LIC e term (UIN: 512N288V01) is a pure term insurance plan which means that it only covers the life of the policy holder and there will be no other benefits offered in the plan. The plan can be bought through the online portal of the company. The best part is you won’t have to deal with any intermediary in between.

In case something untoward happens to the policyholder during the plan tenure, LIC will pay the sum assured to her/his beneficiaries. However, if the policy holder is able to survive the plan tenure, nothing will be given to the policyholder and her/his beneficiaries.

As a non-participating plan, it doesn’t participate in the profits earned through unit-linked schemes and hence, there are no dividends paid on this policy.

LIC e Term Plan – Overview

LIC’s e Term plan has two categories for its applicants when it comes to deciding premium amounts, i) the aggregate lives and ii) the non-smoker lives. Policyholders belonging to the aggregate category have to pay more premiums as compared to the non-smoker category, provided the cover amount is exceeding the value of Rs.49 lakhs.

Please note that irrespective of whether the policyholders are smokers or non-smokers, they will be paying the aggregate premium rates, if they have opted for the cover value of or more than Rs. 49 lakhs. Also, policy proposers who are looking for lesser premiums to pay, require qualifying for non-smoker category clearing the prescribed Urinary Cotinine test.

Eligibility Criteria for LIC e Term Plan

MinimumMaximum
Sum Assured (in INR)Rs 25,000 to Rs 50,00,000 (Non-Smoker Category)No Limit
Entry Age18 years60 years
Policy Term10 years35 years
Maturity Age75 years
Payment ModeAnnual

LIC e Term Plan Features

Revival:

If the policyholder fails to pay the premiums on time, her/his policy will be lapsed.

The policyholder has an option to revive the policy within the grace period of 2 years following the first unpaid premium date. However, revival option is only available if the policy hasn’t expired yet.

The policyholder needs to pay all the arrears of premium at one go with the rate of interest (compounding at half-yearly basis) applicable at the time of premium payment. In addition to, the policyholder will also have to submit proper evidence justifying her/his insurability.

Please understand that the LIC reserves the right to accept or reject the revival request for a discontinued policy.

Cooling-off period:

The policyholder has a right to return the policy to the Corporation within 30 days from the receipt date, if s/he isn’t satisfied with its “Terms and Conditions” of the LIC e-term plan. However, the reason for objection should be stated along with the policy return/cancellation request.

Once the Corporation has received the return request, it will cancel the policy and return the premium amount to the policyholder. However, this will only take place after certain deductions including the proportionate risk premium for the term (time period) the policy was active, medical examination fees (if any), stamp duty charges and special reports.

Suicide Exclusion:

The benefits of LIC e Term will only be applicable if the policyholder commits suicide within 12 months from the commencement date of the policy. Same goes for the revival scenario.  LIC will not entertain any claim under such condition.

Nonetheless, the beneficiary will get up to 80% of the premiums paid till the date of death of the policyholder, after deducting any taxes and extra premium, provided the policy was still active.

LIC e Term Plan’s Benefits

Death Benefit

A death benefit is paid to the beneficiaries of the policyholder in case of her/his unfortunate demise during the policy tenure.

Maturity Benefit

Just like any other pure term plans, there isn’t any maturity benefit given to the policyholder in case s/he survives the policy tenure.

Income Tax Benefit on LIC e Term Plan

The policyholder will be eligible to get a tax benefit on the premiums paid by her/him for up to Rs 1.5 lacs every year u/s 80C of the Income Tax Act, 1962. The sum assured paid as Death Benefit is also eligible for the tax benefit u/s 10(10D).

FAQ’s Related to LIC e Term Plan:

Q1. What benefits would I get as a policyholder if pay my LIC e-term premiums through phone banking or net-banking?

You will get:

  • The option to pay your premiums 24*7 till the time you have an online access.
  • To save your precious time by not having to wait in long queues to make your payment.
  • To decide on which particular date do you want to get you payment debited from your bank account.
  • To modify your payment instructions from the comfort of your home.

Q2. What is the procedure to pay the premiums through my bank or service provider?

  1. First of all, you’ll need to log on to the bank/service provider’s website.
  2. Next on the webpage, select the date on which you want your account to be debited. You also get an option to specify a particular bank account in case you’ve multiple bank accounts updated with LIC.
  3. The bank chosen by you will debit your bank account and consolidate the payment . Further, the consolidated amount will be sent to LIC in form of either a bankers’ cheque or a pay order.

Q3. When do I need to pay the premium of my LIC e Term plan?

Once your plan proposal is accepted and you have received the plan receipt, your bank or service provider will start receiving bills and invoices from LIC mentioning your due dates, late fees, premium amount, validity date, etc to the service provider/bank.

Your bank or service provider will further display this information on your net-banking account page.

Q4. How many riders does LIC e-Term Plan offer?

LIC e-Term Plan does not offer any riders.

Q5. Do I need to undergo a medical test?

A medical test is required depending on your current health condition and underwritings’ requirement. All the medical tests are the basic tests, which include a blood test, urine test, etc.

Q6. Does LIC e-Term Plan offer loan facility?

No. LIC e-Term plan does not offer any loan facility.

Q7. How is lapsed policy revived?

The lapsed policy can be revived within 2 years from the date of the last paid premium.

Q8. Can a minor be nominated as a nominee?

Yes, a minor can be nominated as a nominee.