Life Insurance Corporate of India (LIC) offers a variety of term insurance plans to suit everyone’s needs. In this guide, we will understand the various aspects of LIC term insurance.
LIC term insurance: Types
- LIC e-Term
- LIC Amulya Jeevan II
- LIC Anmol Jeevan II
- LIC Bhagya Lakshmi
- LIC New Jeevan Mangal
LIC Amulya Jeevan
| Features | Description |
| Entry Age | Minimum- 18 years
Maximum- 60 years |
| Maturity Age | Maximum- 70 years |
| Premium | Minimum- Based on the minimum sum assured value and age of the insured.
Maximum- No limit |
| Premium payment term | Regular pay- Premium paid through policy term |
| Policy term | Minimum- 5 years
Maximum- 35 years |
| Premium payment mode | Annual and semi-annual |
| Sum assured | Minimum- Rs 25 lakh
Maximum- No limit |
| Death benefit | Entire sum assured value will be given to the nominee |
Features of the plan:
- Flexible policy term: The plan allows the policyholder to customise the length of the policy’s coverage based on their needs. You have a choice of terms lasting between 5 and 35 years.
- Death benefit: The key element of this plan is its death benefit, which assures a certain amount to the policyholder’s beneficiary in the event of the latter’s untimely death. The fact that the sum assured is paid out in one lump payment also helps the insured’s family financially during those trying times.
- Tax exemptions: The premium paid and the benefits received as a result of this plan are both taken into account for tax exemptions under Sections 80C and 10(10D) of the Income Tax Act of 1961.
LIC Anmol Jeevan II
| Features | Description |
| Entry Age | Minimum-18 years
Maximum- 55 years |
| Maturity Age | Maximum of 65 years |
| Premium | Minimum- Based on the minimum sum assured value and age of the insured.
Maximum- No limit |
| Premium payment term | Regular pay- Premium paid through policy term |
| Policy term | Minimum- 5 years
Maximum- 25 years |
| Premium payment mode | Annual and semi-annual |
| Sum assured | Minimum- Rs 6 lakh
Maximum- Rs 24 lakh |
| Death benefit | Entire sum assured value will be given to the nominee |
Features of the plan:
- Competitive rates: Competitive premium rates are offered by the insurance, and the policyholder must pay fair premium sums. Additionally, there is the option to select annual or biannual payment intervals.
- Plan term: You may select the policy duration between 5 and 25 years, depending on your convenience.
- Tax exemption is allowed: The Income Tax Act for the plan allows policyholders and their beneficiaries to benefit from tax exemptions.
- Death benefit to nominee: In the event of the insured’s untimely passing, the beneficiary will receive a lump sum assured sum amount.
LIC Bhagya Lakshmi
| Features | Description |
| Entry Age | Minimum-18 years
Maximum- 55 years |
| Maturity Age | Maximum of 65 years |
| Premium | Minimum- Based on the minimum sum assured value and age of the insured.
Maximum- Subject to a sum assured amount of Rs 50,000 |
| Premium payment term | Limited pay-
Minimum- 5 years Maximum- 13 years |
| Policy term | Premium paying term plus 2 years |
| Premium payment mode | Annual, semi-annual, quarterly and monthly |
| Sum assured | Minimum- Rs 20,000
Maximum- Rs 50,000 |
| Maturity benefit | Sum assured on maturity that is 110% of premiums paid |
| Death benefit | Entire sum assured value will be given to the nominee |
Features of the plan:
It is an offline plan, which is a part of the micro-insurance segment. It was launched for the rural population or the ones belonging to low-income groups. This plan also offers a maturity benefit apart from the other benefits offered.
LIC Tech-Term
This is LICs only online pure term insurance plan. It is considered only on an individual basis.
| Features | Description |
| Entry Age | Minimum-18 years
Maximum- 60 years |
| Maturity Age | Maximum of 75 years |
| Premium | Minimum- Depends on factors decided by the insurer
Maximum- No limit |
| Premium payment term | Limited pay- premium paid for 5 years
Single pay- one time online lump sum payment |
| Policy term | Minimum- 10 years
Maximum- 35 years |
| Premium payment mode | Annual |
| Sum assured | Minimum-
Maximum- no limit |
| Death benefit | Entire sum assured value will be given to the nominee |
Features of the plan:
- Online Purchase: The insurance policy is available for online purchase on LIC’s official website for prospective policyholders. This eliminates the need for any intermediaries or agencies, ensuring complete transparency in all business dealings between the company and the insured.
- Death benefit: Should the insured pass away while the policy’s term is still in effect, the plan will pay the insured’s beneficiary a death benefit. This monetary benefit is equivalent to the whole sum assured that the insurance provider will pay.
- Preference for premium rates: The plan has a preference provision that allows non-smokers to choose lower premium amounts than smokers.
LIC New Jeevan Mangal
| Features | Description |
| Entry Age | Minimum-18 years
Maximum- 55 years |
| Maturity Age | Maximum of 65 years |
| Premium | Minimum- depends on factors decided by insurer
Maximum- No limit |
| Premium payment term | Regular pay- Premium to be paid throughout the policy term
Single pay- one lump sum payment of premium |
| Policy term | Single pay premium- 5 to 10 years
Regular pay premium- 10 to 15 years |
| Premium payment mode | Single, annual, semi-annual, quarterly and monthly |
| Sum assured | Minimum- Rs 10,000
Maximum- Rs 50,000 |
| Maturity benefit | Sum assured on maturity that is 110% of premiums paid |
| Death benefit | Entire sum assured value will be given to the nominee that is 105% of all premiums paid for regular pay and 110% of all premiums paid for single pay |
| Accidental Death Benefit | Additional sum assured over the base sum assured |
Features of the plan:
This micro-insurance plan offers an accidental death benefit that offers to return the premiums paid on maturity.
LIC Term Insurance: Exclusions to the term plans
- Claims will not be released in cases of suicide of the policyholder if the policy was less than 12 months old.
- If it is more than 12 months old, LIC will pay 80% of the claim amount to the beneficiary.
- No claims for the sum assured will be entertained.
LIC term insurance: Application process
The Tech Term Plan from LIC is an online plan that can be purchased directly from the company’s website. But you can purchase LIC’s Jeevan Amar and Jeevan Anmol II plans directly from the firm or via one of its branches. Additionally, LIC offers online purchasing options so that you can acquire the company’s plans through LIC’s website. To get what you require, you should verify whatever plans are available online.
LIC Term Insurance: Documents required
- Original policy document
- Death certificate of the policyholder
- The claim forms A or form no. 3783.
- A NEFT mandate to allow LIC to transfer the amount to your bank account.
LIC Term Insurance: Processing of claims
The process listed below can be used to resolve death claims under LIC term plans:
- The nominee must notify LIC of the insured’s passing. The branch where the policy was purchased should receive this notice. You can contact LIC’s customer service line to inform them of the death claim if you have an online policy.
- The nominee should next access Form 3783, Claim Form A, and download and complete it.
- The form should subsequently be delivered to LIC together with the insured’s municipal corporation-issued death certificate.
- LIC would examine the claim form and any supporting documentation provided before paying the nominee for the death claim.
LIC term insurance: Riders provided by LIC
With its insurance products, LIC provides a variety of riders. The breadth of coverage provided by the plan is expanded by these riders, which are priced more expensively. The following are the available riders:
Accidental Death Benefit Rider for LIC
Unit linked insurance policies from LIC come with this rider. If the insured passes away in an accident while the plan is in effect, the rider pays an additional sum assured.
Accidental Disability and Death Benefit Rider for LIC
This rider is supplied by LIC with its conventional life insurance plans. Accidental death and disability are covered under the rider. An additional sum assured is paid in the event that the insured dies in an accident. Alternatively, an additional sum promised would be paid in instalments over a ten-year period if the insured experienced a permanent disability as a result of the accident.
Accident Benefit Rider for LIC
Only accidental deaths are covered by this rider during the plan’s term. In the event of the insured’s accidental death within the policy’s term, an additional sum assured is paid.
Critical Illness Benefit Rider for LIC
This critical illness rider protects against 15 serious illnesses. The rider sum insured is paid right away if the insured is found to have one of the 15 illnesses that are covered.
New Term Assurance Rider from LIC
A further sum assured would be paid under the rider if the insured passed away during the policy’s term for whatever cause.
LIC Term Insurance: Benefits of LIC term plans
- There are flexible options available in terms of term, cover amount and premium payment.
- Customers can avail of certain tax benefits under the relevant sections of the IT act.
- Some plans are interconvertible.
- LIC has the best claim settlement ratio of over 98%.
- Its insurance plans can be brought online as well.
- It also offers rebates on premiums under certain circumstances.
LIC Term Insurance: Claiming LIC term insurance
- Collect the documents required and submit them at the LIC office.
- The documents are then verified by the LIC authorities.
- The claimant will be the beneficiary.
- Once verified, the claim amount is released.
LIC Term Insurance: Things to consider before getting an LIC term Insurance plan
Here is a list of some guidelines you should have in mind when buying term insurance:
Coverage Amount
The most crucial task is determining how much life insurance is required. There are a tonne of calculators and other resources available online. These calculators determine the amount by taking into account the user’s age, lifestyle preferences, the number of dependents, any outstanding loans, typical monthly expenses, and the rate of inflation. An impartial financial advisor can likewise be used for the same purpose.
Period of Policy
The next crucial decision is the policy term. When purchasing insurance at a young age, it is best to get the longest possible policy term. As a result, the premium will remain relatively modest for the whole term of the insurance.
Online/Offline
The company or agents can be used to purchase insurance. A different option is to visit the websites of insurance aggregators, who offer comparable quotations for the same level of coverage and term. Aggregators and direct platforms often give a smaller premium.
Record of Insurance Providers
It is crucial to take into account elements like the insurance provider’s history, client feedback, claim settlement percentage, and financial stability. Additionally, one should place more emphasis on the company’s customer-centricity with regard to sales, service, and payment alternatives.
Purchase Age
Since most dependents would be financially independent by the time one reaches retirement age, one does not need to get an insurance policy for a period that extends past that age. The premium for an insurance policy purchased earlier in life is typically lower than that of a policy purchased later.
LIC Term Insurance: How to contact LIC?
LIC Call Centre: 022 6827 6827; Monday to Friday: 8 AM to 8 PM; Saturday: 10 AM to 6 PM
Registered Address
Yogakshema Building, Jeevan Bima Marg, P.O Box No- 19953, Mumbai- 400 021.
FAQs
What different benefits are offered by the LIC plans?
The death benefits and add-on benefits of each LIC term plan vary according to the riders selected, but the basic benefits permit the payout of the sum assured in a lump payment.
What is the LIC Term Plans' bare minimum amount assured?
The New Jeevan Mangal Plan offers the Rs 10,000 minimum sum assured under the various term plans from LIC.
Can one receive premium rebates?
There are term plans from LIC that offer non-smokers and women preferential discounts on premiums.
