Features
In 2025, LIC’s term insurance plans are designed as pure protection products. They provide a high life cover (sum assured) at an affordable cost, ensuring your family receives a lump sum in the event of your death. These plans do not offer maturity or surrender values.
Core LIC Term Plans for 2025
- LIC Digi Term (Plan 876): An online-only plan offering the lowest premiums.
- LIC New Jeevan Amar (Plan 855): An offline plan available through agents with flexible benefit options.
- LIC Saral Jeevan Bima (Plan 859): A standard, simplified plan for those seeking lower sum assured (up to ₹25 Lakhs).
Key Eligibility & Features
- Entry Age: 18 to 65 years.
- Maturity Age: Up to 80 years.
- Policy Term: 10 to 40 years.
- Minimum Sum Assured: ₹50 Lakhs for Digi Term; ₹25 Lakhs for New Jeevan Amar; ₹5 Lakhs for Saral Jeevan Bima.
- Premium Options: Regular Pay, Limited Pay (5 or 10 years), or Single Premium.
Plan Benefits
- Death Benefit Options:
- Level Sum Assured: The cover remains constant throughout the term.
- Increasing Sum Assured: The cover increases by 10% every year from the 6th to the 15th policy year (until it doubles).
- Special Rates: Lower premiums are provided for female lives and non-smokers (subject to medical verification).
- Payout Choices: The death benefit can be paid as a one-time lump sum or in monthly/yearly installments over 5, 10, or 15 years.
- Rider Benefit: Option to add the LIC Accidental Death Benefit Rider for extra protection.
Tax Advantages (Income Tax Act, 1961)
- Section 80C: Premiums paid are deductible up to ₹1.5 Lakh per year.
- Section 10(10D): The death benefit paid to the nominee is entirely tax-free.