Lic Term Insurance plan Review
Lic Term Insurance plan is the most basic plan of insurance offered by the Life Insurance Corporation of India. In this Term insurance Lic plan the company promises to pay a specified amount (sum insured or death benefit) if the insured dies during the Policy Term. If the life insured survives till the end of the policy term, then they will not get anything, i.e. there is no maturity benefit with such Lic Term Insurance policy. So in short, Term insurance plan offers only death cover in the event of the death of the life insured during the period of the plan.
You can buy Lic Term Insurance Online. The Lic Term Insurance Premium will depend on your sum assured, policy term, etc. Lic Term Plan Premium Calculator helps you to calculate the premiums along with benefits and bonuses. There will be no maturity calculator for Lic Term Insurance Plans.
Mr. Raju takes a Lic term insurance plan for,
- Sum insured: Rs. 75 lacs.
- Policy period: 30 years.
If Mr. Raju dies at any time during the policy term of 30 years, the insurance company will pay Raju’s Nominee a sum of Rs. 75 lacs.
However, if Raju survives for the entire Policy Term of 30 years then he will not get any maturity or survival benefit.
Lic Term Insurance Key Points
- Lic Term insurance plans offers only death cover.
- Lic Term insurance plans are simplest form of insurance plans offered by Life Insurance Corporation of India.
- For a small premium an individual can take out a big protection cover against their liabilities.
- Tenure or Period: Lic Term insurance plans provide coverage only for a specified Term/Period. Normally the period starts from 5 years and runs to 10 years, 15 years, 20 years, 25 years, 30 years or any other period chosen by the life insured and agreed by the insurer.
- Protection against liabilities: To cover larger liabilities like Car loan or Home loans, Lic term insurance is the best solution.
Lic Term Insurance Plans
Lic Online Term Insurance Plans
Lic Term Insurance Policy Benefits
Benefits under Lic Term Insurance Plans are,
- Death Benefit.
- Income Tax Benefit.
Lic Term Insurance provides sum assured as death benefit to the nominee, in the event of death of life assured during the policy term. If death of life assured is due to suicide, then nothing will be paid to the nominee up to 12 months.
Income Tax Benefit
Under section 80C, you can get Income Tax Benefits for the premiums paid up to 1 lac for Lic Term Insurance Policy. For information about Tax on Insurance Policies refer www.taxqueries.in.
If the policyholder survives till the end of the policy term, nothing will be payable to the insured. So we can say that there will be no Maturity Benefit under Lic Term Insurance.
Return of Premium (ROP) plan
In some Lic Term Insurance plans, Lic of India offers return of premiums at the maturity time. If the policyholder survives till the end of the policy term, then he/she will get the part of premiums or entire premiums or entire premiums with some interest as the maturity benefit depending on policy.
|Tenure of policy: 30 years|
|Sum Assured : Rs.10,00,000|
|Premium : Rs.4000 / year|
|Total Paid : Rs.1,20,000 for 30 years|
|Money received in case of Death : Rs.10,00,000|
|Money received in case of survival: Nil|
|By paying 1,20,000 You have been insured for 10,00,000 Rs/-|