LIC of India
LIC Digi Term Policy

LIC Digi Term (Plan No. 876)

Securing your family’s future is more important than ever in today’s uncertain world. LIC’s newly launched plan ‘Digi Term’ offers a powerful solution to ensure your loved ones are financially protected in case something unexpected happens to you. As a non-par, non-linked, life insurance policy, LIC’s Digi Term Policy is designed to deliver fixed benefits that provide peace of mind.

The plan focuses on offering a guaranteed ‘Death Benefit’, ensuring your family receives the agreed sum. With no additional benefits like bonuses or shares in surplus, the plan prioritizes clarity, making it an ideal choice for those seeking reliable financial security for their loved ones.

Eligibility Criteria Of LIC Digi Term Plan

ParametersDetails
Minimum Entry Age18 Years (Last Birthday)
Maximum Entry Age45 Years (Last Birthday)
Minimum Maturity Age33 Years (Last Birthday)
Maximum Maturity Age75 Years (Last Birthday)
Policy Term
  • For Regular/Single/Limited Premium of 10 Years: 15 to 40 Years
  • For Limited Premium of 15 Years: 20 to 40 Years
Premium Payment Term
  • Regular
  • Limited Premium of 10 Years
  • Limited Premium of 15 Years
  • Single Premium
Minimum Basic Sum AssuredRs. 50,00,000/-
Maximum Basic Sum AssuredRs. 5,00,00,000

Key Specifications & Benefits Of LIC Digi Term Plan

Here are some of the most important features and benefits of the plan:

Death Benefits:

If you have the policy and you pass away while the policy is active (but before it ends), here’s how the amount your beneficiaries will receive is calculated:

For Regular and Limited Premium Policies:

The payout will be the highest of these three options:

  • 7 times the amount you pay each year.
  • 105% of the total premiums you have paid so far.
  • The guaranteed amount stated in your policy.

For Single Premium Policies:

The payout will be the higher of these two options:

  • 125% of the single payment you made.
  • The guaranteed amount stated in your policy.

Two Death Benefit Options:

The plan offers the flexibility to choose from two death benefit options as listed below:

Option 1: Level Sum Assured

  • Payout Amount: The amount your beneficiaries will get if you pass away is fixed. It will be the same amount as your Basic Sum Assured throughout the entire policy period.

Option 2: Increasing Sum Assured

  • Years 1 To 5: The payout amount stays the same as your Basic Sum Assured.
  • Years 6 To 15: Each year, the payout amount goes up by 10% of the Basic Sum Assured.
  • By Year 15: The payout amount will have doubled compared to your Basic Sum Assured.
  • After Year 15: The payout amount stays constant at twice the Basic Sum Assured for the rest of the policy term, no matter how long the policy lasts.

Options To Get Death Benefits In Installments:

Instead of getting the entire death benefit as one large payment, you can choose to receive it in smaller payments spread out over time. You can choose to distribute these payments over 5, 10, or 15 years.

You can also select how often you want to receive these payments: once a year, every six months, every 3 months, or every month. There are minimum amounts you must follow for each payment frequency as shown below:

Mode Of Installment PaymentMinimum Installment Amount
MonthlyRs. 5,000
QuarterlyRs. 15,000
Half-YearlyRs. 25,000
YearlyRs. 50,000

Premium Payment:

You can pay your premium in 3 ways:

  • Regular Premium: Pay regularly for the full term of the policy.
  • Limited Premium: Pay for a shorter period, but the policy lasts longer.
  • Single Premium: Pay once for the whole policy.

For Regular and Limited Premiums, you can pay once a year or every six months. The amount you pay depends on your age when you start the policy, whether or not you smoke, your gender, the policy duration, and more.

For Single Premium, the minimum amount you can pay is Rs. 30,000. Whereas, for Regular and Limited Premiums, the minimum amount is Rs. 3,000.

Grace Period:

If you miss paying your yearly or half-yearly period, you get an extra 30 days to pay it without losing your policy. During this period, your policy stays active and you are still covered by the insurance as if you had paid on time.

Higher Sum Assured Rebate:

The policy also offers a ‘Higher Sum Assured Rebate’ as an attractive benefit to its policyholders. This means if you choose a larger sum assured (the amount your beneficiaries will receive if you pass away), this LIC plan rewards you with a discount on your premium.

The higher the coverage you opt for, the more you save on your premium payments. This rebate encourages policyholders to secure higher coverage for their loved ones, providing better financial protection at a lower cost.

Free Look Period:

If you get your policy and decide you don’t like it or it’s not what you expected, you can return it. You have 30 days from when you receive the policy document to return it.

Just tell the company that you are not satisfied with the policy and they will cancel your policy. They will also give you back most of the money you paid, but they will keep a small amount for the time you were covered, any medical exams, and stamp duty charges.

Sample Premium Illustration Of LIC Digi Term

We have examples of premiums of the plan for two types of coverage. These examples are based on a Basic Sum Assured of Rs. 50 lakhs for a non-smoker, healthy male. Here are the different premium amounts for various payment options:

Option 1: Level Sum Assured:

Age (Last Birthday)Policy TermRegular Annual Premium (In Rs.)Annual Premium for Limited Premium Paying Term of 15 Years (In Rs.)Annual Premium for Limited Premium Paying Term of 10 Years (In Rs.)Single premium (In Rs.)
202036004100520037750
302047005400695050850
402094001085014050104900

Option 2: Increasing Sum Assured:

Age (Last Birthday)Policy Term (In Years)Regular Annual Premium (In Rs.)Annual Premium for Limited Premium Paying Term of 15 Years (In Rs.)Annual Premium for Limited Premium Paying Term of 10 Years (In Rs.)Single Premium (In Rs.)
202046505350685050100
302066007650985072950
4020144001675021700163250

Functioning Of LIC Digi Term Plan

Let’s understand the basic functioning of the plan with the help of an example!

Let’s assume:

  • Mr. Ramesh’s Age: 30 Years
  • Basic Sum Assured: Rs. 10,00,000
  • Annualized Premium: Rs. 10,000 (Regular Premium Payment)
  • Total Premiums Paid: Rs. 30,000 (After 3 Years)

In case Mr. Ramesh passes away after 3 years, his family will get the highest of:

  • 7 X Annualized Premium: 7 X Rs. 10,000 = Rs. 70,000
  • 105% of Total Premiums Paid: 105% of Rs. 30,000 = Rs. 31,500
  • Absolute Amount Assured to be Paid on Death: For both Option 1 and Option 2, the beneficiary will receive Rs. 10,00,000

Since Option 2 increases the Sum Assured after 5 years, the amount will remain Rs. 10,00,000. The death benefit payable in this case will be Rs. 10 lakhs because it is the highest amount of all.

What’s The Application Process For LIC Digi Term Plan?

To purchase the policy, kindly follow the below-mentioned steps:

  1. Visit the official LIC website.
  1. Click on “Buy Online” at the top right of the page.
  1. Under “WHAT INSURANCE ARE YOU LOOKING FOR?”, select “Term Insurance Plans”.
  1. Choose “LIC’s Digi Term Plan” and click “Know More”.
  1. A pop-up will appear; click “Ok” to be redirected to an external link.
  1. Have the following documents ready:
    • Income/Investment Proof (PDF Format, Max 1MB)
    • Self-Cancelled Cheque (PDF Format, Max 1MB)
    • Communication Address Proof (PDF Format, Max 1MB)
    • Birth Certificate (For Minors Only, PDF Format, Max 1MB)
    • Photograph (JPEG Format, Max 1MB)
    • Offline e-KYC Instructions
  1. Enter your basic details, such as your name, date of birth, email address, and annual income, then click “Proceed”.
  1. Review the quote and make the payment.
  1. Save the policy documents once received.

Suicide Exclusions Under LIC Digi Term

Here are the suicide exclusions under the LIC Digi Term Plan:

For Regular/Limited Premium Policies

  • If you die by suicide within a year after starting or reviving the policy, your beneficiaries will get back 80% of the total premiums you paid so far.
  • They won’t get extra payments like extra premiums, rider premiums, or taxes.
  • If the policy is not active (lapsed), nothing will be paid out.

For Single Premium Policies

If you die by suicide within a year after starting the policy, your beneficiaries will get back 80% of the single payment you made. They won’t get extra payments like extra premiums, rider premiums, or taxes.

Frequently Asked Questions

If you don’t pay your premiums within the 30-day grace period, your policy will lapse, meaning it will no longer be active. However, you can still revive it within 5 years from the date you missed your premium payment, as long as it’s before the policy’s maturity date.

To revive a lapsed policy, you need to do so within 5 years from the date of the first unpaid premium and before the policy matures. You may need to pay any overdue premiums along with any additional charges or fees that apply.

No, this policy does not offer a paid-up value. If you stop paying premiums, the policy will lapse and no paid-up benefits will be available.

No, this policy does not allow you to take a loan against it.

If any false or incorrect information is found in your application or related documents, the policy will be considered void. You will not be entitled to any benefits under the policy.

To avoid having your policy voided, make sure to provide truthful and complete information in your application and all related documents. Avoid withholding any material information to ensure your policy remains valid and you can receive any benefits.

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