Established in the year 1956, the Life Insurance Corporation of India (LICI) is the oldest and the largest life insurance company in the market. LIC is owned by the Government of India and enjoys complete trust in the minds of its customers. It offers a range of life insurance plans which aim to fulfil every financial need of an average individual. The plans offered by the company have attractive coverage benefits and the premiums are also affordable. Term insurance plans are among the most popular life insurance plans offered by LIC. Let’s understand the concept of term insurance and have a look into the different types of LIC term plans offered by the company.
A term insurance plan is the simplest and the most basic of life insurance plan. It covers the risk of death during the policy term for a fixed sum assured. If the insured dies during the chosen term of the plan, the sum assured is paid and the policy comes to an end.
Term plans are characterized by the following salient features –
Term insurance plans provide unparalleled financial protection to you and your family. The plan is a must because of the following benefits which the plan provides –
Term plans should be bought early on in life when you are young. As you are young, the premiums would also be low and you would be able to buy the plan easily without medical check-ups. Also, when you buy young, you can get covered from an early age and get financial security.
LIC term plans
LIC offers three different types of term insurance plans. Let’s have a look at them –
This is a newly launched online term insurance plan which you can easily buy online from the website of the company. The salient features of the plan are as follows –
Eligibility parameters of LIC’s Tech Term Plan
Entry age |
18 years to 65 years |
Policy term |
10 years to 40 years |
Available sum assured |
Minimum – INR 50 lakhs Maximum – no limit |
Premium payment term |
Single premium – once Limited premium – 5 or 10 years less than the chosen term Regular premium – equal to the policy term |
Sample premium rates for LIC’s Tech Term Plan
Here is a chart showing the sample premium (excluding GST) payable at different policy parameters for the given assumptions –
Age of the insured |
Level sum assured coverage option |
Increasing sum assured coverage option |
||||
Regular premiums |
Limited premiums for policy term – 5 years |
Single premium |
Regular premiums |
Limited premiums for policy term – 5 years |
Single premium |
|
30 years |
INR 7216 |
INR 8360 |
INR 87,120 |
INR 10,350 |
INR 12,060 |
INR 124,920 |
40 years |
INR 13,770 |
INR 16,110 |
INR 166,230 |
INR 21,252 |
INR 24,932 |
INR 256,036 |
This is a pure term insurance plan which pays only a death benefit if the insured dies during the policy tenure. The plan also allows flexibility in premium payments as premiums can be paid regularly, for a limited premium or at once. Other notable features of the policy are as follows –
Eligibility parameters of LIC’s Jeevan Amar Plan
Entry age |
18 years to 65 years |
Policy term |
10 years to 40 years |
Available sum assured |
Minimum – INR 25 lakhs Maximum – no limit |
Premium payment term |
Single premium – once Limited premium – 5 or 10 years less than the chosen term Regular premium – equal to the policy term |
Sample premium rates for LIC’s Jeevan Amar Plan
The sample premium rates (excluding GST) which are payable at different coverage options are shown below. These premiums have been computed considering the following assumptions –
Age of the insured |
Level sum assured coverage option |
Increasing sum assured coverage option |
||||
Regular premiums |
Limited premiums for policy term – 5 years |
Single premium |
Regular premiums |
Limited premiums for policy term – 5 years |
Single premium |
|
30 years |
INR 5940 |
INR 6952 |
INR 60,088 |
INR 8415 |
INR 9900 |
INR 94,095 |
40 years |
INR 11,475 |
INR 13,545 |
INR 127,395 |
INR 17,664 |
INR 20,838 |
INR 195,868 |
This is also a pure protection term insurance plan which has no maturity benefit but pays a lump sum death benefit in case of premature death. The features of the plan are as follows –
Eligibility parameters of LIC’s Anmol Jeevan II Plan
Entry age |
18 years to 55 years |
Policy term |
5 years to 25 years |
Available sum assured |
Minimum – INR 6 lakhs Maximum – INR 24 lakhs |
Premium payment term |
Equal to the plan term |
Sample premium rates for LIC’s Anmol Jeevan II Plan
Here is a chart of sample premiums (excluding GST) payable at different ages and policy durations if the following assumptions are taken into consideration –
Age of the insured |
Term 10 years |
Term 15 years |
Term 20 years |
Term 25 years |
20 years |
INR 3135 |
INR 3135 |
INR 3240 |
INR 3465 |
30 years |
INR 3555 |
INR 3975 |
INR 4530 |
INR 5310 |
40 years |
INR 6150 |
INR 7605 |
INR 9045 |
INR 10,575 |
Under all the above-mentioned term insurance plans offered by LIC, suicides are not covered. If the insured dies due to suicide within 12 months of buying the policy or within 12 months of reviving a lapsed policy, the death benefit is not paid. In such cases, 90% of the single premium paid or 80% of the aggregate premiums paid till death would be refunded and the policy would be terminated.
LIC offers a range of riders with its insurance plans. These riders come at an additional premium and increase the scope of coverage offered by the plan. The riders which are offered are as follows –
This rider is available with LIC’s unit linked insurance plans. The rider pays an additional sum assured if the insured dies in an accident during the term of the plan.
This rider is available with traditional life insurance plans offered by LIC. The rider covers accidental death and disability. If the insured dies in an accident, an additional sum assured is paid. Alternatively, if the insured suffers permanent disability due to an accident, an additional sum assured would be paid in instalments over 10 years.
This rider covers only accidental death during the plan term. An additional sum assured is paid if the insured suffers accidental death within the policy tenure.
This is a critical illness rider which covers 15 major illnesses. If the insured is diagnosed with any of the 15 covered illnesses, the rider sum insured is paid immediately.
If the insured dies during the term of the policy due to any reason, an additional sum assured would be paid under the rider.
LIC’s Tech Term Plan can be bought online from the company’s website directly as it is an online plan. LIC’s Jeevan Amar and Jeevan Anmol II policies, however, can be bought from a LIC agent or from the branches of the company itself. LIC also allows you online purchase facilities wherein the plans of the company can be bought online through LIC’s website. You should, however, check which plans are offered online to buy what you need.
The following documents would be required if you want to buy LIC term plans –
Death claims under LIC term plans can be settled if you follow the below-mentioned process –
You can also make a death claim through Turtlemint if you have bought the term insurance plan from Turtlemint’s website. Turtlemint has an independent claim handling department which takes care of the claim process on behalf of Turtlemint’s customers. You just have to inform Turtlemint at 1800 266 0101 or by sending a mail at claims@turtlemint.com and the company would get your term insurance claims settled.
Besides the claim form and the death certificate, the following documents would also have to be submitted for the settlement of a death claim –
Premiums for LIC term plans can be paid annually, monthly, quarterly or half-yearly depending on the plan that you choose.
Yes, you can pay premiums online through the company’s website or through your credit card, debit card, authorized banks, etc.
No, term plans are pure protection plans which cover only the risk of premature death. As such, these plans have no surrender benefit.
Yes, you can cancel the plan after buying it. LIC term plans offer a free-look period of 15 days from the date the policy is issued. During these 15 days, you can cancel the policy and get your premiums refunded back to you.