Various Benefits of LIC e-Term Plan
Published On Dec 10, 2021 12:00 PM By InsuranceDekho
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In the event of the policyholder's death during the policy term, the LIC undertakes to pay the policyholder's beneficiaries (dependent family member/s) an agreed amount (sum assured). Nothing is paid if the insured lives to the end of the insurance term. The plan's premiums are tax-deductible, and the benefits provided to the nominee/family are tax-free.
As we'll see later in this article, the LIC e-Term plan offers a wide range of changing sums depending on the needs of the proposer. The LIC e-Term plan's minimum sum assured for an aggregate category is Rs.25 lakh, while a smoker's minimum sum assured is Rs.50 lakh. The LIC e-Term plan is a simple online term plan that allows clients to buy it from anywhere in the world.
Benefits of LIC’s e-Term Plan
Following are the benefits of LIC's e-Term plan:
- If the Life Assured dies during the policy period, the Sum Assured is paid to his or her nominee (a dependent family member). If the policyholder lives to the end of the policy term, no money will be paid to him or his family. Pure term plans are able to offer such low premiums because they do not pay out at maturity.
- Section 80C of the Income Tax Act allows a deduction from taxable income for life insurance premiums paid up to Rs.1,50,000 per year. Section 10 of the Internal Revenue Code exempts the amount of the death benefit provided to the nominee from taxation (10D).
- If the policyholder dies unexpectedly during the insurance term, the beneficiary/nominee will get the predetermined sum assured.
- Under the LIC e-Term plan, suicide committed during the first policy term from the date of purchase or renewal is not covered. In such cases, LIC will only pay up to 80% of the premiums paid up to the date of death, minus any relevant taxes and/or extra premiums.
- LIC e-term plans do not have any loans available.
Key Features of LIC e-Term Plan are as follows:
- Premium payments for the LIC e-Term Plan can be modified for:
- Nonsmokers are considered low-risk candidates since they have a higher chance of living longer.
- Female candidates qualify for cheaper rates than male applicants since they live longer.
- Traditional term insurance plan that is non-participating
- It only pays out in the event of death and does not pay out in the event of maturity.
- If the policyholder dies, the beneficiary can get the Death Benefit.
LIC e-Term Plan: Claim Process
Here is the claim process of LIC e-Term plan:
If the policy's beneficiary files a claim against the LIC e-Term plan due to the insured person's untimely death, the nominee of the policy must submit specific documentation to complete the claim process. Let's look at the documentation you'll need to file your claim.
- LIC e-Term Policy (original copy).
- Form for settling a claim that includes the policyholder's information..
- Copy of FIR Certificate (First Information Report)
- The beneficiary will be required to provide a police investigation report and a post-mortem report in the event of the policyholder's unnatural death or death due to an accident.
- Local government death certificate
This state-owned insurance company offers a variety of term insurance products to meet the demands of its diverse clientele. These insurance plans, which are noted for their low premiums, provide an amount promised to the nominee in the event of the policyholder's death while the policy is active. This provides financial stability for the policyholder's family even if he or she is no longer alive. Customers will find the LIC e-Term plan much more convenient because it is accessible online. Not only that, buy LIC e-Term plan's reliability is enhanced by a healthy claim settlement ratio.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.