ICICI Prudential Term Insurance Vs LIC Term Insurance
Term insurance can be defined as financial cover to your family in case of unforeseen events such as the demise of the sole bread earner. In such a scenario, it is hard for the family to survive due to loss of income, and they have to face the hard realities of life. Therefore, term insurance gives them adequate time to stand by themselves and restore normality. With COVID-19 continuously grappling the world, there seems to be no relief from it. Hence, it has become a necessity for the earning individual of the family to have term insurance as a financial backup plan for their family. Check out the details below of the term plans from the leading insurers in the country – ICICI Prudential and LIC. You can compare the features and benefits of opting for the ideal one for yourself and your family.
Term Insurance Plans by ICICI Prudential Life Insurance vs LIC Overview
|Parameters||ICICI Prudential Insurance||LIC Term Insurance|
|Number of Term insurance plans||5||2|
|E-services||Buying policy, policy renewal, update information, premium payments, and claim settlement||Registration services, online payment, policy status, claims status, grievance registration|
|Claim settlement ratio||97.84%||96.69%|
Term Insurance policies – ICICI Prudential vs LIC
ICICI Prudential Life Insurance Company is a leading insurer in the country, promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited. The company offers an array of life insurance products, including term insurance, health insurance, ULIPs, savings, and investment plans. The term insurance plans are affordable and carefully designed, catering to the varied requirements of the customers.
Life Insurance Corporation (LIC) of India is the oldest and largest life insurance provider in India. It has the biggest market share and boasts of decades-old exceptional customer service. The company offers an array of customer focussed insurance products matching their various needs and requirements.
To choose the right term plan, you can compare ICICI Prudential, and LIC term plans on various parameters mentioned below.
Term Insurance Plans by ICICI Prudential vs LIC
ICICI Pru Term Plans
- ICICI Pru term plans come with an option for life coverage up to 99 years as well as maturity benefit.
- It offers 5 different term plans meeting the different requirements of its customers – ICICI Pru iProtect Smart, ICICI Pru iCare II, ICICI Pru Saral Jeevan Bima, ICICI Pru POS iProtect Smart, and ICICI Pru Life Raksha.
- The term plans also come with flexible options for paying premiums and payout options.
- The plans offer sum assured from Rs 5 lakh to Rs 2 crores.
Why choose ICICI Prudential Term Plans?
- ICICI Prudential term plans are affordably priced and provide comprehensive financial protection.
- Along with life cover, ICICI Pru term insurance plans also cover critical illness, terminal illness, and accidental death.
- ICICI term plans offer four different payout options – lumpsum payment, monthly income, lumpsum income, along with monthly income and increased income.
LIC Term Insurance
- LIC offers two-term insurance plans – LIC Tech term plan and LIC Jeevan Amar that are non-linked, non-participating, and completely risk-proof.
- The plans offer flexibility to choose from different premium payment options – single premium, limited premium, regular premium as per your convenience and preference.
- The plans offer discounted premiums for female policy buyers and non-smokers.
- ICICI term insurance plans also come with rider benefit options that help you broaden the scope of your policy coverage.
Why choose LIC Term Plans?
- LIC term plans are pure protection plans available at affordable premium rates.
- The term plans give you the flexibility to opt for your desired sum assured amount.
- Anyone between the age group of 18-75 years can opt for LIC term plans.
- LIC offers an easy and hassle-free policy buying and claims settlement process.
Why should I purchase an ICICI Term Insurance plan?
ICICI term insurance plan provides financial protection to the policyholder’s family in case of their sudden demise within the policy term. Moreover, with an impressive claim settlement ratio of 97.84% (FY 2019-20), the insurer ensures a hassle-free and fast claim settlement process.
Do ICICI Prudential Term Plans cover death due to COVID-19?
Yes, ICICI Prudential term insurance plans cover death due to COVID-19 as death because of health issues are covered under life insurance.
Do term insurance plans offer any tax benefits?
Yes, term insurance plans are eligible for tax benefits for the premiums paid under section 80C of the Income Tax Act, 1961.
Can I change the details in my ICICI Pru term insurance plans later during the policy term?
Yes, you can change the details in your term insurance policy at any time within the policy tenure. To do so, you need to download relevant forms from the official website of ICICI Prudential Life Insurance and submit the same at the insurance company’s branch. You can request to change the spelling of the policyholder’s name, date of birth, premium payment mode, contact details, or nominee residential status. However, you cannot change the policy term after purchasing the term policy.
Which kind of deaths are not covered under term insurance?
Deaths due to suicide are not covered in the first year of the term plan. However, term insurance plans cover all types of deaths due to illness, accidental, natural, murder, and natural calamities.
What are the minimum and maximum entry ages for LIC term insurance plans?
The minimum entry age for LIC term insurance is 18 years, and the maximum is 65 years.
Why should I opt for LIC term insurance plans?
LIC term insurance plans provide high life coverage at an affordable price range. In addition, these term plans offer complete financial protection to your loved ones in your absence. You can even enhance the policy coverage by adding riders to the base plan.
What are the documents acceptable for ID Proof and address proof?
The document acceptable as ID and Address Proof are:
Voter Identity Card
Bank Account Statement