One of the Best Insurance Plans In India In 2021 - LIC Term Plan

Updated On Oct 03, 2023

Term Insurance Plan From LIC
Important Concepts To Consider While Purchasing Term Insurance
Take Away

Term insurance is a contribution that ensures your family's financial stability and security in the event of your death. If an individual has insurance under this policy, they're going to be required to pay a particular amount on a daily basis. If the policyholder dies, the nominees or the insured’s family will receive monetary compensation. In the event of a sudden death, term insurance is the most effective type of insurance for providing financial stability to the insured and their family. Read on to know which plan is most beneficial for your age bracket alongside the advantages of buying an insurance policy.

Term Insurance Plan From LIC

In the Indian life insurance industry, LIC is a well-known brand and has the largest market share. The company has worked to provide insurance purchasers with the greatest customer-centric products to meet their every requirement and need since its founding 60 years ago. as well as in delivering outstanding customer service. LIC was once India's only insurer that had effectively entered the country's most distant and rural areas. With such a reputation, LIC is one of the leading brands that provides the best coverage in terms of term insurance.

LIC offers two kinds of term insurance plans. They are- LIC Tech Term and LIC Jeevan Amar. These LIC term insurance plans offer compensation to the family or chosen nominees in case of the demise of the policyholder. This can be availed online from anywhere. While both the term insurance policy categories offer similar coverage, they have their own dynamic features. To be eligible for these term insurance policies, you will have to be above 18 and below 60 years of age. The maximum term can be between 10 to 40 years. The policy matures when the policyholder turns 80.

Important Concepts To Consider While Purchasing Term Insurance

There are a few major factors that you should consider while purchasing a term insurance plan. They are-

1. Coverage Provided

When it comes to term insurance, this is the most crucial thing to consider. It is normally determined by a number of criteria, including the insured's age and number of dependents, their monthly income, the rate of monthly inflation, whether he or she has financial responsibilities, and many more. This necessitates a thorough examination. After that, you'll be able to predict your family's financial needs in the event of your death and plan accordingly.

2. Claim Settlement Ratio (CSR)

A CSR is the ratio of claims paid by insurance firms to policyholders weighed with the total claims received from customers. High CSRs are always a plus because they indicate that the organisation will resolve claims in a timely and hassle-free manner. Don't forget to look at IRDAI's CSR ratings for all insurers.

3. Customer Service

In the event of an emergency, term insurance customers should have access to online assistance 24 hours a day, seven days a week. Also, the service (quality) requirements must be high. Customer service representatives must be friendly, supportive, and accessible. Family - Term insurance should be able to give financial security and coverage to all members of your family, regardless of their age or stage of life.

Take Away

Comparing insurance policies will help you to purchase the most suitable insurance policy that tends to your requirements. Since different Insurance firms provide different term insurance plans, comparing them will help you figure out what you require. Hence, while choosing term insurance, it is critical that you examine various policies and select the one that is best for you.