LIC Term Insurance Plans: Their Features and Eligibility
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One of the most basic insurance policies offered by the company, LIC Term Insurance Plans provide financial protection and security against the risk of death. This post details all about these plans, their features, and the eligibility criteria to apply for these in order to seek insurance coverage.
One of the biggest risks in life against which there is no protection offered is death. However, when it comes to insurance, the good thing is that there is some coverage provided against the risk of death. Term insurance plans provide this risk benefit and this is why they are favored by a large number of people. Let’s learn more about LIC Term Insurance Plan in this blog.
What is a Term Insurance Plan in LIC?
LIC offers a host of options when it comes to providing insurance coverage to its customers. Term insurance is also one of its several insurance options to policyholders, which guarantees monetary benefit to the family (nominee/beneficiary) in case of the unfortunate death of the primary insured.
Let’s briefly understand how an LIC term insurance plan works. The policyholder is required to pay a fixed premium for a fixed duration or term of the plan. It could generally be anywhere from 10-30 years. In case of an untimely unfortunate demise of the policyholder during this term, i.e., before the expiry of the policy, his/her beneficiary (family member) is assured a monetary benefit to compensate them for the loss.
Since the LIC Life Insurance Term Plan covers the basic death risk under the policy, it is also the basic form of insurance offered by the company. Now let’s look at some of the top LIC Term Insurance Plans online along with each of their features and eligibility criteria to help you make an informed decision.
Best LIC Term Insurance Plans
Here are some of the most popular term insurance plans offered by LIC:
1. LIC’s Amulya Jeevan II Plan
A non-profit plan that offers financial protection to the insured’s family in case of the former’s death, Amulya Jeevan plan proves to be highly beneficial. The sum assured under the plan is relatively higher and can offer considerable assistance to the beneficiary when they face a sudden income loss during the unfortunate demise of the insured.
Features of the plan:
Flexible policy term: The plan offers flexibility to the policyholder in choosing the coverage term for the policy based on their requirements. You can opt for a term duration ranging anywhere between 5 and 35 years.
Death benefit feature: This is the primary feature of this plan that it guarantees an assured sum to the beneficiary of the policyholder in case of an untimely death of the latter. Also, the sum assured is given as a lump sum which provides good financial help to the insured’s family in those difficult times.
Tax exemptions: As per Section 80C and Section 10(10D) of the Income Tax Act, 1961, the premium payable and the benefits received on account of this plan are all considered for tax exemption.
No-limit sum assured: Policyholders are encouraged to take this plan since there is no cap on the maximum amount of sum assured offered herewith. The sum assured under the policy starts at Rs. 25 lakh.
Eligibility criteria for the plan
The permissible age for entry into the plan is set as 18-60 years.
2. LIC’s Anmol Jeevan II Plan
This plan is slightly different from the other term insurance plans offered by LIC since it provides comprehensive coverage to the policyholder. This allows the beneficiaries of the insured to pay off any financial debts in case of the policyholder’s demise. The rate of premium payable is also considerably affordable.
3. LIC’s e-Term Plan
As the name suggests, this is LIC’s online term insurance plan with regular premium payment. The best part about the policy is that it can be bought online on LIC’s official portal and all its features and benefits can also be found detailed on the website.
Features of the plan:
- Online purchase possible: LIC allows prospective policyholders to buy the insurance plan online via the company’s official website. This removes the need to transact through any middlemen or agencies, keeping all transactions between the company and the policyholder absolutely transparent.
- Death benefit: The plan offers death benefit to the beneficiary of the insured in case the latter dies during the term duration of the policy. This financial benefit is equal to the total sum assured payable by the insurance company.
- Premium rate preference: The plan comes with a preferential feature for non-smoking policyholders who can opt for lower premium amounts than those who smoke.
- High sum assured amount: The policy offers a good sum assured to the insured. For instance, under the aggregate category of the plan, one can choose the minimum sum assured up to Rs. 25 lakh. Moreover, as per the preferential feature described above, non-smokers can avail a minimum amount of Rs. 50 lakh under the policy.
Eligibility criteria for the plan
Anyone aged between 18 and 60 years of age can choose to apply for the policy. Note that the premium payable varies according to the age of the policyholder at the time of entry into the plan.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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