LIC eTerm online term insurance plan – Review

LIC online term insurance plan e-TermFinally the much awaited LIC online term insurance plan has been launched by LIC few days back. LIC Online term insurance plan is named as LIC e-Term / LIC eTerm.  LIC is trusted for the longest time, but premiums do not come cheap compared to private insurance online term insurance plans. In this article, I would provide more details about LIC e-Term online term insurance plan, its features, negative points, how to buy LIC term insurance plan online and whether one should consider this online term insurance plan or not?

Features of LIC e-Term online term insurance plan


  • This is a pure term insurance plan
  • This can be purchased online where no agent is involved
  • Sum assured would be paid on death. This does not carry any maturity benefit.
  • Online term insurance plan is categorized into two. Aggregated category and non aggregated category. Non smokers have an option from Rs 25 Lakhs to Rs 49 Lakhs sum assured and > = Rs 50 lakhs sum assured. Non smokers category of Rs >= 50 Lakhs. The differential premium rate would apply for smoker and non smoker category.
  • The minimum sum assured is Rs 25 Lakhs for non smoking category and Rs 50 Lakhs for smoking category
  • Maximum Sum assured – No limit
  • Minimum age of entry – 18 years
  • Maximum age of entry – 60 years
  • Maximum age where policy ceases – 75 years
  • Minimum term: 10 years
  • Maximum term: 35 years
  • You can surrender the policy within  30 days if you are not satisfied with the policy (cooling-off period)
  • Mode of payment: Annual
  • Proposal for self only
  • Medical tests are a must

Also Read: How to pick-up best term insurance plans in India

How do the premiums of LIC online term plan compare with other term insurance plans?


a) LIC e-Term Vs Offline term insurance plan – Amulya Jeevan-II

If we compare Rs 50 Lakhs sum assured for 30 year term.

  • Smoker – Not much benefit
  • Non smoker – 30% to 40% less premium in online plan comparing to offline plan depending on the age of the insured

b) LIC e-Term Vs Private online term insurance plans

LIC e-Term online plan premiums are comparable to ICICI Pru life online plans. LIC online plan premiums are not cheap. For young age and age below 35 years of age, this is comparable to ICICI term insurance plans. However, beyond 35 years, LIC plans comes cheaper compared with ICICI plans. Now comparing them with other private insurance plans, LIC is definitely not cheaper. There are private insurance companies offering online term plans for lower premiums. Various other factors would play in deciding the premiums.

LIC e term Vs private insurance online term insurance plans

Source: Economictimes

How to buy LIC e-Term online term insurance plan?


  • Visit LIC Direct link
  • Click buy online
  • Select residential status.
  • Enter Sum Assured, Date of Birth, Mode, Smoker/Non-Smoker category Gender etc.
  • Premiums would be displayed
  • Fill relevant personal details
  • You would get a 9 digit access ID on your registered email ID or mobile number
  • Click proceed with this 9 digit access ID and generate the PDF copy
  • Review PDF copy and make changes (if any)
  • Proceed to make payment thru internet banking or Credit Card

Details you may need to enter during the process:

  • PAN number is must
  • Form 16 and ITR for last 3 years details need to be filled-in
  • Details of existing insurance plans
  • Data of family members and nominee details
  • Bank account details and MICR code
  • Medical tests are must for this online term insurance plan

Should you buy LIC e-Term online term insurance plan?


Buying insurance plan is an important decision to be taken in life as it protects us financially and also a long term decision. Let us review its positives, negative points and conclusion summary.

Positive points in LIC Online term insurance plan

  • LIC is trustworthy for the longest time
  • The claim settlement ratio is 97.3% in the last financial year. Other private insurance companies except for ICICI Pru life and HDFC Life, others have a low settlement ratio.
  • Non smokers benefit 30% to 40% of premiums comparing to offline LIC term insurance plan. Smokers may not benefit much from this plan.

Negative points

  • Proposal for self only. You can not buy for your wife’s life style or for any other member
  • Premiums are not cheap. They come in par with top private insurance companies
  • No specific riders applicable for this online plan
  • You need to undergo medical tests. Many private insurance companies offer online term plans where you need not undergo medical tests.

Also Read: Check latest Claim settlement ratio before taking insurance decisions

Some of the FAQ’s on LIC online term insurance plan


1) Can NRI buy LIC online term insurance plan

There is no clarity on the website and I called LIC to inquire about it.  As per them, NRI’s cannot buy this online plan. The reason could be is one need to undergo medical tests before issuing the policy and since NRI’s are not in India, they are not providing this to NRI’s.

2) Recently I have taken LIC Offline term insurance plan Amulya Jeevan-II and premium is very high. Can I switch to this plan?

No, you cannot switch to this plan. You may discontinue the existing plan and consider this online term insurance plan of LIC after going thru features and negative points. You may not get premium refund from your earlier offline term insurance plan if you can discontinue.

3) ICICI Pru life offers term insurance plan without medical tests and LIC online plan offers with the medical tests. Premiums looks almost  similar. Can we buy ICICI Pru term insurance plan?

I agree on this point. However LIC is more trustworthy compared to private insurance companies. Both have their owns pros and cons. Review them and consider the one which is suitable to you.

4) Banks are offering insurance for cheaper rates, how does this compare with LIC online term insurance plan?

Banks are offering health insurance plans and accidential insurance plans. They offer insurance plans with only few features and with a limited sum assured. Hence, both are not comparable.

5) LIC online plan shows higher premium if I take for 70 years maturity age compared to 65 years maturity, why is it so?

The longer term you take term insurance, the more riskier for insurance companies that too after 60 years of age. Hence, they would charge higher premiums for age beyond 60 years. I feel you would be financially independent after 65 years, hence considering term plan up to 65 years should be good enough.

6) I see there are no riders in LIC e-Term online policy. Is there any private insurance company offering riders?

Majority of the online term insurance plans does not offer riders. Some of the policies like ICICI I-Care provide accidental benefit riders but charge additional premiums.

7) What would be amount paid at maturity if i opt for LIC online term insurance plan?

This is pure term insurance plan without any maturity benefit. If you are looking for maturity benefits on term insurance plan, you can review plans like Max Newyork life insurance premium return term plan. However note that they charge high premiums.

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Suresh
LIC online term insurance plan eTerm

Suresh KP

62 comments

  1. Sir, i am trying to fill up the online proforma for lic e-term policy but i facing to fill up the form. The questions are not clear. My query is that i am a govt. servant and i have 3 members in my family including my wife and daughter and my mother is a govt. pernsioner as my father has been expired some year ago. What should i fill in the proforma for family details? should i include my mother and father or not in my family because write now acc. to govt. rule my mother is not dependent on me. please help me , Thank you

    1. Hi Rahul, It is immaterial whether your moth is depend or not. You can include it, unless LIC term online policy does not allow more than 3 members.

  2. Hi,

     

    Is there a plan where i can increase the sum assured after some time? As we progress there are additional libalities comes and during that point of time you can not increase your sum insured and need to purchase a new plan. In case a existing plan offers that then it would be easier to avail that.

    1. Binod, As per my knowledge there is no such policy for life insurance. However i have seen this in health insurance. Hopefully we would see such plans in future in life insurance too

  3. Can an Nri who is coming to india buy an online plan and give the medical test when he is in india. Please confirm

  4. Hi Suresh, I have been trying to fill up the e-term plan for the last 3-4 days. It asks for too many details like income, investments, assets, liabilities, house ownership, etc. as if we are asking for a loan. It is also not clear if I can write an arbitrary or approximate sum or the exact amount for which I will have to give proof later. Private companies don't ask for such details and it is a breeze filling their forms. I think LIC should simplify the process so that more people are attracted to it. I am sure the tedium of just filling the form will keep many away.

  5. Hi Suresh,

    Nice post with all the details!! I am planning to cancel my existing Bharti AXA term insurace and get this term insurance. Its ssems for 30 years male premium you shown is 8202 but I checked on their website so its goes to 9663(8616+1064 service charges). Is this fine? Also, difference between HDFC click to protect and this LIC is 1500 INR only so better to go with LIC only whta you suggest, shall I go with LIC?

    1. Rajesh, With such small differences, you can go for LIC which is more trustworthy. Please take the policy first and then cancel your existing policy.

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