LIC Term Insurance Calculator
LIC Term Insurance Calculator
Life Insurance Corporation (LIC) of India is the most trusted brand for ages among the people of India for life insurance products. It is the country’s oldest and largest life insurance provider. With 6 decades of exceptional customer service, the company has the biggest market share and offers consumers various customer-centric insurance plans, meeting their different needs and requirements.
LIC of India has specially designed two-term insurance plans that ensures your family’s financial security in your absence at affordable rates. These plans cater to various insurance requirements of people at different life stages. Buyers can use LIC Term Insurance Calculator to calculate the premium payable for their policy.
Benefits of LIC Term Insurance Premium Calculator
- Easy to Use: LIC Term Insurance Premium Calculator is simple and easy to use. You need to enter your basic details and get a quote for the premium amount to be paid.
- Budget planning: LIC Term Insurance Premium Calculator helps in planning your budget. It tells you the maximum possible life cover that you can opt for based on your requirements and the premium that you need to pay.
- Compare various term plans: LIC Premium Calculator helps to compare the premiums of different term plans. This helps determine the ideal plan for you based on your requirements by analyzing the premium amount, sum assured, and policy term for which you have to pay the premium.
LIC Term Insurance Plans
- LIC Tech Term Plan
- LIC Jeevan Amar
Below are the details about term insurance plans offered by LIC:
- LIC Tech Term Plan: It is a traditional term insurance plan that provides financial assistance to the insured’s family in uncertain situations. A non-risk, non-linked pure protection plan, LIC Tech Term Plan can be purchased only online from LIC’s website. The plan comes with several essential features like 2 death benefit options – Level Sum Assured and Increasing Sum Assured and it covers all kinds of death.
- LIC Jeevan Amar: It is a pure protection plan, offering two benefit options – Increasing Sum Assured and Level Sum Assured to the buyers to choose from. The insured’s family receives the death benefit in case of the policyholder’s unfortunate demise within the policy term. The policy gives the flexibility to add riders at an additional cost to enhance the base cover.
Benefits of LIC Term Insurance Plans
LIC Term Insurance Plans provide financial security to your loved ones in your absence. It makes sure all their financial expenses are met, and they lead a comfortable life without compromising on their goals and aspirations.
1. Reasonable Premiums: LIC term protection plans offer high life cover at an affordable premium price without hurting your financial plan. LIC has created these term plans considering everyone’s buying capacity.
2. Financial Assistance: LIC Term Insurance plans offer death benefits in case of the policyholder’s sudden demise within the policy tenure. These plans are intended to provide monetary help to your family in uncertain times. With LIC Term Insurance plans, one can ensure that their family is not in financial distress or can’t accomplish their objectives. To meet their daily expenses, one can opt to receive the benefit payout in lump sum or installments for a certain period of time.
3. Various Premium Payment Modes: For LIC Term Insurance Plans, different premium payment modes are available. One can decide to pay the premiums yearly, half-yearly, monthly, or quarterly as per their budget.
4. High Claim Settlement Ratio: LIC features a healthy claim settlement ratio of 96.69% in the FY 2019-20. The high claim settlement ratio of an insurance company reflects its credibility and reputation in the market. If one picks an insurance provider with a high claim settlement ratio, you can depend on them to settle your claims without any hassle.
5. Tax exemptions: Premiums paid towards LIC term plans are eligible for tax exemption according to Section 80C and 10(10D) of the Income Tax Act, 1961.
6. Extra Coverage: Under LIC Term Insurance Plan, you can add extra coverage in the form of riders to enhance the base policy coverage. Riders offered by LIC Term Insurance plans include critical illness cover, permanent disability, accidental death cover, etc., which are available on additional premium payment.
What are the various premiums payment frequencies for LIC term insurance plans?
You can pay LIC term insurance premiums in various frequencies that include - yearly, half-yearly, quarterly or monthly.
Is there any tax benefit on life insurance premiums?
Yes, the premiums paid for life insurance premiums are eligible for tax exemption. Premiums paid up to Rs 1.5 lakhs come under tax deductions under Section 80C of the Income Tax Act.
How long do I need to pay the premiums for LIC term plans?
Different term plans have different premium payment tenures. Such as in the case of the regular premium payment option, premiums are required to pay throughout the policy term. For limited premium payment options, premiums are payable for a specific period. In the case of a single premium payment option, the premium is payable only once when the policy is purchased.
What happens when I miss paying the premium?
If the premium isn't paid for a specific period in term insurance, then the policy gets lapsed, and all the insurance benefits stop. Also, the policyholder loses all the premiums paid earlier.
For what reason would it be advisable for me to pick LIC term protection plans?
LIC term protection plans offer a substantial life cover at a reasonable price. In addition, these plans provide financial assurance to the insured's family in the policyholder's absence. You can also add riders to the plan to enhance the base cover.
Do the premiums of term insurance plans include GST?
Yes, term insurance plan premiums include a GST slab of 18%.