Uncertainties make your smooth sailing life miserable. You need to look out for the safety of your loved ones even in your absence. Losing the breadwinner of the family isn’t just emotionally heart wrenching, but also impacts the family financially as well. That is where the significance of Life insurance policies and LIC term plan comes into action.
Now, term plans are considered as the cheapest of all plans and hence are quite affordable to all. Investing in term plans at an early stage is good as it will help you remain covered for a longer period of time.
The two main reasons you should definitely buy an LIC term plan are:
- Health: It is always advised to buy plans when you’re young and healthy. Moreover, most of the premiums are charged based on the insurer’s health and age. So to pay a lot less and making plans at an early age would be a good decision.
- Savings: If you have a policy that can keep you covered from an early stage, then the worries of saving money for the future and the financial security of your loved ones in your absence can be erased. The money can then be invested in property, saving bonds, etc. This thereby boosts one’s wealth.
What is covered by an LIC Term Plan?
- LIC e-Term – Buying LIC term plan is the easiest way to secure your life at low cost. Even if the policyholder dies due to unforeseen circumstances during the tenure of the term period, his/her family can enjoy considerable benefits of this plan. The biggest advantage is that there is no maturity value payable under the term plan, if you stay alive until the end of the maturity period. The minimum and maximum entry ages are 18 and 60 years respectively with minimum and maximum policy terms are 10 and 35 years. The minimum sum assured is Rs. 25,00,000 for Aggregate category
Rs. 50,00,000 for Non-smoker category, while there is no limit to the maximum sum assured chosen. The company also offers different premium rates for smokers and non-smokers, where smokers are charged more premium than non-smokers.
If the insured commits suicide within 12 months of the commencement of the policy, then only 80% of the premium paid will be given back to the nominee. There will not be any payment of the sum assured.
- LIC Amulya Jeevan-II – This is a traditional term plan available in all the LIC branches. The minimum policy term is 5 years, while the maximum is 35 years.
₪ Premium payment mode – Annual and semi-annual.
₪ The minimum amount of premium depends on the minimum sum assured value and age of the insured.
₪ Death benefit- The entire Sum Assured will be paid to the nominee.
- LIC Anmol Jeevan-II – This being another traditional plan of LIC, has similar features to the former one. The minimum and maximum policy years are 5 and 25 years respectively. The thing to keep in mind is that, being a pure term plan, no benefit will be paid to the insured if he/she survives the policy period, unlike endowment policy. Moreover, the amount of premium paid and the claim received are both excluded from taxation under section 80C and 10(10D).
- LIC Bhagya Lakshmi – This term focuses to meet the financial needs and security of low-income groups or rural communities. They also provide maturity offers to the potential customers. The minimum and maximum entry ages are 18 and 55 years. The minimum sum assured is ₹20,000 and the maximum sum assured is ₹50,000. The sum assured on maturity is 110% of all the premiums paid. The death benefit is a sum assured on death.
- LIC New Jeevan Mangal – This is a micro insurance plan with an accidental death benefit rider that ensures to return the premiums paid on maturity. There is a wide range of payment options like single, annual, semi-annual, quarterly, or monthly. Death benefit offered is 105% of all premiums paid on a regular basis, whereas it is 125% of the premium for a single pay policy.
Which LIC term plan Is The Best For You?
One can never give a single answer to this question. Everyone has different financial needs and expectations. So, to choose one that caters to all such needs and necessities, you could only go for comparison based on certain parameters.
- Service standards and claim settlement process:
- Coverage: Different plans offer different coverage. The amount of cover depends on many factors like policy applicant’s lifestyle, liabilities, inflation etc.
- Look for the maturity age mentioned by each of the different types of term plans.
- Premium payment term and premium payment frequencies of various term plans need to be compared and choose the best amongst them.
- Compare the minimum and maximum sum assured.
- Also, check for exclusions and waiting period.
So avail the most affordable plan that suits your lifestyle and lead a secured life.