Understanding the Types of LIC Term Insurance

Term Insurance is referred to the most basic and simplest Life Insurance plan. Against the risk of death, this type of insurance offers protection for a specific fixed sum that is assured. Being the policyholder, if you die during the term plan, the sum will be paid to your nominee or dependent.

Although there are numerous term insurance policies out there; however, Life Insurance Corporation of India (LICI) offers a perfect solution. Established back in 1956, LIC is one of the trustworthy government-owned companies that provide an extensive Range of insurance plans. In this post, let’s find out more about LIC term insurance.

Types of LIC Term Insurance

1. LIC Jeevan Amar Plan

This LIC Jeevan Amar plan is a non-linked and only offers a Return on Investment. It also provides the flexibility to select from two different death benefit options, such as Increasing Sum Assured and Level Sum Assured. Upon the death of the insurer, the family gets complete payment either in the lump sum amount or annually.

Features

• Lower premium for non-smokers, non-tobacco and non-hallucinogenic substance users
• Special discount on premium for females
• Rebate up to 20% on choosing higher assurance sum

Eligibility Criteria Requirement

2. LIC Tech Term Plan

The LIC tech term plan is a traditional insurance plan that offers financial help to the family of the insured upon the unanticipated and unfortunate death. It is a pure risk, non-participating and non-linked plan. There are two benefit options to choose from, such as Increasing Sum Assured and Level Sum Assured.

Features

• Availability of an option to get benefits in instalments
• Lower rates of premium for non-smokers and the ones with healthy lifestyle
• The plan covers every type of death
• Tax benefits available

3. LIC Saral Jeevan Bima

LIC Jeevan Saral is an endowment policy that offers double death benefits of sum assured plus return of premium. It comes with lot of flexibilities that is usually available only with Unit Linked Insurance Plan. Hence it is categorized under special plans.

Features

• Flexibility to choose own premium amount, thereafter the sum assured gets determined
• The policyholder is allowed to choose a flexible term for premium payment
• Partial surrender of the policy is allowed after the 3rd policy year
• Loyalty additions are provided from 10th policy year onwards

LIC Term Insurance Riders

In the hour of need, additional help can go a long way. Keeping this in mind, along with the LIC term policy, the company provides a wide range of riders that can easily be availed by paying extra premium. Here are some of them that can be purchased:

• LIC’s Accidental Death and Disability Benefit Rider

As the name suggests, this one offers coverage against accidental disability or death. During such a situation, you can easily claim a benefit from the company.

• New Term Assurance Rider

With this one, you can get a life cover in case of sudden death during the tenure. At a nominal premium, this rider can be attached to the basic cover.

• LIC’s Accident Benefit Rider

If during the tenure, the insured passes away because of an accident, the beneficiaries will get an additional sum along with the death benefit. Hence, this rider is beneficial in gaining additional coverage.

• LIC’s New Critical Illness Benefit Rider

This one is a non-linked rider that is advantageous enough when it comes to decreasing the financial burden in case the insured person is diagnosed with any critical illness or is suffering from a pre-existing one.

• LIC’s Premium Waiver Benefit Rider

Even this one is a non-linked and non-participating individual option. By attaching this with the base plan, this rider helps to waver off the future premiums that you are bound to pay for the base plan.

• PWB Rider

Lastly, this rider helps waver off the future premiums that are payable until the tenure, in case the insurer dies during the tenure.

Claim Process of the LIC Term Insurance

To file a claim for your LIC insurance, you would have to visit the nearest branch. You can speak to a representative and get the claim form. Also, make sure that you are taking the needed documents, as mentioned below, or else your claim will not be filed:

• Duly filled and attested claim form
• Photocopy of the nominee’s passbook or a cancelled cheque
• Original and photocopies of the death certificate issued by the local municipal committee
• Address proof and the identity proof of both the insurer and the claimant

In case the death was because of an accident, you will have to carry these additional documents along:

• Police investigation report
• FIR
• Post-mortem report

In the end, according to the regulations of IRDA, LIC takes at least 30 days, after the document collection, to settle the claim for a natural and non-early death. In case of other scenarios, you would have to contact the representative for claim settlement time period of your LIC term insurance policy.

LIC Term Insurance Customer Care

24x7 Customer Care Number: 022-6827-6827