The e-Term insurance policy offered by the Life Insurance Corporation of India is a non-participating online term assurance policy. The LIC’s e-Term Plan offers financial support to the family of the insured person in the event of his/her unfortunate death. This particular plan can be availed by an individual via online application only. No intermediaries will be allowed to get involved in the application process. Under the LIC’s e-Term Plan, there are two different categories of the premium rates – non-smoker lives and aggregate lives.
In order to be eligible for the LIC’s e-Term Plan, a customer has to fulfil certain eligibility criteria with respect to his/her age and the amount of insurance he/she seeks. These conditions are as shown below:
|Parameters||Criteria for Eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||60 years|
|Maximum age at maturity||75 years|
|Minimum term of the policy||10 years|
|Maximum term of the policy||35 years|
Sum Assured – It is the amount that the nominee of the insured person gets upon death of the policyholder. The maximum sum assured under LIC’s e-Term Plan is Rs.25,00,000 for the aggregate category and Rs.50,00,000 for the non-smoker category. The maximum sum assured for both non-smoker category and aggregate category has no limit.
|Minimum sum assured for aggregate category||Rs.25,00,000|
|Maximum sum assured for aggregate category||No limit|
|Minimum sum assured for non-smoker category||Rs.50,00,000|
|Maximum sum assured for non-smoker category||No limit|
Premium – It is amount that the policyholder pays to keep the policy active and running. The only premium payment mode available with the LIC’s e-Term Plan is the annual mode.
*Premiums may vary depending on factors like term of the plan, age, location and applicable taxes/GST.
|Death Benefit||In case of an unfortunate event where the incurred person encounters death, the nominee or beneficiary will receive the sum assured as the death benefit.|
Suicide Exclusion – The LIC’s e-Term Plan will be terminated if the insured person commits suicide within a period of 1 year from the date of issuance of the policy or date of revival of the policy. 80% of the premiums till date of demise of the insured will be paid to the nominee and no further claims will be entertained by the insurer.
|Cooling-off period||The policyholder can return the policy within a period of 30 days from receipt date of the policy document if he/she does not like the terms and conditions. Reasons for not accepting the policy must be provided by the policyholder.|
|Grace period||A grace period of 30 days can be availed for payment of premiums. The benefits under the premiums are not affected during this period. Policy will lapse if premiums are not paid during this period.|
|Revival||The LIC’s e-Term Plan can be revived within a period of 2 years from the first unpaid premium date.|
Tax benefits can be availed with the LIC’s e-Term Plan under the prevailing tax laws.
LIC or Life Insurance Corporation of India is one of the leading insurance providers across the country. The estimated asset value of Life Insurance Corporation of India stands at Rs.1,560,482 crore. It is a state-owned insurance company and its headquarters are in Mumbai. The insurance solutions offered by LIC come with great innovation and flexibility. They are designed to meet the needs of the customers. The LIC’s e-Term insurance policy can be availed online in a hassle-free process. The policy ensures that the lifestyle of the insured’s family is taken care of in the event of the policyholder’s unfortunate demise.