Over the last few years, term insurance plans have found a lot of takers for themselves. While some of it can be attributed to aggressive pitching by insurers, acceptance of term plans by individuals plays a crucial role as well. In fact, there are quite a few reasons which make term plans as popular as they are at this point. If you are on the lookout for a term plan, you possibly cannot go wrong with an LIC term plan.
LIC or the Life Insurance Corporation of India is one of the most trusted names in the insurance space since its inception 6 decades ago. Over the years, the insurer has earned a lot of respect and admiration from policyholders, all thanks to its exceptional service and relevant and innovative products all through these years.
An LIC term plan is no different. It is LIC’s take on the popular term insurance plan which offers you high life cover by paying nominal premiums. Since it is one of the more popular products, it is quite natural that there are usually a lot of questions regarding it. Here are some of the frequently asked questions related to an LIC term plan.
- Is it for me?
The policy is ideal for anyone who is working and has dependents in the form of spouse or children or parents. If you are looking for financial protection against uncertainties of life, then a term plan is just for you.
- Are there any qualifying criteria?
LIC offers a few term insurance plans and the eligibility or qualifying criteria may differ for each of them. However, some of the aspects remain the same. For an instance, you should be a resident of India. The plans are not applicable to Overseas Citizen of India or Person of Indian Origin. Similarly, the person must be earning to be eligible for the plan. Apart from these, each plan has their own minimum and maximum age limits to avail the policy.
- Is there a limit on the duration of the plan?
Each of the LIC term plans has a different minimum and maximum duration for the policy. At the lower end, you can expect a minimum term duration of 5 years and at the higher end it can go up to 35 years.
- What kind of death do the plans usually cover?
LIC term plan usually covers all types of death apart from suicide cases. Though it must be noted, that LIC does account for suicide cases if the same takes place at least after a year of buying the policy.
- Is there a grace period for LIC term plan?
LIC allows a grace period of 30 days within which you must pay the premium to continue with the policy benefits.
- Is it possible to take a loan?
Unlike other offerings from LIC, an LIC term plan does not allow you to take a loan against the policy.
- Do I have to undergo a medical test?
This largely depends on what you declare in your application form. Should your underwritings warrant a medical test, they are usually quick and basic in nature. The expenses of the test will be borne by LIC as long as you proceed with buying the policy from them.
- Is the policy applicable in other countries?
Once LIC issues a term plan to you, the same is applicable in any part of the globe. If you have to travel to some other country for work, the policy would still remain valid.
- Are there any tax benefits?
The premiums that you pay for the policy are tax deductible under Section 80C and the proceeds of the policy are non-taxable under Section 10(10D) of the Income Tax Act,1961.
Find LIC Term Plan Now
If you wish to buy an LIC term plan, there are three different options that you can choose from. You can opt for Anmol Jeevan II, Amulya Jeevan II or e-Term. While the Anmol Jeevan II offers the plan for a minimum of 5 years and maximum of 25 years, the sum assurance ranges from INR 6,00,000 to INR 24,00,000. Amulya Jeevan II on the other hand is available for a minimum of 5 years and a maximum of 35 years. The minimum sum assured for the policy is INR 25,00,000. The e-term has term durations of 10 years minimum and 35 years maximum. The minimum sum assured is INR 25,00,000 for smokers and INR 50,00,000 for non-smokers.
Tricks to Buy LIC Term Plan
One of the best tricks to buy an LIC term plan is to buy the same online. When you buy the policy online, you can do so from the comfort of your home and at any point in time. Not to forget, that buying a policy online saves you a considerable amount on the premiums as well.