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.
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 – 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.
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.
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|
There is no option to enhance the cover by choosing a rider.
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|
|Free-look period||15 days|
|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|
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.
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.