Term insurance is a type of life insurance policy that provides coverage for a certain period, such as 30 years. Term insurance plans are considered to be one of the most important types of life insurance plans that one should buy in today’s time. If the insured dies during the time period specified in a term policy and the policy is active, then a death benefit will be paid. Term insurance is an excellent choice for many people because it’s usually quite affordable, especially when you’re young and healthy. It’s a way to ensure that your family won’t struggle financially if you’re not around to provide for them.
When we are talking about term insurance plans, we cannot avoid the names of Life Insurance Corporation of India and ICICI Prudential Life Insurance Company because these two insurers offer different term insurance plans with a number of variants so that the policy-seekers can choose according to their wish to secure their future. Their term insurance plans not only offer death benefits but also offer several other benefits such as maturity benefits, surrender value, and many more. To know more about them, have a look at the following mentions.
Comparison Between LIC Term Insurance and ICICI Prudential Life Term Insurance Plans
The following table gives you a brief idea about these two plans and their differences.
|Parameters||LIC Term Assurance Plans||ICICI Prudential Life Term Insurance plans|
|Number of plans|
LIC’s Saral Jeevan Bima
LIC’s Jeevan Kiran
LIC’s New TECH TERM
LIC’s New Jeevan Amar
ICICI Pru iProtect Smart
ICICI Pru iProtect Smart – Smart Protect Option
ICICI Pru iProtect Return of Premium
ICICI Pru Protect N Gain
|Premium payment options||Regular Premium, Limited Premium, and Single Premium payment options. In the case of Regular Premium and Limited Premium payment options, the premium can be paid regularly during the premium paying term with modes of premium payment Yearly, Half-yearly, or Monthly||Monthly, quarterly, or yearly payment|
|Minimum entry age||18 years||18 years|
|Tax benefit||Available||Available under Section 80C of The Income Tax Act, 1961. The term insurance payouts on maturity are also exempt from tax subject to conditions under Section 10(10D)|
Level Sum Assured
Increasing Sum Assured
Combination of both
|Maturity benefit||Available, not for all plans||Available|
|Critical illness coverage||Not available||Available with ICICI Pru iProtect Smart for an additional premium|
|Premium amount||Affordable||On a bit higher end|
|Option to get whole life insurance till the age of 99||Not available||Available with ICICI Pru iProtect Smart Plan|
|Rider options||Yes, available at an additional cost||Available after paying an extra premium amount|
|Loan facility||Not available||As per the guidelines of the IRDAI, term insurance policies are not eligible for loans.|
|Return of premium benefit||Available||Yes, available|
|Policy term||5 years to 40 years||Varies from one plan to another, but usually 5 to 40 years|
|Accidental death benefit||Payable with an additional premium||Yes, available|
About Life Insurance Corporation of India Term Insurance Plans?
Though this journey of LIC started over six decades ago, they are still ruling for the past 65 years when it comes to life assurance plans, specifically the term plans. Their policy term usually ranges from 5 years to 40 years. The death benefit for the term policies of this company can be taken in installments such as monthly. Half-yearly, quarterly, and yearly. The grace period of 30 days is available with all the term assurance plans of the company. the corporation also offers the facility to revive a lapsed term policy so that the policyholders do not face any loss. For those who wish for a quicker and tech-savvy approach, some plans can be purchased over LIC’s portal as well.
Benefits of LIC Term Assurance Plans
The following are the benefits.
Affordable Premiums: LIC term plans allow you to protect your loved ones at affordable premiums. You can invest in higher sum assured term insurance plans without worrying about your existing budget.
Special Discounts: Your lifestyle habit, like smoking, can help you avail of discounts on LIC term life insurance plans. This means the LIC provides special discounts to non-smokers. Additionally, low-premium rates are offered to female policyholders.
Rider Benefit: The policyholders of LIC term insurance plans can enjoy enhanced coverage by purchasing riders with their base term plan. You may have to pay an additional premium to buy additional protection.
Tax Benefits: Under Section 80D of the Income Tax Act of 1961, the premium paid for the term insurance plan provided by LIC is eligible for a tax deduction.
Simple to understand – The term assurance plans feature simple terms and conditions and can be easily availed through minimal or no paperwork. These plans can be bought very easily and are simple to understand.
Online facilities – To keep pace with the growing demand of digitalization, LIC has come up with different online facilities, such as one can buy a few of the term plans online and paying the premium online without standing in long queues.
24×7 customer support – The company has 2048 official branches, 1580 satellite offices, and 13,47,325 registered agents spread all over the country. Therefore, if anyone needs any assistance from the Corporation, one can always find the company beside him/her.
Flexibility – With this insurer, one can get the flexibility to choose from two benefit options: Level Sum Assured and Increasing Sum Assured (for New TECH TERM Plan only), and the flexibility to choose the premium payment option, policy term option, etc. Therefore, one can curtail the policy as per his/her wish.
Know about the term plans of ICICI Prudential Life Insurance
The term plans of ICICI Prudential Life Insurance Company have come up with more than ten fund options to invest in. ICICI Pru iProtect Return of Premium plan offers further options to customize your plan. survival benefit and income benefits are also paid by the terms plans of the company. apart from visiting the official branch of the company, one can get connected to the insurer in multiple ways. So, whenever you need an insurer, you will always find it by your side. New innovations to their term plans and their customer-friendly approach are making those plans popular among policy-seekers.
Major Highlights of Term Insurance Plans Offered By ICICI Prudential Life Insurance
The benefits of the ICICI Pru term insurance plans of this insurer are as follows.
Long-term protection – The term plans of this insurer offer long policy tenures of up to 40 years that allow you to protect your family members for a long time.
Liability protection – The sum assured of the term insurance plans of ICICI Prudential Life can be used to ensure your family’s financial security and protect them from debt liabilities like loan repayment.
Affordable premium – Term Insurance plans provide a large amount of life insurance coverage at an affordable premium. This cover can compensate for several years of lost earnings
Cover against critical illnesses – Along with providing life cover, a new-age term plan like ICICI Pru iProtect Smart also provides protection against critical illnesses. For a small additional premium, Critical Illness rider provides lump sum payments when a critical illness like a heart attack, cancer, kidney failure, or any other critical illness is first diagnosed.
Support in case of disability – In new-age Term Plans such as ICICI Pru iProtect Smart, the insurance company pays your future premiums in case of total and permanent disability. As a result, your life insurance coverage continues even if you are unable to pay premiums.
Additional financial security – To increase the security of your family, a Term Policy of ICICI Prudential provides additional payout (up to Rs. 2 crores) in case of an accidental death. For example, if your life cover is Rs. 1 crore, a Term Insurance Plan with an Accident Death Benefit rider pays Rs. 2 crore to your family in case of an accidental death.
Helps to achieve financial goals – A return of premium term plan of the company also provides you with a lump sum or regular income as an assured benefit to help you fulfill varied financial goals. The term plan pays back an amount that is at least equal to the total premium paid. You receive these assured benefits at the end of the tenure
Additional flexibilities – The term plans of ICICI Prudential Life offer different additional flexibilities such as portfolio strategies, unlimited free switches, systematic withdrawals, and many more.
Partial withdrawals – Partial withdrawals under a term plan under this company are allowed only after the first five policy years and on payment of all premiums for the first five policy years, and only if the Life Assured is at least 18 years of age.
LIC Term Assurance and ICICI Prudential Life Term Insurance plans, which one is better?
When the comparison is between Life Corporation of India and ICICI Prudential Life Insurance Company, it becomes very hard to choose one because both companies rule the field of life insurance, specifically in the case of term insurance plans. LIC has been in the market for more than 60 years and its premium amount is on the cheaper side. But, we cannot unsee the unique benefits and facilities that ICICI Prudential has to offer, such as coverage against 64 critical illnesses. Therefore, it totally depends on the customers which one they want to select according to their needs and preferences.