LIC (Life Insurance Corporation of India) is one of the oldest and most trusted life insurance companies in India. LIC offers a range of life insurance plans with different features and benefits to meet the financial security needs of its policyholders. One of the most popular LIC plans is the LIC Term Insurance Plan. A term insurance plan is a pure protection plan that provides financial security to the family of the policyholder in case of his/her untimely death during the policy term. In this blog post, we will take a detailed look at the LIC Term Insurance Plan – its features, benefits, eligibility criteria and more.
Benefits of LIC Term Insurance Policy
When it comes to life insurance, there are various policies available with different features and benefits. However, a term life insurance policy is one of the most popular and sought-after options as it offers financial security to the policyholder’s family in case of untimely death. Some of the key benefits of LIC term insurance plans are mentioned below:
1. Financial Protection: One of the main reasons why people opt for term life insurance is because it provides financial protection to the policyholder’s family in case of an untimely death. The death benefit that is paid out by the insurer can be used by the beneficiary to meet various financial obligations such as mortgage payments, outstanding debts, children’s education, etc.
2. Flexible Premium Payment Options: Most LIC term insurance plans offer flexible premium payment options, which means that you can choose a premium payment frequency that suits your budget and needs. You can pay premiums monthly, quarterly, semi-annually or annually.
3. Option to Convert to a Whole Life Policy: Many LIC term insurance plans offer an option to convert to a whole life policy at some point during the policy term. This can be beneficial if you feel that you need more coverage than what a term policy provides or if your circumstances change and you need permanent life insurance protection.
4. Tax Benefits: Another advantage of LIC term insurance plans is that they offer tax benefits under section 80C of the Income Tax Act 1961. The premium paid towards
Types of Lic Term Insurance Plans
There are various LIC term insurance plans available, each with different features and benefits. The main types of LIC term insurance plans are:
1. Whole life: A whole life policy provides coverage for the insured’s entire lifetime, as long as premiums are paid. This type of policy also accumulates cash value over time, which can be accessed by the policyholder if needed.
2. Term life: A term life policy provides coverage for a specific period of time, typically 10-30 years. If the insured dies during the term of the policy, beneficiaries will receive a death benefit payout. If the insured survives the term, the policy expires and there is no death benefit payout.
3. Universal life: A universal life policy is similar to a whole life policy in that it provides lifetime coverage and builds cash value over time. However, universal life policies have more flexible premium payment options and death benefit payouts than whole life policies.
4. Variable universal life: A variable universal life policy combines features of whole life and universal life policies. It offers lifetime coverage and builds cash value, but also allows the policyholder to invest in stocks, bonds, and other securities within the account.
LIC’s Term Insurance plans are one of the most popular life insurance policies in India. It offers a high sum assured at an affordable premium, and is available for a wide range of terms. The policy provides death benefit coverage for the policy term, and has no maturity value.
Premiums paid towards a LIC Term Insurance plan are eligible for income tax benefits under Section 80C of the Income Tax Act.
LIC Term Insurance plans can be purchased online or through any LIC branch office.
LIC Jeevan Amar is a term insurance plan that offers financial protection to the policyholder’s family in case of his/her untimely death. The sum assured under this policy is paid out to the nominee in lump sum, which can be used by the family to meet their immediate financial needs and obligations. This policy also offers additional benefits like accident benefit rider and critical illness rider, which provide extra financial support to the policyholder and his/her family in case of an unfortunate event.
-Minimum age at entry: 18 years
-Maximum age at entry: 60 years
-Policy term: 10-40 years
-Premium payment term: Equal to policy term
-Sum assured: Rs. 5 lakhs – No limit*
LIC Saral Jeevan Bima is a term insurance policy offered by Life Insurance Corporation of India (LIC). The policy provides financial protection to the family of the policyholder in case of his/her untimely death. The policy can be availed by anyone between the ages of 18 and 60 years.
The sum assured under this policy is payable on the death of the policyholder during the policy term. In case of the policyholder’s survival till the end of the policy term, no benefit is payable.
The premium for this policy is payable annually or half-yearly. LIC offers a discount on half-yearly premium payments.
This is a non-participatingpolicy, which means that it does not provide for any bonuses.
LIC Saral Jeevan Bima offers a grace period of 30 days for payment of premiums. If the premium is not paid within this grace period, the policy will lapse and will not be revived.
Policyholders have the option to pay their premiums through LIC’s online portal or through any of its branches across India.
Eligibility of LIC Term Insurance Policy
To be eligible for a LIC term insurance policy, you must:
-Be between the ages of 18 and 55
-Be a resident of India
-Have a regular source of income
-Not have any pre-existing medical conditions
Document Required to Buy LIC Term Insurance Plans
When you are looking to purchase a LIC term insurance policy, there are a few documents that you will need to provide in order to complete the process. The first document that you will need is a government-issued photo ID, such as a driver’s license or passport. You will also need to provide proof of your current address, such as a utility bill or bank statement. In addition, you will need to provide your social security number and date of birth. Finally, you will need to provide any medical records that you have, as well as any life insurance policy information that you currently have.
LIC offers a wide range of Term Insurance plans with different features to cater to the needs of different individuals. While most of these policies have common features like death benefit and tax benefits, each policy has its own set of unique features which makes it best suited for a particular individual’s requirements. You should always compare various LIC Term Insurance plans before zeroing in on one so that you can make an informed decision and choose a plan which is best suited for your needs.