Purchasing a term insurance policy is one of the best things that you can do for your family. In this ongoing pandemic, we have seen many people who lost their lives and their families are still facing a lot of challenges financially. We may be are in the pinkest of our health but tomorrow is always uncertain for all of us. And we will never want our family to go through one such situation when we are not around. If you also want to secure your family financially, you must buy term insurance at the earliest.
When it comes to buying a term insurance plan, choosing any particular one becomes challenging for all of us. The reason is simple; there are several term insurance plans and the companies providing them in the market. However, if you are a risk-averse individual, you must stick to LIC. Why LIC when there are many private insurance companies as well? Well, to know that, let us discuss LIC vs private insurance companies.
Table of Contents
Claim settlement ratio:
LIC has been extremely consistent with its claim settlement ratio of 98% for many years. However, the claim settlement ratio of the various private insurance companies has not been the same. They keep on increasing as well as going down.
The past records of LIC say a lot about the company. However, all the private insurers may not have such clean past records.
Terms and conditions:
The term and conditions of LIC term insurance policies are friendlier than any other private insurer.
Accessibility across the country:
You can buy a LIC term insurance policy from any corner of the country. LIC has its office in almost all the cities and towns in the country. Therefore, buying a LIC term insurance plan is not at all difficult.
LIC Term Insurance Plan
LIC has been one of the most popular life insurance companies in the country so far. It provides a wide range of insurance policies to its valuable customers. One of the best term insurance policies provided by LIC is the Jeevan Amar. It is a non-participating, non-linked term insurance plan. On the unfortunate demise of the policyholder, the nominees of the policy will get financial protection. The policy comes with some key features, which include:
- If you are interested in this plan, you can choose from options such as Level Sum Assured and Increasing Sum Assured, at your convenience.
- The premium rates are divided into two categories, which include rates for smokers and non-smokers. If you do not smoke at all, you can pay lower premium rates as compared to policyholders who smoke.
- If something unfortunate happens to the policyholder, the sum assured will be paid to the beneficiary of the policy.
- You can choose from Regular Premium, Single-Premium, and Limited Premium Payment. You also get the scope to choose between premium paying term and policy term.
- One of the best things about the plan is that you can enhance the coverage by opting for the Accidental Benefit Rider. However, you would be required to pay an extra premium for this.
- The term insurance plan does not come with any surrender value. Also, you will not be able to take a loan against this plan.
- The minimum basic sum assured that the beneficiaries will get is INR 25 lakh and there is no maximum limit for the sum assured under this plan.
- If you pay the premium up to INR 1,50,000 per year, you can even enjoy tax benefits under Section 80C of the Income Tax Act.
This is just an example of a LIC term insurance plan. If you want to take a look at more of them, you can visit the website of IIFL today itself.