Best LIC Term Insurance Plans – Which Plan is suitable to you?

Best LIC Term Insurance Plans – Which Plan is suitable to you-minBest LIC Term Insurance Plans – Which Plan is suitable to you?


There are several term insurance plans in India. However, LIC of India is among the trusted insurance companies by many of us. LIC of India offers 3 Term insurance plans in India which comes with good features. LIC term plans come with little higher premiums compared to private insurance companies. Which are the 3 Best LIC Term Insurance Plans in India? What are the features of these LIC term insurance plans? This article provides Best LIC Term Insurance plans, their features, eligibility and comparison among these 3 plans and concludes which is best suitable to you.

Also Read: Top and Best Term Insurance Plans for high risk coverage and low premiums

What are term insurance plans in India?


The term insurance plan is the basic insurance where if the insured dies, the nominee would get the sum insured. There is no maturity value payable if the insured survives till the end of the tenure. Such plans come with very low premiums and offer higher coverage. They are highly favored by people as they are able to secure their family satisfactorily against any loss of income which they might face in the absence of the life insured. They provide a lump sum amount in case of death of the insured.        

What are 3 Best LIC Term Insurance Plans in India?


The company offers a number of term insurance plans which offers different features and benefits. The insured has to choose the suitable one as per his requirements. The three most popular term insurance plans are Anmol Jeevan-II, Amulya Jeevan II, LIC eTerm Insurance Plan. Let’s compare these three plans in detail-

1) Review of Anmol Jeevan-II


Features of Anmol Jeevan-II


1) It is purely a term insurance plan which provides no benefits to the insurer at the maturity if he survives till the end of the tenure of the policy.       

2) The death benefit is equal to the sum assured chosen at the time of inception of the policy.

3) Regular premiums are to be paid during the entire term of the policy. It is paid either annually or semi-annually. 

4) The premium paid and the amount of claim received both are exempt from tax under section 80C and Sec. 10 (10D).

5) LIC New Term Insurance Rider can be attached to the basic plan to increase the coverage under the LIC term plan. 

Eligibility of Anmol Jeevan-II


The minimum age to obtain this policy is 18 years and the maximum age is 55 years. The maturity age is 65 years. The minimum sum assured is 6 lakhs and maximum is 24 lakhs. Policy is available for 5 years to 25 years tenure. The premium payment term is equal to the policy term.

Sample Premium rates of Anmol Jeevan-II


The below table depicts the premium to be paid, assuming the sum assured to be Rs 10 lakh. It shows the different age and different terms of the plan.

Best LIC Term Insurance Plans – Sample premium rates of Anmol Jeevan II-min

2) Review of Amulya Jeevan-II


Features of Amulya Jeevan-II


1) It is purely a term insurance plan which provides death benefits in case the insured dies during the tenure of the policy.

2) No benefit is payable if the insured survives the entire duration of the policy.     

3) Regular premiums are to be paid through the entire tenure of the policy.            

4) Premiums are paid either annually or bi-annually. In bi-annual mode of premium payment, one has to pay an additional 2 %.

5) LICs New Term Assurance Rider can be attached to the basic plan to increase the coverage under the LIC term plan. 

6) The premium paid up to Rs 1,50,000 is exempted from income tax u/s 80C and the claim so received is exempted u/s 10 (10D).

Eligibility of Amulya Jeevan-II


The minimum age to attain this policy is 18 years and the maximum age is 60 years. Maximum maturity age would be 70 years. The minimum policy term is 5 years and maximum is 35 years. Policy is available for 5 years to 35 years tenure. The minimum sum assured is Rs 25 lakh and there is no upper limit to the sum assured.

Also Read: Low Premium Health Insurance Plans to consider in 2018

Sample Premium rates of Amulya Jeevan-II


Assuming the sum assured to be Rs 50 lakh, the below table shows the various premiums to be paid at different ages and different terms of the policy.

Best LIC Term Insurance Plans – Sample premium rates of Amulya Jeevan II-min

3) Review of LIC On-line eTerm Insurance Plan


Features of LIC On-line eTerm Insurance Plan


The LIC on-line term plan is available on the website of the company and no intermediaries are required. It affects the rates of premium. 

It is purely a term insurance plan which provides death benefits in case the insured dies during the tenure of the policy.

No benefit is payable if the insured survives the entire duration of the policy.

Regular premiums are to be paid through the entire tenure of the policy

LICs New Term Assurance Rider can be attached to the basic plan to increase the coverage under the LIC term plan. 

The company offers a differential premium rates for the smokers and non-smokers and thus benefitting non-smokers through lower rates of premium. This differential pricing is applicable to the coverage amount of Rs 50 lakh and above. Below this amount, the premium rates are similar.         

The premium paid up to Rs 1,50,000 is exempted from income tax u/s 80C and the claim so received is exempted u/s 10 (10D).

The premium has to be paid annually only. There is no option of bi-annual payment of premium. 

Eligibility of LIC e-Term Insurance Plan


The minimum age to obtain the policy is 18 years and the maximum age is 60 years. The maturity age of the policy is as high as 75 years. The minimum policy term is 10 years and the maximum term is 35 years. There is no higher limit for the sum assured. Policy is available for 5 years to 25 years tenure. The minimum is Rs 25 lakh for aggregate category and Rs 50 lakh for the non-smoker category.

Sample Premium rates of LIC on-line Term Insurance Plan


This table depicts the sample rates of premium calculated on the assumption of the sum assured as Rs 50 lakh. It shows various premiums to be paid at different age and different terms of the policy. These rates are for smokers’ category.

Best LIC Term Insurance Plans – Sample premium rates of eTerm Insurance plan-Smokers-min

However, the rates are varied for non-smokers’ category.

Best LIC Term Insurance Plans – Sample premium rates of eTerm Insurance plan-Non-Smokers-min

Anmol Jeevan-II, Amulya Jeevan-II and eTerm Insurance Plan – Which is the best plan for you?


1) In Anmol Jeevan-II plan, the biggest benefit is its very low premium rates. It is disadvantageous in the sense that the maximum sum assured is very low, i.e. Rs 24 lakhs.  So, this is suitable for lower-middle class family or for persons who has only one dependent. For upper-middle class families, the purpose of financial security for the entire family would not be resolved. It would not be possible for the family members to maintain their living with such minimal amount. The maturity age is also 65 years only, while in other two plans it is higher. It is more important to cover the later age of the insured. The policy term is also shorter here, i.e. 25 years. If the insured takes this policy at an early age, say 18 years and survives till the end of the tenure i.e.43 years, he will again have to get himself insured and at this age, he will have to pay higher premium.

2) The Amulya Jeevan-II plan is quite an excellent plan with a minimum sum assured as Rs 25 lakh and there is no upper cap to it. The maturity age is also 70 years, which are high.

3) The LIC on-line eterm insurance plan is available only online through its website while others are to be obtained through intermediaries. Another benefit of e-term plan is that the company offers different premium rates for smokers and non-smokers. This way, non-smokers are awarded through lower rates of premium. The maturity age is highest amongst these three policies, i.e. 75 years, which is an average expectancy age for any individual. So, he can be assured that he is insured for the major part of his life and his family is financially secure. There is no option of semi-annual payment of premium. The entire premium has to pay in one go per year. Considering these features, LIC e-term is considered as one of the best LIC term insurance plans  in India.

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Suresh

Best LIC Term Insurance Plans – Which Plan is suitable to you

5 comments

  • garsar

    Question:
    1) Can you please suggest which immediate annuity plan gives monthly 15000/- rupees, is it ok to invest in jeevan shanthi new lic ?
    2) if I took a plan to get yearly income 700000 and or monthly 39000/- is there any tax deduction on this? what is the limit? what if I take senior citizen ?

  • Wincy E Thomas

    Hi Suresh,

    My daughter is a Dr by profession. But she is preparing for pg entrance. So, without having salary can she join for Amulya Jeevan 11 and what is the maximum sum can be assured in that case? Premium will be paid by parents. I have a small LIC plan ( money back policy). I am 47 years and can I join now? will the premium be expensive in my case?

    Awaiting your kind advice.

    Thanks & Regards,

    Wincy

  • Nagendra

    Thanks for the info. Can u please review http://tataaia.com/pdf/protection-solutions/sampoorna_raksha_plus.pdf

    This term insurance will give all premiums return after maturity. i can see claim settlement ratio is also good. Could you please suggest if i can go for this.

    Thanks.

    • Hi Nagendra, This is another term insurance plan in India with premium returns benefits. One should never go to premium return plans. The major reason is these plans with higher premiums. It means they are collecting higher money and returning some of the money on maturity. Simply you can ignore such plans

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