LIC Term Insurance Plans

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The Life Insurance Corporation of India (LIC) is one of the most trusted names in the Indian insurance industry. LIC offers a wide range of term insurance plans that provide financial security to the policyholder’s family in case of their untimely death. Term insurance plans are designed to provide high coverage at affordable premiums, making them a popular choice for individuals who want to secure their loved ones without the added complexities of other life insurance products.

Key Features of LIC Term Insurance Plans:

  1. Affordable Premiums: LIC term insurance plans typically have lower premiums compared to other types of life insurance like endowment or whole life policies.
  2. High Sum Assured: The primary benefit of term insurance is the high sum assured for relatively low premiums. This provides substantial financial protection to the family.
  3. No Investment Component: Unlike endowment or ULIPs, LIC’s term plans do not come with an investment component. These plans are purely designed for risk coverage, making them more affordable.
  4. Death Benefits: In case of the policyholder’s death during the term of the policy, the nominee or beneficiary receives the sum assured as a death benefit.
  5. Tax Benefits: Premiums paid for term insurance plans are eligible for tax deductions under Section 80C of the Income Tax Act, and the death benefits are tax-free under Section 10(10D).
  6. Flexibility in Policy Terms: LIC term insurance plans offer flexible policy terms, typically ranging from 5 to 40 years, depending on the plan.

Top LIC Term Insurance Plans:

Here are the most popular term insurance plans offered by LIC:

1. LIC Tech Term Plan (Plan No. 854)

  • Policy Type: Online Term Insurance Plan
  • Sum Assured: ₹50 lakh to ₹100 crore
  • Policy Term: 10 to 40 years
  • Premium Payment Modes: Annual, Half-Yearly, Quarterly, and Monthly
  • Key Features:
    • Online Policy: This is an online term plan, meaning you can buy it directly from the LIC website.
    • Affordable Premiums: The premiums for this policy are lower due to its online nature.
    • Multiple Riders: Optional riders like Accidental Death Benefit and Critical Illness can be added for enhanced coverage.
    • Premium Waiver Benefit: Premiums are waived off in case of the policyholder’s permanent disability.
    • Tax Benefits: Premiums are eligible for deductions under Section 80C, and the death benefit is tax-free under Section 10(10D).
  • Best For: Individuals looking for a simple, affordable online term plan with the option to add riders for extra protection.

2. LIC Jeevan Amar (Plan No. 841)

  • Policy Type: Non-Linked, Non-Participating, Pure Risk Premium Plan
  • Sum Assured: ₹25 lakh to ₹50 crore
  • Policy Term: 10 to 40 years
  • Key Features:
    • Death Benefit: Provides a lump sum death benefit to the nominee.
    • Flexible Premium Payment: Premiums can be paid annually, half-yearly, quarterly, or monthly.
    • Accidental Death and Disability Rider: Option to add an accidental death and disability rider to the policy.
    • Premium Payment Term: Can be chosen as per the convenience of the policyholder.
    • Low Premium Rates: Compared to traditional life insurance, the premiums are lower.
    • Tax Benefits: Premiums qualify for tax deductions under Section 80C, and the death benefits are exempt under Section 10(10D).
  • Best For: Those who prefer a traditional term insurance plan with the option to add an accidental death rider.

3. LIC Jeevan Lakshya (Plan No. 933)

  • Policy Type: Endowment Plan with Term Insurance
  • Sum Assured: ₹1 lakh and above (based on age and eligibility)
  • Policy Term: 13 to 25 years
  • Key Features:
    • Combination of Risk Cover & Savings: While it offers term coverage, it also has an element of savings.
    • Bonus Facility: This plan participates in LIC’s corporation’s life fund, which means it offers bonuses if the policy performs well.
    • Loan Facility: You can take a loan against the policy if needed.
    • Tax Benefits: Premiums qualify for tax deductions under Section 80C, and the death benefit is tax-free under Section 10(10D).
  • Best For: Those who want a combination of insurance and savings.

4. LIC Amulya Jeevan II (Plan No. 175)

  • Policy Type: Pure Term Insurance Plan
  • Sum Assured: ₹25 lakh to ₹25 crore
  • Policy Term: 5 to 35 years
  • Key Features:
    • Affordable Premiums: One of the most affordable term plans from LIC.
    • High Sum Assured: The sum assured can go up to ₹25 crore.
    • No Frills Plan: This is a simple term plan with no investment or bonus components.
    • Tax Benefits: Premiums are eligible for deductions under Section 80C, and the death benefit is exempt from tax under Section 10(10D).
  • Best For: Those seeking high coverage at low premiums without any additional savings or investment features.

5. LIC Anmol Jeevan II (Plan No. 164)

  • Policy Type: Pure Term Insurance Plan
  • Sum Assured: ₹5 lakh to ₹24 lakh
  • Policy Term: 5 to 25 years
  • Key Features:
    • Basic Term Coverage: Provides life coverage with no savings or investment features.
    • Low Premium: The plan is affordable with a low premium for the coverage offered.
    • Accidental Death Benefit Rider: Option to add an accidental death benefit rider for additional protection.
    • Tax Benefits: Premiums paid are eligible for tax deduction under Section 80C, and the death benefit is exempt from tax under Section 10(10D).
  • Best For: People who are looking for basic, low-cost term life insurance.

How to Buy LIC Term Insurance:

  1. Online: You can purchase LIC term insurance plans like LIC Tech Term Plan directly through the LIC website or mobile app.
  2. Through Agents: LIC’s vast network of agents can help you choose and purchase a suitable term plan.
  3. Visit Branch: You can visit any LIC branch and consult with the officials for assistance in choosing the right policy.

Claim Process for LIC Term Insurance:

In case of the policyholder’s death, the nominee can file a claim by following these steps:

  1. Notify LIC: Inform LIC about the death of the policyholder.
  2. Submit Claim Form: The nominee must fill out the claim form, available on the LIC website or at LIC branches.
  3. Provide Documents: The nominee will need to submit documents like:
    • Original Policy Document
    • Death Certificate
    • ID proof and address proof of the nominee
    • Medical records (if applicable)
  4. Claim Settlement: LIC will verify the documents and process the claim. If all is in order, the death benefit will be paid out to the nominee.

Benefits of LIC Term Insurance:

  1. Financial Security for Family: Provides financial security to your loved ones in case of your untimely demise.
  2. Affordable Premiums: LIC term plans are affordable, making them accessible to a wide range of policyholders.
  3. Tax Savings: Premiums qualify for tax deductions under Section 80C, and the death benefit is exempt from tax under Section 10(10D).
  4. Riders for Enhanced Coverage: You can enhance your policy with optional riders such as accidental death and disability, critical illness cover, and premium waiver benefits.
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Conclusion:

LIC term insurance plans are highly popular in India because of their reliability, affordability, and the strong reputation of LIC as a brand. Whether you are looking for a simple term plan or something with additional benefits like accidental death cover, LIC has a variety of options to choose from. Before buying a plan, consider your coverage needs, premium affordability, and any additional riders that might offer more comprehensive protection.

If you need help choosing the right LIC term plan or have any more questions, feel free to ask!

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