term insurance
LIC Term Insurance Plans

LIC Term Insurance

LIC term insurance policies are constructed in such a way that it secures a family against financial loss that they may incur due to the death of the policyholder. And in the past 60+ years since its inception, LIC has touched over 250 million customers throughout the country. 

LIC Term Insurance aims to enhance the quality of life by providing policies that meet the requirements of every individual at various stages of their life. In fact, LIC at one point in time was the only insurance company that had customers in the most remote parts of India. So, if the life assured dies when the policy is still active then the nominee will be paid the amount assured. And LIC term insurance is quite affordable. So, there’s no reason why one shouldn’t have life insurance as a safety measure. After all, it’s better to be safe than sorry!

LIC Term Insurance - At A Glance

Characteristics Specifications
Company Name Life Insurance Corporation of India
Headquarters Mumbai
Year of Establishment 1956
Company Type Public
Parent Company Government Of India
CEO Mini Ipe
Number of Agents 12,08,826+
Number of Branch Offices 2048+
Claim Settlement Ratio 96.69%

Benefits And Features of LIC Term Insurance Plans

LIC of India Term plans are designed in such a way that family members are financially secured in case of the policyholder’s death. It provides the family protection and helps them meet not only their daily expenses but also their goals. Here are some of the benefits and features of LIC term insurance plans – 

  • Financial Assistance: The main goal of any insurance provider is to ensure that the bereaved family members get financial assistance in case of the unfortunate death of the policy owner. And similarly, LIC term insurance plans are designed to help and provide financial assistance to family members. Furthermore, the beneficiary can choose to receive the payout in lump sum or in installments according to their financial needs.
  • Affordable Premiums: One of the best benefits of having LIC term insurance plans is that they offer high life cover at an extremely affordable price. Most of the plans offer comprehensive coverage keeping in mind that anybody can easily purchase them without worrying about budget restraints. 
  • Multiple Premium Payment Modes: LIC is popular for its payment modes. They have managed to offer almost every payment mode that is available in the market currently. Policy owners can pay their insurance premium either monthly, quarterly, half-yearly, or yearly.
  • High Claim Settlement Ratio: Did you know that LIC has a high claim settlement ratio? Yup. In FY19-20, LIC’s claim settlement ratio was 96.69% and it simply reflects that the company understands its customers. It’s best to choose an insurance company that has a high claim settlement ratio as it means you won’t have much trouble with your claims.
  • Add ons: You can choose to add riders that will enhance the base cover of your insurance policy. Understandably, these add-ons come at an extra cost. 
  • Tax Benefits: If you are paying premiums for life insurance whether it’s monthly/yearly, you can claim a deduction under Section 80C and 10(10D) while filing your taxes.

Types of LIC Term Insurance Plans

Plan Entry age Maximum age at maturity Policy term Sum assured Premium payment Premium payment frequency
LIC Tech Term 18 years to 65 years 80 years 10 to 40 years Minimum: Rs.50 lacs Maximum: No limit Regular pay, Limited Monthly, quarterly, half-yearly, and yearly
LIC Jeevan Amar  18 years to 65 years 80 years 10 to 40 years Minimum: Rs.25 lacs Maximum: No limit  Limited Pay, Regular Pay Monthly, quarterly, half-yearly, yearly, and single
LIC Saral Jeevan Bima Minimum: 18 years Maximum: 65 years 70 years 5 to 40 years Minimum: Rs.5 lacs Maximum: Rs. 25 lacs Regular pay, Single, & Limited pay Annual, semi-annual and monthly

Features Of LIC Term Insurance Plans

1. LIC Tech Term Plan

  • LIC’s Tech-Term insurance plan is a Non-Linked, Online Term Assurance Policy that gives financial protection to the family. It’s important to note that this insurance policy is available online only. So, you can easily fill up the application form and pay the premiums online. There aren’t any agents involved in this process. 
  • Cover Options – The policy owner has the flexibility to choose from two benefit options:
    Level Sum Assured and Increasing Sum Assured.
  • Payment Flexibility- The policyholder has an option to choose from a Single Premium, Regular Premium, and Limited Premium Payment. They can choose the frequency according to their budget. 
  • There are some special discounts for women. The term insurance premium calculated for women tends to be lower than the other counterpart.
  • This insurance policy offers an option to enhance your basic coverage by allowing you to add an Accident Benefit Rider at a nominal cost.

2. LIC Jeevan Amar Plan

  • Cover Options – The policy owner has the flexibility to choose from two basic cover options:
    Level Sum Assured and Increasing Sum Assured.
  • Payment Flexibility- The policyholder has an option to choose from a Single Premium, Regular Premium, and Limited Premium Payment. They can choose the frequency according to their budget.  
  • There are some special discounts for women. 
  • This insurance policy offers an option to enhance your basic coverage by allowing you to add an Accident Benefit Rider at a nominal cost. 
  • The nominee can choose to get the payout in installments over a chosen period of years instead of the lumpsum amount.

3. LIC Saral Jeevan Bima

  • This insurance policy allows the policy owner a grace period to pay the premium amount. In the case of yearly or half-yearly premium payments, LIC term insurance allows 30 days as a grace period. In the case of monthly premiums, the grace period is 15 days.
  • Rebates are available
  • Payment Flexibility- The policyholder has an option to choose from a Single Premium, Regular Premium, and Limited Premium Payment. They can choose the frequency according to their budget.

Exclusions Of LIC Term Plan That You Need To Know

Under Single premium policy

If the policy owner commits suicide within 12 months from the date of the commencement of the risk then the policy shall be considered void. And Life Insurance Corporation will pay 90% of the single premium paid. The company won’t pay any sum assured according to the policy. 

Under Regular/Limited Premium Payment policy

If the policy owner commits suicide within 12 months from the date of the commencement of the risk then the policy shall be considered void. And Life Insurance Corporation will pay 80% of the premiums paid till the date of death. LIC term insurance won’t pay anything more than that.

Riders Offered With LIC Life Term Policy

  • LIC Accidental Death and Disability Benefit Rider
  • LIC Accident Benefit Rider
  • LIC Premium Waiver Benefit Rider
  • LIC New Critical Illness Benefit Rider
  • LIC New Term Assurance Rider

How To Buy LIC Life Term Insurance Policies?

Here’s the step-by-step process to buying LIC’s term insurance plan online –

  1. Log-in to the website.
  2. Click on Buy Policies Online. 
  3. Select your preferred LIC term insurance plan. 
  4. Click on Buy Online. 
  5. Choose the base cover option, payment frequency, and payment mode.
  6. Add your details to calculate the premium according to your chosen parameters. 
  7. Enter more details such as Qualifications, Address, Occupation, etc. and submit the form
  8. Pay your premium and you are done!

What Are The Documents Required To Purchase LIC Term Plan?

Here’s the list of documents required to buy LIC term insurance – 

  • For Age proof – Aadhar card/Passport/Rental Agreement/Birth Certificate
  • For Identity proof – PAN card/Aadhar card/Passport/license
  • Address proof – Passport/Aadhar/Electricity or Gas Bill/Rental agreement
  • Latest Medical certificate
  • And income proof – salary slips/income tax returns.

How Can File Death Claim Under LIC Term Insurance Policy Online?

  • Step 1: If the policyholder passed away when the insurance policy was active then the nominee should intimate the Branch Office immediately in writing. The nominee should mention the policy number, name of the holder, date of death, and cause of death and submit the original death certificate issued by the appropriate Authority.
  • Step 2: When the Claims Department receives the intimation letter, some necessary claim forms will be issued to the nominee along with instructions on how to proceed further. 
  • Step 3: The death claim settlement is then scrutinized by the company
  • Step 4: The amount will be confirmed and sent to the nominee.

What Are The Documents Required To Make An Insurance Claim? 

  • The original insurance policy.
  • The death certificate of the policyholder given by the local authority
  • Claim form
  • Bank account details

Frequently Asked Questions

1. Are there any benefits of paying LIC premiums through net banking or phone banking?

Yes, there are many benefits. Some of them are – 

  • Can pay at the comfort of the house anytime as long as you have decent internet access. 
  • No extra additional charges. 
  • No need to go through the authorized agents
  • You will get reminders and email alerts from the company for the premium due
  • You can avoid any additional expenses of courier 
  • You can avoid any demand draft charges for policy premiums.

2. When can I pay the insurance premiums for LIC term insurance?

Once you get a confirmation of your insurance plan registration, LIC will send you a bill mentioning the due date, the premium amount due, late fees, etc.

3. How can I revive a lapsed LIC term policy?

If your LIC policy has lapsed, it can be revived during the lifetime of the life assured but before the date of maturity, subject to certain conditions. For insurance plans that are issued after 01.01.2014, the policy can be revived within two years from the date of FUP. The company will ask for your KYC documents.

4. I moved out and want to change the corresponding address in my LIC policy, is it possible?.

You should immediately intimate the change of your address to the servicing unit. So, you will have to send a request letter with proof of your new residence. On receipt of such request, the current Branch office will be shifted to another branch (one’s that is closest to you).

5. What are other Insurance policies offered by LIC?

There are many insurance products offered by LIC depending on the person’s needs and requirements. You can go to https://licindia.in/Products/ Insurance-Plan and check which one suits you. LIC also provides Gratuity and Retirement plans.

6. Why should I choose LIC term insurance?

LIC offers high-life coverage at a reasonable price. These plans provide financial assistance to your family in your absence.

7. What is the claim settlement ratio of LIC?

It has a high claim settlement ratio of 96.69% in FY 2019-2020.

8. How can I contact LIC?

You can contact the LIC call center at +91-022068276827. Their services are available 24*7