LIC term plan: The intricate details that will lead to the formation of the best decision!
LIC came into existence in 1956 after the Life Insurance Corporation Act was passed by the Indian Parliament. The company presently has a large customer base that consists of over 250 million policyholders and is still offering quality service standards. The wide range of insurance products that the company has to offer includes different types of child plans, LIC term plans, ULIPs, traditional saving plans, and pension plans.
What are the LIC term plans?
The LIC term plans are provided for the protection of individuals at an affordable cost. This policy promises considerable perks if the insured passes away during the tenure of the policy. Usually, there is no maturity benefit owned under the LIC term plan if the policyholder survives until the end of the plan tenure. The plans offer high coverage at the lowest premium rates. These plans are famous as the basic and purest form of insurance since they offer benefit only on the death of the policyholder during the tenure of the term plan and there is no maturity value.
Why opt for LIC term plans?
The LIC term plans are preferred by people even though there is no maturity benefit due to the fact that it enables policy seekers to purchase high sum of coverage at reasonable premiums. This way, the people will be able to secure their family members against any loss of income that the family might have to deal with in case the insured dies. Furthermore, with affordable rates of premiums, the LIC term plans do not lose much of the pocket strings and helps people to fund their income replacement need efficiently and easily.
Why should one take an LIC term plan?
It is always a great idea to purchase a term plan early in life. The younger the insurance seeker is, the affordable the term plan will be for him or her. Additionally, because the policyholder would be covered for a long period of time since the LIC term plans are affordable types of life insurance, everyone can afford to buy one.
There are two major upsides to buying the LIC term plan earlier on in life:
- Savings: If you have your life covered from an initial stage, then you do not have to worry about many things such as saving money for your family members to use in case of your absence. You can even invest the money that you save in other tools such as savings bonds, property, and much more. This will provide you with a long shot at building up your wealth.
- Health: A younger individual is always healthier than an older one. The premiums that are charged for the LIC term plans rely greatly on the health and age of the person and so a healthier, younger person does not have to pay much. Hence, an LIC term plan will help you save more money just because you will be younger and healthier.
The LIC e-term plan
The online LIC term plan is provided by the LIC Company through its site. This online term plan is a pure plan that promises the payment of the amount assured only if the policyholder faces death within the tenure of the term. Its many features are:
- The online LIC term plan is available on the company’s site and can be purchased online at lower rates of payable premiums.
- There will be no maturity benefit owed to the insured if he or she survives until the termination of the plan.
- If the policyholder dies during the term of the online LIC term plan then the death benefit is paid that is equal to the amount assured selected by the insured at the time of the plan’s inception.
- Regular premiums have to be paid during the whole term of this online LIC term plan.
- The company promises different rates of premium for the smokers as well as the non-smokers where the later are rewarded through the lower rates of premiums.
Important factors to consider at the time of LIC term plan purchase
One of the vital things when it comes to purchasing LIC term plan is determining the sum of cover needed. This depends on various factors: the lifestyle of the family, current life-stage of the applicant, liabilities, responsibilities, and much more.
Ability to maintain the lifestyle
The selected LIC term plan should be such that it allows the family to maintain the lifestyle they are used to leading even in the absence of the breadwinner. The sum assured under the plan should adequately take into the account: rising costs, inflation, and other such factors.
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