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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LIC online term insurance plan eTerm




    I’m 21 year old, my doubt is if i purchase eterm plan for smoker, will alcohol be included in the plan. I’m neither alcoholic nor smoker, but passive smoking can happen. Will the money be available to my family after death of post maturity?, And if you have any better plans please suggest me.

  • bhoomika

    Thankyou sir for the information .

    I have a further query as i was filling this online eterm form; i could not understand this below mentioned line though i have answered ” NO” in my reply.

    what is meant by”Is your life now being proposed for another assurance or an application for revival of a policy on your life or any other proposal under consideration in any office of Life Insurance Corporation of India or to any other insurer?”

    i would like to bring to your kind notice that i have a offline term plan of LIC since 15th nov’2011 which i have already declared in my previous poilicy data sheet.

    one more doubt is in my mind as the current term plan (offline) is very costly so once i will get this e-term plan approved; i will surrender the previous offline plan. what are the chances that i will get the approval for the new e-term plan now.

  • Rajendra Singh

    Need Rs.25 lacks E Term Plan my age is 49+

  • Thangaraj

    Dear sir,
    well and wish the same from u and ur family. I read your article really simply super and more useful . i am 33 year old Now I am NRI may be after 3 to 4 year Planning to settle india. Can i possible to buy Icici pru care 2 .which one is best online buying or offline buying. i am waiting for your reply


  • Ravi

    Its has been 4 months since I have applied for this Policy. All documents submitted and all medical tests were completed in smooth manner. However it hit a road block for me for being little too honest. I had small hospitalization for gas problem 7 years back which I clearly mentioned in the form. Now I also declared that I do not have the reports for the same and if required I can give this in writing as well. Also since they have conducted all medical tests they know that currently there are no related issues which may cause any problem in future.

    Its been a month and 5 follow ups with them but no one is even ready to respond on email. The contact no mentioned on site is worthless as no one pick up that as well. Is there any way to escalate this issue?

    • Hi Ravi, IRDA has prescribed Grivience redressal officers in insurance companies. for LIC it is Pls complaint to this email ID and your problem should get addressed in 15 days. Inspite of doing this, it is not happening, you should approach IRDA at or contact them at 1800 4254 732

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