The Risks Of Not Taking A LIC Term Plan

In the words of John Wooden, “The most important thing in the world is family and love.” This quote holds a heavy truth – family is most definitely one of the greatest blessings one can have. So wouldn’t you want to protect them any way you can from the hardships that life throws their way? Think about it – What if the entire family depends on you for their needs – how are they going to buy their daily necessities and pay their bills if you are no longer around? Well, that is where term life insurance comes in.

A term insurance is a kind of life insurance product that provides coverage for a specified number of years, like 20 or 30 years or even more, and if the life assured passes away during the policy term, the sum assured will be paid out to the nominee(s). Life Insurance Corporation of India, the largest life insurance company in the country, offers various term plan options like LIC e-Term Plan, Anmol Jeevan – II Plan and Amulya Jeevan – II. Including any one LIC term plan in your portfolio is an absolute must, mainly because they are one of the most trusted names in the industry and the insurance giant has a high claim settlement ratio.

Going on without a life cover is a huge risk to take. Without it, you could find your loved ones getting stuck in any or all of the following situations:

Scenario A – You are the sole breadwinner of the family. What happens after your demise? Could your family find themselves in a financial turmoil, unable to pay their bills, if there is no inflow of money?

Scenario B – You were unable to repay outstanding debt against your name prior to your demise. Who do you think the recovery agents are going to come after? The feeling of leaving your family trapped in debt is gut-wrenching.

Scenario C – You have children at home to take care of. How is your partner going to manage all the expenses alone, especially considering how exorbitant the cost of education is at prestigious universities?

Falling into any of these situations is not a pretty sight, and nobody wants that for their family. To protect the individuals you care about from facing any kind of financial crunch, you need to consider having a safety net in place, and that is exactly what an LIC term plan gives you.

Key Features Of LIC Term Plans

Here is a look at the key features of LIC term plan covers:

  • In the event of the death of the insured individual during the policy term, the sum assured will be paid to the nominee. Maturity benefits are not payable if you, the insured individual, survives the policy term.
  • You can pay the premiums on a yearly or half-yearly basis. A grace period of one month is allowed for premium payment. In case of LIC’s e-Term Plan, premiums are only payable annually.
  • If you do not agree with the terms of the policy, you can return it within 15 days from the day you receive the policy documents.
  • LIC term plan covers do not acquire any paid-up value and no surrender value is payable.
  • To revive a lapsed cover, you need to pay the arrears of premium and interest within 2 consecutive years from the date of first unpaid premium.
  • Tax benefits can be claimed up to Rs. 1,50,000 on premiums paid under Section 80C of the Income Tax Act, 1961.

Best Of LIC Term Plans 2018

Some of the best LIC term plan covers you need to consider including in your portfolio are:

LIC’s Anmol Jeevan – II Plan

Eligibility conditions of LIC’s Anmol Jeevan – II Plan:

Minimum sum assured Rs. 6,00,000
Maximum sum assured Rs. 24,00,000
Minimum age at entry 18 years
Maximum age at entry 55 years
Maximum cover ceasing age 65 years
Minimum policy term 5 years
Maximum policy term 25 years

 

LIC’s Amulya Jeevan – II Plan

Eligibility conditions of LIC’s Amulya Jeevan – II Plan:

Minimum sum assured  Rs. 25,00,000
Maximum sum assured  No limit
Minimum age at entry  18 years
Maximum age at entry  60 years
Maximum cover ceasing age  70 years
Minimum policy term  5 years
Maximum policy term  35 years

 

LIC’s e-Term Plan

Eligibility conditions of LIC’s e-Term Plan:

Minimum sum assured Rs. 25,00,000 for Aggregate category

Rs. 50,00,000 for Non-smoker category

Maximum sum assured No limit
Minimum age at entry 18 years
Maximum age at entry 60 years
Maximum cover ceasing age 75 years
Minimum policy term 10 years
Maximum policy term 35 years

 

Bottom Line

Having a life term insurance cover (be it an LIC term plan or any other insurance company’s policy) is a crucial part of any good financial plan. Term plans give your family the financial security they need in the event you are no more. If you are looking for a term plan, visit the webpage of India’s leading insurance broker Coverfox, where you can compare policies of all the leading firms in the industry and accordingly, select a policy that suits all your insurance needs.