- Small Business

Why should you get an LIC Term Plan?

The history of ‘insurance’ lies even in the primitive age where a sense of security by paying some price or making certain sacrifices existed even when the industrial era had not set in. However, with modernisation, insurance became more popular but still is an age-old concept and has evolved tremendously in the past 6000 years.

LIC is one of the oldest and most reputed insurance companies of India and had first set its footprints in the land with the name “Oriental Life Insurance Company” travelling all the way from England. After a series of developments, milestones and events, in 1956 the Indian and foreign insurers were nationalised by the government and thus LIC was born from an Act of the Parliament- LIC Act, 1956. Amidst competitors in the insurance sector, LIC still emerges out as the leader providing the most trusted services to the population and is constantly evolving staying in tandem with the emerging technology and needs of people.

Much like every other insurer, LIC offers Term plans. The basic LIC term plan offers its customers insurance cover at an affordable lower price. The LIC term plan provides a significant amount of benefits to the dependents of the policy holder in case of an unfortunate death of the policy holder during the term period. Generally, no maturity benefit is paid out to the policy holder in case of survival when the term period ends.

Despite the basic LIC term plan not providing any maturity benefits to the policyholder in case of an survival, it is widely preferred by the masses as it provides a high amount of cover at very low premium amounts. The high coverage ensures the family and dependents are financially stable in case of the demise of the policyholder and the small premium makes it easier for the insured to opt for and thus saves them enough money to invest on other savings products and services.

Why is LIC best for buying a Term plan?

While there are various insurers offering term plan in India, there are more reasons than one why LIC is the best choice when you are planning to buy a term insurance plan.

  1. It has an excellent claims settlement ratio of 98% which means 98% of all the claims received are settled successfully.
  2. Talking of claims, the process of claiming is simple and is done with only three documents- The original LIC term plan document, certificate of death of the insured and the claims form.
  3. Staying in trend with the emerging needs of people and shift of services and products online, an LIC term plan is available online helping you get an insurance cover with just few clicks.

Should you get an LIC Term plan?

Few reasons why you should get an LIC term plan:

  1. It is the oldest, most sought after and trusted insurance company of the country.
  2. It offers higher coverage at a very low premium rate.
  3. The flexibility available in terms of cover amount, the term of the plan and the regular premium payments.
  4. Convertibility of one plan to another thus helping the customers change their plans according to the evolving needs and cover.
  5. One can avail tax benefits under the Income Tax Act, 1961.
  6. The claims process is extremely simple and with the right documents furnished, the claims are unlikely to get rejected. The insurer has a claims settlement ratio of 98%.
  7. The ease of buying policy online through Coverfox.com has been made available in the insurer’s online portal. Also, one can browse through various plans, use the insurance calculator, and choose to add riders or opt for a maturity amount at the end of policy term and get in touch with registered agents or development officers all in the same portal.
  8. The plans are available for all age groups and caters to a population of age 18 to age 75.
  9. With the premium amount being low, one can continue the same lifestyle without making alterations or worrying about paying the high premium.
  10. The mode of payment is also flexible. Now you can also pay your premiums through ATMs, bank deposit- LIC has tied up with few banks for premium payments or pay them online.

LIC term plans are the best options if you wish to get insured and secure the financial needs of your dependents at a very low premium. LIC is the oldest and the most reputed insurers of the country offering quality service, higher penetration to the market and the most profitable insurer.

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