Paisawiki is a Part of
LIC e-Term is a term insurance policy offered by Life Insurance Corporation. A term insurance policy option acts as a safety net for the family in the event of an unfortunate demise of the breadwinner of the family. It acts as a source of income and supports the family members to cope up with the financial and emotional turmoil.
LIC e-term plan is one of the many policy offerings from the renowned company. This plan is a pure insurance policy option that offers death benefit to the insured. It will provide the predetermined sum to the beneficiary in the event of the sudden demise of the insured. There is no maturity benefit with this policy. If the policyholder survives throughout the whole tenure of the e-term policy, neither he nor his nominees get any returns.
LIC e-term policy comes with various coverage options, premium, and benefit amounts depending on the requirement of the buyer, eligibility in terms of age, income, and so on. E-term plans can be availed online as well, making it easy for customers to purchase it from any geographical location in the world. This way, they will not need the help of agents or middlemen in the policy purchase.
Any individual of Indian origin who is a resident or a non-resident is eligible to purchase the e-term plan. Non-resident Indians are eligible to apply for e-term policy during their stay in India or if they reside in any country among the list of permitted countries. The minimum age should be between 18-60 years to be eligible for purchasing this policy
Let’s have a quick glance at the policy:
|
Minimum Sum Assured |
Rs. 25 lakhs for aggregate category and Rs. Fifty lakhs for a non-smoker. |
|
Maximum Sum Assured |
No limit |
|
Minimum Age at Entry |
18 years |
|
Maximum Age at Entry |
60 years |
|
Maximum age of Coverage |
75 years |
|
Minimum Policy Term |
10 years |
|
Maximum Policy Term |
35 years |
|
Premium Payment Mode |
Annually |
|
Premium Payment Term |
Same as policy term |
|
Individuals Covered by the policy |
Only the policyholder can apply for himself. Another person cannot propose to him |
The key features of LIC e-term plans are:
1: This policy offers only death benefit and not any maturity benefit
2: This online term insurance plan option can be categorized into an aggregated category and non-aggregated category
3: It is a traditional, non-participating term insurance plan offered by the Life Insurance Company of India
4: The beneficiary of the e-term policy is eligible to the sum assured amount upon the demise of the policyholder
5: Women are naturally more eligible for lower premiums on e-term plans as they tend to outlive their male counterparts
6: Applicants who are non-smokers can avail of a lower premium as well as they are fall in the low-risk category with a greater life span
7: This plan is available only online through LIC’s web portal
8: Only the insurance application on the applicant’s own life will be considered
9: There is a cooling period of 30 days for the e-term plan option. If the policyholder is not satisfied with the terms and conditions of the plan, he/she can revoke his application within 30 days, beginning from the receipt of policy documents stating reasons for the same
The following table shows some of the other unique features of the e-term plan:
|
Plan tenure |
Minimum ten years and Maximum 35 years |
|
Sum assured |
Minimum - 25 lakhs for aggregate and 50 lakhs for non-smokers. Maximum – No limit. |
|
Premium |
It depends on the sum assured and the category of the applicant. |
|
Coverage |
Coverage offered until the policy tenure or till the age of 75 years (of the applicant). Coverage offered until premiums are paid on time. The policy can be renewed within two years after its lapse. If policy is surrendered within the cooling-off period, premium paid thus far will be returned with minor cancellation charges.
|
|
Surrender Value |
LIC e-term plan does not offer surrender value. |
|
Cooling-off Period |
30 days. |
1: Substantial life cover is obtained with nominal rates of premium. The sum assured is up to a maximum of 25 lakhs for a regular term plan and 50 lakhs for non-smokers
2: The LIC e-term policy offers coverage to the policyholder up to the age of 75
3: LIC e-term plan offers tax deductions on the sum assured and the premium amounts. Premium paid up to Rs. 1,50,000 a year are eligible for tax deduction under Section 4: 80 C, and sum assured paid to nominee is also exempted from tax according to Section10(10D)
5: The premium rates for e-term plans are low for non-smoker applicants.
6: The premium of e-term policy is generally low because there is only life cover with no maturity amount associated with this plan. Traditional plans have higher premiums 7: because a significant portion of the premium is directed towards investment
8: A grace period of 30 days is allowed for late remittance of premium amount
9: Hassle-free online application and renewal process is offered for this plan
10: E-term plans offer the flexibility of grace and cooling period to the applicants
11: Assistance from LIC insurance agents through email, chat, or phone to answer any queries about the e-term plan
12: LIC is giving rebates for online premium payment for the e-term plan. The highest percentage of the refund is offered in the first year. The rebate offered in the first premium is 8%, the second premium is 6%, the third premium is 4%, the fourth premium is 2%- and the fifth-year premium is 2%
For the sum assured to be paid off to the policyholder, the death should be due to causes other than suicide. If the insured commits suicide in the policy term within a year, beginning from the date of purchase of policy or renewal is excluded from the benefits of the LIC e-term plan. In these situations, LIC grants a claim of up to 80% of premiums paid till the date of death, excluding taxes.
Also, no loans can be taken out against e-term plan options.
Riders of LIC e-Term Plan
The only rider that comes with the e-term policy is the Term Assurance Rider. With this, the coverage can be increased from a minimum of one lakh to a maximum of twenty-five lakhs. The Premium paid for this rider will include the premium paid for the parent insurance policy.
E-term plan from LIC can be renewed or revived within two years from the date of the initial premium amount that was not paid. Suicide committed by the policyholder during the policy term after the renewal is excluded in the e-term plan.
Upon the death of the insured, when his nominees claim the policy, the insurance company asks for the following documents to be submitted to sanction the claim:
1: LIC e-term plan’s original copy
2: Claim Form A, which is the statement from the claimant showing details of the deceased and claimant
3: Copy of extract from the death register
4: Document showing age proof
5: Any evidence of title to the deceased’s property if the policy is not nominated or issued under the MWP Act
6: Attested copy of FIR (First Information Report)
7: Any Police investigation report or post-mortem report in case of unnatural death of the insured
If the demise of the policyholder occurs within three years from the date of revival, the following additional forms are required:
Claim Form B – This is the Medical Attendant Certificate that must be completed by the medical attendant who attended to the deceased at the time of his death
Claim Form B1 - This form must be filled out if the insured underwent any treatment in a hospital
Claim Form C – This is a certification of the identity of the insured and has details of the cremation or burial, attested by an authorized and responsible person
Claim Form E – This form must be filled out and submitted by the employer of the deceased in case he was employed at the time of demise
LIC e-term policy must be purchased online through LIC’s online portal. It is best to compare online websites and look into comparisons before buying a policy.
1: Given below are the steps:
2: Visit licindia.in
3: Choose an e-term plan from the insurance policy options
4: Click on Buy online
5: Choose the appropriate residential status
6: Enter Sum Assured, Mode of payment, Date of Birth, Gender, Smoker or Non-Smoker, and so on
7: The premium calculator will calculate the premium amount based on the details entered
8: Fill out the relevant personal details
9: You will receive a 9-digit access code on your mobile number or registered email id
10: Click on proceed with this code to generate the PDF copy of the form
11: Review the form and make the necessary amends
12: Proceed to pay online through debit card/credit card or net banking
The documents required to apply for LIC’s e-term plan are as follows:
1: The application form or the proposal form accurately filled up by the applicant
2: Age proof documents such as a birth certificate or school certificate
3: All details regarding the past medical history of the applicant
4: Documents showing address proof such as Aadhar card, PAN card, driver’s license, or voter card
5: Bank account details, including MICR code
6: KYC (Know Your Customer) documents
7: Results of medical tests and diagnostics taken as a requirement based on the applicant's age, coverage, and medical history
Although it is not compulsory to undertake medical tests such as blood, urine tests, and so on before buying and e-term policy, it must be done if required by the undertaking company. This depends on the insurer's health, and sum assured.
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Cooling off period is a time within which a buyer can cancel the purchased policy if he/she finds the benefits offered inadequate. In case of LIC e-term policy, the cooling off period is 15 days from the policy start date, within which the policyholder can return the policy without incurring penalty.
The grace period is the time extension offered by LIC to the insurers for payment of premiums if he is unable to make the payment within the due date. For the e-term plan, the grace period offered is 30 days. If the policyholder does not pay the premium even by the grace period, his policy terminates.
No, the premiums for an e-term plan remains constant through the policy tenure. The only situation the premiums can change is due to any service tax regulation introduced by the government.
Yes, LIC’s e-term plan covers accidental death as well.
As soon as you sign up and your proposal is accepted, your life cover begins.
No. You can buy the e-term policy online to cover your life only.
The e-term policy does not offer any loan benefits.
Yes. Once your policy gets activated, your coverage includes your stay in foreign countries.
You may send all your doubts and queries to This email address is being protected from spambots. You need JavaScript enabled to view it. or call their toll free number 1800-22-7717
You may revive a terminated policy within two years of the date of the first unpaid premium.
Yes. Non-smokers are eligible to pay a lower amount of premium under the e-term plan.
Yes, the nominee of the e-term policy can be minor if the appointee is a major.
The legal nominee receives the sum assured amount of the policy on the death of the policyholder.
The policy premium can be paid online through credit card, debit card, or net banking.
