Traditionally, the Life Insurance Corporation (LIC) of India sold its term insurance plans with the help of insurance agents. But, with the penetration of the internet in the lives of Indian citizens, LIC has too realized the importance of online term policies. To quench the requirement of growing online term insurance plans specifically TERM PLANS, it launched LIC e-term plan through which the customers can purchase the policy online.
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Features and benefits
This policy comes with numerous features and benefits, some of which include:
- In case the policyholder dies, the nominee receives the sum assured.
- The policyholder can renew the policy within two years in case it lapses.
- The policy can be purchased by filling in online details and paying the premium through online modes of payment.
- The policy remains active even if the individual travels abroad for vacation or work purposes.
- The premium rates are highly reasonable.
These features reveal that it is a sane idea to make an investment in this plan of LIC.
Eligibility Criteria
The person must have completed 18 years of his/her life to become eligible for this LIC term plan, whereas the maximum age at entry is 60 years (nearest birthday). The minimum term of the policy is 10 years, whereas the maximum term of the policy is 35 years. To get this policy, the individual must have his/her own earned income. The policy does not allow the individual to propose for anyone other than himself/herself. Also, partnership, Key Man Insurance (KMI), and Employer-Employee are not allowed.
Terms and Conditions
If you are interested in this policy, you must go through these terms and conditions:
- Grace Period: The policy allows a grace period of 30 days starting from the due date of the premium. After this period, the policy lapses.
- Payment of subsequent premiums: The policyholders can pay the further premiums through credit card, net banking, or debit card.
- Already existing term plan cover: The individual is supposed to disclose his/her existing insurance cover details, along with income details, in case he/she already possesses a term plan cover of another insurer.
- Medical tests: The need for medical depends on the health disclosures and underwriting requirements. In case medical tests are required, the individuals have to go through basic examinations like blood tests and urine tests.
- Minor nominee: The policy allows for a minor nominee, but an appointee has to be provided for the same.
- Type of death covered: The product covers all types of deaths except suicide during the first year.
Check out this article: Types of Life Insurance Policies in India
Revival of Policy
The policy gets lapsed in case the insured individual does not pay the premium within the grace period. To revive the policy, the individual has to pay the due premium, along with interest (which is compounded half-yearly). These arrears have to be paid within a period of two consecutive years, which begins from the date of the first unpaid premium. The individual has to bear the expenses related to the medical reports if needed for the policy revival.
Premium Rates for Smokers and Non-Smokers
There is a difference in premium rates and sum assured for smokers and non-smokers.
Aggregate: This plan is applicable if the assured amount varies from 25 lakhs to 49 lakhs. It does not matter whether you are a smoker or not. Regular smokers who want to assure more than 50 lakh have to pay an additional premium when compared to non-smokers.
Non Smoker: The minimum sum assured for this category is Rs. 50 lakh. The premium is comparatively less than the smoker category.
Conclusion
The LIC continues to be the first choice of individuals, as it is a government-backed company. Talking about the E-Term plan, the combined benefit of term policy and ease of purchase makes it an ideal product for those who want to get their life covered. It is necessary to check all the terms and regulations in detail from the company’s website. You can use our portal ComparePoliocy.com for a free comparison of the best policies that LIC offers.