LIC E-Term Plan | Features and Benefits

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LIC E-Term Plan | Features and Benefits

LIC e-Term plan is a regular premium non-participating term insurance policy which can be bought only through online mode and no intermediaries will be involved. LIC e-Term plan is a pure life cover policy. LIC e-Term plan provides financial help to the policyholder’s family in the event of his/her unfortunate death. However, if the policyholder survives till the end of the policy term, then nothing is given to the policyholder or his/her family.

Categories of Premium Rates under LIC e-Term Plan

Under LIC E-Term Plan, there are two categories of premium rates namely

1. Aggregate lives

2. Non-smoker lives

*Aggregate category rates only would apply for a sum assured up to Rs. 49 lacs.

*There is an option for Non-smoker category to choose differential premium rate if the sum assured is Rs. 50 lacs or above.

* The application of Non-smoker rates shall be based on the findings of the Urinary Cotinine test.

* Aggregate premium rates shall be applicable in all other cases.

Also read: How to start a SIP?

Eligibility for LIC e-Term Plan

Following are the eligibility conditions for LIC e-Term plan

1. Minimum Sum Assured for Aggregate category: Rs. 25,00,000

2. Minimum Sum Assured for Non-smoker category: Rs. 50,00,000

3. Maximum Sum Assured: There is no limit but it should be in multiples of Rs. 1, 00,000/-.

3. Minimum age at entry: 18 years (completed).

4. Maximum age at entry: 60 years (nearest birthday)

5. Maximum cover ceasing age: 75 years (nearest birthday)

6. Minimum policy term: 10 years

7. Maximum policy term: 35 years

8. Mode of Payment: Premiums are to be paid annually.

Features of LIC e-Term Plan

Following are the key features of LIC e-Term plan

1. LIC e-Term Plan is available through online mode only (www.licindia.in).

2. It is a pure term plan.

3. There are differential premium rates for smoker and non-smoker lives.

4. Proposal on own life only will be considered. One cannot propose for anyone other than self.

Also read: Public Provident Fund (PPF) - A popular saving scheme

Benefits under LIC e-Term Plan

1. Death Benefit

In case of unfortunate death of the policyholder during the policy term, Sum Assured shall be payable to his/her family.

2. Maturity Benefit

If the policyholder survives till the end of the policy term, then nothing is given to the policyholder or his/her family.

Tax Benefits under LIC e-Term Plan

Premiums paid for life insurance up to Rs.1.5 lakh per annum are eligible for tax deduction under section 80C. Death Benefit amount paid to the family is also tax-free under section 10(10D).

Payment of Premiums under LIC e-Term Plan

Premiums are to be paid annually during the policy term, by online under yearly mode only. A grace period of one month but not less than 30 days is allowed from the due date of premium.

How to purchase LIC e-Term Plan

Follow the step by step process given below to buy LIC e-Term plan online

1. Visit LIC website (www.licindia.in) for buying e-Term plan online.

2. Click on “Buy Policies Online”.

3. Select LIC e-Term.

4. Choose your desired Sum Assured and the Policy Term (the tenure for which you want the cover). The Sum Assured will be paid to the family/nominee on the unfortunate event of the death of the policyholder.

5. Enter your basic details such as Name, Age, Gender, Qualification, etc in the form displayed on your screen.

6. Once all details are filled, a premium calculator will calculate the premium on the basis of chosen parameters.

7. Premium payment mode is yearly only.

8. Complete the form online with these details and pay your premium online.

Paid-up Value under LIC e-Term Plan

This policy shall not acquire any paid-up value.

Surrender Value under LIC e-Term Plan

There will be no surrender value available under this plan.

Also read: LIC Jeevan Akshay VI Pension Plan

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Sunday, 28 January 2018