LIC Term Plan – Types & Benefits of LIC Term Insurance Plans

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LIC Term Plan: Are you thinking to invest in Insurance plans? Are you confused which LIC Term Plan will be suitable for me or for my family? Don’t worry, we are here to provide you a detailed list of all the LIC Term Plans so that you can easily decide which term plan is suitable for you. For those who don’t know about LIC, I will provide you short intro about LIC and then will provide you a detailed list of LIC Term Plans.

LIC Term Plan
LIC

LIC Term Plan

LIC stands for Life Insurance Corporation of India and it is the Indian State-owned Insurance company and Investment company which is headquartered in Mumbai. LIC is the largest insurance company in India with a total asset value of Rs 1,560,482 crore. It was started way back in 1956 when Parliament of India passed the Life Insurance of India Act. Among 28 Insurance companies, LIC possesses the major market share. LIC has huge customer base more than 250 million users and it provides amazing services to all the customers.

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What are LIC Term Insurance Plans?

All the LIC Term Insurance Plans offers security to all the individuals at low cost. All these plans provide numerous benefits if the policyholder dies during his/her tenure plan. The plan doesn’t provide any maturity value if the person survives till the end of his plan. There are various plans which are cheap and they provide high coverage at lower rates of premiums. These all plans are referred as basic plans as they provide only insurance at the death of the person but doesn’t provide maturity value.

Why select LIC Term Insurance Plans?

All these Term Insurance Plans are been opted by the people despite off there is no maturity benefit. The reason behind buying the LIC Insurance plan is it’s high coverage levels at very low premiums. By purchasing an Insurance plan, all the people can secure their family against any odds which they might suffer in absence of the plan. As the company provides cheaper rates of all the premiums, anyone can invest in the plans and take benefit from them.

Benefits of LIC Term Insurance Plans

  • LIC is the oldest and most reliable Insurance company in India.
  • It allows all the customers to buy certain plans from home as per their requirement.
  • The company provides benefits to all customers under all the applicable sections of the IT Act, 1961.
  • Also here, you can convert some plans to other plans in regards with LIC.

When should you opt for LIC Term Plan?

You should buy the term plan as early as possible. Besides, it is better to purchase a term plan as it ensures the policyholder to cover the plan for a longer period of time. Besides this, all the term plans are available at a cheaper price, anyone can purchase the plan.

Why should one buy LIC term plan at an early stage in life?

There are mainly two reasons to buy LIC Term Plan. They are as follows:

1. Health: A younger person is always healthier as compared to the old person. The premium is mainly levied from term plan depends highly on the Age and health of a person. The younger the person, the lesser the premium. Due to this, buy term plan at an early stage in life.

2. Saving: When you invest at an early stage in life, you are not worried about saving money for your family members and others. By purchasing early, you can spend your rest money in buying property, saving bonds, funds and much more. This will help you a lot in future.

Important Aspects to keep in mind before purchasing Term Plan

Term Insurance is the best and only product available in the Insurance category. A term plan is a primary plan as it only covers the risk of the death. In this plan, on the death of the policyholder, the insurance company pays the sum to his nominees/ beneficiaries. In case the policyholder survives the term, then he/she will not receive anything. Term plan is the cheapest insurance plan out of all premium plans while all others cover the risk of one’s life.

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Important Aspects to keep in mind while purchasing Policy

Coverage

One of the most important things before purchasing insurance is deciding the amount of coverage required. In order to select proper coverage, one has to keep in mind various factors such as lifestyle, policy seekers family lifestyle, family conditions, responsibilities, inflation, etc.

Life-stage and total family members

One has to remember that Term Plan is selected for the welfare of his/ her family members. It is basically taken to secure to the life of the loved ones when they are no longer alive. Thus, one has to choose according to the family members. The members change at different stages in life. The responsible of a single/ Married and Married with children are different. One should select term plan as per their family members.

Balance your Lifestyle

The selected Term plan should be such that it should sustain the life of all the family members in absence of the main earning member of the family. The sum assured in the term plan is the main factor taken into consideration. Besides this, other factors include inflation, rising costs, expenses, lifestyle, etc also play a vital role.

Claim Settlement Ratio

Almost all the term plan buyers are unaware about the claim settlement ratio essential or they just avoid claim settlement ratio. Claim Settlement Ratio is the ratio between the total sum insurance provided to nominee versus the total claim received by the company from the customer. If the settlement ratio is high then the family members will receive the huge amount.

Service Standards and Claim Settlement Process

One of the essential things is that company should have a structured and simplified claim settlement process. Due to this, the company should be able to claim policy as fast as when the policyholder’s family needs the most. This thing is too much essential as all the family members will be suffering from severe pain due to the loss of their family member. The quality of customer support is very good.

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Types of LIC Term Plans

LIC Term Plan
LIC Term Plan

There are total 5 types of LIC Term Plans

  • LIC e-Term
  • LIC LIC Amulya Jeevan – II
  • LIC Anmol Jeevan – II
  • LIC Bhagya Lakshmi
  • LIC New Jeevan Mangal

LIC e-Term

It is the LIC’s Online Term plan which is best suited for the individual. Basic details of the plan are as follows:

Features Description
Entry Age Minimum – 18 years
Maximum – 60 years
Maturity Age Maximum of 70 years
Premium Minimum – Based on the minimum sum assured value and the age of the sum insured
Maximum – No limit
Premium Payment Term Regular Pay – Premium paid throughout policy term (5 years to 35 years)
Policy Term Minimum – 5 years
Maximum – 35 years
Premium Payment Mode Annual and semi-annual
Sum Assured Minimum – INR 2500000
Maximum – No limit
Death Benefit The entire Sum Assured value will be paid to the nominee

LIC Amulya Jeevan-II

This is the classic term plan and is available at all LIC branches. Details are as follows:

 

Features Description
Entry Age Minimum – 18 years
Maximum – 60 years
Maturity Age Maximum of 70 years
Premium Minimum – Based on the minimum sum assured value and the age of the sum insured
Maximum – No limit
Premium Payment Term Regular Pay – Premium paid throughout policy term (5 years to 35 years)
Policy Term Minimum – 5 years
Maximum – 35 years
Premium Payment Mode Annual and semi-annual
Sum Assured Minimum – INR 2500000
Maximum – No limit
Death Benefit The entire Sum Assured value will be paid to the nominee

LIC Anmol Jeevan-II

This is another classic plan by LIC. It is much more similar to Amulya Jeevan-II. Details are as follows:

Features Description
Entry Age Minimum – 18 years
Maximum – 55 years
Maturity Age Maximum of 65 years
Premium Minimum – Depends on policy term and age of the insured subject to sum assured
Maximum – No limit
Premium Payment Term Regular Pay – Premium paid throughout policy term
Policy Term Minimum – 5 years
Maximum – 25 years
Premium Payment Mode Annual and semi-annual
Sum Assured Minimum – INR 600000
Maximum – INR 2400000
Death Benefit The entire Sum Assured value will be paid to the nominee

LIC Bhagya Lakshmi

This plan is basically focused on rural population but it can also be useful for low-income groups. Apart from insurance, it also provides maturity benefit. Details are as follows:

Maximum – subject to a Sum Assured amount of INR 50000

Features Description
Entry Age Minimum – 18 years
Maximum – 55 years
Maturity Age Maximum of 65 years
Premium
Premium Payment Term Limited Pay – Minimum – 5 years
Maximum – 13 years
Policy Term Premium paying term plus 2 years
Premium Payment Mode Annual, semi-annually, quarterly or monthly
Sum Assured Minimum – INR 20000
Maximum – INR 50000
Maturity Benefit Sum Assured on Maturity = 110% of all premiums paid
Death Benefit Total Sum Assured on Death

LIC New Jeevan Mangal

It is a small insurance plan with a death benefit rider which offers to return the insurance paid on maturity.

Features Description
Entry Age Minimum – 18 years
Maximum – 55 years
Maturity Age Maximum of 65 years
Premium Minimum – depends on factors decided by the insurer
Maximum – No limit subject to the Sum Assured amount chosen
Premium Payment Term Regular Pay – Premium paid throughout policy term
Single Pay – One time lump sum payment of premium
Policy Term Single Pay Premium – 5 years to 10 years
Regular Pay Premium – 10 years to 15 years
Premium Payment Mode Annual and semi-annual
Sum Assured Minimum – INR 10000
Maximum – INR 50000
Death Benefit Sum Assured on Death = 105% of all premiums paid for regular pay and 125% of premium for single pay policies

LIC Term Plan FAQs

What are the different modes to pay the premium Offline and Online?

LIC offers various modes to pay premium offline

  • Cash/ Cheque/ DD payment at any branch and cash counters.
  • NEFT
  • Payment via Axis Bank or Corporation Bank
  • Phone Banking
  • AP Online
  • MP Online
  • Easy Bill Pay
  • Life Plus SBA
  • Retired LIC Employee Collection
  • Phone Banking
  • Authorized Service Provider
  • Suvidha Infoserve
  • ECS

LIC also offers Online payment via different modes as

  • Credit Card
  • Debit Card
  • Net Banking

2. How Can I Check the policy status of Life term Insurance plans?

If you are registered online user you can easily check online by logging into the e-Portal.
Another way is to visit the branch and know your Policy Status.

3. What is the renewal process for the LIC term insurance plans?

To renew your policy online, follow the steps as given below:

  • First and foremost, enter your Client ID and Date of Birth to login into the e-portal.
  • Select the LIC Term plan and the payment option.
  • Lastly, print the premium deposit receipt on payment completion.
    You can also pay the amount by visiting your nearest LIC branch.

4. What is the minimum sum assured for LIC term plans?

The Minimum sum assured is Rs 10,000 and is only available under New Jeevan Mangal Plan.

5. What are the minimum and the maximum policy term available under various term plans?

  • LIC has the Minimum term policy of 5 years and Maximum Term policy of 35 years depending on the entry age and maturity age of the life assured.

 

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