LIC offers five variable options under its term insurance plans and they can be bought traditionally through the branches of LIC. For those who wish a quicker and tech-savvy approach, some plans can be purchased over LIC's portal as well. These plans feature simple terms and conditions and can be easily availed through minimal or no paperwork.
These plans also offer tax benefits on the payment of premiums and the final sum assured that is payable to the nominee. Loans can also be taken in lieu of these term plans and this gamut of offering from LIC is also known as Term Assurance Plans.
Basic Features & Benefits of LIC Term Plans
- The oldest and the most trustworthy insurer in India in the public sector
- Flexible options in insurance pertaining to term, cover amount and premium payment
- Customers can buy selected plans online in the comfort of their homes
- Customers can avail of certain tax benefits under relevant sections of the IT Act, 1961
- Some plans can be converted to other plans offered by LIC
How to claim LIC Term insurance?
To claim death benefits, you will need to fulfil certain formalities. They are:
- Process: To claim the death benefits you will have to collect the document required and submit them at the LIC office. Once the documents are received and the claim verified, the policy being in effect and the claimant being the beneficiary, LIC will process the claim and release the sum assured.
- Documents required:
- You will need 3 key documents to make a claim for the death benefits of any policy.
- The original policy document.
- The death certificate of the policyholder
- The claim form, also known as Claim Form A or Form No.3783.
- An NEFT mandate that will allow LIC to transfer the amount to your account.
Exclusions of LIC Term Plan:
Every insurance policy, including term insurance policies, has certain conditions under which claims will not be entertained. These conditions are known as exclusions. The main exclusion that applies to the policies issued by LIC relates to suicide committed by the policyholder. In such a case, if the policy is less than 12 months old then LIC will not pay anything to the beneficiary. If it is more than 12 months old then they will pay 80% of the premiums paid to the beneficiary and not entertain any claims for the sum assured.
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Why choose LIC Term Insurance Plan?
There are many reasons why LIC is a good choice for term insurance policies. These reasons are:
- It has the best claims settlement ratio of over 98%. This means that it successfully settle 98% of the claims that they get.
- It has out-performed all its competitors from the private sector, especially in terms of claims settlement.
- It has insurance plans that can be bought online. This means that easier to ensure that you are covered.
Out of the above plans, Bhagya Lakshmi and New Jeevan Mangal are primarily micro insurance products that have a term insurance feature.
