LIC launches 4 new term life insurance plans; Check eligibility, premiums, other benefits
What is LIC Digi Term
LIC’s Digi Term is a non-par, non-linked, life, individual, pure-risk plan that provides financial protection to the insured’s family in case of his/ her unfortunate death during the policy term.
This non-par product guarantees fixed death benefits, regardless of actual experience. As a result, the policy does not qualify for any discretionary benefits, such as bonuses or surplus shares.
What are the key features
- Flexibility to choose from two Death Benefit options: Level Sum Assured and Increasing Sum Assured.
- Flexibility to o Choose from Single Premium, Regular Premium and Limited Premium Payment or Choose the Policy Term/Premium Paying Term or Opt for payment of benefit in instalments. o Special rates for women.
- Benefit of attractive High Sum Assured Rebate.
- Two categories of premium rates namely (1) Non-Smoker rates and (2) Smoker rates. The application of Non-Smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases, the Smoker rates will be applicable.
Eligibility
a) Minimum Age at entry : [18] years (Last Birthday)
b) Maximum Age at entry : [45] years (Last Birthday)
c) Minimum Age at Maturity : [33] years (Last Birthday)
d) Maximum age at Maturity : [75] years (Last Birthday)
Basic sum assured
Minimum Basic Sum Assured : Rs. 50,00,000/-.
Maximum Basic Sum Assured : Rs. 5,00,00,000*
Basic Sum Assured range Sum Assured Multiple
- From Rs. 50,00,000/- to Rs. 75,00,000/- = Rs. 1,00,000/
- Above Rs. 75,00,000/- to Rs. 1,50,00,000/- = Rs. 25,00,000/-
- Above Rs. 1,50,00,000/- to Rs. 4,00,00,000/-= Rs. 50,00,000/-
- Above Rs. 4,00,00,000/- = Rs. 1,00,00,000/-
Policy term
- Policy Term: 15 to 40 years under Regular/Single/Limited Premium of 10 years
- Policy Term: 20 to 40 years under Limited Premium of 15 years.
Premium payment
This plan offers three different payment options: Regular Premium, Limited Premium, and Single Premium. If the premium payment option is Regular and Limited, it can be made either Yearly or Half Yearly, and the premium can be paid on a regular basis during the Premium Paying Term.
How is it calculated
The age at entrance of the life to be assured, gender, smoking status, policy term, premium paying term, and death benefit option selected will all affect the premium that must be paid. The minimum premium for a single premium is Rs 30,000. The minimum instalment premium under the Regular and Limited Premium modes is Rs 3,000.
Death benefit
Death benefit payable on death of the Life Assured during the policy term after the date of commencement of risk but before the date of maturity, provided the policy is inforce and claim is admissible shall be “Sum Assured on Death”.
Under Regular premium and Limited premium payment, “Sum Assured on Death” is defined as the highest of:
- 7 times of Annualised Premium; or
- 105% of “Total Premiums Paid” upto the date of death; or
Absolute amount assured to be paid on death.
- Under Single premium payment, “Sum Assured on Death” is defined as the higher of:
- 125% of Single Premium; or
- Absolute amount assured to be paid on death.
Maturity benefit
On survival of the life assured to the end of the policy term, no maturity benefit is payable.
