LIC e-Term plan is a pure term insurance plan. It provides death benefits to the insured’s family in case of his/her unfortunate death during the policy term. No benefit is payable to the insured if he/she survives till the end of the policy term. In this post, let’s discuss LIC Term Insurance Plan (LIC e-Term Plan).
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What is Term Insurance?
Term insurance plan is the simplest form of life cover that provides financial coverage for a defined period of time. If the insured expires during the term of the policy and the policy is active then death benefit is payable to the insured’s family. It is the cheapest form of life insurance as it has no cash value.
LIC Term Insurance Plan, LIC e-Term Plan
The LIC e-term plan is a regular premium non-participating online plan. It is available via online mode only on LIC website and no intermediaries are involved. You have to visit LIC official website to purchase it.
Premium Rates under LIC Term Plan
Under this plan, there are two categories of premium rates namely:
- Aggregate lives
- Non-smoker lives
LIC offers differential premium rates for smoker and non-smoker categories. For sum assured up to Rs. 49 lakhs only aggregate category rates only would apply. For sum assured Rs. 50 lakhs and above you have an option to choose differential premium rate for non-smoker category. Note that Non-smoker premium rates would apply based on the findings of the urinary cotinine test. The aggregate premium rates would apply in all other cases.
Key Features of LIC e-Term Plan
Key features of LIC Term plan are:
- This plan is available via online application only.
- It is a pure term insurance plan.
- There are two categories in this plan.
- LIC offers differential premium rates for smoker and non-smoker categories.
- No maturity benefit is payable to the insured at the end of the policy term.
- Under this plan, a proposal on own life only will be considered.
- You cannot propose for anyone other than self under this plan.
- Mode of premium payment is annually only.
- A grace period of one month but not less than 30 days will be available for premium payment
- No surrender value is available under this plan.
- The death benefit will be equal to sum assured.
Eligibility conditions for LIC e-Term Plan
Eligibility condition for this plan are given in the table below
| Minimum Sum Assured for Aggregate category | Rs. 25,00,000 |
| Minimum Sum Assured for Non-smoker category | Rs. 50,00,000 |
| Maximum Sum Assured | No limit |
| Minimum age at entry | 18 years (completed) |
| Maximum age at entry | 60 years (nearest birthday) |
| Age at maturity | 75 years (nearest birthday) |
| Minimum policy term | 10 years |
| Maximum policy term | 35 years |
| Mode of Payment | Annually only |
Benefits under LIC e-Term Plan
Death Benefit
Sum assured shall be payable to the insured’s family in the event of unfortunate death of the life assured during the policy term.
Maturity Benefit
Nothing is given to the policyholder at the end of the policy term if the policyholder survives till the end of the policy term.
Tax Benefits
Life Insurance premiums paid up to Rs.1.5 lakh every year are eligible for tax deduction under section 80C of Income Tax Act. Death Benefit amount paid to the insured’s family is also tax-free under section 10(10D) of Income-tax Act.
Who should buy Term Insurance?
Term insurance plan is best suited for a person who has a family and is looking for a large cover to protect his family’s financial future against uncertainties of life at a low cost.
Also read: SBI Life Poorna Suraksha Plan | SBI Life term Insurance Plan
Also read: Max Life Online Term Plan Plus
LIC Term Insurance Plan | LIC Term Plan
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