LIC Term Plan is basically a protection plan. The LIC Term Insurance Plans will protect you and your loved ones against the uncertainties that life may throw at you. It also offers high coverage at lower rates of premiums. Hence, a term insurance plan is a must for the bread winner of any family and also helpful for the people whose health is not in good condition. Check the different types of LIC Term Policy in the below sections.
Contents
What are LIC Term Insurance Plans?
LIC Term Insurance plan is the most basic insurance plan 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 assured survives till the end of the policy term, then they will not get anything. That means the insured will get no maturity benefit with such LIC Term Insurance policy. So in short, LIC Term Plan offers only death cover in the event of the death of the policyholder during the period of the plan.
Even though there is no maturity benefit available, most of the people prefer LIC of India Term Plan because it enables the clients to buy the high amount of coverage levels at very low premiums. Also, with the cheaper rates of premiums, these Term plans of LIC are not hard in the pocket. It also helps people to fund their income replacement requirement easily. Hence, the policyholder can secure their family sufficiently against any loss of income which the family may face post death of the life insured.
When should you take an LIC Term Plan?
It is always a good idea to buy a term plan LIC early in your life because the younger the policyholder is, the cheaper the plan will be for him/ her. Also, it is a good idea to buy a term insurance plan earlier because it guarantees the policyholder to be covered for a longer period. Since LIC term insurance plans are the cheapest among different life insurance policies, everyone can afford them. So, buy an LIC Term Plan when you are younger and healthier to save your money.
The Lic Term Insurance Premium will depend on your sum assured, policy term, etc. Hence, calculate the premiums along with benefits and bonuses using LIC Term Plan Premium Calculator. There will be no maturity calculator for LIC India Term Insurance Plans. The policyholder can also refer the official website of the corporation, i.e., www.licindia.in for more details about the LIC Plans. Here I have provided an example to understand clearly about the Term Plan of LIC.
Example:
Mr. Raju takes an LIC Term 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 corporation will pay a sum of Rs. 75 lacs to the nominee of Raju. 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
- The LIC Term plans offer only death cover.
- LIC Term insurance plans are the simplest form of insurance plans offered by Life Insurance Corporation of India.
- For a small premium, an individual can take out a high protection cover against their liabilities.
- Tenure or Period: Any LIC Term Policy provide coverage only for a specified Term/ Period. Generally, 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 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 Plans – www.licindia.in
| LIC Term Plans List | |
| Amulya Jeevan II Plan | Anmol Jeevan 2 Plan 822 |
| LIC e-Term Policy 825 | New Term Assurance Rider |
| LIC’s New Jeevan Mangal Plan 840 | LIC Bhagyalakshmi plan 829 |
These are the term plans offered by the Life Insurance Corporation of India with different features and benefits. You can buy these plans through the branches of LIC or by approaching the intermediaries. For those who wish a quicker and tech-savvy approach, the customer can purchase some plans from LIC’s portal itself. The details of each term plan are given below. You can also check the other Types of Insurance policies offered by the corporation here. If you want to know more details, then you can refer the LIC official website, i.e., www.licindia.in
LIC Amulya Jeevan II Policy
The LIC Amulya Jeevan 2 Plan is a protection plan which provides financial protection to the insured’s family in case of his/her unfortunate demise. It is a regular premium paying conventional plan without any profit. The Premium amount of LIC Amulya Jeevan Plan is very less i.e., 2 to 3 rupees for 30 years aged person for 1000 rupees risk coverage.
LIC Anmol Jeevan II Plan
The LIC Anmol Jeevan 2 is the most economic pure life insurance plan. LIC Anmol Jeevan-II policy covers for a limited period, i.e., maximum up to 25 years from the date of commencement of policy. There are no riders available under this plan.
LIC’s Online Term Insurance Plan
The LIC’s e-Term plan is the only online LIC Term Plan. That means there are no mediators involved in this plan. The LIC e Term Policy 825 will not participate in profits so no bonus only Sum assured is payable. Most of the people will prefer this LIC Term Policy because of no intermediaries. It consists of two categories of premium rates namely Aggregate lives and Non-smoker lives. For more details about the LIC Online Term Plan, click the below link.
LIC New Jeevan Mangal Plan
The LIC’s New Jeevan Mangal is a protection plan with return of premiums on maturity, where the insured can pay the premiums either in a lump sum or regularly at Yearly, Half Yearly, Quarterly, Monthly, fortnightly or weekly intervals over the policy tenure. This plan has an inbuilt Accidental death benefit rider which provides for double risk cover in case of accidental death.
LIC New Jeevan Mangal Plan 840
LIC Bhagya Lakshmi Policy
The LIC Bhagyalakshmi Plan is a non-participating limited payment protection oriented plan with return of 110% of total amount of premiums payable on maturity where the premium paying term is two years lesser than the policy term. LIC Bhagya Lakshmi policy is the best for the people with low-income. The modes of premium payment allowable for this LIC New Bhagyalakshmi Plan are yearly, half-yearly, quarterly, monthly or through salary deductions.
LIC Term Insurance Policy Benefits
- Death Benefit.
- Income Tax Benefit.
Death Benefit
LIC Term Insurance provides sum assured as a death benefit to the nominee, in the event of the death of the life assured during the policy term. If the death of the life assured is due to suicide, then the nominee will get nothing 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 Policy. For information about Tax on Insurance Policies refer www.taxqueries.in.
Maturity Benefit
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 Plans.
Return of Premium (ROP) plan
In some LIC India Term Insurance plans, the corporation offers a 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 the policy.
Benefit Illustration of Term Insurance LIC |
|
| 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 Rs. 10,00,000 | |
These are the benefits of the Term Insurance Policies offered by the LIC India. If you don’t want to take an LIC Term Policy, then you may refer other plans such as LIC Endowment Policy or LIC Child Plans from our site.