Do You Know Everything There Is To Know About LIC Term Insurance Plans?

At one point in time, LIC was the only insurer that had successfully penetrated the most remote and rural parts of India. With over 250 million customers in PAN India, LIC has a wide range of products such as term plans, child plans, health insurance plans, endowment and saving plans, pension plans, and ULIPs.

Benefits of Buying LIC Term Insurance Plan

If you’re looking to buy a life insurance plan, always look at the features and benefits you get along with the plan. Buying a LIC term insurance plan gives you unbelievable personal benefits - let’s look at some below:

• Higher coverage at cheaper rates and lower premiums. Pay even lower premiums if you are a non-smoker.
• You have the flexibility to choose your Sum Assured amount and it caters to people from 18 years to as high as 75 years.
• Flexible mode of payments and flexibility in the frequency of the premium payment schedule.
• Get Riders to boost coverage, with multiple sum assured options.
• Available for everyone from young to old.
• Gives you the ability to continue your lifestyle when paying premiums.
• Plan conversions/Switching (Limited)
• Can be bought online directly or through intermediaries.
• Get insured with the very first and the most trusted insurer in India.

Important Things to Consider When Purchasing Term Insurance

• Cover Provided

This is the most important factor to consider with respect to every term insurance plan. It usually hinges on multiple conditions such as - the insured’s age and family dependants, their monthly income, rate of monthly inflation, whether he/she has financial obligations and many other related factors. This requires an adequate assessment. After this, you will understand your family’s financial needs after your demise and plan accordingly.

• Claim Settlement Ratio (CSR)

A CSR is a ratio of the claims paid to the policyholders/beneficiaries/nominees by the insurance companies v/s the total claims received from the customers. High CSRs are always good - they show the company will settle claims in a hassle-free, quick manner. Don’t forget to check all insurers’ CSR ratings on IRDAI.

• Customer Service

The 24x7 online assistance for term insurance is important in case of an emergency. Also, the standards of service (quality) must be excellent. Customer care executives must be helpful, supportive, and available. Family - Term insurance must be able to provide financial security and cover every member of your family, irrespective of their life stage.

• Standard of Living

A term plan must provide adequate cover to meet all of your family’s future expenses in your absence. The rise in the cost of living, inflation, education expenses/ medical treatment are some of the needs for which your term plan will come to help.

Riders Offered by LIC

LIC offers two special featured packed riders, which you can buy along with any non-linked term insurance plan. Riders are beneficial to any insurance policyholder as they increase the coverage of your plan and provide added insurance protection. Some of the best riders to take if you have an insurance term plan are:

• LIC Critical Illness Benefit Rider:

It covers 15 Critical Illnesses, including Cancer of specific severity, Open Chest CABG, Kidney Failure requiring regular dialysis, Stroke, Permanent paralysis of limbs, Blindness, Third-degree burns, Alzheimer’s, etc.

• LIC Critical Illness Benefit Rider Features:

LIC's New Term Assurance Rider is a pure death benefit rider. In case of life-assured death, the nominee will receive the life cover and rider sum assured. This rider can be bought only at the inception of the base policy.
Death Benefit: In case of unfortunate death of the life assured during the policy term, the claimant will receive an amount equal to the rider sum assured, which can be equivalent to the base policy sum assured.

How Can I Apply For LIC Term Insurance?

There are two ways to apply for a term insurance plan:

Online - LIC’s e-Term Plan is the only insurance plan that is available online through the official portal of LIC.

Step 1 - Register an Account on the site.
Step 2 - Select the best-fit Plan. Automatic calculation of premium on Coverage and Tenure.
Step 3 - Check details and press ‘Pay Premium’.
Step 4 - Complete payment via Debit card/Credit card/net banking facility.

Offline - Those plans unavailable online are available offline. Buy LIC term insurance plans from LIC agents and brokers, banks, etc.

Conclusion

LIC, being the first insurance company in India, has been a pioneer in the insurance industry with an experience of over 6 decades. Their customized, customer-centric plans help fulfill every insurance buyer’s goal for protection. Without a doubt, they’re the best in the industry.

Also read- Online Tips For Evaluating Term Insurance Policies

Learn About Life Insurance Plans For People With Disabilities.