• Term Life
  • Investment

LIC e-Term Plan

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-Term is 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 plan offers 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: Key Features

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: Benefits

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

LIC e-Term Plan: Product Details

Age Eligibility18 years to 60 years
Plan TenureMinimum - 10 years
Maximum - 35 years
Sum assuredMinimum - Rs.25 lakhs for Aggregate category and Rs.50 lakhs for non-smokers
Maximum - No limit
Annual PremiumBased on the sum assured and application category
Premium payment modeAnnual 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 RidersTerm 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 ValueSurrender Value is not offered on LIC e-Term Plan
Free Look Period30 days

LIC e-Term Plan: Details about Premium

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)
200.920.920.931.00 1.11
402.022.48 3.003.564.19
504.865.726.73 7.90-

Non Som-smoker category

Annual Premium rates per Rs. 1000 Sum Assured
Age(yrs.) Term of the policy(years)
200.630.630.650.70 0.79
401.481.842.25 2.693.18
50 3.67 4.345.136.06 -

LIC e-Term Plan: Documents Required

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

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