The Life Insurance Corporation of India or LIC offers you various different life insurance plans, each of which have a diverse set of features and advantages. LIC Term Plan can be considered as one of the best insurance companies in the current market as it has surpassed all its competitors from the private sector in terms of performance. Also, it has the unsurpassed claims settlement ratio of over 98% which means that they effectively resolve 98% of the claims they receive.
Know Everything about LIC Term Plans:
LIC term plans deliver high coverage at low premium rates, with no maturity value payable under the plan. Even though the LIC term Plans are a basic form of insurance, they offer considerable death benefits in case of your untimely passing.
The 3 most popular LIC term plans and their features have been described below:
1. Anmol Jeevan II
Anmol Jeevan II is one of the most wholesome LIC term plans, financially protecting your family in case of your untimely demise. The minimum entrance age for it is 18 years, while the maximum entry age is 55 years. The minimum maturity age is 35 years and the maximum maturity age allowed is that of 65 years. The sum assured guaranteed for the plan in the event of your death is well above INR 24, 00,000. Premiums for this policy can be paid, both on a half-yearly and yearly basis.
2. Amulya Jeevan II
Although Amulya Jeevan II offers only death cover to you, it is one of the best LIC term plans. This means that, in case you meet with an unfortunate death during which the policy is in action, then LIC will pay the figure assured on death amount to your beneficiaries. If you survive the policy term, then no survival maturity is payable at any time during the plan term or after the termination of the plan. The minimum policy term is 5 years and the maximum is 35 years. For purchasing the Amulya Jeevan II plan, you must have accomplished 18 years of age as the minimum age requirement; while, the maximum age permitted to take up this plan is 60 years. The stage at which protection concludes for Amulya Jeevan II policy is 70 years, after which this policy does not offer life insurance.
3. E-Term plan
E-Term plan is an LIC term plan that pays the beneficiaries the sum assured if you happen to die in the course of its term. If you live through the tenure of the plan, then no amount is payable to you or your beneficiaries. The plan has two groups with respect to premium sums: the aggregate and the non-smoker categories. The non-smoker category has to pay reduced premiums than the aggregate category for the equivalent protection plan delivered. The coverage worth exceeds INR.49 lakhs. Policyholders having coverage value lower than INR. 49 lakh, regardless of whether they are smokers or non-smokers, have to pay the aggregate premium charges.
Risks of Not Buying Term Plans
· Losing the Breadwinner of the Family Leading To Various Consequences
If you are the sole breadwinner of your family, in case of your untimely death, your family will lose their source of livelihood, making life financially insecure for them. Along with mourning your loss, your family will have to face the burden of earning and fending for themselves with no support or backup, creating undue stress on your family for finances. This may lead to several other problems such as debt trap, lack of peace of mind, etc.
Lack of a term plan will make repaying a loan difficult for your family and, in fact, cause even more trouble in their time of grief.
Another problem may be that after you’re passing away, your child’s future may become uncertain. Subsequently, they may not get the opportunity to fulfil their life goals and dreams.
· Tax Benefits of Term Insurance
Though tax benefits and savings should not be the prime reason to purchase a term policy, however, both premiums, as well as pay-outs, deliver tax benefits and exemptions respectively as per the current tax guidelines. Tax benefits are provided under two sections: Section 80C as well as Section 10D of the Income Tax Act of 1961.
· Riders of Term Policy
Term insurance policies have offers of adding optional riders to upgrade and enhance the benefits of a basic term policy in addition to a nominal premium. Not purchasing a term policy makes you lose out on multiple benefits offered by the riders. Popular additional term insurance riders include: Waiver of Premium (WoP) rider, Accident benefit rider as well as critical illness riders.
Get Your LIC Term Plan through Coverfox
Having a term insurance plan is a must for you, especially if you wish to provide financial protection to your family after your passing. These insurance plans have various benefits and features which can be chosen according to your feasibility. To purchase an LIC term plan in 2018, you can visit Coverfox.com and buy a plan after careful analysis and comparison.