Finally 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 ₹ 25 Lakhs to ₹ 49 Lakhs sum assured and > = ₹ 50 lakhs sum assured. Non smokers category of ₹ >= 50 Lakhs. The differential premium rate would apply for smoker and non smoker category.
- The minimum sum assured is ₹ 25 Lakhs for non smoking category and ₹ 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 ₹ 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.
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
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You are not clear. whether i will get back my deposited amt or not? Or what amt. will be rcvd on maturity ?
Sir
I am planing to nuy e term lic policy,my age 25
kindly give your suggestions..
thank you
does that mean if the death is caused due to an accident or due to any deseases then this benefit is not offered in this policy? Only natural death is considered in this policy?
Really unbaised review, thanks a lot for it
Dear sir
Thanks for publishing very good information about term plans.
I am planning for LIC term plan. Does it cover death due to accident. Please reply.
my dt of birth-22/10/1976.non smoker,need rs.30000000/ term plan insu. 35yrs.pl give premium detail
Sir myself s.sriniwas rao working at akaslwani Amravati my date of birthday is 20/02/1965 and i have aegon religare’s protect gain plan 10 lac sa and 20 k yearly prm
Can i surrendered the said policy
Pls give online low term plans details sa 10/15/20/25 lac with max.term with low prm
Pls sir
Thanks
Dear sir
I have go through with your Post,
i am planing to buy a term plan to secure my family. request to help me buy a best term plan for me.
I am 31 year old and income is 6L/A, depend are my wife only hope after few yr a kid also.
i am smoker a day 3-4 max and light drinker in month only.
i am confused with LIC, HDFC and ICICI, i want to buy a term plan which accidental death also.
please help for 50 lacs cover
Thanks
Kripa
No Medical Test. Because it is one way. Nominee will not get any thing by any means. That is the reason these private banks are having huge profits and YoY growth.
Is there any medical test in hdfc click 2 protect plan for
Age – 28
Sum Assured – 5000000
Non smoker
Term -;40
And what would be the approx annual premium?
Thanks.
I am 44 years State Govt Servant getting annual package of 8-00 lakh and non-smoker. I intend to have one 15 years basic term insurance plan of sum assured Rs. 75 lakh. The premium offered by Max Life is Rs 12750/- and that by LIC Rs. 24400/-(online). Others are offering in between. Max Life, LIC and some others are suitable as per the brochure. I can’t decide which one to select. Max is offering lowest premium but I don’t know if they shut their business or get bankrupt in some years, what can I do or what steps can be taken. Alternatively LIC is Govt controlled but I don’t know if LIC will be fully privatised by Govt in near future. You have given lots of information but I need trust rating in terms of the criteria mentioned above before selection.
Regards
Hello Sir,
I hav taken a policy jeevan anand for 25 yrs of 500000 sum assured.
My age is 27yrs.the policy is just 1 year.
Now i am thinking to discontinue jeevan anand and take a term plan and invest the surplus amount in banks rd or ppf hoping
it will be good for both insurance and investment.
Please guide whether i m going in right direction or continue with jeevan anand.
Thanks
Sursh ji,
Is Accidental death cover included in this policy??
I think this was added later on.
Hi,
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.
Don’t worry about passive smoking. At your age you should more concentrate on taking a term insurance plan
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.
Need Rs.25 lacks E Term Plan my age is 49+
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
Thanks.
You can buy online term insurance plan Thangaraj. You can buy icici term insurance or HDFC click 2 protect plus. They are good
Thanks for your reply.
Dear sir,
Can i select HDFC Terminsurance because Maturity age 75 and Max term 40 years.Please kindly advice and disadvantages of this product.
Thanks
Looks you selected HDFC click 2 protect. It is good term insurance plan. You can consider
Thanks for your reply
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 co_gjf@licindia.com. 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 complaints@irda.gov.in or contact them at 1800 4254 732
Hi Suresh Ji,
Namaste !!!
2 months back I applied for LIC e term plan. After my medical tests I received an email from LIC saying that my premium is increased due to “Diabetes”. Because of increase in premium, I cancelled that proposal.
After that I filled online Aviva term plan form, there I mentioned myself Diabetic due the reference of LIC. But in Aviva medical reports there is no diabetes and my medical reports are normal. But still they are increasing my premium by saying that.. Either you mention in proposal or we found diabetes in medical reports we increase the premium. So here again I cancelled the proposal.
I personally went to doctor and showed my medical reports to him. Doctor said that I am not a Diabetic, but I should walk 2 KM daily.
I am 30 Yr, Male and Smoker.
Now my question is: What should I do now?
Option 1: Should I go again to LIC e term plan, fill new proposal and accept the policy with increased premium?
Option 2: Should I go to HDFC click 2 protect? If yes than should I mark myself Diabetic or not?
Option 3: You (Suresh Ji) suggest something for me.
My big confusion is: Should I mark myself Diabetic or not in next proposal?
Thanks,
RAM.
Hi Ram, Very bad to hear all your incidents. If I am in your shoes, I would do the following 1) Visit trusted diagnostic centre and do Diabetic test 2) If diagnosed with diabetes, I would prefer to go for LIC e term policy 3) If not diagnosed with diabtest, I would prefer to go to HDFC Click 2 protect or ICICI term insurance policy and indicate that I do not have diabetes. Note: I would not prefer Aviva at all in this entire episode.
I thought to post my experience with LIC eterm online policy.
First thing – I still have 5 months to turn 35, but LIC considered my age as 35. I remember I had tried the same to see the premium amount 2 months ago, and LIC had considered my age as 34 then.So it looks like if your birthday comes in 6 months, LIC takes the increased age.
After filling up the application form for eterm online, I received a mail for medical tests in 2 days. Following tests were suggested. I think they should be the standard tests for a 35 year old.
1) FMR
2) 12 lead ECG
3) Haemogram
4) SBT-13
5) RUA
6) Hb A1C
7) Urine Cotinine test
Once this was done, it took about a week for them to get back to me. They suggested additional tests since I had mentioned in the form that I had jaundice in my teens (Hepatitis A – which happens due to contaminated water). Hepatitis is related to Liver, so I thought to mention it under the respective section in the online form.
I also had ticked the option of alcohol consumption of < 30ml per day (That is the least option that you can tick mark – though most people occasionally consume alcohol, LIC mentions 'per day' alcohol content.)
Probably due to this (Liver + alcohol ?? ) , they suggested following additional tests:
1) Ultrasound Whole Abdomen
2) Physician Consultation (physician report)
All medical tests turned to be normal, since I see that my premium wasn't increased.
However, even after the second medical test, it took them 12 days to send me the final confirmation via email that my policy was approved.
It took about 35 days overall from start to end.
Now here's the surprising part. Though you consider LIC as a sarkari office, I was surprised to receive a call from the city's LIC office to followup on my first medical test(This guy was LIC employee – not the usual customer service associate). He also called me for some additional docs that were required (I had only one income tax filing doc for this year, since I was a NRI before.So I had to submit that country's past 2 years income/tax forms). Then again, he called me for followup on the second medical test.
After a week from the second medical test, I had called the same guy again for the policy status after waiting for a few days, and he assured me that he would get back to me. After I received the final email for policy confirmation, this guy called me again to confirm whether I had received the email.
I am pretty impressed with this service from LIC (I did not expect this since this was an online term policy).
By the way, even their customer support number mentioned on the eterm website is good.It's just that the lines are busy most of the times.So you need to try that more than once.
Good Luck, and I still believe LIC more than other private insurers. I would continue to do that till IRDA publishes detailed report of policy settlements of the insurers instead of just mentioning the percentage.
Pls. do not by egon religare policy.They strictly follow the Medical reports & which will not meet requirement of 80% indians. My bhabhi’s all reports are norma l only Hb is 9.6 while normal range is 10 -14 Hence they have regret to issue policy.
hi,
my birthday is coming on 18th september'14, if i make the payment today; what will be the date considered in my documents for the policy; as after 18.09.14 my premium will change by approx. Rs.1400 which i don't want to waste. will lic etrm is better ir sbi- eshield is better for my case as i want to get the policy before my birthday. please guide.
regrds
bhoomika
hi,
i have gone throu' ur aticle, it is very informative. i am planning to buy online e-term but have some queries :
1. should i mention my surrendered ulip policy which i have surrendered in 2011.
2. i have off line term plan of lic which i m mentioning. should i mention it or not.
i could not understand the meaning of " HOW ACCEPTED " with options: "OR/ EXTRA" in the previous policy detail sections. I have offline plans so i have mentioned: OR for all the above policiies ( surrendered and inforce).
if i will not mention my extact assets and liabilities; will it be a false case as i could not understand properly this section. We have a house which is in home loan so all the principle is not paid by us but the net value of it is around 40 lacs out of which we have to still pay 28 lacs. so what will i fill under:
a) value of house
b) current loan
Bhoomika, You need to indicate only active policies. Offline or online it is immateriai, please specify all policies. I could not understnad details after point no.2, pls be elaborate
Dear Suresh,
If I have two term insurance with two different Insurers, one having Rs. 50 lakhs sum assured and another having Rs.25 lakhs sum assured; then in case of my death; will the nominee be able to claim maturity benefit from both the insurers OR he/she can claim from any one of the insurers only.
Thanks & Regards
Jayanth, it would be from both insurance companies
Hi Suresh,
Is it mandatory for a smoker to undergo medical test in lic's e-term? If so, then what tests are taken?
Is there any option to pay LIC Jeevan anand and Term plan premium thruohg credit card without any charges? Please let me know.
Hello Suresh Sir,
I had purchased online term insurance policy one year before from hdfc life click2protect. one of the best online term insurance plan in India. Now I’m confused about continue with hdfc life click2protect or go for this new LIC e-term plan. Please give me ur suggestion. Thanks.
Continue in HDFC Vikas.
I have applied for eTerm and got the documents done. intial Medical tests are done. Now they are asking for unusual medical tests which in my opinion is not required. I sent them multiple mails about the same but there is no response. Service is very very poor. Phone number given on the website – nobody picks that phone. Is there any escalation channel ? How can i cancel the policy as it is still within 30 days.
Sunil, Bad to hear this. You can visit nearest branch and should be able to cancel this. I am not sure whether it would work
Hi Suresh,
I just opted for this LIC eTerm insurance, filled up all my details, generated the online declaration form and made the first premium payment.
However I had a couple of queries:
1. You said we need the last 3 years Form 16/ITR. But nowhere in the online application form did I find any column to fill the Form16 / ITR details (apart from the Personal Financial Questionnaire – Annexure- I that I get in the last step where I had to fill up my annual salary, investments and liabilities)
Did I miss anything?
2. If I'm right, medical tests are mandatory for LIC term plans. But even until the last step and after the premium amount was deducted from my account, I did not see any page that indicated about this medical test. I was assuming that the page would lead me to somewhere mentioning about the authorised centres where I can have my medical tests done. But that didnt happen. Did I make some mistake anywhere?
Regards,
Anand.
Hi Anand, I researched this article within few days from launching this plan. After this, there were changes made by LIC. However I felt still medical tests are required to be done. Have you got policy document ? If so, please indicate so that I can update it
Hi Suresh,
Thanks for your reply.
Just an update
I got a call next day (after I applied for online term insurance) from LIC TPA asking me to come over for my medical tests. The tests are completed now and I'm waiting for the policy document. I'll update you as and when that happens.
Thanks,
Anand.
Hi.. Suresh…Pls suggest me which mode is better to take a term plan online or off line.
Abhishek, Online comes cheaper. Offline comes with additional features.
Hello Suresh Ji,
I am a 39 heard old smoker. Can you please suggest some good options to take for term life policies. I was thinking of taking 50 lakhs cover from LIC on line term plan. And taking cover of another 50 lakhs each from HDFC click to protect and sbi shield.
Piyush, I would have suggested the same. Consider taking 2 plans one from LIC online and second from HDFC click 2 protect or ICICi term insurance or SBI online term insurance
Dear suresh. My son wants to apply for eterm lic policy by online.After compliting the form ,it showed LIC couldnt process.sorry for the inconvenience.Money deducted from icici bank account.He tried to contact the customer care numbers,but no response(one number the website has given for customer care deals with only microfinance,,but not with eterm online policy.Will he get email reply regarding this,or he has to apply again with same access id .
Kindly advise
Withregards,dr.p.sudhakar
Hello Dr.Sudhakar, Once you get the access ID, the same needs to be used for future reference. But please login and check the amount should have been accounted properly.
Hi,
I have generated the proposal form .What is requried further ,payment option and submission of propsosal form or something else??Please help
Regards
Ashish
Ashish, You should have got final message indicating the process right? I am not exactly sure about the steps after you generate the online term poicy. Please contact LIC customer care
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
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.
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.
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
Can an Nri who is coming to india buy an online plan and give the medical test when he is in india. Please confirm
You should be resident Indian during the period when you are taking LIC eterm insurance plan.
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.
Even I have observed this Dr. Jain. They should simply going forward.
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?
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.