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Top Reasons to Have LIC Term Insurance Plan

Speed News Desk | Updated on: 16 January 2019, 16:17 IST

Keeping your family financially secure is always wise and everyone wants that. There are various options available in the market that give you an opportunity to build your corpus and ensure to help your family monetarily secure when you are not around. One of the most recommended options in this category is LIC term insurance plan.

The term plans of LIC offer an extensive range of benefits at low cost. These plans ensure to give considerable benefits if the insured dies during the tenure of the term plan. However, the term plans do not offer any maturity value, if the policyholder survives till the policy ends. In this way, if you want to know what is term insurance? Then the answer is - it is the most basic insurance plan that provides death benefits but does not offer maturity advantages.

In this way, term insurance plan has gained huge popularity in the past few years as it offers a high amount of coverage in considerable low premium rates. Mentioned below are the top reasons to purchase LIC term insurance plan:

Simple to Understand Insurance Option: Unlike ULIPs and other endowment plans, term insurance policies are easier to understand. All you need to know is – you have to pay the premiums and you will get life cover of a particular amount. The premium amount that you have to pay depends upon the amount you want as coverage. Moreover, when you talk about term insurance plans of LIC, they are the easiest ones to understand.

An Affordable Insurance Policy: Apart from simple to understand the policy, the term insurance plans of LIC are really affordable. In low premiums, you get a high amount of coverage in a term policy. The main reason for the same is the absence of the investment element in the premium amount of term insurance. Most of the LIC term insurance plans are available in one percent of the income of the policyholder for getting the life cover. To better understand this, let us take an example, suppose you take a term insurance plan of Rs.1 Crore, then you have to pay only Rs.7, 400 as yearly premium.

To Give Financial Security to Your Family: One fear that most of us have is to fulfill the financial needs of our family when the bread earning member of the family is not around. Term insurance plan comes as a rescue for this fear. The huge payouts in case of the demise of the policyholder most of the times fulfill the financial requirements of his/her family.

Very Rare Claim Rejection: Claim settlement ratio of LIC term plan is very high. This means, most of the claims of term plans of LIC get approved. However, you have to be clear about your health conditions, habits, and financial facts while purchasing a term plan from LIC. According to the latest guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), no insurance company is eligible to claim the non-disclosure of the facts by the insured after two years of policy issuance.

Flexible Insurance Option: Flexibility is one of the major benefits that you get with term insurance plans of LIC. You can select a plan either online or offline and there is no requirement to have health insurance. Moreover, you can modify your term plan as and when needed.

Availability of Rider Benefits: Rider or add-ons are the additional benefits that you can add in your term plan to improve its coverage. The term plans of LIC also offer some riders that you can purchase by paying a nominal amount. So, if you want some additional benefits, you can ask for the same while purchasing a term plan.

You Get Tax Benefits: The premiums that you pay against the coverage of your term insurance plan attract tax benefits under Section 80C of the Income Tax Act, 1961.

Summing it Up! There are a lot of advantages of term insurance plans of LIC and above mentioned are few of them. Most of the term plans even cover the funeral expenses of the policyholder apart from the education of children and various other expenditure of the family. It also pays off the debts, loans that a policyholder has taken during his/her lifetime. In this way, it is always sensible to get a term plan of LIC.

First published: 16 January 2019, 15:12 IST