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Life Insurance Corporation of India (LIC), the largest state-owned insurance company in India, has a network of over 3,000 branches and more than 1 million agents across the country. It offers a wide range of life insurance products, including term insurance plans, with one of the most popular options in this category being LIC term insurance of 1 crore.

LIC term insurance 1 crore, as the name indicates, provides coverage of one crore rupees to the policyholder's beneficiaries in case of their ultimate death during the policy tenure. The policy is a pure-protection plan, indicating that it offers no savings or investment benefits.

In the article below, we will take a closer look at LIC term insurance 1 crore and cover all its related aspects.

Let’s start the article with a basic question –

What is LIC Term Insurance 1 Crore?

LIC, a well-known insurance company in India, offers different types of term insurance plans that provide coverage of 1 crore rupees or more. Among these plans, LIC term insurance 1 crore is a popular choice for many Indians due to its affordability and benefits.

This insurance plan requires the policyholder to pay a premium amount for a period of 10 to 40 years. If the policyholder passes away during this time, the nominee receives a sum assured of one crore rupees. This money can be used to cover daily expenses and unexpected costs such as medical emergencies.

LIC term insurance 1 crore is especially suitable for those who are the sole earners of their family and want to ensure that their dependents are taken care of even if they are no longer around.

Who Should Buy LIC Term Insurance 1 Crore?

LIC term insurance 1 crore is ideal for anyone who wants to ensure their family's financial security in case of their untimely demise.

Here are some of the individuals who should consider buying LIC term insurance 1 crore:

  • Sole Earner of the Family: If you are the sole earner of the family and responsible for your family's financial needs, it is essential to ensure that your dependents are financially secure. LIC term insurance 1 crore can provide comprehensive life insurance coverage to the beneficiaries, ensuring that they can maintain their standard of living even in the absence of a policyholder.
  • Young Professionals: Professionals who have just started their careers and have financial dependents can benefit from LIC term insurance 1 crore. The policy offers affordable premiums, making it easier to manage your finances while ensuring that your beneficiaries are financially secure in adverse circumstances.
  • High Net-Worth Individuals: High net-worth individuals may require a higher sum assured to provide adequate financial protection to their beneficiaries, which can be secured with this plan.
  • Parents with Dependent Children: Parents with dependent children can benefit from LIC term insurance 1 crore, as the policy can provide financial protection to their children and ensure that they can continue their education and maintain their living standards in case of their parents’ demise.

Advantages of Obtaining LIC Term Insurance 1 Crore

There are several advantages to obtaining LIC term insurance of 1 crore. Here are some of the most significant ones-

  • Wide Coverage: LIC term insurance 1 crore offers a high sum assured of one crore rupees, which provides extensive life insurance coverage to the policyholder's beneficiaries in case of their untimely demise.
  • Affordable Premiums: This insurance plan is designed to be affordable, with fixed premium amounts reasonable for the coverage provided. This, in turn, makes it an ideal choice for those who want a high sum assured at an affordable cost.
  • Flexible Policy Term: The policy term for LIC term insurance 1 crore can range from 10 years to 40 years, giving policyholders the flexibility to choose the term that best suits their requirements, budget, and financial planning.
  • Tax Benefits: The premiums paid towards LIC term insurance 1 crore are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the death benefit received by the nominee is tax-free under Section 10(10D) of the Income Tax Act.
  • Peace of Mind: By obtaining LIC term insurance 1 crore, the policyholder can have peace of mind knowing that their family will be financially secure in case of their unfortunate demise. This policy is an excellent way to ensure that the policyholder's dependents can maintain their standard of living even if they are no longer around.
  • Rider Benefits: By adding riders, you can also customise your LIC term insurance 1 crore as per your specific needs. LIC term insurance 1 crore offers various rider benefits, including accidental death benefit rider, critical illness riders, disability benefit rider, income benefit rider, and more.

LIC Term Insurance 1 Crore Plan 2023

Currently, LIC offers two types of term insurance 1 crore plans as listed below –

1. LIC New Tech Term

LIC New Tech Term 1 crore policy is a type of term insurance policy offering coverage of 1 crore rupees to the policyholder's beneficiaries in case of their ultimate death during the policy tenure. However, since it is a pure protection plan, you should not purchase it for any savings or investment benefits.

What makes LIC's New Tech 1 crore policy unique is its use of technology to simplify the application process and enhance the customer experience. The policy application process is entirely online, while this plan can only be purchased via LIC’s official website. This makes it an ideal choice for those looking for a hassle-free, online policy application process.

Let’s take a look at some of the major features and benefits of LIC new tech term 1 crore insurance policy -

Features

  • Pure protection plan with no savings or investment benefits
  • Policy term ranges from 10 to 40 years
  • Premium payment frequency options include yearly and half-yearly
  • Easy online application process with no medical examination required for policies with a sum assured of up to one crore rupees
  • Two death benefit options are available – Level sum assured and Increased sum assured
  • Option to add rider benefits such as Accidental Death Benefit Rider and Critical Illness Rider
  • The death benefit can be received as a lump sum or in instalments as per the decision of the policyholder.
  • LIC Tech-Term provides a grace period of 30 days for the policyholder to pay their half-yearly or yearly premiums. This grace period begins from the date of the first unpaid premium. If the policyholder fails to make the premium payment during this grace period, the policy will lapse and no assured benefits will be payable.
  • The premium of LIC New Tech Term 1 crore insurance policy depends on the age, gender, policy term, sum assured amount, lifestyle, and more. 
  • You cannot avail of a loan facility against the LIC term insurance 1 crore.

Benefits

  • Coverage of one crore rupees or more, depending on the policyholder's chosen sum assured
  • In case of the policyholder's unfortunate death, the nominee will receive a lump sum payment equal to 7 times the annualised premium or 105% of the premium paid till death, whichever is higher.
  • You can avail of death benefits in instalments over 5, 10, or 15 years.
  • If you surrender the policy, the applicable amount shall be refunded.
  • Affordable premiums with flexible payment frequency options
  • Hassle-free online policy application process
  • Comprehensive life insurance coverage for the policyholder's beneficiaries in case of their untimely demise
  • Tax benefits under Section 80C and Section 10(10D) of the Income Tax Act
  • Option to customise the policy with rider benefits to enhance the coverage

2. LIC New Jeevan Amar

LIC New Jeevan Amar is a comprehensive term insurance policy offering a high sum assured, flexible payment options, and rider benefits to enhance coverage. It provides financial protection to the policyholder's beneficiaries in case of demise during the policy term. As LIC New Tech Term insurance policy, this policy ranges from 10 to 40 years.

LIC New Jeevan Amar policy can be purchased from licensed insurance brokers, agents, and insurance marketing firms.

Listed below are the prominent features and benefits of LIC's New Jeevan Amar plan -

Features

  • Pure protection plan with no savings or investment benefits
  • Policy term ranges from 10 to 40 years
  • Special premium rates for women are available
  • High sum assured of up to 25 crore rupees, depending on the policyholder's chosen sum assured
  • Easy application process 
  • Option to add riders (like accidental death riders) to your policy to enhance the coverage 
  • No maturity benefit is payable upon the survival of the policyholder.
  • Minors cannot directly purchase the policy. However, they can receive an entry as beneficiary or legal heir to the major policyholder.

Benefits

  • Comprehensive life insurance coverage for the policyholder's beneficiaries in case of their untimely demise
  • Affordable premiums 
  • Flexible payment frequency options
  • Hassle-free policy application process
  • Death benefit qualifies for tax benefits as per the current tax laws
  • Death benefits can be received through separate instalments spanning 5, 10, or 15 years
  • A grace period of 30 days for premium payment to give policyholders a buffer period to pay the premium if they miss the due date
  • Limited surrender benefit in case the policy is surrendered
  • LIC term insurance 1 crore comes with a free look period of 15 days from the policy receipt date. During this period, you can return the plan if you are unsatisfied with its terms and conditions.

LIC Term Insurance 1 Crore – Overview

Tabled below are the notable features of LIC term insurance 1 crore – LIC New Tech Term and LIC New Jeevan Amar.

Features LIC New Tech Term 1 Crore LIC New Jeevan Amar
Policy Term 10-40 years 10-40 years
Sum Assured Minimum: 50 lakhs Minimum: 25 lakhs
Premium Payment Term
  • Regular Premiums
  • Single Premiums
  • Limited Premiums
  • Regular Premiums
  • Single Premiums
  • Limited Premiums
Entry Age 18 years to 65 years 18 years to 65 years
Grace Period 30 days 30 days
Application Process Online Offline
Tax Benefits Yes, under Section 80C and 10(10D) of Income Tax Act Yes, under Section 80C and 10(10D) of Income Tax Act
Maximum Maturity Age 80 years 80 years

Note: The above table is indicative and subject to change as per the terms and conditions of LIC at the time of policy application. It is advisable to check the latest policy details before making any decision.

Bottom Line

LIC term insurance 1 crore provides a high sum assured at an affordable premium, making it an ideal choice for those who want to ensure their family's financial security in case of their untimely demise. It offers two types of term insurance 1 crore plans: LIC New Tech Term and LIC New Jeevan Amar, each with unique features and benefits.

Both these policies are pure-protection plans, with the coverage ranging from 10 to 40 years. With these policies, you can have extensive life insurance coverage for your beneficiaries and even make customisations in your plan with rider benefits.

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