LIC Term Insurance Plan

lic term insurance plan

It is said that how long you are going to live is decided by how much you take care of your health. But we all know that life has a bubble reputation, and it can end any time. It is an emotionally difficult time for everyone.But, the major blow that everyone has to bear is the financial cut off, which comes like thunderstorm in lives of the dependents.The family left behind suffers the financial crisis due to instant loss of income source.

For those who are primary earners of the house, it means that after them, the finances for their family will be cut abruptly. In that scenario, often it is seen that the families find themselves stranded under the pile of regular household expenses and the debts taken in form of loans or otherwise. The monetary contribution from secondary earners is missed as well, especially if it is for the payment of premium of an investment or repayment towards a loan.

LIC Term Insurance Plan is the most basic insurance policy that gives a lump sum on death of the policy holder. The premium for this plan is usually small and paid annually. For the investment of a very small annual amount, you can financially secure the future of your family left behind, after you are gone. The policy may cover accidental death, critical or terminal illness.

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Advantages of a LIC Term Plan

The best advantage of a term plan is that it allows you to have a stress-free laid-back life, where you don't have to worry constantly about the financial security of your family after your demise. Apart from the mental and emotional relaxation, there are many technical benefits of a term plan as well, the most significant include:

  • Small premium to be paid annually.
  • Nominee gets the whole lump sum amount, in case of death of insured person.
  • Tax saving under 80 C.
  • Some policies may cover accidental death.
  • Some policies also cover critical illness.

How to choose the Best LIC Term Plan

How to choose the best term insurance plan for yourself?

Choose the plan keeping in mind the expected expenses in near or far future, also if you are the only earning member, it's better to get the bigger lump sum. Also you should see how much you can spend on it every year, because if your policy matures before your demise, there is no return in this plan.

There are some plans that cover accidental death as well, so, if you commute or travel a lot, then it getting such a plan is called for. Also, if you don't have a stable health policy, you should consider options that cover critical illness and terminal illness (if any), because these are the real money drainers.

Along with these, it is wise to check claim settlement ratio of the insurance company that you are planning to choose, to know their past performance. This will help you understand how reliable the company is.

Claim sattlemet ratio(2014-15)
Insurance Provider Death Claim Received Death Claim Paid Claim settlement ratio
LIC OF INDIA 761983 749249 98.33%
Kotak Mahindra 9175 8895 96.95%
Tata AIA 3311 3205 96.80%
ICICI Prudential Life 11034 10615 96.20%
HDFC Life 12430 11811 95.02%
Max Life 2686 2437 89.09%
Factors that affect Premium

Everyone has heard from someone or the other that the earlier you get the insurance, better returns you reap for low premium, or if you want your premium to be low, up the number of years of your policy. With that being said, it is concluded that there are many factors that affect the term plan, the most important ones are

  • Age of the policy holder.
  • Gender of the policy holder
  • Whether he/she is a smoker or non-smoker
  • Whether he/she is a drinker or non-drinker
  • Tenure of the policy
  • Health status of the policy holder
  • Previous medical history of the policy holder
  • Medical history of the immediate family of the policy-holder
  • Occupation of the policy holder, for checking probable occupational hazards.

How do we help you buy a Term Insurance Plan?

When you choose us, we assign a dedicated insurance advisor for you who provides you the detailed information about the plans that are suitable for you to choose from. He/she takes care of all your paper-work for the policy you are buying, assists you in payment of the premiums and guides your family at the time of claim settlement.

Not only we guide you through the process of buying an insurance policy, but we also provide ongoing support, like reminders through SMS and e-mails, as well as comprehensive policy-related services like nominee registration, change in address, premium collection and claim settlements etc.

Documents Required for Term Plan

Although a term plan is available to any earner, it is important that the identification and recognition of the policy buyer is made, and double checked, so that it becomes easier for the family to claim the settlement. For this purpose, several documents are required to be submitted while buying a policy. These are:

  • 2 Passport size photographs (self-attested)
  • I.D. Proof, which can be any one of these: Pan Card issued by income tax department, Passport, Aadhaar Card, Driving License issued by RTO, Election voter i.d. card.
  • Age proof: high school certificate is asked for widely, but Aadhaar, Election voter i.d. card, driving license are also accepted.
  • Residence or Address proof: ration card, election voter i.d. card, electricity bill, water bill, landline telephone bill, credit card bill, copy of bank passbook, driving license, rent agreement, passport.
  • Salary Slip of last 3 months, if working.
  • Income tax return of last 3 years, or form 16 (provided by your company)
  • Details of all the policies previously taken.
  • NEFT Form and a cancelled cheque.
  • A cheque in favour of the insurance company (with amount of 1st premium)
How to claim the Term Plan?

In the event of your sudden demise, your family will not only suffer emotional loss, but financial loss too. In such situation, it is difficult for them to go around looking for the procedure to claim the insurance. This easy guideline helps you to be prepared for the unfortunate event.

  • First thing to do is to get the death certificate of the deceased.
  • Intimate the insurance company as soon as possible.
  • Fill the claim form and attach the following documents with it:
    • Death Certificate of the deceased.
    • Original documents of the policy
    • Identity proof of the nominee
    • Residence proof of the nominee
    • NEFT form and a cancelled cheque of nominee's bank account.

To know more about the term plan or buy one, give us a call at 9971088822 or fill our enquiry form to receive a call from our financial experts.

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