LIC Term Insurance Plans – How it works, Benefits, Features, Types, Claims Process, Eligibility Criteria, Quotes

What are LIC Term Insurance Plans? How do they work?

LIC’s Term Insurance Plans are pure protection plans that offer high Life Insurance Cover at affordable premiums. These Plans pay a Death Benefit to the Insured’s nominee in case of the Death of the Life Assured during the Policy Term. LIC Term Plans are primarily suitable for primary breadwinners looking to secure their family’s future or individuals with large financial responsibilities like loans. Life Insurance Corporation of India (LIC) is the largest Life Insurance Company in India. LIC has a high Claim Settlement Ratio of 98.15% as of March 2024 offering peace of mind to policyholders.

What are the Benefits of Term Insurance Plans by LIC?

LIC Term Insurance Plans offer the following benefits to policyholders and their families:

1. Financial Protection: LIC Term Insurance Plans provide a Death Benefit to Policyholders’ families in case of their untimely demise.
2. High Coverage: LIC Term Insurance Plans offer high Life Insurance Coverage at affordable premiums, ensuring that policyholders’ families are financially secure.
3. Flexibility: LIC Term Insurance Plans offer flexibility with respect to Policy Term, Premium Payment Frequency, and Sum Assured. This makes it easier to customise the Plans according to the requirements and budget of the Policyholder
4. Tax Benefits: Premiums paid towards LIC Term Insurance Plans are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.

What are the Features of LIC Term Insurance Plans?

The Key Features of LIC Term Insurance Plans include:

1. High Coverage: LIC Term Insurance Plans offer high Life Insurance Coverage at affordable premiums, ensuring that policyholders’ families are financially secure.
2. Riders: LIC Term Insurance Plans offer various riders that can be added to the basic policy to enhance coverage. Some popular riders include Accidental Death Benefit Rider, Critical Illness Rider, and Waiver of Premium rider.
3. Tax Benefits: Premiums paid towards LIC Term Insurance Plans are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, providing an additional tax benefit.
4. Online Purchase: LIC Term Insurance Plans can be purchased online, making the process quick and easy.

What are the different types of LIC Term Plans?

LIC offers 7 Term Insurance Plans to cater to different protection needs:

1. LIC’s Digi Term and LIC’s Yuva Term: Digital-first Term Insurance Plans that can be purchased online, offering comprehensive protection with simplified processes.
2. LIC’s Digi Credit Life and LIC’s Yuva Credit Life: Specialized plans designed to protect loan repayment obligations, ensuring your family isn’t burdened with loan liabilities.
3. LIC’s New Tech-Term and LIC’s New Jeevan Amar: Traditional term plans offering flexible coverage options with various Premium Payment Terms.
4. LIC’s Saral Jeevan Bima: A standardized Term Insurance Plan as per IRDAI guidelines, making it easier to understand and compare with other Life Insurance Company’s offerings.

LICs Digi Term Plan

LIC Digi Term Plan (UIN: 512N356V02) is a pure risk Term Insurance Plans that provides a Death Benefit to the Insured’s family in case of his death during the Policy Term at reasonable premiums. LIC’s Digi Term is available only through LIC’s website. LIC Digi Term Plan offers 2 option for receiving Death Benefits

• Level Sum Assured option: Under the Level Sum Assured Option, Policy Sum Assured remains constant throughout the policy term
• Increasing Sum Assured option: Under the Level Sum Assured Option, the Policy provides protection that grows over time - it stays level for the first 5 years, then increases by 10% each year until it doubles by the 15th year, helping counter the effects of inflation. The Plan offers a Single Premium, Regular Premium and Limited Premium Payment Option with a coverage of upto a maximum of 75 years and a maximum Sum Assured of Rs5 Crores

LIC’s Digi Credit Life Term Insurance Plan

LIC’s Digi Credit Life (UIN: 512N358V01) is a Non-Participating, Non-Linked, Decreasing Term Insurance Plan where the Death Benefit reduces over time. LIC Digi Credit Life Plan is specifically designed to protect loan repayments where the death benefit decreases over time to match typical loan repayment patterns. Thus, this plan works particularly well for individuals with home loans or other long-term loans, as the decreasing coverage matches loan repayment patterns ensuring their loan liability doesn’t burden the family in their absence, while keeping the premiums affordable. The Plan can be purchased only on LIC’s website. The Plan offers a Single Premium and Limited Premium Payment Option of 5/10/15 years with a coverage of upto a maximum of 75 years and a maximum Sum Assured of Rs5 Crores

LIC’s Yuva Credit Life Term Plan

LIC’s Yuva Credit Life (UIN: 512N357V01) is a Non-Participating, Non-Linked, Decreasing Term Insurance Plan where the Death Benefit reduces over time. LICs Yuva Credit Life Term Plan is specifically designed to protect loan repayments where the Death Benefit reduces over time to match typical loan repayment patterns. The plan ensures that the family isn’t burdened with loan repayments in case of the Policyholder’s death during the policy term. The Plan has a minimum Entry Age of 18 years and a maximum Entry Age of 45 Years with a minimum Sum Assured of Rs50 lakhs and maximum a Sum Assured is Rs5 Crores. The minimum Policy Term for LIC Yuva Credit Life Plan is 5 years and the maximum Policy Term is 30 years. The minimum maturity age for the Plan is 23 years and the maximum maturity age is 75 years. The Policy offers flexible options for Premium Payment: Limited Premium Payment of 5 years, 10 years and 15 years and Single Premium Payment Option as well depending on the Policy Term.

LICs Yuva Term Plan

LIC Yuva Term Plan (UIN: 512N355V02) is an affordable Term Insurance Plan from Life Insurance Corporation which provides financial protection to the Insured’s family in case of his death during the Policy Term. LIC Yuva Term Plan offers 2 option for receiving Death Benefits:

• Level Sum Assured option: Under the Level Sum Assured Option, Policy Sum Assured remains constant throughout the policy term
• Increasing Sum Assured option: Under the Level Sum Assured Option, the Policy provides protection that grows over time - it stays level for the first 5 years, then increases by 10% each year until it doubles by the 15th year, helping counter the effects of inflation. LIC Yuva Term Plan has a minimum Entry Age of 18 years and a maximum Entry Age of 45 Years with a minimum Sum Assured of Rs50 lakhs and maximum a Sum Assured is Rs5 Crores. The minimum maturity age for the Plan is 23 years and the maximum maturity age is 75 years. The Policy offers flexible options for Premium Payment: Regular Premium Payment, Limited Premium Payment of 5 years, 10 years and 15 years and Single Premium Payment Option as well.

LICs New Tech-Term Plan

LIC’s New Tech Term (UIN: 512N351V02) is a Pure Risk Insurance Plan and anyone between the age of 18 Years and 65 Years can purchase the plan. The Minimum Sum Assured under the LIC New Tech-Term Plan is Rs50 lakhs while there is no limit on maximum Sum Assured. The maximum Sum Assured depends on the Underwriter’s decision The Plan can be purchased only on LIC’s website. This plan offers 2 death benefit options:

• Level Sum Assured option: Under the Level Sum Assured Option, Policy Sum Assured remains constant throughout the policy term
• Increasing Sum Assured option: Under the Level Sum Assured Option, the Policy provides protection that grows over time - it stays level for the first 5 years, then increases by 10% each year until it doubles by the 15th year, helping counter the effects of inflation. LIC New Tech-Term Plan has a minimum Entry Age of 18 years and a maximum Entry Age of 65 Years with a minimum Sum Assured of Rs50 lakhs and maximum Sum Assured is subject to the Underwriter’s Decision. The minimum maturity age for the Plan is 28 years and the maximum maturity age is 80 years. The Policy offers options for Regular Premium Payment and Limited Premium Payment. The Plan also offers an Accident Benefit Rider on payment of additional Premium where the Assured’s family receives upto 3 times the Basic Sum Assured as a Death Benefit in case of an Accidental Death of the Life Assured.

LICs New Jeevan Amar Plan

LIC New Jeevan Amar Plan (UIN: 512N350V02) is a Pure Term Insurance Plan which can be purchased by anyone between the age of 18 Years and 65 Years. The Minimum Sum Assured under the LIC New Jeevan Amar Plan is Rs25 lakhs while there is no limit on maximum Sum Assured. The maximum Sum Assured depends on the Underwriter’s decision This plan offers 2 death benefit options:

• Level Sum Assured option: Under the Level Sum Assured Option, Policy Sum Assured remains constant throughout the policy term
• Increasing Sum Assured option: Under the Level Sum Assured Option, the Policy provides protection that grows over time - it stays level for the first 5 years, then increases by 10% each year until it doubles by the 15th year, helping counter the effects of inflation. The minimum maturity age for the Plan is 28 years and the maximum maturity age is 80 years. The Policy offers options for Regular Premium Payment, Single Premium Payment and Limited Premium Payment. The Plan also offers an Accident Benefit Rider on payment of additional Premium where the Assured’s family receives up to 3 times the Basic Sum Assured as a Death Benefit in case of an Accidental Death of the Life Assured.

LICs Saral Jeevan Bima

LIC’s Saral Jeevan Bima (UIN:512N341V01) is a Term Insurance Policy which provides a Death Benefit to the Insured’s family in case of his death during the Policy Term. Anyone between the age of 18 years and 65 years can purchase the Plan. The Minimum Sum Assured under the LIC New Jeevan Amar Plan is Rs5 lakhs while the maximum Sum Assured is Rs25 Lakhs. The plan has a unique 45-day waiting period from Policy Commencement where only accidental death is covered with full benefits during this Period. Other causes of death are covered only after the end of the Waiting Period. The minimum maturity age for the Plan is 23 years and the maximum maturity age is 70 years. The Policy Term ranges from 5 years to 40 Years. The Policy offers options for Regular Premium Payment, Single Premium Payment and Limited Premium Payment (5 and 10 years) options.

What is the Claim Settlement Process under a LIC Term Life Insurance Policy?

The Claim Settlement Process under a LIC Term Life Insurance Policy is as follows:

1. Claim Intimation: Inform LIC about the claim as soon as possible and provide requisite details like Policy Number, Name of the Insured, Date and Cause of Death.
2. Submit Documents: The next step is to submit the following documents to process the Claim:
   • Policy Copy
   • Death Certificate Copy
   • Duly Filled and Signed Claim Form
   • Signed Statement of the Nominee
   • Photo ID Proof and Address Proof of the Nominee (e.g., Aadhaar card, PAN card)
   • Cancelled Cheque of the Nominee
3. Claim Verification: An LIC Claims Officer will verify the documents and evaluates the Claims against the Policy Terms. Once approved, the claim amount is disbursed directly into the bank account of the nominee.

What is the Eligibility Criteria for LIC Term Insurance Plans?

The eligibility criteria for LIC Term Insurance Plans are as follows:

1. Age: The minimum age for purchasing an LIC term insurance plan is usually 18 years, while the maximum age varies depending on the plan.
2. Health: Policyholders must be in good health to purchase an LIC Term Insurance Plan. Pre-existing medical conditions may affect the premium or eligibility.
3. Income: Policyholders must have a regular income to purchase an LIC term insurance plan.

How to Purchase a LIC Term Insurance Plan with Qian?

You can purchase a LIC Term Insurance Plan by following the below-mentioned steps:

1. Consult an Insurance Broker: You can contact Qian Insurance Broking to purchase an LIC Term Insurance Policy. Qian will provide you with various plan options and the Premium Amount.
2. Fill the Proposal Form: Fill out the physical proposal form provided by Qian. Provide necessary details such as Personal Information, Sum Assured, Premium Type, Policy Term, Premium Paying Term, Premium Payment Mode, Smoker Status and Date of Policy Commencement and nominee details. Provide requisite Documents such as Income/Investment Proof, Cancelled Cheque, Address Proof and Photograph. Pay the premium via cash, cheque, or demand draft (DD) at the branch office.
3. Receive Insurance Policy: Pay the premium via cash, cheque, or NEFT/RTGS and the Policy will be mailed to your address within 2 days.

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Purchase LIC Policies Though Qian Insurance

When you purchase your LIC Term Insurance Policy through Qian, you get more than just insurance — you get expert support every step of the way. Our IRDAI-licensed advisors guide you in choosing the right plan based on your goals and budget, ensuring you make an informed decision. Qian is a licensed Insurance Broker with LIC. We can assist you with all Insurance Policies as well as Claim Settlement Process with Life Insurance Corporation. Get a Quote for LIC Policies with Qian at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you