Term insurance is a type of life insurance that is immensely popular in the life insurance market due to its nature and the benefits it offers. If an insured person dies within the policy period of an active term insurance policy, then the beneficiary will get the death benefit which can be taken as a lump sum or periodically so that the family members do not have to suffer financially. When we are talking about term insurance, LIC and ICICI Prudential term insurance plans are worth mentioning because both companies have been there in the insurance market for a long period offering good term insurance products. Apart from the basic benefits and facilities, the term plans of both companies have come up with several benefits such as maturity benefits, surrender benefits, etc to cater to the needs of the individuals. To know more about the term plans of these two companies, have a look at the following mentions.
Comparison Between LIC TermInsurance and ICICI Prudential Term Insurance
The following table gives you an idea about the similarities and similarities between the term plans of these two insurers.
| Parameters | LIC Term Assurance Plans | ICICI Prudential Life Term Insurance plans |
| Number of plans | Four LIC’s Saral Jeevan Bima LIC’s Jeevan Kiran LIC’s New TECH TERM LIC’s New Jeevan Amar | Four ICICI Pru iProtect Smart ICICI Pru iProtect Smart – Smart Protect Option ICICI Pru iProtect Return of Premium ICICI Pru Protect N Gain |
| Minimum age at entry | 18 years | 18 years |
| Policy term | 5 to 40 years | Usually, 5 to 40 years |
| Premium payment options | Regular Premium, Limited Premium, and Single Premium payment options. | Monthly, quarterly, or yearly payment |
| Payout options available | Level Sum Assured Increasing Sum Assured | Lump sum Income Combination of both Increasing income |
| Tax benefit | Available | Available under Section 80C of the Income Tax Act. The term insurance payouts on maturity are also exempt from tax subject to conditions under Section 10(D) |
| Premium amount | Affordable | A bit higher |
| Loan facility | Not available | NA |
| Death benefit | Payable | Payable |
| Accidental death benefit | Available | Payable, at an additional premium amount |
| Maturity benefit | Available, not for all plans | Available |
| Option to get whole life insurance till the age of 99 | Not available | Available with ICICI Pru iProtect Smart Plan |
| Critical illness coverage | Not available | Available with ICICI Pru iProtect Smart for an additional premium |
| Rider options | Yes, available at an additional cost | Available after paying an extra premium amount |
| Return of premium benefit | Available | Yes, available |
What is The Term Assurance Plan Offered by LIC?
The Life Insurance Corporation of India has been there in existence for more than 60 years and with this long period it has produced a bucket full of term insurance plans that have been helpful for people. Currently, the company has 4 term plans which offer death benefits to be taken either as a lump sum or periodically such as monthly, half-yearly, quarterly and annually. To keep pace with the growing demand for digitalisation, few of the plans of LIC are available online. The grace period of the term policies is 30 days. The premium amount is affordable and one can also revive the lapsed policy under LIC.
Benefits of LIC Term Assurance Plans
Here are the important mentions.
- There are several discounts for the term policies of LIC. The premium rate for women and non-smokers is on the lower side.
- The premium of the term plans of Life Insurance Corporation of India is comparatively lower than the other insurers.
- Different rider benefits are available with the term plans of LIC. This can be purchased by paying an extra premium to extend the coverage of the policy.
- The premium amount one has to pay towards the LIC term assurance policy is eligible for the tax benefit under Section 80D of the Income Tax Act.
- The term policies of LIC are very flexible. One can choose the premium paying term, the option to take death benefit, the option to choose from two benefits options, and the option to choose policy term according to convenience.
- Some of the policies of LIC are available online. To make the term plans more convenient for the customers, LIC has introduced different online facilities such as policy renewal, premium payment, etc.
- As LIC is widespread throughout the country, one can easily reach out to the official branch of the company. Their customer executives are always there to help out the customers.
- The policy wordings of the LIC policies are written in a simple, lucid and placid language so that the policy-seeker can easily understand them. There are no hidden terms and conditions for the term policies of lIC.
Know about the ICICI Prudential Term Insurance Plan
While ICICI Prudential has come up with four-term insurance plans, it has offered 10 fund options for insured persons to invest their money wisely so that they can reap maximum returns. It not only offers death benefits but also has come up with survival benefits along with income benefits. Their term plans are flexible so that they can be customised as per the needs of the customers. To keep pace with the changing needs of the individuals, they always offer innovative and customer-friendly term plans so that the customers can benefit from them.
Major highlights of term plans offered by ICICI Prudential
The important mentions are as follows.
- One can choose the policy term for their term insurance plan under this insurer for up to 40 years. Long-term plans always offer better returns.
- Though the premium amount is a bit higher than the term plans offered by LIC, still with this premium amount the benefits and facilities one can get, that is worthy.
- ICICI Pru iProtect Smart term plan offers critical illness coverage along with the basic covers. If someone suffers any critical illness such as heart attack, kidney failure, etc, he/she can be benefitted from this plan.
- In case of accidental death, the term plan of ICICI Prudential offers an additional payout which is up to Rs. 2 crores. It increases the financial security of the insured person.
- In case of total and permanent disability, ICICI Prudential has a term plan that pays the premium amount for a certain period as the insured person is unable to pay that due to disability.
- The term insurance plans of this insurer are flexible enough to give the insured person the opportunity to choose the fund option, to do the unlimited switches, etc.
- At the end of the tenure of the term plan, one can get returns either in lump sum amount or can receive it at regular intervals in case of return of premium term plan. It helps to satisfy several financial needs of the insured.
- If the insured person is of the age of 18 years or above and has paid the full 5 years’ continuous premiums, then he/she is eligible to do the partial withdrawals from the term plans of ICICI Prudential.
LIC Term Assurance and ICICI Prudential Life Term Insurance plans, which one is better?
If the question comes to choosing the term plan between LIC and ICICI Prudential, then it would become tough because both companies have come up with different term insurance plans with multiple and varied benefits. If someone wants a cheaper term plan, then he/she can choose LIC. On the other hand, the coverage against 64 critical illnesses is also very important. LIC has been in the market for more than 6 decades, therefore, it has a strong background and good reputation, but the benefits and facilities that ICICI Prudential term plans offer cannot be unseen. Therefore, it depends on the policy-seeker what he/she wants and what his/her budget is. However, before selecting one, go through the policy schedule carefully, compare the premiums, read the inclusions and exclusions religiously, only then select one.
