Best LIC Term Insurance Plan for 1 Crore

Best LIC Term Insurance for 1 CroreBest LIC Term Insurance for 1 Crore


Two months back, LIC has launched two term insurance plans. The existing e-term online term insurance plan is scrapped now. Many of us would have confused as to why LIC has launched 2 term insurance plans at the same time. It might want to create its own competition in the term insurance plan market against a plan. What are the features of LIC Term Insurance Plans? Among these plans, which is the Best LIC Term Insurance Plan for 1 Crore sum assured?

Also Read: Best 1 Crore Term Insurance Plans in India

What is Term Insurance Plan and what are its benefits?


If you are new to term insurance plans or know less about term plans, you can see this video.

Video Credit: Invest Yadnya

Does LIC have term insurance?


LIC is a trusted brand. You would have seen LIC offers endowment plans, money back plans and several other investment cum insurance plans. You would have got question, saying “Does LIC have term insurance” plan. Yes, LIC was offering a couple of term plans with limited features, hence it was not that attractive computed to private insurance companies.

Overview about LIC Term Insurance Plans launched in Aug/Sept, 2019


LIC has launched Jeevan Amar and Tech Term Plan in August and September, 2019 respectively.

LIC Jeevan Amar Term plan is non linked and non participating life insurance plan. This is an offline term plan from LIC. This is a pure term insurance plan where if death happens to insured individual, the nominee would get sum assured.

LIC Tech Term Insurance Plan is non linked and non participating life insurance plan. Even this is a pure term insurance plan that can be taken online and if death happens to insured individual, the nominee would get sum assured.

LIC also has older term insurance plan Anmol Jeevan II where premium is very high with limited features, hence we would not be discussing this in this article. 

Which term plan is best in LIC?


Now you would have got doubt which term insurance plan is best in LIC. One need to check its features before commenting, which LIC plan is good.

Is Term Insurance Plan for 1 Crore is better or 2 Crore is better?


I often get this question whether 1 crore plan is better or 2 crore plan is better. Just because the sum assured is changed, the policy would not change. One need to go based on the features and how it suits you better.

Best LIC Term Insurance Plan for 1 Crore – Comparison of these two plans


#1 – Offline or Online


LIC Jeevan Amar Term Insurance Plan No 855 is an offline term plan. Means you need to take help from LIC agent or visit one of the LIC branches for taking this term plan.

On the other hand, LIC Tech Term Insurance Plan No 854 is an online term insurance plan where you can buy without any involvement of 3rd person or LIC agent of LIC branch. You can just buy this LIC policy online on LICIndia portal directly.

#2 – Are you eligible to take both these LIC policies?


If you are in the age group of 18 years to 65 years, you can take any of these LIC Term insurance plans.

#3 – Are you planning for sum assured of Rs 1 Crore and above?


Jeevan Amar offers a minimum sum assured of Rs 25 Lakhs and LIC Tech term insurance plan offers a minimum sum assured of Rs 50 Lakhs. Since you want to take Rs 1 Crore term insurance plan, you can consider any of them.

#4 – What are various benefits offered by these LIC term insurance plans for 1 Crore?


Death Benefits: Both offers death benefit. Means if the insured individual dies during the policy term, the nominee would get sum assured.

Maturity Benefits: Since both are only term insurance plans, these do not have any maturity benefits.

Surrender Benefits: These term plans would not provide any surrender benefits except in case of initial free look up period for 15 days where you can surrender your policy and get the premiums back.

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#5 – Which 1 Crore ka Term Insurance LIC offers flexible premiums?


Since you want to take term plans for 1 Crore and above, you may need to pay high premiums. Both these term insurance plans from LIC offer flexible premium options like regular premiums (monthly, quarterly, half-yearly and yearly), single premium and limited period premium options.

#6 – Does these offer Term plans for high tenure?


Both these LIC term insurance plans provide 10 to 40 years tenure options.

#7 – Can we increase the Sum Assured in these LIC policies?


Generally, once you take the term insurance plan, your sum assured is fixed. However LIC has come up with an increasing sum assured in these plans. Sum assured in both these plans would increase year on year from 6th year to the 15th year and from there, these are constant beyond that period. However, the premiums would be high for such level sum assured options.

#8 – Can we get death benefit in installment?


Earlier the death benefit was payable only in a lump sum in the LIC eTerm plan. Private insurance companies have already come up with unique death payment options of paying a part lump sum and part installment or fully through installments for the past few years. Now in both these Jeevan Amar and Tech Term Plans, LIC has come up with a death benefit payment option through installments.

#9 – Are there any discounts / lower premiums for non smokers and women in any of these LIC Term insurance plans?


LIC Jeevan Amar Term plan offers less premiums for non smokers and for women.

On the other hand, Tech Term Insurance Plan offers lower premiums for non smokers only.

#10 – Risk Coverage beyond 65 years


One of the major disadvantages of having LIC plans was that it was offering renewal only up to 65 years age. Private Insurance companies are already offering several insurance plans where one can renew up to 80 years of age. Now LIC has changed its trend. Both these LIC term plan policies offer risk coverage up to 80 years of age.

#11 – Are there any plans in the similar category in LIC?


LIC Jeevan Amar is an offline term insurance plan. Currently there I  Anmol Jeevan II that is offline term insurance plans from LIC (Excluding micro insurance plans that are very small).

The LIC Tech Term Plan is an online term plan. There was an e-Term Plan that is withdrawn by LIC now.

#12 – Would these plans offer riders?


Both these insurance plans offer the accidental death benefit rider, which is optional, but comes with an additional insurance premium.

#13 – High Sum Assured Rebated on premiums


LIC Jeevan Amar and Tech term plan offers a high sum assured discount of 20% for Rs 1 Crore and above the sum assured upto 30 years individuals. It would be 15% discount for 31 to 50 years individual and 7% discount for above 50 years individually.

#14 – What are premium rates for LIC Term Insurance for 1 Crore?


Now let us look at the sample premium based on LIC term plan calculator and charts.

LIC Jeevan Amar for 1 Crore Sum assured: If you have opted for regular annual premium in a simple sum assured, the premium works out to be Rs 8,300 (Approx) for 20 years individual and for the 20 year policy term. It would be Rs 11,500 (Appox) for 30 years individual and Rs 25,500 (approx.) for 40 years individual. No discounts applied here.

LIC Tech Term Plan for 1 Crore Sum assured: If you have opted for regular annual premium in a simple sum assured, the premium works out to be Rs 5,368 for 20 years individual and for the 20 year policy term. It would be Rs 7,216 for 30 years individual and Rs 13,770 for 40 years individual. No discounts applied here.

If you want to customize, you can check the LIC 1 Crore Policy Premium Calculator here.

Why is LIC Term Insurance Expensive?


If you observe, LIC term insurance plans for 1 Crore comes with high premiums compared to private insurance companies. LIC is a trusted brand. LIC has a high claim settlement ratio (98%) in India compared to any other private insurance companies. Its term insurance plans come with higher premiums owing to this.

Also Read: Best Family Floater Health Insurance Plans in India

Which is the Best LIC Term Insurance for 1 Crore then?


There are several private insurance companies that are offering term insurance plans for 1 Crore with lower premium. If you are still insisting on going with LIC, then you need to make up your mind among these 2 policies indicated here. While one is an offline term plan where there is a dependency of LIC agent to considering this plan. It comes with higher premiums too. On the other hand, Tech Term plan from LIC and can be taken online and it comes with lower premium compared to offline term plan. Hence, I would consider Tech Term as LIC Best Term Insurance Plan for 1 Crore sum assured.

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Suresh KP

Best LIC Term Insurance for 1 Crore

Suresh KP

7 comments

  1. Hi can you tell me , the exclusions a claim can be rejected i just found suicide nothing else, as i dint found in the sales broucher.

    One more thing i would like to know is, as mentioned in the article the benefit is of the individual is live upto 80 years.. if an individual is died at age of 90 what is in that case.?

    Pls suggest.

  2. I’m planning to have term insurance, was finding difficult to finalize whether to go with LIC or look for some private playing, pls advise.

  3. Below point is not clear to me:
    #13 – High Sum Assured Rebated on premiums

    LIC Jeevan Amar and Tech term plan offers a high sum assured discount of 20% for Rs 1 Crore and above the sum assured for 30 years individual.

    Do you mean there is 20% discount for individuals below 30 years of age. If yes, then this statement needs correction.

    Thanks for sumarizing these two policies.

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