Is LIC’s E -Term Policy Best Online Term Insurance Plan? A Comprehensive Guide
LIC E Term Policy 825 Review: If you are trying to find out online term insurance plan from LIC of India, then you will not get disappointed as LIC has a term plan in their kitty named E – Term plan besides their typical offline term insurance plans like Amulya Jeevan II & Anmol Jeevan II.
I have received many questions regarding whether to buy LIC E Term plan or is LIC E Term Plan is the best online term plan compared to others? This question can’t be answered in simple words or in a single sentence as there are many positive & negative about this online term insurance plan from LIC of India compared to other popular term plans in India like iTerm plan, HDFC Click 2 protect plus, iProtect smart etc.
LIC Online Term Plan VS Offline Term Plan
Before launching of LIC E Term plan, LIC was doing some great business with both of its 2 offline term insurance plans Amulya Jeevan II & Anmol Jeevan II. But with the popularity of online term plans and other competitors pressures LIC can’t stay away from launching a online term plan.
But seems like the new LIC online term plan is not designed completely to benefit people. LIC has make sure that their new Online term plan is not hampering their existing offline term policies market. Why I am saying like this? Just find few features here comparing both LIC online term plan vs Offline term plan.
- LIC Anmol Jeevan II can be done for max sum assured of Rs 24 lakh only. Where LIC E-Term plan is starting from a sum assured value of 25 lakh onward.
- If you are going for higher sum assured value like 50 lakh, then you will find that the premium amount of Amulya Jeevan II is almost similar to LIC E-Term plan with 50 lakh sum assured.
But for a sum assured value more than 50 lakh, LIC E Term is the cheapest plan compared to Anmol Jeevan II & Amulya Jeevan II. But in compared to other term plans offered by different insurance providers, LIC E-Term is quite expensive. Let’s explore more key highlights of LIC E-Term plan and compare the premium amount with HDFC Click 2 Protect Plus, then plan I have purchased.
Key Features of LIC’s e -Term Policy?
LIC’s e-Term policy is a pure online term life cover policy. Like every term plan basic rules, you have to pay regular premiums to cover your life without expecting any maturity benefit in the policy end, in case you survive. In case of unfortunate death, your family will get the lump-sum benefit as per the policy.
- The min sum assured value for this policy is very strange if you are not aware. Rs. 25,00,000 for Aggregate category and Rs. 50,00,000 for Non-smoker category. That means if you are a non-smoker and looking for a lower than 50 lakh life cover, LIC E Term plan is not for you.
- The min entry age is 18 years of age and max entry age is 60 years. But one can continue the policy till the age of 75 years.
- The policy term can be varied from 10 year to 35 years.
- Premium payment option is annual basis and one have to pay premium within the grace period of 30 days.
- In case the premiums not paid within 30 days of grace period, then the policy will be lapsed. And a lapse policy can be revived within next 2 years as per LIC terms only.
- There is option to make the policy paid-up.
- In fact there is no concept of surrendering LIC E term plan as well.
- Like all other insurance plans, one can get income tax exemption for the annual premiums paid under Section 80C, 10 (10D) of the Income Tax Act, 1961.
- There is a cooling-off period within which policy holder can return the policy within 30 days from the date of receipt of the policy bond stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium for the period on cover, stamp duty charges, expenses for medical examination and special reports, if any.
- This policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk or within 12 months from the date of revival and the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid till the date of death excluding any taxes, extra premium, if any, provided the policy is inforce.
For more details, you can refer to official website of LIC of India.
How to purchase LIC’s e-Term Plan Online?
LIC E-Term is LIC’s first online insurance which can be purchased without the involvement of an agent. Here is the step by step guide to get your first term insurance plan.
Step 1 :- LIC has a dedicated website for all LIC online plans. To get that link you have to Log-on to official website (www.licindia.in) for buying this online product. Click on ‘Buy Online’. Select e-Term.
Step 2 :- Choose your desired Sum Assured and the Policy Term (the period for which you want the cover).
Step 3 :- Enter Basic details – Name, Age, Gender, Qualification, etc in the form displayed on your screen.
Step 4 :- After filling in the details, LIC E-Term plan premium calculator will find out how much premium you need to pay.. The Premium will depend on the age, gender, term, sum assured, health and tobacco-usage. Lower premium rates are applied to non-tobacco users for Sum Assured more than 50 Lakhs.
Step 5 :- Premium payment mode is by default Annual. That means there is no concept of single premium payment.
Step 6 :- Finally pay the premium and the policy documents online. The actual documents you will get by post in few days.
Sample Premium Rates of LIC E-Term Online Term Insurance Plan
The sample premium rates (exclusive of taxes) are as under:
FAQs You Should Know About LIC’s E-Term Plan
What are the Qualifying criteria of LIC’s e-term plan?
- You have to be Indian citizen, Overseas Citizen of India(OCI) or Person of Indian Origin(PIO) are not permitted to buy this plan.
- You have to follow the rules related to min & max entry age and also the max policy term as per the eligibility table.
- He/she must have own earned income.
- One cannot propose for anyone other than self.
- One should have annual income around 3 lacs to purchase under Non-smoker rate. Income should be sufficient to cover all existing and proposed insurance cover under all insurers.
Will my premium amount change during the tenure of the policy after I have bought the plan?
As per LIC terms, the premium amount decided and paid for the first time will remain same for the entire policy term. This is subject to service tax regulations as declared by the Government of India from time to time.
Can the Nominee be a Minor?
Yes, you can a Nominee can be a Minor in case you don’t have any adult to declare. However, an Appointee (major) has to be provided for the Minor Nominee. In case of death during policy term, the nominee receives the sum assured under the plan.
What is the Grace Period under the product?
Grace Period of 30 days from the premium due date will be allowed under the product.
Can a loan be taken under this product?
Loan is not available under this product.
How can I pay the subsequent premium?
LIC offer various options to pay premium online or offline. The subsequent premium can be paid online either through Net-Banking/ Credit Card/ Debit Card.
In case I have an existing term plan cover with another company can I still purchase LIC’s e-Term
You have to declare all your existing policy while buying LIC term insurance plan or in-fact any other insurance product honestly in the application form. Otherwise your nominee may face policy claim rejection issue. So be careful while buying any insurance product in future.
Can I buy it under Non-medical Scheme?
Yes, if you are within 35 yrs. of age, with annual income > 3 lacs, you may purchase up to 40 lacs and if between 35 to 45 yrs of age, with annual income > 5 lacs, you may buy upto 30 lacs subject to you being Non-Smoker, No past medical history and underwriter’s decision.
Will I have to undergo a medical test?
Generally medical tests are mandatory for a term plan. But you can ask LIC officials as per your insurance need whether medical tests are required or not.
Can I buy one more online term insurance policy?
First of all I don’t know why you need a 2nd term insurance plan. You should buy a single term plan with adequate life cover. If you think your life cover is less then you should try to enhance the life cover of the existing plan. But if you think you want to switch plans, then better to buy a new term plan after all possible analysis & insurance comparison online.
If I am travelling abroad for business/vacation will I be covered?
Yes, your life will be covered even if you are at abroad. But remember that the the financial liabilities will be completely different compared to your home country. Better to buy travel insurance and medical insurance while travelling abroad.
Where can I contact / write to know the status of my application?
You can write to us at online_dmkt [at] licindia.com or call our toll free number 1800227717.
Should I Buy LIC E-Term Online Term Insurance Plan?
If you are interested to know whether you should buy LIC term insurance plan and how is it good compared to other popular term plans? Then here are the reasons why I think about this plan.
- Without any doubt, LIC is the best insurance company in India in terms of network, trust, number of policies and market share.
- If you want to continue your term plan till 75 years, then LIC E Term plan can suite your requirement.
- But if you are looking for cheapest online term plan, then there are better alternatives of LIC E-Term Insurance Plan like HDFC Click 2 Protect Plus, ICIC term Plan etc.
- For a non-smoker person, you have to be ready to buy for a sum assured more than 50 lakhs.
- If you are an existing LIC offline term plan subscriber and want to move to LIC online term plan, then it is better to move to get the benefits.
- Like other term plans, LIC E-Term plan doesn’t offer any additional riders like critical illness cover, terminal illness cover or any accidental death benefit extra.
So, what is your point of view about this online term insurance plan from LIC of India? Write your queries or any experience about this plan here by writing a comment below.