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LIC Term Insurance Plan

Hello There! Want to invest in a LIC Term Insurance Plan? Coverfox is the best place to get all the information you need on your favorite Term plans. We have included information about the plan’s features, benefits, and important considerations you need to make before buying your policy.

LIC is the oldest, largest and the most profitable Life Insurance Company in India

LIC, a firmly trusted brand, has the biggest market share in the Indian life insurance industry. Since its inception 60 years ago, the company strives to provide insurance buyers with the best customer-centric plans to fit their every requirement and need. as well as in providing exceptional customer service. At one point in time, LIC was the only insurer that had successfully penetrated the most remote and rural parts of India. With over 250 million customers PAN India, LIC has a wide range of products such as term plans, child plans, health insurance plans, endowment and saving plans, pension plans and ULIPs.

Benefits of Buying LIC Term Insurance Plan

If you’re looking to buy a life insurance plan, always look at the features and benefits you get along with the plan. Buying a LIC life insurance plan gives you unbelievable personal benefits - let’s look at some below:

  • Higher coverage at cheaper rates and lower premiums. Pay even lower premiums if you are a non-smoker.
  • You have the flexibility to choose your Sum Assured amount and it caters to people from 18 years to as high as 75 years.
  • Flexible mode of payments and flexibility in the frequency of the premium payment schedule.
  • Get Riders to boost coverage, with multiple sum assured options.
  • Available for everyone from young to old.
  • Gives you the ability to continue your lifestyle when paying premiums.
  • Plan conversions/Switching (Limited)
  • Can be bought online directly or through intermediaries.
  • Get insured with the very first and the most trusted insurer in India.
  • Best claims settlement ratio of 98% (2015-16).

Important Things to Consider When Purchasing Term Insurance

You play football and cricket following certain rules. So why not buy insurance following a set of rules too? There are crucial factors to be included in every plan. Check out some which we consider important -

  • Cover Provided - This is the most important factor to consider with respect to every term insurance plan. It usually hinges on multiple conditions such as - insured’s age and family dependants, their monthly income, rate of monthly inflation, whether he/she has financial obligations, and many other related factors. This requires an adequate assessment. After this, you will understand your family’s financial needs after your demise and plan accordingly.
  • Claim Settlement Ratio (CSR) - A CSR is a ratio of the claims paid to the policyholders/beneficiaries/nominees by the insurance companies v/s the total claims received from the customers. High CSRs are always good - it shows the company will settle claims in a hassle-free, quick manner. Don’t forget to check all insurers’ CSR ratings on IRDAI.
  • Customer Service - The 24x7 online assistance for term insurance is important in case of an emergency. Also, the standards of service (quality) must be excellent. Customer care executives must be helpful, supportive, and available. Family - Term insurance must be able to provide financial security and cover to every member of your family, irrespective of their life-stage.

  • Standard of living - A term plan must provide adequate cover to meet all of your family’s future expenses in your absence. The rise in the cost of living, inflation, education expenses/ medical treatment are some of the needs where your term plan will come to help.

LIC Term Insurance Plan Exclusions

Like every other insurance plan, LIC term insurance also has certain exclusions under which LIC is not liable to settle the claims.

A notable exception of term insurance is suicide of policyholder during the first policy year. No death benefit is distributed in this case. However, a nominee is eligible for a refund of 80% of the premiums paid, if the policyholder commits suicide within one year of starting the policy.

Mandatory checks are completed to ensure all dues between the policyholder and the insurer have been cleared.

Riders Offered by LIC

LIC offers two special featured packed riders, which you can buy along with any non-linked term insurance plan.

Riders are beneficial to any insurance policyholder as they increase the coverage of your plan and provide added insurance protection. Some of the best riders to take if you have an insurance term plan are:

1 LIC Critical Illness Benefit Rider:

It covers 15 Critical Illnesses, including Cancer of specific severity, Open Chest CABG, Kidney Failure requiring regular dialysis, Stroke, Permanent paralysis of limbs, Blindness, Third-degree burns, Alzheimer’s, etc.

Criteria Eligibility
Entry Age Min. 18 years and Max. 65 years
Maturity Age Max.75 years
Premium Payment Mode Limited pay, Regular pay
Premium Payment Frequency Same as base plan
Min. Sum Assured Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Paying Term Regular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 5 years to (Policy year – 1) years
Policy Term Regular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 10 years to 35 years

2 LIC Critical Illness benefit rider Features:

  • LIC's New Term Assurance Rider is a pure death benefit rider. In case of life assured’s death, the nominee will receive the life cover and rider sum assured. This rider can be bought only at the inception of the base policy.
  • Death Benefit: In case of unfortunate death of the life assured during the policy term, the claimant will receive an amount equal to the rider sum assured, which can be equivalent to the base policy sum assured.
  • Maturity Benefit: There is no maturity benefit.
Criteria Eligibility
Entry Age Min. 18 years and Max. 60 years
Maturity Age Max.75 years
Premium Payment Mode Same as base plan
Premium Payment Frequency Same as base plan
Min. Sum Assured and Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Paying Term Same as base plan
Policy Term Same as base plan

How can I apply for LIC Term Insurance?

There are two ways to apply for a term insurance plan:

Online - LIC’s e-Term Plan is the only insurance plan which is available online through the official portal of LIC.

Step 1 - Register an Account on the site.

Step 2 - Select best fit Plan. Automatic calculation of premium on Coverage and Tenure.

Step 3 - Check details and press ‘Pay Premium’.

Step 4 - Complete payment via Debit card/Credit card/Netbanking facility.

Offline - Those plans unavailable online are available offline. Buy LIC term insurance plans from LIC agents and brokers, banks, etc.

LIC Term Life Insurance Claim Process

To claim a death benefit, you need to follow a strict process, which requires careful documentation and proofs. Though a very long task, the process helps verify real claimants from bogus ones.

The claims process requires a nominee to file a claim while having the following documents ready:

The LIC term insurance policy document.

  • The certificate of death which clearly states the cause of death.
  • These documents have to be accompanied by a mandate that gives LIC permission to transfer the claim amount through NEFT to your account.
  • Submit the documents for verification at the LIC office. After verifying the policy, and the claimant as the nominee, the claim is processed further and the sum assured is transferred to the nominee’s account.

When it comes to choosing the right term insurance policy, you don’t want to be left with one that takes an overly long time to settle the claims. No other term life insurer has a better Claims Settlement Ratio than LIC.

Documents Required for LIC Term Insurance

The documents required for LIC Term Insurance are-

  • Identity proof - Aadhaar, PAN, License, Passport.
  • Age proof - PAN, Birth Certificate, Matriculation Certificate.
  • Address proof - Passport, Aadhaar, Electricity/Gas/Phone Bill, Rental Agreement.
  • Proof of income - Salary Statement, Income Tax Returns.
  • Medical reports - Latest medical report wherever required.

Review of LIC Term Insurance Plan

LIC, being the first insurance company in India, has been a pioneer in the insurance industry with an experience of over 6 decades. Their customized, customer-centric plans help fulfill every insurance buyer’s goal for protection. Without doubt, they’re the best in the industry.

Lic Term Insurance FAQs

LIC Term Insurance FAQs

What is the difference in LIC term plan rates when buying online and offline?

LIC term insurance plans may be cheaper when bought online versus offline. There is a variance in the premiums. This is because of reduced cost in the processing and issuance fee.

How do I get an LIC term Insurance plan with a sum assured of Rs. 1 Crore?

It depends on your ability to pay premiums for the plan from your current annual income. Use our Term insurance plan calculator to assess if you can afford the plan that gives you a Rs. 1 Crore sum assured. Make your decision hassle-free.

What Tax Benefits can I avail on a Term Insurance Plan?

LIC Term Plan premiums and sum assured paid to nominee are tax-exempt under sections 80(C) and 10(10D) of the Income Tax Act, 1961.

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