Review for Online LIC Insurance Plans

Just like most other insurance companies, LIC has also launched its online strategies. Life Insurance Corporation of India now offers its customers onl

ine gateway to purchase its insurance plans.

Online LIC is very popular among insurance customers. In this review, I shall present before you the how to and why of LIC’s online insurance purchasing scheme.

Online LIC e-Term – When & Why?

There has been a long wait to this feature. And finally, it has been ended this year. LIC launched its first online insurance plan to be purchased. That is, from September, LIC has made its LIC insurance plans available online to be bought by prospective consumers.

Why you ask? It's pretty simple. Today, almost everything is online. Every business has an online outlet for the convenience of customers and thus its profit.

For the same reason, online LIC has become available to people at home.

Features of Online LIC – e-Term

The features of online LIC e-Term plan are as follows:

·         This method, as the name suggests, is available only through the internet, online.

·         There are two categories to this plan:

o   Aggregate Lives (you can purchase a plan under this category irrespective of whether or not you are a smoker)

o   Non-Smoker Lives

·         Rs 25,00,000 is the fixed minimum Sum Assured for the first type.

·         Rs 50,00,000 is the minimum Sum Assured for a non-smoker insured person.

·         Policy Term:

o   Minimum – 10 years

o   Maximum – 35 years

·         Age of policyholder at the time of entry – 18 years

·         Age at the date of maturity – 60 years

·         Premium payment is on an annual basis which you can pay through net banking or credit and debit cards.

·         Pure term plan, hence offers no maturity benefits.

·         Only proposals on own life will be accepted in this policy. You cannot propose for anyone else’s life.

Benefits of the Insurance Policy

The benefits received under this online LIC plan are as under:

·         Death Benefit: According to the Death Benefit, the nominee of the insured would receive the Sum Assured on the accidental and unfortunate death of the policy holder.

·         Tax Benefit: The tax benefit is the same. The premium payments and maturity payment are excluded from taxation under Sections 80c and 10(10D).

Being a pure term plan, online LIC does not come with any Maturity Benefit.

Inclusions and Exclusions, If Any, Of The Policy

The only drawback, if you call it that, is that there are no additional riders available with this online insurance coverage of LIC either. However, that does not make the policy any less attractive of course.

What If You Are an NRI?

LIC hasn’t yet clarified the terms involved in purchasing this online plan of LIC if you are an NRI. However, one thing is pretty clear.

You can purchase this plan while still residing in India. And then if you later decide to settle abroad while your policy term is remaining, your plan stays intact. It does not lapse. That is a tremendous assurance.

So in case you think you might move, it is better if you purchase online LIC e-Term and then move out of the country.

Documents Necessary While Purchasing

The papers you need to produce while purchasing this via LIC’s website are mainly the official address and identity proofs which you need to provide for getting any official work done.

For convenience, I list below the necessary documents:

·         PAN number is a must.

·         Form 16 or ITR of the past three years is necessary.

·         Details of bank account and MICR code. A few other bank details as well.

·         Details of family members.

·         Particulars of any other insurance policy already purchased.

·         Details of the medical history of the policy buyer.