LIC TERM INSURANCE

LIC of India has been a veteran and a significant player in the insurance industry since 1956 and has been catering to the insurance needs of the entire country. It has grabbed the maximum market share and has been successful at maintaining the same. It has various plans for different stages of life starting from Term insurance, savings plans, LIC monthly income plan among others. As of today, they have 2100+ branch offices, 115+ divisional offices, 8 zonal offices, and 1400+ corporate and satellite offices. The best thing about them is the goodwill and trust among people and the best claim settlement ratio in the industry.

In this article, we are going to discuss LIC term insurance and various significant aspects of the same. So let’s get started with the meaning of term insurance.

WHAT IS TERM INSURANCE?

Term insurance can be called one of the most basic types of insurance policies offered where the insurer ensures that the family members of the insured are given compensation up to the sum assured amount in case of demise of the insured during the selected tenure of the term insurance. These are designed to offer financial support to the family in case of an unfortunate event. Most term insurance plans come with other rider benefits at a slightly higher premium. HNIs can definitely consider the high sum assured plans where they can secure their family and benefit over the term.

FEATURES OF LIC TERM INSURANCE

1. Trust factor:

LIC of India is a well-established and the most trustworthy safety net provider in the nation for the general population part. It has humongous goodwill and reliability among the people.

2. Well built infrastructure:

They have a well-managed and build infrastructure which provides them reach to every corner of the country. Also, the online infrastructure is also present which assists people to purchase chosen plans online from the comfort of their homes.

3. Choices and options:

They have flexible alternatives in insurance in relation to coverage sum, premium installments, and policy terms. So they provide with many different options to choose from so as to cater needs of every kind of people.

4. Benefits:

They offer different benefits and riders clubbed with their insurance policy. Insurees can personalize their plans and also can benefit from certain tax deductions applicable under the Income Tax Act, 1961.

BENEFITS OF LIC TERM INSURANCE

1. Lump-sum payment:

Upon the unfortunate demise of the policyholder, if it happens during the policy tenure, the nominee is provided with a single lump sum amount by the insurance company.

2. Economical:

When compared to different classifications of insurance items, These plans have the most moderate premium rates. In this manner, insurees can decide on a high total guaranteed at a certain focused rate.

3. Adaptability:

Policyholders have the adaptability to pick their sum assured amount and this takes into account individuals from 18 years to as high as 75 years. Along with this, an adaptable method of installment payments and recurrence of the premium installment plan also exists.

4. Additional Riders:

Additional rider benefits are also available under these plans which provide policyholders with additional coverage. These can be inbuilt in the plan’s coverage itself or available as optional coverage at the payment of an additional amount in premium.

LIST OF TERM PLANS OFFERED BY LIC OF INDIA

1. LIC Amulya Jeevan II

Eligibilty:

Entry Age	Minimum 18 years old and maximum 60 years
Maturity Age	Maximum 70 years
Policy Term	Minimum 5 years and maximum can be 35 years
Sum Assured	Minimum is Rs. 25 lacs with no upper limit
Premium Payment Term	Equal to the policy term
Premium Payment Frequency	Half-yearly or yearly

Features:

Basic term plan
Death benefits available
Income tax benefits available
No maturity benefits
The insuree can pay a premium on a half-yearly or yearly basis but half-yearly payments will have an extra amount which will be 2% of the tabular premium for yearly mode.

2. LIC Anmol Jeevan II

Eligibilty

Entry Age	Minimum 18 years old and maximum 55 years
Maturity Age	Maximum 65 years
Policy Term	Minimum 5 years and maximum can be 25 years
Sum Assured	Minimum is Rs. 6 lacs and maximum is Rs. 24 lacs
Premium Payment Term	Equal to the policy term
Premium Payment Frequency	Half-yearly or yearly

Features:

Basic term plan
No maturity benefits
Offers death benefits
Additional riders available for extra coverage
This plan offers the flexibility of premium payment on a half-yearly or yearly basis. Nevertheless, half-yearly payments will have an extra amount which will be 2% of the tabular premium for yearly mode.

3. E - Term

Eligibility:

Entry Age	Minimum 18 years old and maximum 60 years
Maturity Age	Maximum 75 years
Policy Term	Minimum 10 years and maximum can be 35 years
Sum Assured	Minimum is Rs. 25 lacs for aggregate category and Rs. 50 lacs for the Non-smokers category with no upper limit in both cases.
Premium Payment Frequency	Yearly

Features:

The only online term plan by the company
No maturity benefit applicable
Income tax benefits applicable
2 categories of premium rate apply

HOW TO APPLY FOR LIC TERM INSURANCE?

The LIC’s tech term insurance plan can be bought only from the company’s website directly. For the other plans, you can also reach out to a LIC agent or branch, or broker to purchase these policies in offline mode. The documents which you will need while applying are as follows:

Passport size photographs
Proposal form, filled and signed
Age proof
Identity proof
Address proof
Income proof

CLAIM SETTLEMENT PROCEDURE

The nominee should inform LIC of the demise of the policyholder. This should be given to the branch office from where the policy was initially purchased. For online policy, connect with customer care to inform about the demise.
The nominee then should download and fill the Clain Form A available on the company website and submit it to LIC along with the death certificate of the policyholder by the Municipal corporation.
Lastly, LIC will verify the claim form and the submitted documents and will pay the death claim to the nominee.

The documents required for the same are:

Policy bond
Assignment deeds (if any)
FIR (if policyholder died in an accident)
Bank details of the nominee
Identity proof of the nominee
Any other documents as stated by LIC branch