Various Advantages of LIC e-Term Plan
Table of Contents
Under the LIC’s e-Term policy, the insurance company agrees to pay the policyholder's beneficiaries (dependent family member/s) an agreed amount (sum assured) in event of his/her death during the policy term. However, if the insured survives till the end of the policy term, nothing is payable. Premiums paid under the plan are eligible for tax benefit and the benefits paid to the nominee / family is tax-free.
Key Features of LIC’s e-Term Plan
- Pure Term insurance plan
- Differential premium rates for Smoker/Non-Smoker lives
- Available through Online mode only
- Proposal on own life ONLY will be considered
Benefits of LIC’s e-Term Plan
- Death Benefit: In case of unfortunate death of the Life Assured during the policy term then Sum Assured shall be payable to his/her nominee (dependent family member).
- Maturity Benefit: If the policyholder survives till the end of the policy term, no amount shall be payable to him or his family members. Pure term plans do pay anything on maturity and hence are able to offer such low premiums.
- Income Tax Benefit: Life Insurance premiums paid up to Rs.1,50,000 every year are allowed as a deduction from the taxable income each year under section 80C. Death Benefit amount paid to the nominee is also tax-free under section 10(10D).
Conclusion
This policy ensures financial security for the family even after the policyholder's absence. LIC e-Term plan further adds to the convenience of customers as they are available online. Not just these, a healthy claim settlement ratio adds to the reliability of LIC e-Term plan.
Also read- In Summary, A Guide To Term Insurance Riders
Here's Why Your Term Plan Needs A Critical Illness Benefit Rider.
