Today’s life is so fast-paced that we hardly have enough time to take care of our health. In the long run, we will have to take responsibility for whatever we are doing to ourselves. But, should our loved ones also suffer for that? Of course not!
One of the best things about LIC online Term policy is that you can purchase them anywhere and anytime according to your convenience.
LIC term plan provides your family with a life cover that will secure their future financially even if you are not around to support them. In other words, if something unfortunate happens, term plans will help your family to bear their loss without having to seek financial help from anyone else.
The best thing about this plan is that it is available for the users online. Therefore, you do not have to take help of LIC agents or intermediaries. However, to take this plan, you need to satisfy certain requirements, such as the applicant need to be the citizen of India and must earn a regular salary. The minimum age to take this policy is 18 years and the maximum age is 60 years. The policy term needs to be for a minimum of 10 years. The policyholder needs to pay the premiums yearly.
Apart from all the benefits discussed above, there are other benefits due to which you cannot afford to ignore this plan.
(1) Very High Claim settlement ratio
One of the major highlights of LIC online Term Plan is that the company has accomplished the highest claim settlement ratio which is 98% when compared to other companies in the FY of 2015-2016. LIC received 7,55,901 death claims and out of which 7,42,243 claims were settled.
(2) Affordable premium rate
The best part is that you can avail this plan just by paying an annual premium of Rs. 2,875. Moreover, the maximum annual premium depends on the sum assured amount.
(3) Sum assured
This policy offers quite a huge sum assured amount. The minimum sum assured is Rs. 25,00,000 for a non-smokers. The sum assured goes up to Rs. 50, 00, 000 for smokers. When it comes to the maximum sum assured, there is no limit on it. This is a non-participating plan that does not offer any bonus and thus you need to pay the premium every year. If the policyholder passes away before the completion of the policy term, then the dependent beneficiaries gets to receive a guaranteed amount as the death benefit. However, you need to note that nothing is paid to the policyholder if he or she survives the complete policy term.
Along with the benefits offered by the policy, this plan also offers Term Assurance Rider. Using this rider, one can extend the cover up to Rs 1 Lakh to Rs. 25 Lakhs. However, the policyholder does not receive any benefit if he or she survives the complete policy term. One of the prime reasons why pure term plan offers such low premiums is because these plans do not offer any maturity benefits. If the policyholder passes away during the term of the policy, then the person nominated by the policyholder will receive a lump sum amount as the death benefit.
(5) Income Tax Benefit
Talking about other benefits, you need to know that the policyholder is eligible to enjoy tax benefits on the premiums paid as well as on the benefits received. If you pay an annual premium for a Life Insurance policy of about Rs.1,50,000, then you can get a tax deduction from the taxable income as per section 80C. Moreover, the amount paid to the nominee as the Death Benefit is also exempted from taxes as per section 10(10D).
Let’s go through an example to know more! Atul Chadha, an Indian citizen of 40 years of age purchased the e-Term plan from LIC. The term of the policy was 30 years and the sum assured was Rs. 45,00,000. He paid an annual premium of Rs 12,500. Unfortunately, he passed away after a few years. By the time of his death, he had paid 15 premium installments. Thus, after his death his nominee received Rs. 45,00,000 as the death benefit.
Over to you!
LIC term plan offers flexibility to every individual to decide his or her policy term as per their convenience. One can take the policy for a minimum period of 10 years and you can extend it up to 35 years. Further, it also offers a lot of flexibility when it comes to the age limit of the policy as it starts from 18 years and reaches to a maximum of 60 years. So, it is your call whether to utilize the ample of benefits offered by the policy or not.
If you think it is impossible take control over the vulnerability of life, at least make sure to build a strong shield to protect your loved ones financially. The only way to build a strong financial shield is by purchasing a term insurance plan that will take care of your family financially even after you are not around.
Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyse all securities before investing in one.