LIC 1 Crore Term Insurance

LIC 1 Crore Term Insurance - Overview

As the expenses and the lifestyle of the families are changing, people are opting for a higher sum assured. LIC term insurance 1 Crore provides the insured’s family with financial stability and independence. LIC (Life Insurance Corporation of India) offers term insurance with the sum assured of Rs. 1 Crore to fulfil the needs and requirements of the insured.

The family can use the insurance claim for any use like children’s higher studies, covering the medical expenses of the elderly and young, for the marriage of the individual and any other purpose deemed important by the family. Please note that there is no maturity benefit provided in term insurance plan and if during the premium payment period, the insured has to pay the premium amount till the end of the term. Only in a case that the insured dies, the premium payment stops and sum assured is paid out.

What is 1 Crore LIC Term Insurance?

Life Insurance Corporation of India is a government-run life insurance policy that offers multiple plans to the general public. Keeping in mind the rising costs, inflation, and other expenses, the insurer has designed the term insurance plans with the sum assured of 1 Crore. The policy provides financial assistance to the members of the family the insured at the time of death of the insured.

Life cannot be planned, and it is essential to have a backup to ensure the family doesn’t face any financial crunch when the breadwinner is not available. To plan for that, it is important to insure life with an amount which will provide assistance at the time of marriage of the children, higher studies and for studying abroad and other important expenses to run life smoothly. 1 Crore LIC Term Insurance from LIC will fulfil the purpose of an insurance policy by covering the life of the insured until a particular term.

To avail the benefits of the policy, the insured has to pay a certain premium amount every year to the insurance provider. The premium amount of the policy set up by LIC is quite reasonable and can be paid up in different forms and mediums. One should always discuss the mode of premium payment, frequency of premium, and other important parameters with the insurance provider before buying the policy.

LIC Term Insurance 1 Crore Plans

The term life insurance plans with Rs. 1 Crore sum assured offered by the life insurance corporation of India are discussed below:

LIC Jeevan Amar

While buying the policy, the insured has the choice to choose the premium amount, the sum assured, and the premium payment term. As it is a non-linked term insurance plan, the insured cannot claim any maturity benefits. The lump-sum amount or the sum assured is paid to the nominee at the time of the death of the insured. The policy is available only in the offline mode and to apply for the plan; an applicant has to visit the local office the LIC.

Eligibility Criteria of LIC Jeevan Amar Plan

Below is the eligibility criteria set up by the insurance provider. The terms can be changed by the insurer during the term of the policy and will be notified to the insured through the preferred mode of communication.

Features of LIC Jeevan Amar Plan

The policy provides multiple features for different customers and is designed in a way to cater to the needs of the family. Some of the salient features of the policy are mentioned below:

Death Benefit: The death of the insured will lead to the payment of the sum assured by the insurer to the nominee of the policy. The death benefit is defined as the 105% of the paid, premiums, 7 times of the annualized premiums, and the absolute amount.

Surrender Value: There is no surrender value associated with the plan and if the insured surrenders the policy (level sum assured plan or increased sum assured plan), the amount to be refunded will be decided as per the regulations of the policy.

Riders: Riders are the plans which can be used to increase the benefits cover of the policy and be purchased at the time of buying the policy or later. The premium of the riders is to be paid separately. The sum assured of the riders is paid out other than the sum assured of the life insurance plan. Some of the riders that can be coupled with the LIC policy are accidental death benefit plan and permanent disability plan.

Premium Payments: The premium options available with the policy are regular premium, single premium payment, and limited premium payment.

Grace Period: Grace period is the number of days from the last day of the non-payment of the unpaid premium after which the policy becomes inactive. For the LIC Jeevan Amar plan, the grace period is 30 days.

Free Look Period: The insured gets the free-look period of 15 days from the date of purchase of the policy and can cancel anytime within the period, and the premium amount will be refunded.

Death Benefits in Instalments: The plan offers the death benefits in instalments over the period of 5, 10, or 15 years as selected by the insured.

Policy Revival: Within the five years from the date of the unpaid premium, the policy can be revived by the insured. The policyholder should reach out to the insurer to get complete details about the policy revival.

Maturity Benefits: The policy offers no maturity benefits to the insured.

Loan Facility: There is no loan facility provided on the term insurance plans.

Key Benefits of the LIC Jeevan Amar Plan

Higher Sum Assured Discount: Upon choosing the policy with a higher sum assured, the insured pays a discount to the policy buyer. The age of the insured is also considered while paying the discount.

• For sum assured less than 50 Lakh, no discount is offered
• A 12% discount on the premium is offered for the sum assured between 50 Lakh and 1 Crore
• A 20% discount on the premium is offered for the sum assured above 1 Crore

Death benefits: The insurer provides the death benefits to the insured in two ways, lump-sum, and instalments. The insured can select to get the lump sum amount to be provided to the nominee or can select the sum assured to be paid in a number of instalments. Most of the people prefer instalments as it gives better financial management to the family.

Flexible-Premium Payment: Single payment, limited payment, and regular payment are the three methods of premium payment offered to the insured.

• Single-Premium: Single premium payment refers to the payment in a single transaction
• Regular premium: Regular premium payment refers to the payment of the premium in annual and yearly instalments
• Limited Premium: The insured can choose the premium term, and that will be deducted from the policy term. Generally, it is for 5 or 10 years

Special Discount of Women: A woman interested in buying LIC Jeevan Amar plan can avail a discount of 10% to 20% on the premium amount. The offer is provided exclusively by the Life Insurance Corporation of India.

Health benefits: The perks of having a healthy lifestyle and keeping oneself fit is paid by the insurer by providing a discount on the premium amount of the policy.

Rebate on High Sum Assured

The rebate offered by the insurer to the policyholder for availing a higher sum assured is discussed below:

Policy type: Level Sum Assured

Policy type: Increasing Sum Assured

LIC Jeevan Amulya 1 Term Insurance Policy

LIC Jeevan Amulya 1 insurance policy offers a higher sum assured to the insured at an affordable policy premium. Factors like the age of the policyholder, the sum assured opted for, policy term and rebates decide the premium amount.

Eligibility Criteria of the Jeevan Amulya 1 Plan

Features of LIC Amulya Jeevan 1 Policy

Here is a rundown to the key features of LIC Amulya Jeevan 1 Policy:

Death Benefits: Death benefits or the sum assured of the policy is provided to the nominee or the family of the insured. The sum assured is decided by the various factors and depends on the premium amount of the policy.

Paid-up Value: The policy doesn’t acquire any paid-up value.

Revival: Within the five years from the date of the unpaid premium, the policy can be revived by the insured. The policyholder should reach out to the insurer to get complete details about the policy revival.

Surrender Value: Upon policy surrender by the policyholder, no surrender value is paid.

Policy Loan: The policy does not provide any loan facility to the policyholder.

Free-look up Period: The insured gets the free-look period of 15 days from the date of purchase of the policy and can cancel anytime within the period and the premium amount will be refunded.

Rebate: Purchasing the policy of sum assured more than Rs. 1 Crore will make the customer applying for a rebate on the policy premium.

Grace Period: Grace period is the number of days from the last day of the non-payment of the unpaid premium after which the policy becomes inactive. For the LIC Amulya Jeevan 1 plan, the grace period is 15 days.

Benefits of LIC Amulya Jeevan 1

The following are the core benefits offered by LIC Amulya Jeevan 1 term insurance plan:

Death Benefits: The sum assured is paid to the nominee of the insurance policy after the claim is filed by the nominee.

Maturity Benefits: There are no maturity benefits available in LIC Amulya Jeevan 1 insurance plan.

Income Tax Benefits: As per the income tax act, 1961, under section 80c, the insurance premiums paid up to Rs. 1,50,000 are deductible from the taxable income. A policyholder with LIC Amulya Jeevan policy can also avail benefits of the income tax for the premiums paid to the insurer. Please note that, in single premium payment, the tax benefit can be availed only once as the premium amount is paid in one go.

Cool-off Period: There is a cool-off period of 15 days in which the insured can surrender the plan if he/she doesn’t like the policy features and benefits. The period starts from the day of the purchase of the policy.

Flexible-Premium Payment: Single payment, limited payment, and regular payment are the three methods of premium payment offered to the insured.

• Single-Premium: Single premium payment refers to the payment in a single transaction.
• Regular Premium: Regular premium payment refers to the payment of the premium in annual and yearly instalments.
• Limited Premium: The insured can choose the premium term and that will be deducted from the policy term. Generally, it is for 5 or 10 years.

High Sum Assured: The policyholder can opt for a higher sum assured to get more financial independence. The minimum sum assured which a person can opt for is Rs. 25 Lakh and can be extended as per the requirement of the policyholder.

Flexibility: The tenure of the policy ranges from 5 years to 35 years and makes it possible for the policyholder to achieve both short and long term financial goals.

LIC Amulya Jeevan Premium

Annual Premium Amount, all figures are in multiples of thousand (1,000)

Single-Premium Payment

When the premium of the policy is paid in one transaction

All figures are in multiples of thousand (1,000)

Rebates on High Sum Assured

Exclusion of LIC Amulya Jeevan Policy

Any claim submitted by the nominee of the policy when the insured commits suicide within one year starting from the date of the commencement of the policy will not be entertained by the insurer.

LIC Tech Term Insurance

The LIC tech term insurance plan is a non-participating, non-linked insurance plan that provides a higher cover of Rs. 1 Crore to the insured’s family or the nominee. The policy is available online and can be purchased anytime by paying the premium amount and submitting the requisite documents required by the insurance service provider.

Eligibility Criteria of LIC Tech Term Insurance

Key Features of LIC Tech Term Insurance Plan

The policy provides multiple features for different customers and is designed in a way to cater to the needs of the family. Some of the salient features of the policy are mentioned below:

Death Benefit: The death of the insured will lead to the payment of the sum assured by the insurer to the nominee of the policy.

Surrender Value: There is no surrender value associated with the plan and if the insured surrenders the policy (level sum assured plan or increased sum assured plan), the amount to be refunded will be decided as per the regulations of the policy.

Riders: The premium of the riders is to be paid separately. The sum assured of the riders is paid out other than the sum assured of the life insurance plan. Some of the riders that can be coupled with the LIC policy are accidental death benefit plan and permanent disability plan.

Premium Payments: The premium options available with the policy are regular premium, single premium payment, and limited premium payment.

• Single-Premium: The premium of the policy has to be paid by the insured in on instalment.
• Regular Premium: Insured pays the policy premium till the end of the policy term in fixed instalments.
• Limited Premium: The insured pays the premium amount for a specific period. The payment is calculated by the insurer by subtracting the period for which the premium has already been paid by the insured.

Grace Period: Grace period is the number of days from the last day of the non-payment of the unpaid premium after which the policy becomes inactive. For the LIC Jeevan Amar plan, the grace period is 30 days.

Free Look Period: The insured gets the free-look period of 15 days from the date of purchase of the policy and can cancel anytime within the period and the premium amount will be refunded.

Policy Revival: Within the five years from the date of the unpaid premium, the policy can be revived by the insured. The policyholder should reach out to the insurer to get complete details about the policy revival.

Premium Discount for Women: The policies bought by the women get a special discount from insurer. The discount may vary from 10% to 20% as decided by the insurer at the time of purchasing the policy. The benefit is being provided to encourage the female population to reap the benefits of term life insurance.

Maturity Benefits: The policy offers no maturity benefits to the insured.

Loan Facility: There is no loan facility provided on the term insurance plans.

High Sum Assured Benefit: The policyholder gets a special discount on the premium payment if they choose to buy the policy for a higher sum assured under a single or annual premium payment plan. Life Insurance Corporation provides a maximum discount of 20% on the policy premium.

Health Rewards: The insurer provides rewards to the policyholders who maintain good health and abstain from the addictive and health-damaging substances like cigarettes, tobacco, and any hallucinogenic material.  While purchasing the policy, the insurer will ask if the applicant is a smoker or non-smoker and will provide rewards in a premium amount to the non-smokers.

Premium Payment of LIC Tech Term Policy

The presented data in the table for a policy with the regular premium payment plan.

Claim Process of LIC Term Life Insurance Plan

In order to make a death claim with the life insurance corporation of India, the following steps are to be followed:

Step 1: The first step is to inform the insurance provider about the demise of the policyholder. The death in insurance terms is defined in two ways, the death of the insured within the first three years of the policy is known as early death and the death after the three years of the policy purchase is known as non-early death.

Step 2: Get the claim intimation form from the insurance provider.

Step 3: Enquire about the documents required by the insurance provider to process the claim and whether the claim can be filed online or offline.

Documents Required to File a Death Claim with LIC

The following documents are required to be submitted to the policyholder for getting a claim processed:

• Mandatory Certificate of Death
• Proof of age of the life assured if not provided at the time of purchasing the policy
• Policy document stating the policy number
• For early death Claim filed by the nominee, a statement from the hospital is required if the insured was admitted
• Certificate of a medical attendant of the deceased
• Cremation or burial certificate to be given by a person present at the cremation or burial of the body of the deceased
• Employer certificate if the deceased was an employee
• If the insured dies in an air crash, a certificate from the airline authorities will be required stating that the insured was a passenger in the flight
• If the insured dies in a ship accident, a certificate from the shipping authorities will be required stating that the insured was a passenger in the ship
• A certificate stating the cause of the death of the individual
• If the insured died in a road accident, an FIR report, or the panchanama, post mortem report will be required

How to Buy LIC Term Life Insurance Plan?

To provide convenience to the applicants, the life insurance corporation of India provides some of the policies in the online mode and some can be purchased only at the regional office.

Steps leading to buying a term life insurance plan from LIC are listed below:

Step 1: Select the high sum assured plan, namely, LIC Amulya Jeevan 1, LIC Jeevan Amar and LIC Tech term plan.

Step 2: Check the details with the insurer regarding the premium amount, policy term, mode of premium payment, frequency of the premium payment and the sum assured of the policy.

Step 3: Once the required details are finalized, check the documents required by the insurance provider to purchase the policy.

Step 4: Pay the premium amount either in an online mode or by reaching out to the regional office of the insurance provider.

Step 5: Upon documents checking and validation and payment receipt, the insurance provider will start the policy effective from the date of the payment.

Step 6: The policy copy will be mailed to the registered address of the insured.

Documents Required to Purchase LIC Term Life Insurance Plan

Following documents are required to purchase LIC term life insurance:

• Duly filled proposal form stating the details of the insured like the name, present and permanent address, contact number, email address
• Permanent address proof like Aadhar card, voter ID card, driving license or passport
• Identity proof of the applicant like PAN card, passport, Aadhar card, driving license, ration card, attested bank statement or passbook
• Photographs of the applicant
• Copies of the government identity card of the nominee
• Age of proof all the applicants and the nominees
• Occupational details of the applicant and the nominee

The Renewal Process for LIC Term Life Insurance

The life insurance policy bought from the life insurance corporation can be renewed either by paying the premium payment online or by reaching out to the local office of the insurance provider and paying the premium fee.

LIC 1 Crore Term Insurance - FAQs