Is It Worth Investing In LIC Term Plan?

LIC offers five variable options under its term insurance plans and they can be bought traditionally through the branches of LIC. For those who wish a quicker and tech-savvy approach, some plans can be purchased over LIC’s portal as well. These plans feature simple terms and conditions and can be easily availed through minimal or no paperwork. These plans also offer tax benefits on the payment of premiums and the final sum assured that is payable to the nominee. Loans can also be taken in lieu of these term plans and this gamut of offering from LIC is also known as Term Assurance Plans.

Basic Features & Benefits of LIC Term Plans

1. The oldest and the most trustworthy insurer in India in the public sector
2. Flexible options in insurance pertaining to term, cover amount and premium payment
3. Customers can buy selected plans online in the comfort of their homes
4. Customers can avail of certain tax benefits under relevant sections of the IT Act, 1961
5. Some plans can be converted to other plans offered by LIC

How to Claim LIC Term insurance?

To claim death benefits, you will need to fulfil certain formalities. They are:

• Process

To claim the death benefits you will have to collect the documents required and submit them at the LIC office. Once the documents are received and the claim verified, the policy being in effect and the claimant being the beneficiary, LIC will process the claim and release the sum assured.

• Documents Required

You will need 3 key documents to make a claim for the death benefits of any policy. The original policy document. The death certificate of the policyholder. The claim form, also known as Claim Form A or Form No.3783. An NEFT mandate that will allow LIC to transfer the amount to your account.

Conclusion

Every insurance policy, including term insurance policies, has certain conditions under which claims will not be entertained. These conditions are known as exclusions. The main exclusion that applies to the policies issued by LIC relates to suicide committed by the policyholder. In such a case, if the policy is less than 12 months old then LIC will not pay anything to the beneficiary. If it is more than 12 months old then they will pay 80% of the premiums paid to the beneficiary and not entertain any claims for the sum assured.

Also read 

How Long Should My Term Insurance Cover Be?

Who Can Purchase Group Term Insurance In India?

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.