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What is LIC e-Term Plan?
LIC e-term plan is an online term insurance plan offered by Life Insurance Policy (LIC). As this plan can be bought only in online mode, it does not need any involvement of middlemen. LIC e-term plan is a comprehensive policy which offers complete financial protection to your family in case of any uncertainties. This is one of the most beneficial term plans among the wide range of policies offered by LIC.
In the event of sudden death of the insured during the policy period, the beneficiary will be given the sum assured as death benefit. This plan will offer only death benefit. However, it does not offer any maturity benefit.
What kind of premium rates are available in LIC e-Term Plan?
Under LIC e-term plan, premium rates are available in two categories such as,
- Aggregate lives
- Non-Smoker lives
Aggregate category rates will apply only for sum assured up to Rs. 49 lakhs.
Non-smoker category has an option to choose different premium rates for sum assured of Rs. 50 lakhs and more. The Non-smoker category rates are based on the Urinary Cotinine test result. In all other cases, aggregate category rates shall be applicable.
What are the key features of LIC e-Term Plan?
Some of the key features of LIC e-term plan are,
- This plan can be purchased easily in online itself.
- This plan is eligible for tax deduction under Section 80C of Income Tax Act.
- This plan is available at lower premiums for non-smokers and female policyholders.
- This plan offers add-on riders to enhance the policy coverage.
- It is a non-participating term insurance plan.
- In the case of unfortunate death of the policyholder, the beneficiary will receive death benefit.
- This plan does not offer maturity benefit.
- The minimum sum assured is Rs.25 lakhs for aggregate category and Rs.50 lakhs for Non-smoker category. However, there is no maximum limit for sum assured.
What are the benefits of LIC e-Term Plan?
Death Benefit:
In the case of sudden death of the insured during the policy term, the sum assured shall be payable to the beneficiary.
Maturity Benefit:
No maturity benefit shall be available upon survival of the insured till the end of the policy term.
Tax Benefit:
Under Section 80C and 10 (10D) of Income Tax Act, tax deduction is applicable for premium payment and sum assured respectively.
What are the eligibility criteria for LIC e-Term Plan?
In order to buy LIC e-Term plan, you need to possess the following eligibility criteria.
- The applicant must be an Indian Resident.
- Non-Resident Indians (NRIs) are eligible for this plan providing that they must reside only in the applicable countries.
- The applicant should earn income which is enough to pay the annual premium.
- The applicant should not propose this policy for anyone else other than oneself.
LIC e-term Plan Details:
| Minimum Sum Assured |
Rs. 25 lakhs for Aggregate category Rs. 50 lakhs for Non-smoker category |
| Maximum Sum Assured | No limit |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 60 years |
| Maximum Cover Ceasing Age | 75 years |
| Minimum Policy Term | 10 years |
| Maximum Policy Term | 35 years |
| Person covered |
Only proposal of own life will be covered. Key Man Insurance/Partnership/Employer-Employee Cover will not be covered. |
| Mode of Premium Payment | Online |
| Premium Payment Frequency | Annual |
| Grace Period for Premium Payment | 30 days |
| Revival Period for Lapsed Policy | 2 consecutive years |
| Surrender Value | Nil |
| Paid-Up Value | Nil |
| Taxes | Applicable as per the tax law |
| Exclusion | Suicide |
LIC e-Term Plan - Premium Details:
The basic annual premium in rupees for a policy term of 15 years is mentioned below without tax.
| Age | Rs.50 lakhs sum assured | Rs.1 crore sum assured |
| 30 years | 6000 | 12000 |
| 40 years | 12400 | 24800 |
| 50 years | 28600 | 57200 |
LIC e-Term Plan - Sample Premium Rates:
The sample premium rates without tax are given below.
Aggregate Category:
Annual premium rates for the Sum Assured per Rs.1000
| Age | Policy term of 10 years | Policy term of 15 years | Policy term of 20 years | Policy term of 25 years | Policy term of 30 years |
|---|---|---|---|---|---|
| 20 | 0.92 | 0.92 | 0.93 | 1.00 | 1.11 |
| 30 | 1.10 | 1.20 | 1.39 | 1.66 | 1.97 |
| 40 | 2.02 | 2.48 | 3.00 | 3.56 | 4.19 |
| 50 | 4.86 | 5.72 | 6.73 | 7.90 | - |
Non-Smoker Category:
Annual premium rates for the Sum Assured per Rs.1000
| Age | Policy term of 10 years | Policy term of 15 years | Policy term of 20 years | Policy term of 25 years | Policy term of 30 years |
|---|---|---|---|---|---|
| 20 | 0.63 | 0.63 | 0.65 | 0.70 | 0.79 |
| 30 | 0.77 | 0.85 | 1.00 | 1.21 | 1.46 |
| 40 | 1.48 | 1.84 | 2.25 | 2.69 | 3.18 |
| 50 | 3.67 | 4.34 | 5.13 | 6.06 | - |
What are the documents required to buy LIC e-Term Plan?
In order to buy LIC e-term plan, you need to submit the following documents.
- Identity proof - Aadhaar card, PAN card, Passport, Driving Licence
- Address proof - Aadhaar card, PAN card, Passport, Driving Licence, Electricity Bill, Gas Bill.
- Income proof
- KYC documents
- Medical Certificate
How to buy LIC e-Term Plan?
To purchase LIC e-term plan in online, just go through the steps given below.
Step 1: Visit the official LIC portal. On the home page, under 'Buy Policy Online', click 'e-term plan'. This will take you to a new page.
Step 2: Choose the desired sum assured and policy term.
Step 3: Then enter your basic details in the form such as your name, age, gender, qualification, etc.
Step 4: Once you have filled all these details, the premium calculator will calculate the premium. The premium will be calculated based on your age, gender, term, sum assured, health and smoking habit. For sum assured above 50 lakhs, lower premium rates are applicable to non-smokers.
Step 5: Select the premium payment mode as annual.
Step 6: After completing the online form, proceed for online premium payment.
What are the documents required to claim LIC e-Term Policy?
If the beneficiary wants to file policy claim against LIC e-term plan in the case of sudden death of the policyholder, the beneficiary needs to submit the following documents for the claim to process. While filing claim, the following documents are to be kept readily.
- Original copy of LIC e-term policy
- Claim form with details of the departed policyholder
- Age proof
- A copy of FIR in the case of death due to accident and post-mortem report
- Death certificate