LIC’s e-Term plan is a regular premium non-participating “Online Term Assurance Policy” which provides financial protection to the insured’s family in case of his/her unfortunate demise. This plan will be available through online application process only and no intermediaries will be involved.
Benefits of LIC Term Insurance and LIC Online Term Plan
Death Benefit – In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
Maturity Benefit – On survival to the end of the policy term, nothing shall be payable.
|Minimum Sum Assured||Rs. 25,00,000 for Aggregate category
Rs. 50,00,000 for Non-smoker category
|Maximum Sum Assured||No limit|
|Minimum age at entry||18 years (completed)|
|Maximum age at entry||60 years (nearest birthday)|
|Maximum cover ceasing age||75 years (nearest birthday)|
|Minimum policy term||10 years|
|Maximum policy term||35 years|
|Mode of payment||Premiums are to be paid annually.|
|Eligible life||The person must have own earned income.
One cannot propose for anyone other than self. Key Man Insurance (KMI)/ Partnership/ Employer-Employee Cover will not be allowed.
Why should you buy LIC Term Plan?
LIC (Life Insurance of India) is most reliable number one insurance company of India. LIC is even best in terms of claim settlement ratio. Last year claim settlement ratio of LIC was 98.19% (Year 2015). LIC is offering pure online term plan called as LIC E-term. However, a premium of LIC E-term plan is slightly higher compared to all other plans. LIC E-term does not provide any additional riders. If you have not purchased any term plan and if you have hesitation in purchasing term plan from private insurance company LIC e-Term is for you.
Q. What is LIC’s e -Term Policy?What is LIC’s e -Term Policy?
Ans. LIC’s e-Term policy is a pure life cover policy. Under this insurance policy, against payment of regular premium, the insurer agrees to pay your beneficiaries the sum assured in event of your premature death during policy term. However, if you survive till the end of the policy term, nothing is payable to you.
Q. Who should buy Term Insurance?
Ans. Term insurance policies are best suited for working individuals who have dependents (Children, parents) and are looking for a considerable sum of protection against uncertainties of life (death) at fairly low prices.
Term insurance plans fulfill the basic purpose of any life insurance policy by providing financial security for the applicant and his family.
Q. Why should you buy a Term Insurance Plan Online?
Ans. Buying a term plan online is one of the cheapest modes to buy insurance as it saves your time and money. With the arrival of e-commerce the world has moved ahead fast, competitively.
Q. What are the Qualifying criteria of LIC’s e-term plan?
Ans. The person should be Resident Indian residing in India. He should not be Overseas Citizen of India(OCI)or Person of Indian Origin(PIO).
→ NRI’s also can apply while their stay in India subject to the condition that the applicant is residing in any one of the permissible countries(List of permissible countries are provided in the section “know your premium”).
→ Minimum entry age: 18 years (Completed).
→ Maximum entry age: 60 years (Nearest Birthday)
→ Maximum cover ceasing age: 75 years (Nearest Birthday)
→ He/she must have own earned income.
→ One cannot propose for anyone other than self.
→ Income should be sufficient to cover all existing and proposed insurance cover under all insurers.
Q. What is the minimum and maximum Policy Term?
Ans. Minimum Policy Term: 10 years
→ Maximum Policy Term: 35 years
Q. What are the premium payment modes available?
Ans. The Premiums can be paid in annual mode only.
Q. How can you make payment towards a new e-term plan ?
Ans. You can make payment through Netbanking, Debit card, Credit card, Amex card, UPI, IMPS and e-wallets.
Q. What are the charges under credit card?
Ans. For the Credit Card transactions, the existing customer convenience fee charges for different payment-ranges as listed below.
|Card Type||Premium Payment Range||Convenience Fee charged to Customer|
|1)Visa/ Master Credit Card||Upto Rs. 5,000||Rs. 20 per Transaction + GST|
|Rs. 5,001 to 10,000||Rs. 45 per Transaction + GST|
|Rs, 10,001 to 25,000||Rs. 80 per Transaction + GST|
|Rs. 25,001 to 50,000||Rs. 190 per Transaction + GST|
|Rs. 50,001 to 100,000||Rs. 350 per Transaction + GST|
|2)American Express Cards||Upto Rs. 5,000||Rs. 18 per Transaction + GST|
|Above Rs. 5,000||Rs. 35 per Transaction + GST|
|3)Visa/ Master Credit Card||Rs. 100,001 to 300,000||Rs. 1,000 per Transaction + GST|
|Rs. 300,001 to 500,000||Rs. 3,000 per Transaction + GST|
|Rs. Above 5,00,000||Rs. 5500 per Transaction + GST|
|4)PPI, eWallets||Upto Rs. 20,000||Rs. 2.90 per Transaction + GST|
|5)UPI and IMPS||As per NPCI||As per RuPay Card Fees|
|6)ATM-cum-PIN Debit Cards||Upto Rs. 20,000||Rs. 20 per Transaction + GST|
BillDesk Transaction Processing Fees for the above transactions (5) & (6) is Rs. 2.00 per Transaction + GST
Q. What kinds of death are covered under e-term ?
Ans. All kinds of death including accidental deaths are covered under this plan except suicide during first year. There are no riders in this plan.
Q. Will my premium amount change during the tenure of the policy after I have bought the plan?
Ans. Once the policy is issued, Premium will remain the same for the entire tenure of the policy. This is subject to service tax regulations as declared by the Government of India from time to time.
Q. Who is a Nominee?
Ans. A nominee is a person who is eligible to receive the coverage amount from insurance policy in the event of death of the applicant.
Q. Can the Nominee be a Minor?
Ans. Yes, a Nominee can be a Minor. However, an Appointee (major) has to be provided for the Minor Nominee.
Q. What does my nominee receive after my death?
Ans. If death takes place during the term of the insurance policy, then the nominee receives the sum assured under the plan.
Q. What is the Grace Period under the product?
Ans. A Grace Period of 30 days from the premium due date will be allowed under the product.
Q. Can a loan be taken under this product?
Ans. Loan is not available under this product.
Q. How can I pay the subsequent premium?
Ans. The subsequent premium can be paid online either through Net-Banking/ Credit Card/ Debit Card.
Q. In case I have an existing term plan cover with another company can I still purchase LIC’s e-Term?
Ans. The customer has to disclose his income details & his existing insurance cover details in corresponding sections while applying for cover under e-Term. Based on income and eligibility, the customer’s request for cover can be considered.
Q. Why should I buy a life insurance policy if I am already insured under a group insurance scheme by my employer?
Ans. It is always prudent to buy an individual life insurance policy because:
a. The amount of insurance you are covered for may not be a very large sum.
b. If your employer decides on cost-cutting, you may no longer be insured.
c. If you decide to leave your employer, you may no longer be covered.
d. The older you are when you buy insurance, the higher is the premium you have to pay for the same insurance cover.
Q. Can I buy it under Non-medical Scheme?
Ans. Yes, if your age falls in age bracket 18 – 35 years, with annual income > 3 lacs, you may purchase upto 75 lacs and if the age is in the range 36-45 yrs, with annual income > 5 lacs, you may buy upto 50 lacs subject to you being Non-Smoker, No past medical history and underwriter’s decision.Under Non-medical scheme, the premium will be calculated under Aggregate Rate. Non-smoker rates will not be available under Non-medical scheme.
Q. Will I have to undergo a medical test?
Ans. The requirement for a medical test may or may not arise depending on the underwriting requirements and your health disclosures. Your medical tests will be short and basic (some examples are: blood test, urine test etc.) and rest will depend on your health status which will be communicated to you by our office. Medical test is mandatory if proposed for Non-smoker rate and if it is not covered under Non-medical scheme. All medical expenses will be borne by LIC of India if your proposal results into a policy.
Q. Can I buy one more online policy?
Ans. Yes, you can buy another online policy in your name if you believe you need more life cover subject to your financial eligibility.
Q. When will my life insurance cover begin?
Ans. Your coverage will begin only on acceptance and completion of your proposal.
Q. If I am travelling abroad for business/vacation will I be covered?
Ans. Once the policy is issued you are covered across the globe. Even in case you get an opportunity to work abroad the coverage shall be applicable.
Q. What is Non-Smoker Rate?
Ans. Non-Smoker rate is applicable for sum assured 50 lacs and above and offered to people who are Non-smoker or do not use tobacco in any form. For people other than Non-smoker and proposer of e-Term upto 49 lacs, Aggregate rate will be applicable.
Q. How can I get refund of my deposit under my proposal ?
Ans. You can put a mail to email@example.com for refund. If you have undergone medical tests, medical fees with applicable service tax and cess shall be deducted from your deposit.
Q. What are the exclusions under e-term policy?
Ans. Suicide during first year of policy from the date of adjustment is excluded under this policy.