Which is the best term insurance plan in LIC?


Life Insurance Corporation of India (LIC) is the most trusted and oldest life insurance company present in India. With the highest market share in the insurance space, LIC also provides innovative products and services to its customers. LIC offers various insurance products like endowment plans, term insurance plans, whole life insurance plans, child plans and unit linked insurance plans etc.
Out of all, term insurance is considered as a basic and pure form of insurance. 

Term insurance is the primary solution for availing a complete financial protection for the future needs of the insured’s family. Term insurance pays out huge lump sum in the form of death benefits to the nominee in case the policyholder dies during the policy term. When it comes to buying term insurance, LIC is the most preferred choice due to its brand equity and high claim settlement ratio. LIC offers various types of term insurance plans. Knowing each plan is important to choose the best suitable plan as per your individual requirement.
Term insurance plans of LIC

Currently, there are three different term insurance plans offered by LIC. Let’s take a look!
1.       LIC Amulya Jeevan II

This particular term insurance plan from LIC is a pure protection plan that only provides death benefits and no maturity benefits.
Key specifications of the plan
Entry age
18 years – 60 years
Maximum maturity age
70 years
Policy term
5 years – 35 years
Sum assured
INR. 25 lakh – no limit
Premium paying frequency
Yearly, half-yearly

Key benefits of the plan

§  High amount of coverage can be availed
§  Discount on premium is offered if the sum assured is high

Affordability: For a 30 year old non-smoker man, it would cost around INR. 27500 to get a coverage of INR. 1 Cr for 30 years.

Suitability: LIC Amulya Jeevan II is a perfect choice if you are searching for a plain  LIC term insurance with high sum assured without any additional riders.

2.       LIC Anmol Jeevan II
LIC Anmol Jeevan II is a traditional no bonus term plan that is designed to provide smaller coverage of up to INR. 24 lakh.
Key specifications of the plan
Entry age
18 years – 55 years
Maximum maturity age
65 years
Policy term
5 years – 25 years
Sum assured
INR. 6 lakhs – INR. 24 lakhs
Premium paying frequency
Yearly, half-yearly

In case of untimely demise of the policyholder during the term of the policy, sum assured chosen will be paid out to the nominee as a death benefit. There is no rider attached to this plan. Being a pure term plan, there is no maturity benefit available in this plan.
Affordability: For a 30 year old non-smoker man, it would cost around INR. 4000 to get a coverage of INR. 10 lakh for 25 years.
Suitability: If your requirement is to buy a smaller cover then this plan may fit into your requirement.
3.       LIC e-Term Plan
It is the online term plan of LIC that is particularly designed for the digital platform. It is also a plan that gives pure risk coverage with high sum assured to provide complete protection.
Key specifications of the plan
Entry age
18 years – 60 years
Maximum maturity age
75 years
Policy term
10 years – 25 years
Sum assured
INR. 25 lakh – no limit
Premium paying frequency
Yearly

Key benefits of the plan

§  The plan can  easily be bought online

§  Policy cover can be enhanced from INR 1 lakh to INR. 25 lakh. This is available as an optional rider.
§  Preferential rates are offered for non-smokers and female lives
Affordability: For a 30 year old non-smoker man, it would cost around INR. 17200 to get a coverage of INR. 1 Cr. For 30 years
Suitability: If you are a tech savvy investor, LIC e-term plan is the simple, convenient and cost-effective plan to buy high sum assured.

Which plan is the best?

Every plan’s suitability varies depending on an individual’s requirement. However, LIC’s e-Term plan wins over the other two offline plans (Amulya Jeevan II and Anmol Jeevan II) for few of the reasons mentioned below

§  As e-Term plan involves no intervention of advisors and agents, there is no intermediary cost which makes its pricing much lower in comparison to offline plans Amulya Jeevan II and Anmol Jeevan II. There is almost a difference of 30 to 35% in premium cost.

§  As it can be bought from a digital platform, it’s the most convenient, fast, easy and simple option in comparison to the offline plans of LIC.

§  LIC e-term plan offers coverage till 75 years which is the highest among all the term insurance plans offered by LIC.
§  LIC e-Term plan is a quite popular option on a digital platform right now. Non Resident Indians can also buy this plan online provided they are present in India for medical tests.

§  LIC e-Term plan is offered in two categories-

For smokers and non-smokers (aggregate lives) – minimum sum assured is INR.25 lakh
For non-smoker lives – minimum sun assured is INR. 50 lakh
However, every plan has certain limitations. Amulya Jeevan II and Anmol Jeevan II offline plans offer flexibility when it comes to premium payment. On the other hand LIC e-term plan has only yearly premium payment option available. Every plan has its own uniqueness. Choosing the right plan is purely dependent on your specific insurance need.

Conclusion
To sum it up, term insurance plans are the need of the hour to ensure complete financial protection for your family in an increasingly uncertain world. Life Insurance Corporation of India being the state-owned insurance company has earned the confidence and trust of people. With the high claim settlement ratio and greatest brand equity, LIC is the popular choice specifically when it comes to availing pure term insurance plans. With its digital presence now through LIC e-Term insurance plans, insurance buying has become more convenient and simple for people.
As LIC has both offline and online term insurance products, the suitability purely depends on your unique insurance need. There is a plan for every need. For smaller amount of coverage and for a shorter policy term, LIC Anmol Jeevan II fits into the need. For higher coverage with flexibility in payment option, Amulya Jeevan II can be Preferred. To get higher coverage for longer age at a cost-effective price, LIC e-term plan would be more convenient.

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