The Life Insurance Corporation of India (LIC) is the country’s oldest and largest life insurance provider, having been founded in 1956. In the minds of its customers, LIC is a government-owned company that is trusted to the core. To meet the needs of the average person, it offers a variety of life insurance plans. The company’s insurance plans come with enticing coverage features and reasonable premiums. LIC’s term insurance policies are some of the most popular on the market. Let’s take a closer look at LIC’s various term insurance plans to get a better understanding of the concept.
What is a Term Life Insurance Policy?
The simplest and most basic type of life insurance is a term policy. For a fixed sum assured, it covers the risk of death during the policy term. Upon the death of the insured, the plan’s death benefit is paid out, and the policy comes to an end.
Features of Term Life Insurance Plans
The following are the most distinguishing characteristics of term life insurance plans:
- Term plans are usually just protection plans that pay out a death benefit if the insured dies during the policy’s term of coverage. Premiums may be refunded at maturity in some plans, however.
- Term plans have long coverage periods, allowing you to keep your coverage until you’re in your late 60s or 70s.
- In order to keep the premiums low, only death risk is covered by the policy.
- Your family will be financially secure in the event of your death if you select a high sum assured level.
- There are no bonuses with term plans, which are traditional forms of life insurance.
- Term insurance policies can also include riders to increase the level of protection. It is possible for the rider to be included in the plan’s coverage or to be purchased separately for an additional fee.
The key eligibility criteria for purchasing the LIC Term Life Insurance Policy are as follows:
- If the applicant is a nonsmoker with no prior medical history, the plan can be purchased without undergoing a medical examination.
- Individuals between the ages of 18 and 35 who have an annual income of more than Rs.3 lakh can purchase this plan. The sum assured can be increased to Rs.75 lakh.
- Individuals between the ages of 36 and 45 who earn more than Rs.5 lakh per year are eligible to purchase this plan. The sum assured can be increased to Rs.50 lakh.
- Premium rates are classified into three types: aggregator rates, non-smoker rates, and smoker rates.
Why buy a Term Life Insurance Policy?
In the event of your death, you and your loved ones will be financially secure thanks to term insurance. The following are some of the many advantages that the plan offers:
- Affordability is made possible by low premiums. Your family will be well taken care of in your absence if you choose the right level of coverage.
- Even as you get older, you’ll be covered thanks to longer coverage terms.
- In accordance with Section 80C, your premiums are deductible. The plan’s death benefit is also tax-free for you because of Section 10 (10D)
When is the best time to invest in a LIC Term Life Insurance Policy?
Term life insurance should be purchased as early in life as possible, while you are still young. Premiums would be lower because of your age, and you’d be able to buy the plan without a medical exam. As a bonus, if you buy when you’re young, you’ll be protected from the start and secure your financial future.
LIC Term Term Life Insurance Policy Calculator
Follow the steps outlined below to calculate the amount of life insurance coverage you will receive from the life insurance policy you choose. Knowing the life cover will allow you to set a beneficial premium.
Term insurance is a type of life insurance policy that provides coverage for a set period of time. The rules governing a term insurance policy are straightforward. However, few people are aware of how life insurance premiums are calculated. Though calculating term insurance premiums is not difficult, many people are unaware of how to do so. It is critical to understand how much life insurance coverage you require in order to avoid being overinsured or underinsured when purchasing a policy.
The following is a common rule of thumb that many people use when calculating the amount of term insurance coverage required. This is determined by the individual’s age, annual income, and outstanding loans.
Individuals between the ages of 25 and 35 calculate their coverage by adding their outstanding loans to 15 to 18 times their current annual income.
Individuals between the ages of 35 and 45 should calculate their term insurance coverage by adding up their outstanding loans to 10-15 times their current annual income.
How To Purchase Term Life Insurance Policy
Because it is an online plan, LIC’s Term Life Insurance Policy can be purchased online from the company’s website at any time. Customers can, however, purchase LIC policies Jeevan Amar and Jeevan Anmol II by going through an agent or visiting one of the company’s locations. Additionally, LIC provides you with online purchasing options for the company’s plans via its website. Check to see what plans are available online before making a purchase.
The following documents would be required if you want to buy LIC term plans –
- Age proof
- Identity proof
- Proposal form
- Income proof
- Address proof
It is possible to settle death claims under LIC term plans by following the steps outlined below:
- In the event of the insured’s death, the nominee should notify LIC. The branch from which the policy was purchased should be informed of this. LIC’s customer service phone number can be used to notify the company of the death claim for online policies.
- Fill out Claim Form ‘A’, which can be found in Form 3783, by downloading and filling it out.
- The completed form and a copy of the insured’s death certificate, issued by the municipal corporation, should be sent to LIC.
- The death claim would be paid to the nominee after LIC verified the claim form and the documents submitted.
Many online websites also allow you to file a death claim through the company’s website if you purchased a term insurance plan from them. Claims are handled by their independent claim handling department on behalf of customers.
Required Documents For Claim Settlement
In addition to the claim form and the death certificate, the following documents would be required for the settlement of a death claim –
- Original policy bond
- Assignment deeds
- Police FIR (in accident cases)
- Bank information for the nominee, so that the claim can be credited directly to the nominee’s bank account.p
- Identity proof of the nominee
- Any other documents if required by LIC
Frequently Asked Questions (FAQS)
Q1. What are the premium payment options available with LIC term plans?
Answer: Depending on the plan, premiums for LIC term plans can be paid annually, monthly, quarterly, or semi-annually.
Q2. Is LIC accepting online premiums?
Answer: Yes, you can pay premiums online via the company’s website or by credit card, debit card, authorized banks, and so on.
Q3. Is there a surrender benefit in LIC term plans?
Answer: Term plans, on the other hand, are pure protection plans that cover only the risk of premature death. As a result, there is no surrender benefit with these plans.
Q4. How many types of Term Life Insurance policies are there?
Answer: Term life insurance policies are classified into two types: level term and decreasing term.
- The “level term” refers to the fact that the death benefit remains constant throughout the policy’s duration.
- Decreasing term means that the death benefit decreases over the course of the policy’s term, usually in one-year increments.
Q5. Can I cancel the plan after I’ve purchased it?
Answer: Yes, you can cancel the plan after you purchase it. LIC term plans provide a 15-day free-look period from the date the policy is issued. During these 15 days, you can cancel the policy and receive a refund of your premiums.