The long wait is over and now LIC has launched an Online Term Plan named e-Term Plan. Before going into the details of the “LIC Online Term Plan”, let me explain, what is the benefit of Online Term Plan.
What is a Term Plan?
A Term Plan is a policy where there are no maturity benefits. Then, why should one buy such policies? This policy offers insurance cover at a low cost and you can buy a policy for a higher cover at a lower premium.
How much is the cost in a Term Plan?
Under the Amulya Jeevan Plan II, LIC is charging Rs. 14,639 per year for a Rs. 50 Lakh policy for a 35-year-old person for a 25-year policy. In case of his death before the age of 60, the nominee will get the amount of Rs. 50 Lakhs. If he survives till the age of 60, there will be no benefits. This is like your Car insurance, where the benefit is payable if there is a claim. Otherwise, you lose your premium.
What is Online Term Plan?
A Term Policy, where there is no agent involved and sold online is called Online Term Plan. In such policies, the premium rates are much lower compared to other Term policies. The reasons for low premium are:
- The company is saving the cost on agent’s commission.
- The type of persons applying for Online Term Policy is the young, educated lot and is health conscious.
- Most of these persons will have a Health Insurance Policy and can afford the best treatment.
What are the options under Online Term Plans?
Aegon Religare started the first Online Term Plan in 2009. Most of the private companies are offering Online Term Plans now. The chart below gives a comparative premium rates for a Rs. 50 Lakh Online Term Policy by different companies. The premiums quoted are for a non-smoker male and it includes service tax.
From the above chart, it is clear that the LIC Online Term Plan is around 20% costlier than the HDFC and SBI Life premium rates. But, it is double the rate of companies like Aviva.
Who can buy the LIC Online Term Plan ?
If you are in the age group of 18-60, you can buy LIC Online Term Plan. The policy offers Terms from 10-35 and can cover you till the age of 75. The premium will be accepted in annual mode only. The policy offers 2 different premium rates for Rs. 50 Lakhs and above. This is to give low premium benefit to non-smokers.
Will you buy LIC e-Term Plan?
If you are not comfortable in buying the Online Term Plans from private players, you can buy LIC Online Term Plan. But, it is in the interest of your family that you buy an Online Term Plan of sufficient value.
How to buy the LIC Online Term Plan?
You can click on the below link of LIC to calculate your Premium and buy the LIC Online Term Plan
Important points while buying LIC Online Term Plan
Since, there is no agent involved in Online purchase, you have to fill the Proposal Form all by yourself. What is important is the honest declaration of all personal information.
You are supposed to declare your current health condition correctly. If you have any health problems, it has to be informed to the insurance company. If you have undergone any treatment in the past, it should also be disclosed. Habits like drinking, smoking etc. also should be disclosed in the Proposal Form.
Let the Nominee know about your Policy
The purpose of taking the Term Insurance Policy is to support your family in your absence. Don’t miss to nominate the right person in your Life Insurance Policy. Also inform your nominee about the Insurance Policy. This is important because, in your absence, your nominee can claim the Insurance money from the Insurance company.
Will you buy LIC Online Term Plan ? What is your view about LIC e-Term Plan ? Please Share.