LIC e-Term Plan

LIC e-Term Plan- An Overview

The LIC e-Term plan is a regular premium plan that can be purchased online in a simple and hassle-free way. Under the LIC e-Term plan, a death benefit equal to the total sum assured amount is paid to the beneficiary of the policy in case of uncertain demise of the insured person during the policy's tenure. As this is a pure term insurance plan, it offers only death benefit and no maturity benefit is provided by the policy. The policyholders can choose for a higher sum assured amount at an affordable premium rate. 

Key Features of LIC e-Term Plan

The following are the salient features of the LIC e-Term plan: 

• LIC eTerm Plan is a traditional and non-participating plan which can be purchased online in a simple and hassle-free way. 

• The plan provides a saving on premiums for non-smokers and female lives. 

• LIC e-Term plan offers tax benefits U/S 80 C of the Income Tax Act. 

• An add-on rider benefit is offered by the policy to enhance the coverage of the policy. 

• The nominated person gets to receive the death benefit in case of the unfortunate death of the policyholder. 

*Note: You can easily calculate your term insurance premium amount by using the term insurance premium calculator.

Benefits of LIC e-Term Plan

There are many different benefits offered by the plan. Let’s take a look at the e-Term policy in detail. 

• Death Benefit: The primary benefit of the LIC eTerm Plan is the death benefit. In the event of the policyholder's demise during the policy term, the nominee or beneficiary receives the sum assured (the coverage amount) as a tax-free lump sum payout. This payout can provide financial security to the family in case of the policyholder's untimely death.

• Affordable Premiums: Term insurance policies like LIC eTerm Plan have lower premium costs compared to other types of life insurance policies. This makes it an affordable way to ensure financial protection for your loved ones.

• Tax Benefits: Premiums paid for LIC eTerm Plan are eligible for tax benefits under Section 80C of the Income Tax Act, and the death benefit is tax-free under Section 10(10D) of the Act, subject to the prevailing tax laws.

LIC e-Term Plan: Eligibility Criteria 

Before purchasing the LIC e-Term Policy, it is important to check the eligibility criteria of the policy. Let’s take a look at the eligibility criteria of the policy.

LIC e-Term Plan Other Policy Details 

• Grace Period: 30 days’ grace period is allowed for premium payment. If the policyholder fails to make payment within the grace period, the policy will lapse.

• Free Look Period: If the policyholder is not satisfied with the terms and conditions of the policy, then they can cancel the policy within the free-look period of 15 days from the date of policy initiation. 

• Loan: No loans are offered by LIC e-Term plan.

 LIC e- Term Plan: Exclusions

When it comes to suicide committed within 12 months of policy inception, only 80% of premiums paid are returned to the nominee. When it comes to suicide within 12 months of revival, higher than 80% of premiums paid or acquired Surrender Value is paid. 

Documents Required to Buy LIC e-Term Plan:

The documents that should be kept handy while purchasing the LIC e Term Policy are: 

• Duly filled application form submitted by the applicant. 

• Details of Medical History 

• Address proof (Aadhaar card, voter ID, Passport, etc.) 

• Identity proof (PAN card, Aadhaar card, voter ID, Passport, etc)

• Know your Customer (KYC) documents 

• Medical test if asked by the insurer based on the age of the applicant, the sum assured amount, and medical history. 

The policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. A medical examination may be needed in some cases, based on the sum assured and the age of the person.

*Note: It is a smart idea to firstly know what is term insurance and then buy LIC e-Term Plan.

LIC e-Term Plan: Claim Process 

If the beneficiary of the policy file claim against the LIC e-Term plan in case of the unfortunate demise of the insured person then certain documents are required to be submitted by the nominee of the policy to fulfill the process of claim. Let’s take a look at the documents that should be kept handy while filing the claim. 

• Original copy of LIC e-Term Policy. 

• Claim settlement form mentioning the details of the deceased policyholder. 

• Age proof Certificate copy of FIR (First Information Report) 

• In case of unnatural death of the policyholder or death due to accident then the beneficiary will need to submit the police investigation report and post-mortem report. 

• Death certificate from municipality.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.