Of LIC Term Insurance Plan
The features and benefits of LIC Term Insurance Plan are as follows-
- Financial Aid:
Through LIC term insurance plan, the customer can secure the financial future of his/her family members at a low premium rate. In case of death of the life assured during the policy term, the sum assured is provided as death benefit to the nominee by the life assured. Through this sum assured, the family can easily meet its financial needs. Apart from this, other liabilities can also be easily met by the insured.
LIC term insurance plan gives you the option of receiving the death benefit in lump sum or in instalments. At the time of taking the policy, the policyholder can choose it according to his need.
- Affordable Premium:
The main feature of LIC term insurance plan is that it provides you the coverage of term insurance at affordable premiums. Thus, even if your budget is tight, you can still get the benefits of a term insurance plan. LIC term insurance plan has been designed keeping in mind the needs of common people so that LIC term insurance plan can be easily purchased by common people.
- Premium Payment Mode:
There are several modes available to you for premium payment in LIC term insurance plans. You can choose any of these according to your budget. In LIC termination plan, you get the option of monthly, quarterly, half-yearly or yearly premium payment for premium payment.
- High Claim Settlement Ratio:
While buying an insurance product from any insurance company, it is very important to look at its claim settlement ratio. The higher the claim settlement ratio of an insurance company, the more profitable it is to buy insurance from that company. LIC’s claim settlement is quite high. Hence you can buy a LIC termination plan without thinking twice.
- Additional Coverage:
LIC term insurance plan also provides the customer with the facility of adding additional coverage. Through this you can increase the coverage of your term plan by adding riders. In this, you get the option of adding Accident Benefit Rider. You can add this to your LIC term insurance plan by paying an additional premium.
- Tax Benefits and Exemptions:
You also get tax benefits in LIC term insurance plans. Through this, you can get tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. You get tax benefit under 80C on the premium paid for this plan and under 10(10D) on the death benefit received.
Lic Term Insurance Plan Eligibility
Eligibility for LIC Term Insurance Plan is as follows-
- Customer minimum age must be 18.
- Customer maximum age should be 65.
- The customer will have to undergo a medical test.
- Identity Proof. Address proof, income proof and age proof documents have to be given.
Documents Required For LIC Term Insurance Plan
The documents required for LIC Term Insurance Plan are as follows-
- Filled Application Form
- Medical Report (Latest)
- Identity proof (any one of the following):
- voter id,
- Aadhar card,
- PAN card,
- driving license.
- Address Proof (Any one of the following):
- Aadhar card,
- Utility Bill.
- Age proof (any one of the following):
- Birth certificate,
- driving license,
- School or College Certificate.
- I Ratio:
- it returns,
- Bank statement (latest).
Lic Term Insurance Plan Premium
In LIC Term Insurance Plan you get many options for premium payment. You can choose to pay your term plan payments monthly, quarterly, half-yearly, annually or as a single premium.
You have to pay your premium regularly to continue with your LIC Term Insurance Plan. If you do not pay the premium on the due date, you are provided a grace period of 30 days.
Within this grace period, you have to pay the premium for your term insurance policy. If you do not pay your premiums even till the grace period, then your LIC term insurance policy lapses.
How To Buy LIC Term Insurance Plan?
You can buy LIC Term Insurance Plan in through both offline and online medium.
To buy online, you have to visit the official website of LIC to buy lic plan. While to get LIC term insurance plan through offline medium, you have to visit your nearest LIC branch.
It is worth noting that you can buy LIC Tech Term Plan through online only. There is no option available to buy it offline.