- About Coverfox
A term insurance policy acts as a guardian for the family in the unforeseen demise of the policyholder. It enables his/her family to cope with the emotional turmoil due to the sudden loss of a loved one and serves as a stable source of income in their absence.
LIC, a public sector insurance company, is the oldest insurance company of the country. It is renowned for maintaining the highest claim settlement ratio for more than 3 consecutive years.LIC e-Termis one of its most acclaimed term insurance policies, among its wide range of product offerings. LIC e-Term plan is a pure insurance policy, which means that it offers Death Benefit only, i.e. the payment of the pre-determined sum assured to the beneficiary on the policyholder’s death. If the policyholder survives through the LIC e-Term plan tenure, the beneficiary shall not be paid anything as the Maturity Benefit.
LIC e-Term planoffers comprehensive coverages of varying amounts as per the requirement of the proposer, as we will discuss later here. The minimum sum assured that LIC e-Term plan offers is Rs.25 lakh for an aggregate category, while for a smoker it is Rs.50 lakh. LIC e-Term plan is a basic online term plan, ensuring customers the convenience and flexibility of purchasing it across geographical boundaries. This also implies that you don’t need the services of LIC agents and intermediaries to enable you to purchase the LIC e-Term plan. This regular premium paying non-participating online term insurance plan assures your family of financial stability, even when you are not around to provide for them.
All you need to do to be eligible for buying a LIC e-Term plan is hold an Indian citizenship, belong to the age of bracket of a minimum of 18 years and a maximum of 60 years and should have a stable source of income. The LIC e-Term plan is also available on a minimum policy term of 10 years and premium payment is applicable annually.
LIC e-Term Plan offers customized premium payments for:
Non Smokers as they have a greater probability of enjoying higher longevity, making a low risk applicant
Females live longer, making them eligible for comparatively lower premiums than male applicants
Non-participating and traditional term insurance plan
Offers only Death Benefit and does not include Maturity Benefit
The beneficiary can avail the Death Benefit on the policyholder’s demise
LIC e-Term Plan includes the following benefits:
High sum assured starting from a minimum of Rs.25 lakh for Aggregate Plan and Rs.50 lakh for Non Smokers
Offers policyholders the flexibility to choose a policy term of a minimum of 10 years and a maximum of 35 years
The policy offers coverage till the age of 75 years
Includes tax benefits on premium payments and sum assured under Section 80C and Section 10(10D) of the Income Tax Act, 1961, respectively
|Plan Tenure||Minimum - 10 years|
Maximum - 35 years
|Sum assured||Minimum - Rs.25 lakhs for Aggregate category and Rs.50 lakhs for non-smokers|
Maximum - No limit
|Annual Premium||Based on the sum assured and application category|
|Premium payment mode||Annual with a grace period of 30 days|
|Covers||- Policy tenure applicable till the age of 75 years|
- The policy will lapse if premiums are not paid within the grace period
- Policy can be renewed within 2 years from its lapse
- If the insurance plan is returned during the Free Look period, the premium paid will be returned without charges being levied for expenses towards stamp duty
|Add-on Riders||Term Assurance Rider|
- Coverage can be increased from a minimum of Rs.1 lakh to a maximum of Rs.25 lakhs
- Premiums paid will include the premium for parent policy
|Surrender Value||Surrender Value is not offered on LIC e-Term Plan|
|Free Look Period||30 days|
Sample Premium Rates: The sample premium rates (exclusive of taxes) are as under:
For Aggregate Category
|Annual Premium rates per Rs. 1000 Sum Assured|
|Age(yrs.)||Term of the policy(years)|
Non Som-smoker category
|Annual Premium rates per Rs. 1000 Sum Assured|
|Age(yrs.)||Term of the policy(years)|
The documents required for LIC e-term are as follows-
Application Form/Proposal Form, duly filled up and submitted by the applicant
Details of medical history
Proof of Address (PoA) – Aadhaar Card, PAN Card, Voter ID, Driver’s License
KYC (Know Your Customer) Documents
Medical and diagnostic tests (if deemed necessary by LIC) based on the applicant’s age, medical history and sum assured
Grace period:Offers a grace period of 30 days after the stipulated due dates for premium payments. This feature implies that when a policyholder is unable to make a premium payment within the pre-determined due date, he/she can make the payments within the grace period. Non-payment of premiums within the grace period leads to the termination of the policy.
Policy Termination and Surrendering Benefits:Surrender Benefits are not applicable for LIC e-Term Plan.
Free look Period:LIC e-Term plan offers a free look period of 30 days. This means that a policyholder, on purchasing a LIC e-Term plan, gets a free look period to review his/her decision of continuing with the plan after reviewing its features and benefits. In case he/she decides to discontinue, the premiums paid till then will be refunded after the applicable deductions.
Death Benefit– The beneficiary/nominee under the policy will receive the pre-determined sum assured on the unforeseen death of the policyholder during the policy term.
Maturity Benefit– LIC e-Term Plan does not offer any Maturity Benefit.
Exclusions:Suicide committed during the first policy term from the date of purchase of the policy or its renewal is excluded under LIC e-Term plan. In such circumstances, LIC does not entertain any claim except a maximum of 80% of the premiums paid till the date of death, excluding any taxes and/or extra premium, that maybe applicable.
Loans:No loans are available against LIC e-term plans.
When a policyholder makes a claim against a LIC e-Term plan on the death of the policyholder, the Corporation will ask for the following documents to be submitted:
The below are the additional forms that may have to be filled up while making a claim in case of the policyholder’s demise within three years from the date of risk or from date of revival/reinstatement.
Claim Form B- Medical Attendant's Certificate to be completed by the Medical Attendant of the deceased during his/her last illness .
Claim Form B1– In case the life assured had received treatment in a hospital .
Claim Form B2– To be filled by the relevant Medical Attendant who had treated the deceased during his/her last illness.
Claim Form C- Certificate of Identity and burial or cremation, duly signed by a person of known character and responsibility.Claim Form E- Certificate by Employer, in case the life assured was an employed individual.
After verifying the authenticity of the documents submitted, LIC pays the pre-determined death benefit to the beneficiary.
Life Insurance Corporation of India (LIC)is the first and the oldest life insurance company in India. The range ofterm insurance plansfrom this state-owned insurance group caters to the varied insurance needs of their extensive customer base. These insurance plans, known for their affordable premiums, make the nominee eligible for a sum assured on the policyholder's demise during the policy tenure. This ensures financial security for the family even after the policyholder's absence. LIC e-Term plan further adds to the convenience of customers as they are available online. Not just these, a healthy claim settlement ratio adds to the reliability of LIC e-Term plan.
Is it necessary to undergo medical tests to purchase LIC e-Term Plan?
It is not compulsory to undergo medical tests for purchasing LIC e-Term plan. Requirement for medical test depends on the sum assured chosen and discretion of the underwriter. If asked for, these tests usually include basic diagnostic tests like blood test, urine test, etc.
What is Cooling-off Period?
LIC e-Term plan offers a Cooling-off Period of 30 days after the pre-determined due date for premium payments. This feature implies that when a policyholder is unable to make a premium payment within the pre-determined due date, he/she can make the payments within the grace period. Not paying within the grace period attracts penalty. The cooling-off period is also referred to as free-look period.
What is Grace Period?
LIC e-Term plan offers a grace period of 30 days after the due date for premium payments. In case of the policyholder’s inability is to make a premium payment within the pre-decided due date, he/she can make the payments within the grace period. Non-payment of premiums within the grace period leads to the termination of the policy.
Can the premium for LIC e-Term Policy change?
No, the premiums for LIC e-term plan cannot change.
Does LIC E-term covers accidental death?
Yes, LIC e-Term covers accidental death.