• LIC Two Year Temporary Assurance Policy Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    There could come a stage in life when one is in a flux and requires financial protection. This might be a temporary phase and purchasing a full-fledged insurance policy might be an expensive option. Individuals who find themselves in such situations could consider the Two-year Temporary Assurance Policy from LIC. As the name implies, it provides protection for a period of two years, with a single premium amount to be paid to avail the benefits under the plan.

    Eligibility – Who is the LIC Two-year Temporary Assurance Policy for?

    Individuals looking to avail protection under this plan are expected to satisfy a few basic eligibility criteria.

    Parameters Criteria for eligibility
    Minimum age at entry 18 years
    Maximum age at entry 60 years
    Maximum age at maturity 62 years

    Sum Assured and Premium Range – What you get and what it costs

    Sum Assured – Being a temporary plan, the sum assured is limited. While the minimum amount one can protect himself/herself for is Rs.50,000, the maximum amount is Rs.1 lakh.

    Minimum Maximum
    Rs.50,000 Rs.1 lakh

    Premium Range – In order to avail the benefits under the plan one is expected to pay a single premium. This premium decides the sum assured. Being a single payment plan, one needn’t worry about the policy lapsing on account of non-payment of the premium.

    *The premium varies based on the age of policyholder, sum assured, location, etc. With the implementation of GST the price of purchasing a policy has increased. Please check all rates at the time of purchase.

    Plan Coverage – What the LIC Two-year Temporary Assurance Policy covers

    As a temporary plan one can expect only limited cover, with LIC not providing any maturity benefit under this scheme.

    Death Benefit In case of demise of the policyholder during the policy period the sum assured is paid to the nominee.
    Maturity Benefit No maturity benefit payable

    Riders/Add-on plans – Additional coverage under the LIC Two-year Temporary Assurance Policy

    There is no option to enhance the cover by choosing a rider.

    Exclusions – What the LIC Two-year Temporary Assurance Policy does not cover

    Suicide is a common exclusion which applies to all life insurance plans. LIC might pay a reduced benefit/choose not to pay any benefit if the policyholder commits suicide within a specified period after purchasing the plan.

    Other Key Features

    Loan No loan facility available
    Grace period NA
    Free-look period 15 days
    Revival NA
    Surrender value No provision to surrender the policy
    Medical examination A medical examination is required, the fee for which is to be borne by the policyholder

    Tax Benefits – How you can save with the LIC Two-year Temporary Assurance Policy

    Purchasing this plan from LIC can help one save taxes as well. While the premium paid qualifies for benefits under Section 80C of the Income Tax Act, the amount received as a death benefit is eligible for tax exemption under Section 10(10D) of the same act.

    Why you should buy the LIC Two-year Temporary Assurance Policy?

    LIC is regarded as one of the best life insurance companies in India. It has a high claim settlement ratio (98.33% during 2015-16), is trusted by millions and has a 100% record when it comes to claim settlements (for 2015-16).

    This plan is an ideal option for people who require protection for a period of two years or less. It could be a student who is going abroad for travel or an individual investing in a new business. The plan provides the benefits of a regular plan minus the expenses involved, ensuring that one stays protected without having to pay an exorbitant amount.

    Note: This plan has currently been withdrawn by LIC.

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