LIC Term Insurance

LIC Term Insurance Plans secure the future of your loved ones. LIC of India is one of the oldest and best term insurance companies in India. You can financially protect your family against mishaps like the demise of the breadwinner. Read on to learn more about the LIC term plans.

Benefits of LIC Term Insurance Plan

The Life Corporation of India (LIC) attracts many policyholders by providing unique features and advantages with their term insurance plans. Some of the benefits of LIC term insurance plans are highlighted below:

• Affordable Premiums: LIC term plans allow you to protect your loved ones at affordable premiums. You can invest in higher sum assured term insurance plans without worrying about your existing budget.
• Special Discounts: Your lifestyle habit like smoking can help you avail of discounts on LIC term life insurance plans. This means the LIC provides special discounts to non-smokers. Additionally, low-premium rates are offered to woman policyholders.
• Loan Coverage: One of the most important reasons to buy term insurance from LIC is that it provides coverage for outstanding loans and debts. If the policyholder dies during the policy tenure, the LIC of India will pay them. Your loved ones will be protected from any kind of financial burden that may arise during those tough times.
• Rider Benefit: The policyholders of LIC term insurance plans can enjoy enhanced coverage by purchasing riders with their base term plan. You may have to pay an additional premium to buy additional protection.
• Tax Benefits: Under Section 80D of the Income Tax Act of 1961, the premium paid for the term insurance plan provided by LIC is eligible for a tax deduction.

Best LIC Term Insurance Plans 2023

The table below highlights a variety of term insurance plans offered by the LIC of India:

Process to Buy LIC Term Insurance Plans

Individuals who want to purchase the LIC Term Insurance Plan can follow the following steps:

• Visit the official website of InsuranceDekho.
• Under the “Term Insurance Companies” section, Select “LIC Term Insurance.”
• Fill in the relevant details in the term insurance premium calculator.
• The LIC term plans will be displayed on your screen.
• Compare and select the plan that suits your needs.
• Make a premium payment online to complete the process.
• The policy document will be shared with your registered email.

Documents Required to Buy LIC Term Insurance Plans

Here’s a list of documents you will need to buy the LIC term insurance plans:

• Latest medical reports
• Age proof such as Aadhaar card
• Identity proof
• Salary slips for the last 3 months
• Income tax return copy
• Address proof

Riders Available Under LIC Term Insurance Plans

LIC provides many rider options to provide comprehensive term insurance coverage to policyholders. Some of the riders offered under the LIC term plans are as follows:

• LIC Accidental Death and Disability Benefit Rider: If the policyholder is disabled, they will receive accidental disability rider benefits for up to 10 years in instalments. Additionally, all future premiums will be waived by the LIC. In the event of the demise of the life assured, the nominee will get a value equivalent to the accidental death benefit sum assured.
• LIC New Critical Illness Benefit Rider: It is a non-linked rider that financially protects the policyholders if they are diagnosed with any of the specified critical illnesses.
• LIC Premium Waiver Benefit Rider: Policyholders can buy this rider at the time of purchasing the policy. In this rider option, all the future premiums that you may have to pay against your LIC term insurance plan are waived. However, this rider benefit is only applicable if the policyholder dies or becomes partially disabled.
• LIC Accident Benefit Rider: This rider benefit provides an extra sum assured to the nominee in case of the death of the life assured due to an accident. LIC of India considers an accident to be a sudden, unforeseen, involuntary event caused by external and visible activities.

Exclusions Under LIC Term Insurance Plans

LIC term insurance has some exclusions that LIC of India does not cover. One of the notable exceptions is the suicide of the policyholder during the first year of the policy. In this case, the LIC is not liable to pay any death benefit to the nominees of the policyholder. However, a nominee or beneficiary may receive a refund of 80% of the premium paid.

Therefore, it is important to read all the terms and conditions mentioned in the policy document carefully at the time of purchase.

LIC Term Insurance Plans Claim Settlement Process

The nominees of term insurance plans offered by LIC may have to undergo a strict process to claim a death benefit. Read on to find out a detailed guide on the claim settlement process for LIC term plans.

Documents Required To Claim LIC Term Insurance

• Original policy document
• Claimant form
• Bank account details of nominee or beneficiaries
• Medical reports of the life assured
• FIR copy (only in case of accidental death)
• Death certificate issued by the valid authority

Steps You Should Follow To Claim LIC Term Insurance

• Download the claim form from the company’s official website.
• Fill in the form thoroughly.
• Attach all the necessary documents and submit the form to the nearest LIC branch office.
• The LIC will process your claim request and verify all the information provided by you. In some cases, an insurance company may send investigating officer to the treatment centre for document verification.
• Once the verification process is completed, LIC of India will either pay a death benefit or may reject your claim request.

It is suggested that you should not lie to an insurance company in any case. For instance, if the insurance company finds out that you, the policyholder, died due to any pre-existing medical condition about which they were not informed, then your claim request might get rejected.