LIC or Life Insurance Corporation of India is the oldest and one of the best life insurance companies in the country. Started in 1956, it was the only life insurance service provider in those days in India. LIC enjoys a large market share due to decades of operation and expertise in the insurance sector. The brand has gained a reputation over the decades of providing unparalleled benefits and customer-focused policies. Among the range of products the company offers, there are term insurance plans offering protection to the policyholders at a lower cost.
An LIC term plan offers financial security to dependants if the policyholder passes away during the tenure of the plan. In case the person survives the term period, he will not be given any maturity benefit. Being a basic form of life insurance, they offer high coverage at low premium rates. Cheaper premium rates make these plans easy on the pocket
Consider taking a term plan in your early years as a young person is healthier, and thus lower are the premium rates for him. Buying a plan early on also means staying covered for a longer time period. Let’s take a close look at the popular term plan offerings of the LIC.
Amulya Jeevan II LIC Term Plan
Amulya Jeevan is a traditional LIC Term Plan in which the minimum sum assured is INR 25 lakhs and the entire sum is paid to the nominee in the event of the policyholder’s demise during the tenure of the plan. Here are the features of this popular life insurance plan.
- Minimum age for entry is 18 years and the maximum is 60 years.
- Maximum maturity age is 70 years.
- The minimum tenure of the Amulya Jeevan II term plan is 5 years, and the maximum is 35 years.
- While the minimum amount of sum assured has to be INR 25 lakhs as stated already, there is no capping on the upper limit.
- Premium is paid regularly during the entire length of the policy term.
- This policy does not involve any maturity pay-out in case the policyholder survives at the end of the tenure.
- Premium payment and the claim made on the policy are exempted from tax under sections 80(C) and 10(10D) of the Income Tax Act.
- The mode of premium payment can be annually or semi-annually. If a policy owner chooses the semi-annual mode, he will have to pay an additional amount of 2% of the annual premium amount.
LIC E-Term Plan
This is the only online LIC term plan offered by the Life Insurance Corporation of India through its web portal. Being a pure term plan, it offers payment of the sum assured only in the event of the death of the life insured during the term of the policy. Here’s a look at the plan’s features.
- Minimum age of entry is 18 years, and the maximum is 60 years.
- Maximum maturity age is 75 years.
- Minimum tenure of the policy is 10 years, and the maximum is 35 years.
- Minimum amount of sum assured for the aggregate category is INR 25 lakhs and INR 50 lakhs for non-smoker category. There is no maximum limit for non-smoker category.
- Differential premium rates for Smoker/ Non-Smoker lives
- Payment must regularly be made during the entire term of the policy.
- Premium payment frequency should be annual.
- Premium can be paid through Net Banking, Debit Card, Credit Card, Amex Card, UPI, IMPS, and e-wallets.
- This online term plan can be availed online on the company website at lower premium rates.
- The premium payments under the LIC E-Term plan get tax relief under Section 80(C) up to INR 1.5 lakhs, and the claim amount also earns tax relief under Section 10(10D) of the Income Tax Act, 1961.
Compare the term insurance plans and make a note of the policy inclusions and exclusions before deciding on one. Coverfox.com is your one-stop-portal that helps you compare the features of different term plan offerings of LIC and arrive at a suitable one for your needs. It takes the confusion out of buying insurance so that it is easy to understand what is included in the policy and you can seek the best LIC term plan insurance quote.