LIC e-Term Plan is a term life insurance policy which provides financial protection to a person’s family in case of his sudden death. If the person survives till the end of the policy term, nothing is payable to him.
A term life insurance provides a substantial amount of protection against death at fairly low prices. The LIC e-Term plan is more than 30% cheaper than the LIC offline term plan, but compared to many online pure protection
term plans from private companies, it is more expensive.
LIC is better in terms of its claim settlement ratio (CSR). According to Insurance Regulatory and Development Authority, LIC has the highest percentage at 97.73 per cent.
LIC e-Term Plan Aggregate versus Non-smoker Category
Under this plan, there are two categories of premium rates namely Aggregate Cetgory and Non-Smoker category.
If you smoke or use tobacco in other forms, your premium will be roughly 25-30% higher than that of a non- smoker.
- For Sum Assured upto Rs. 49 lacs Aggregate category rates only would apply.
- For Sum Assured Rs. 50 lacs and above there is an option to choose differential premium rate for Non-smoker category.
- However, the application of Non-smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases the Aggregate premium rates shall be applicable.
LIC e-Term is available through on-line mode only and no intermediaries are involved. Hence it is more convenient and cheaper as compared to an offline policy.
Death Benefit of LIC e-Term Plan
In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
Maturity Benefit of LIC e-Term Plan
On survival to the end of the policy term, nothing shall be payable.
Rs. 25,00,000 for Aggregate category
Rs. 50,00,000 for Non-smoker category
Maximum – No limit
Qualifying Criteria of of LIC e-Term Plan
- Person should be an Indian citizen.
- A Non-Resident Indian (NRI) is not eligible for LIC e-Term Plan.
- An Overseas Citizen of India (OCI) is not eligible for LIC e-Term Plan.
- A Person of Indian Origin (PIO) is not eligible for LIC e-Term Plan.
- A person should have at least Rs 3 lakhs of annual income to purchase under non-smoker rates.
- Minimum Age at Entry is 18 years.
- Maximum age at entry is 60 years.
- Maximum cover ceasing age is 75 years.
- Minimum Policy Term is 10 years.
- Maximum Policy Term is 35 years
Mode of Payment
Premiums are to be paid annually.
In general, medical test is mandatory if a person opts for non-smoker rate and if it is not covered under Non-medical scheme. Underwriting requirements and a person’s health disclosures will also determine whether a medical test would be required or not.
- Premium paid is eligible for tax benefits under Section 80C of Income Tax Act.
- Benefits received are exempt from tax under Section 10(10D).
If a policyholder dies within 1 year of the start of the policy due to suicide, 80% of premiums paid will be paid as death benefit.
LIC e-Term Plan is a very good term insurance product from LIC which is one of the most trusted names in insurance in India. It is cheaper compared to its offline version and quite convenient and useful.
I hope you found this article useful. If you have any comments please feel free to contact me. Before making any investment decision, please contact your financial adviser.
I have provided this article for educational purpose only.
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