Term insurance plans.
They have now been into existing for long.
Online term plans from LIC are a new entrant but things are shaping very well for them.
Insurance term plans were first introduced in the year 2009 and since then they have only grown in their popularity.
They are the first choice among many insurance buyers.
The big reason why people prefer term plans than any other traditional plan is their affordability.
This is why…
Term insurance is also sometimes referred to as low cost insurance plans.
They are pure life cover policies as they don’t offer the facility of investments. Thus, whatever premium you pay, simply goes in to secure your life for a fixed term.
If any unfortunate event happens under the policy term then the same is paid back to your family.
Since they are pure life cover plans thus they carry no maturity benefits.
As the company is not liable to pay anything on expiry of the policy thus the maintenance comes really cheap.
Infact, they are among the most inexpensive insurance policies in its class which makes them more buyable.
Seeing the popularity and never ending demand of term plans, today many companies are banking on it.
Even LIC in the mid of 2014 launched its own pure life cover plans. Since, they are the recent thus getting lot of competition.
Today, companies like ICICI, HDFC and Max are giving tuff competition to LIC. But LIC being a state owned insurance company, they certainly have an edge over its competitors.
Term insurance policies from LIC
Here is the list of Term plans from LIC that is witnessing great demand.
1. LIC e-term plan:
It’s a pure protection plan that is only available online. With this plan LIC is surely capturing the ever growing online market. Key features to look at to buy LIC e-term plan:
|Age range required:||18 to 60 years
|Plan will be valid for:||Min: 10 years,
Max: 35 years.
|How much you can be assured for:||It is different for both:
Non Smoker 25 lac.
Smoker 50 lac. Maximum there is no limit.
|How will you pay premium:||You pay annually.
2. Amulya Jeevan II:
Buy as much sum assured as you want under this plan as there are no max limits. With less of the premium you get the benefit of higher life cover.
Though Amulya Jeevan doesn’t give you any maturity benefits but the life cover provided always remains enough to take care of the family.
Here are some of its features:
|Age range required:||18 to 60 years.|
|Policy remain valid for:||Min: 5 years and
Max: 35 years.
|Sum assured you can get:||It starts from 25 lac and can go up to as high as you want.|
|How flexible your premium can be:||You can pay any way you want either half yearly or yearly.|
3. Anmol Jeevan II:
It’s another life protection plan from LIC that protects families of the insured in their hard times.
The minimum age required in the plan is same i.e. 18 years but the max is limited to 55 years. Here are some other features of this plan:
|Validity of your plan:||Your plan can remain valid for max 35 years.|
|How much you will have to pay for premium:||Your minimum yearly premium can be Rs.2750/- and
Max depends on your life cover bought.
|Will you be covered lifelong…?||No,
Your policy will cease to exist the moment you turn 70.
|Can you enhance your plans with riders…?||Yes, you can.
With the help of a rider you can buy additional cover from Rs.1 lac to Rs. 25 lac.
4. Jeevan Mangal:
If you are too concerned about your money going in to premium simply getting wasted, then you should consider Jeevan Mangal for once.
What is it…?
It’s a term plan with return of premium benefits. Though premiums are little expensive under such plans but you are paid back your entire premium on the expiry of the policy.
You get the dual advantage. First, you get to cover your life at the least expensive rates. Second you get the investment benefits as your premiums are paid back on maturity.
Product features include:
|Age range required:||18 years to 60 years.|
|Policy ceases to exist at:||70 years of your age.|
|Flexibility in paying premium:||You can premium:
Monthly, Quarterly, Half yearly and Yearly.
5. Bhagya Lakshmi Term plan:
It’s a non participating limited payment protection plan from LIC. Under Bhagya Lakshmi term plan you get the maturity benefits. You get 110% of the total amount of premiums paid. Features covered under this plan:
|How much life cover you can get:||Minimum is: 20,000/- and
Maximum is: 50,000/-
|Age range covered:||18 to 55 years.|
|Maturity benefits:||110% of the premiums paid.|
|When can you pay:||Monthly, Quarterly, Half yearly and Yearly.|
Since, now you know what are the different term insurance plans from LIC are, thus the question arises:
Is it really worth buying Online term plans from LIC…?
Yes, it is and the reason why you should buy term plans from LIC is:
1. Most trust worthy of all:
The company was first founded in 1956 and has been into operations since then. It is counted among one of the biggest insurance companies in the world.
With total asset value of $230 billion they are surely one of the biggest names in the sector.
As per Wikipedia LIC was having $54.4 billion in revenue in 2012 alone with profits ranging $3.5 billion.
LIC being among the oldest, biggest and financially safest companies even make them the most trust worthy of all.
2. Best claim settlement ratio:
LIC boasts to have an excellent claim settlement ratio. As per the records with IRDA, LIC had a claim settlement ratio of 98% in the year 2012-13. This means that in 2012-13 LIC paid out close to 98% of the claims received.
This is an excellent no. for any insurance company to have.
Claim settlement rate is the probability that your money is paid back when the claim is made. Thus higher it is the better it is and what better than LIC.
3. Fully state owned company:
LIC is 100% state owned insurance company. When it was founded in September 1956 then it was a mega collaboration of 245 different insurance companies in India.
Being the only fully govt. operated insurance companies makes them one of the safest options as they would never ever sink.
4. A well maintained portfolio of term plans:
In a very short span of time online term plans have grown in their popularity manifold. They are the only most affordable options with insurance companies to provide life cover.
Since term plans are basically meant to provide life cover to individuals that don’t provide anything on maturity, many consider it to be the loss of their investments.
Seeing this LIC has come out with a well maintained portfolio of Term plans. This portfolio even caters to those individuals who look for secured options without sacrificing investments.
Now with LIC you can go for term plans that provide you with safety options with return of premium benefits.
Thus they help you not only safe guarding your life but your financials as well.