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LIC Term Insurance

Ever since its establishment nearly 6 decades ago, the LIC has been a huge market share holder in the insurance industry. The company offers plans to match every requirement of a policyholder.

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

It is a brand which has gained a reputation over the years with flawless and customer centric policies with unmatched benefits and lower rates. Secure your future and that of your family at a lower premium with the most trusted insurance companies in the country.

Why Buy LIC Term Insurance Plan from Coverfox

Expert Advice

We answer all your queries and help you select the perfect LIC term insurance that best suits your needs.

Right Coverage at Low Price

Our endeavour is to provide you the right financial coverage and that too at an affordable premium.

Free Nominee Assistance

Our Nominee Assistance package offers free claims assistance, financial , psychological & legal counselling.

Benefits of buying LIC Term Insurance Plan

  • 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 flexible in the frequency of the premium payment schedule.
  • Variable sum assured options and add on coverage to choose from.
  • Available for everyone from young to old.
  • Gives you the ability to continue your lifestyle when paying premiums.
  • Options to convert one plan to another (not available for all plans).
  • 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).

Types of LIC Term Insurance Plans

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.

The major exclusion on all life term insurance plan is on the suicidal death of the life assured during the policy term. In that case, there is no death benefit paid.

Having said that, if the life assured commits suicide within the first 12 months from the date of inception of the policy or the date of revival of the policy, then there is no payout.

The nominee is eligible for 80% of the premium paid till then. This is again subjected to the confirmation that the premiums have been paid and there are no dues whatsoever on the policy.

Riders Offered by LIC

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

The two riders are:

1. Features of LIC’s New Critical Illness Benefit Plan 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.
Entry AgeMin. 18 years and Max. 65 years
Maturity AgeMax.75 years
Premium Payment ModeLimited pay, Regular pay
Premium Payment FrequencySame as base plan
Min. Sum Assured Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Paying TermRegular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 5 years to (Policy year – 1) years
Policy TermRegular Premium Policies: 5 years to 35 years depending on the policy term Limited Pay: 10 years to 35 years

2. Features of LIC’s New Critical Illness Benefit Plan Rider

  • LIC's New Term Assurance Rider is a pure death benefit rider. At a nominal cost, the policyholder can buy this rider along with any base term insurance plan. 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.

Entry AgeMin. 18 years and Max. 60 years
Maturity AgeMax.75 years
Premium Payment ModeSame as base plan
Premium Payment FrequencySame as base plan
Min. Sum Assured and Max. Sum Assured Rs.1,00,000 Rs.25,00,000
Premium Paying TermSame as base plan
Policy TermSame as base plan

Claim Process - LIC Term Life Insurance

Given that these are death benefits that have to be claimed, you have to follow a structured process and it requires you to fill in certain documentation and submit proofs, etc.

The documents you would need to claim under LIC term insurance plan:

For claiming death benefit, the nominee or claimant of the policy has to submit the following documents:

  • The LIC term insurance policy document.
  • The certificate of death which clearly states the cause of death.
  • These documents have to be accompanied with a mandate that gives LIC permission to transfer the claim amount through NEFT to your account.

Once you have the documents ready, you have to submit them to the office of LIC post, after which verification is carried out on the same. After verifying that the policy has been effective and the claimant is the one mentioned 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 company, you don’t want to be left with one that takes an overly long time to settle the claims. On that thought, you would find that LIC has the best claim settlement ratio among the other term life insurance providers in India.

FAQs – LIC Term Insurance

What kind of LIC term insurance policy should I opt for?

Every LIC term insurance policy has its own benefits and drawbacks. You need to choose the term policy based on your requirements, long term goals and of course your affordability. You have to compare multiple policies and their quotes and match them with your objectives to arrive at the right term plan for you. It also depends on the lifestyle that you want for your family and the number of dependents you have.

Is there any difference in the LIC term insurance premium rates when buying LIC term insurance plan online and offline?

You might find a little variance in the premiums between LIC term insurance plan bought online and offline. You may find buying term insurance plan online much cheaper in comparison. The reasons include the reduction in the cost in the processing of the issuance of term plan.

What if I forget to pay the term insurance premium for a month?

If you don't pay the premium on or before the due date, the company will provide you a grace period of 30 days to make the payment (in case of monthly premiums, the grace period is only for 15 days). If the premium is still not paid in this period, then the policy is considered as lapsed and you have to revive your policy. If you do not revive the policy during the revival period, then the policy is null and void. And there cannot be any claims made on the same in future.

Can I get LIC Term Insurance of Rs.1 crore?

Whether you can buy LIC's term plan with the sum assured of Rs.1 crore depends on your annual income and premium paying capacity. You can use term insurance premium calculator to calculate the premium amount of LIC term plan for a sum assured of Rs.1 crore.

What kind of tax benefits can I have on my LIC term insurance plan?

Like every other term insurance, you can get tax exemptions under the sections 80(C) and 10(10D) of Income Tax Act. All the premiums paid to keep the LIC term insurance in force, is tax deductible. The sum assured received by the nominee is also exempted from tax.

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