LIC Term Insurance

LIC Term Insurance

  • Think Insurance. Think LIC.
  • 92.65% Claim Settlement Ratio (Instant Claim)
  • 29 Crore+ Policyholders


We are all working hard to secure a financially secure future for ourselves and our loved ones. But life can be challenging at times. Take a minute to think about your family's future if anything unfortunate happens to you. Is your family protected against such uncertainties?

To ensure your family is protected in your absence, you need a life insurance plan that promises a regular income source or a sufficient financial corpus. The Life Insurance Corporation of India (LIC) offers different types of life insurance plans to keep you and your family financially protected. Customers can compare and buy life plans, such as term insurance, child insurance, ULIP plans, retirement plans, or health plans.

LIC term insurance plan is one such category that enhances peace of mind by providing suitable life cover that fits your requirements and keeps you and your family secure. This article will guide you through the details and features of the LIC term life insurance plan to help you make an informed decision.

What is LIC Term Insurance Plan?

LIC term insurance is the most basic and affordable life insurance plan that promises to pay your family with a source of income in case of your demise during the policy term. These plans do not provide any maturity benefit but offer a high life coverage at a low premium amount. The fixed life cover paid to the beneficiary is the death benefit that can be used to pay bills, loans, monthly rent, or child fees in the absence of the policyholder.

Why Should You Buy LIC Term Insurance?

In the Indian insurance industry, LIC of India is a renowned life insurance company that has been serving customers with excellence for the last six decades. Life Insurance Corporation of India (LIC) offers long-term protection and flexible policy options to enhance customer benefits. Buying a LIC term insurance plan can benefit you in the following manner:

Ease of Buying

Buying an LIC term assurance plan is easy as multiple life term plans are available to compare and buy a term plan that suits your financial needs. With online or offline purchasing options, it becomes easy to go through the plans, compare features, visit CSR, and analyze the solvency ratio for maximum benefits. You can buy LIC term plans online from the official website of LIC, contact LIC customer support, or reach the nearest LIC Branch for better assistance.

Strong Financial Assistance

LIC term insurance offers a strong life cover at an affordable price to protect your family after your uncertain demise. The death benefits received by the LIC term plan ensure that your family is not financially distressed in the most challenging times and achieves financial goals.

Affordable Premiums

Life Insurance Corporation of India is known for the most affordable plans for different customer bases. LIC term assurance plans are designed to fit financial requirements, and the flexibility of plans makes them the preferable purchase option without stressing your budget. If you purchase a LIC term policy at the right age, you can enjoy better deals on premiums.

Hassle-Free Claim Settlement

With a high claim settlement ratio of 98.74% (as per the annual report of IRDAI 2021-22), the Life Insurance Corporation of India settles customers’ claims efficiently. The hassle-free claim settlement proves that the company understands the diverse consumer bearings and maintains trust among the company and its customers.

Option to Enhance the Coverage

LIC term insurance offers add-on riders that help enhance the base policy coverage and strengthen your plan. You can purchase the riders by paying an additional premium with the base LIC term policy.

Flexible Premium Payment Modes

Multiple premium paying modes are available to pay LIC term plan premiums, allowing the policyholder to make premium payments at their convenience and financial suitability. The policyholder can choose from regular, limited, or single premium frequencies in annual, half-yearly or monthly modes to pay LIC term life insurance premiums.

Benefits of Buying Term Insurance Plan from LIC of India

Buying term insurance is important to beat the uncertainty of life upto an extent. Except for offering financial protection against life, LIC term insurance offers the following benefits.

Flexible Premium Payment Modes

Multiple premium paying modes are available to pay LIC term plan premiums, allowing the policyholder to make premium payments at their convenience. The premium payment options include regular, limited, or single premium frequencies in annual, half-yearly or monthly modes.

Whole Life Cover

Most LIC term plans offer an option to extend the policy term to cover your whole life to 99 years or 100 years, ensuring that your family is financially secure throughout your life.

Receive Death Benefit in Flexible Payouts

The LIC term insurance plan allows the policyholder to select the receiving mode of the death benefit in a lump sum, regular instalments, or a combination of both. The policyholder needs to select the death benefit payout option at the time of inception of the policy.

Tax Benefits

The premiums paid towards the LIC term assurance plan and the riders are tax exempted under Section 80C of the Income Tax Act. The death benefits received under the LIC term policy are free from tax under Section 10 (10D) of the Income Tax Act, 1961.

Protection Against Loan & Liabilities

With the death benefits paid to the beneficiaries after the uncertain demise of the policyholder, it becomes easy to clear out the outstanding loans and liabilities.

Hassle-Free Claim Settlement

With a high claim settlement ratio of 92.65% (instant claims, as per the annual report of IRDAI 2022-23), the Life Insurance Corporation of India efficiently settles customers’ claims. The company understands the diverse consumer bearings and provides hassle-free claim processing. Life Insurance Corporation maintains trust among the company and its customers.

List of Term Insurance Plans Provided by LIC

LIC of India offers various LIC term life insurance policies to cover the needs of a diverse consumer base. Have a look at the list of LIC term policies available:

What to Consider While Purchasing a LIC Term Plan?

After going through the benefits of LIC term insurance, you can buy a term plan from LIC of India suitable for your financial needs. Before reaching to a decision, below are some essential factors you need to consider:

Policy Cover

First, calculate your financial dependencies, goals, future expenses, inflation, outstanding debts and liabilities to know your required cover value. After getting a clear view, select a coverage amount sufficient to cover all your family's financial needs in case of your uncertain demise.

Premium Cost

After deciding on the right LIC term life insurance policy cover, select the premium amount you can pay without straining your budget. While selecting a premium amount, consider the expenses, debts, income, and savings to be more specific. You can also use the term plan calculator online to estimate your payable LIC term insurance plan premium cost.

Policy Tenure

Select the duration of your LIC term insurance policy that perfectly complements your financial needs, commitments, and retirement goals.

Premium Payment Frequency

LIC term plan allows you to select from different premium paying frequencies at your convenience. You can choose to pay the premium in the preferred mode available from annual, half-yearly, quarterly or monthly.

Options Available

Except for the inbuilt benefits of the LIC term plan, optional benefits are also available to select and enhance the coverage of the base plan. You can choose from any additional rider by paying an additional premium.

Service Efficiency

It is important to check the claim settlement ratio of a life insurance company to judge whether it can maintain an efficient service standard and trust with the customers. Life Insurance Corporation has a high CSR of 92.65% (for instant claims) ensuring that it can settle the claim in the most stress-free manner when the beneficiaries are struggling emotionally and financially. Hassle-free customer support nurtures long-term relationships between the company and the customers.

Optional Rider Under LIC Term Insurance Plan

Life Insurance Corporation of India offers the add-on rider benefit under their term plans that enhances the coverage of the policy. While buying a LIC term plan, you can consider buying LIC riders to maximize the benefits. Let’s go through the available riders under the LIC term insurance plan


LIC Accidental Death & Disability Benefit Rider

A policyholder can buy an accidental death & disability benefit rider under LIC term plan on any policy anniversary, provided the outstanding premium paying term is at least 5 years. This rider can be availed after paying an additional premium amount with the base plan premium. In case an accidental disability is caused by accident (within 180 days of the accident), Accident Benefit Sum Assured is provided in instalments for 10 years. All future premiums will be waived under the policy. In case of the death of the policyholder, the nominee receives an amount equal to the Accidental Death Rider Benefit Sum Assured in a lump sum along with the death benefit.

LIC Accidental Death Benefit Rider

LIC accidental death benefit rider is available with some LIC term policy. Under this rider, in case of the accidental death of the life assured, the nominee receives an amount equal to LIC acccidental death benefit sum assured, in addition to the sum assured as promised under the base LIC term life policy.

Documents Required to Buy LIC Term Insurance Plan

The following documents are required to buy LIC term assurance plan.

Age Proof: Passport, Aadhaar Card, Rental Agreement, Birth Certificate

Identity Proof: Aadhaar Card, PAN Card, Passport, License

Address Proof: Passport, Aadhaar, Electricity or Gas Bill, Rental Agreement, Latest medical certificate

Income Proof: Salary Slip, Income Tax Returns

How to File Death Claim Under LIC Term Assurance Plan Online

According to the IRDAI regulations, all the life insurance companies in India adhere to the settlement of the claims raised due to the maturity of the policy or by the death of the life assured. LIC term insurance is a widely preferred category under life insurance policies to secure a reasonable life cover. In case of an unfortunate demise of the policyholder, the nominees can claim the death benefit under LIC term assurance plan by following the below-mentioned process.

  • For an offline LIC term policy, the nominee can inform the LIC branch from where the policy is purchased regarding the death of the life assured. For an online policy, the nominee can simply contact LIC customer care to inform them about the death claim.
  • The nominee needs to download and fill Form A (Form no.3783), available on the official website of LIC of India.
  • The duly filled claim form is then submitted to the LIC office along with the death certificate of the life assured as issued by the municipal corporation.
  • On the successful verification of the claim by the Life Insurance Corporation of India (LIC), the nominee receives the claim in the given bank account details.

Documents Required to Make LIC Term Insurance Claim

Besides the claim form and the death certificate, some additional documents are required to file a claim against LIC term assurance.

  • Original policy bond
  • Assignment deeds
  • Police FIR (in case of accidental death)
  • Bank details of the nominee account
  • Identity proof of the nominee
  • Any other document asked by LIC

Exclusions Under LIC Term Insurance

Suicide death is not covered under the LIC term plan and excludes the beneficiaries from taking the death benefit except for the following gains.

For single premium policy:If the life assured commits suicide within 12 months from the commencement of risk, an amount equal to 90% of the single premium paid should be payable to the beneficiary.

For regular or limited premium payment policy:If the life assured commits suicide within 12 months from the commencement of risk or within 12 months from the date of revival, 80% of the premium paid should be payable to the beneficiary excluding any taxes.

Final Words

Working hard is not enough unless you have smartly planned your life against the uncertainties. LIC is one of the best life insurance companies in India, offering various term plans that can aid your family's financial needs in your absence. You can buy LIC term insurance online and offline.

To better compare and comprehend the LIC term insurance policies, you can search for an LIC term insurance agent or a life insurance agent nearby. RenewBuy Advisor Connect can help you save time and energy. For expert assistance about the LIC term life insurance benefits and features, connect with one of our POSP experts at RenewBuy.