Life Insurance Corporation of India (LIC) is a trusted name in the insurance sector, known for its diverse range of policies that cater to different financial needs. Among its offerings, term insurance plans stand out as one of the most affordable and essential forms of life coverage. In this article, we will explore LIC’s term plans, their benefits, features, and why they might be the right choice for you.
What Are LIC’s Term Plans?
LIC’s term plans are pure life insurance policies designed to provide financial security to the policyholder’s family in case of an untimely demise. These plans offer high coverage at an affordable premium, making them an ideal choice for individuals seeking financial protection.
Key Features of LIC’s Term Plans
- Affordable Premiums
- LIC’s term insurance plans come with relatively low premiums compared to other life insurance policies, making them an economical choice for securing your family’s future.
- High Sum Assured
- Policyholders can choose a substantial sum assured to ensure their family’s financial stability in case of an unforeseen event.
- Flexible Policy Term
- LIC’s term plans offer flexibility in choosing the policy tenure, ranging from 5 to 40 years, based on the policyholder’s requirements.
- Tax Benefits
- Premiums paid towards LIC’s term plans qualify for tax deductions under Section 80C of the Income Tax Act.
- The death benefit received by the nominee is exempt under Section 10(10D).
- Optional Riders
- LIC provides additional riders such as Accidental Death Benefit Rider and Critical Illness Rider to enhance policy coverage.
- Simple Claim Settlement Process
- LIC has a strong claim settlement ratio, ensuring hassle-free processing of claims for policyholders’ beneficiaries.
Popular LIC Term Plans and Their Benefits
- LIC Tech Term Plan
- A pure risk plan available exclusively online.
- Option to choose between Level Sum Assured and Increasing Sum Assured.
- Non-smokers and women get preferential premium rates.
- Coverage available up to 80 years of age.
- LIC Jeevan Amar
- A flexible term plan that allows policyholders to choose between increasing and level sum assured options.
- Special premium rates for non-smokers and women.
- Option to pay premiums in single, regular, or limited pay modes.
- Available both online and offline.
Who Should Consider LIC’s Term Plans?
- Salaried Individuals & Business Owners: To ensure family security in case of any unfortunate event.
- Young Professionals: To get high coverage at an affordable premium.
- Parents & Sole Breadwinners: To protect dependents from financial hardships.
- Home Loan Borrowers: To ensure outstanding liabilities don’t become a burden on family members.
Why Choose LIC for Your Term Insurance?
- Government-Backed Trust: LIC is a state-owned insurer with decades of experience and financial stability.
- High Claim Settlement Ratio: Ensures reliable claim processing and payout.
- Flexible Coverage Options: Different sum assured and tenure options to suit various financial needs.
Customization with Riders: Additional benefits can be added to enhance protection.
