Paisawiki is a Part of Logo
*Please note that the quotes shown will be from our partners

LIC e-Term Plan

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.

Why Do You Need a LIC e-Term Plan?

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.

Who Is Eligible to Buy LIC e-Term Policy?

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


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

Features of LIC e-Term Plan

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.


It depends on the sum assured and the category of the applicant.


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.

Benefits of LIC e-Term Plan

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%

What is Not Covered in the LIC e-Term Plan?

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.

Renewal of LIC e-Term Plan 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.

Claim Process of LIC 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

How to Buy LIC e-Term Plan?

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
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

Required Documents to Apply for LIC e-Term Plan

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

LIC e-Term Plan - FAQs

You May Also Want to Know About
Best Term Insurance Plans in India
Best Term Insurance Plans in India 2021 With the growing uncertainties of life, it is very import...
Life Insurance Benefits
Life Insurance Benefits What is life insurance? Life insurance is a financial contract between t...
Types of Death Covered and Not Covered by Term Insurance
Types of Death Covered and Not Covered by Term Insurance With so many different kinds of term ins...
Types of Life Insurance
Types of Life Insurance Life insurance is a legal contract between the policyholder and the insur...
Term Insurance Benefits
Term Insurance Benefits A person always wants to secure the future of the family in any circumsta...