Best LIC Term Plans

When a biker sets out for a ride, he/she does not wear the helmet hoping to avoid an accident. Rather, he/she wears it in an anticipation of meeting with an incident. Should anything unexpected take place, he/she would be prepared to face the situation. Buying an insurance is no different. An insurance ensures that should anything unexpected cross your path, you are well prepared to handle the situation.

And when it comes to securing your life financially, there isn’t a policy better than an LIC term plan. A term plan is one of the simplest plans that you can buy. It is a simple transaction where a policy holder pays premiums on a yearly or quarterly basis and in return the insurer offers cover for life. The only thing that one needs to keep in mind is that the policy comes into effect only if the policy holder loses his/her life during the policy term.

Since LIC is such an established name in the insurance industry, it shouldn’t come across as a surprise that they offer term plans. In fact, an LIC term plan is one of the finest that your money can buy at this point. And the following are some of the points which make them the best out there.

  • Impressive life cover at affordable premiums.
  • The ability to choose from a range of sum assured.
  • LIC offers a lot of riders that you can choose from.
  • It caters both to the young and the old, as a person as young as 18 years or as old as 75 years can own the policy.
  • You can either buy the policy online or through the usual offline mode.
  • LIC has one of the best claim settlement ratios in the industry at 98%.
  • The plans offer a great deal of flexibility in choosing the frequency and mode of payment.

Here are a couple of LIC term plan options that you should consider as your next term plan.

  • Anmol Jeevan II

The policy ranges from a minimum of 5 years to a maximum of 25 years. You can opt for the sum assured anywhere between the range of INR 6, 00,000 to INR 24, 00,000. The premium that you pay for the policy is tax deductible under Section 80C and the proceeds of the policy are tax exempted under Section 10(10D).

  • Amulya Jeevan II

LIC’s Amulya Jeevan II is available for a minimum of 5 years and a maximum of 35 years. The policy does not come with a maximum threshold for the sum assured value, as the minimum is set at INR 25, 00,000. You can choose to pay the premium either annually, semi-annually or quarterly. The premiums are tax deductible under Section 80C and payouts are tax exempted under Section 10(10D).

  • E-Term

As the name suggests, you can only buy this plan online. The minimum and maximum term of the policy stands at 10 years and 35 years respectively. The sum assured is set at a minimum of INR 25, 00,000 for normal and INR 50, 00,000 for non-smokers. You can avail tax benefits of up to INR 1, 50,000 under Section 80C for the premiums. While the policy proceeds do not attract any taxes under Section 10(10D).

Easy Tips to Buy LIC Term Plan

Here are some easy and quick tips that can help you decide on a better term plan for yourself and of course, your loved ones.

  • Amount

Take some time and try to gauge the right sum assured for your policy. The number of family members that you have along with their lifestyle should help you assess.

  • Needs

One must come to a conclusion as to the amount needed by the family for smooth functioning.

  • Liabilities

If you have taken a home loan or a car loan or any other loans, do factor them in as well.

  • Riders

Depending on your needs, if any riders add value, do not forget to add them.

  • Claim Settlement Ratio

A higher CSR shows that an insurer is pretty good at settling the claims. With LIC, that concern is put to rest quite easily.

How to Choose the Right LIC Term Plan

There usually are a few parameters to zero down on an insurer. However, when if you are opting for an LIC term plan, those parameters are all well taken care of. To choose the right LIC term plan, you can quickly take a look at all outstanding liabilities, sum it up along with the expected monthly expenses of your family and add some buffer to it. This way, you can easily arrive at a sum assured. Based on other requirements, you can pick up from any of the available LIC term plans when you compare the same on Coverfox.