Finally the LIC term plan is here.
We were waiting for it and finally it has been released.
This is really cheaper compared to the offline (manual) term plan that they have.
Is it cheaper than the other private companies? No.
But it comes with the LIC brand which many in india prefer.
So, whats a term plan?
In simple words, its an insurance for your death.
Just like we pay insurance for the car and if there is no claim, we don't get any money back.
In the same vein, we pay a premium for a sum assured for a year and if we survive, we lose the premium.
Oh, I don't want to lose my premium?
Its way cheaper.
If you take traditional LIC plans, you would shell out 25k (for a 25 yrs old) for a sum assured of 5L(although this will have a promise of maturity etc etc)
Can't I take a term plan with return of premium?
Yes, you can, its offered by many companies (e.g. HDFC) - but the premium is higher and not worth it.
If you take pure term plan and invest the remaining part (that you will be paying in a return of premium plan), you will end up with a huge surplus.
Google it up.
Difference in premium between offline and online plans:
LIC Anmol Jeevan:
As per http://www.licindia.in/LICs_Anmol_Jeevan-II_Plan_conditions.html
For a 30 yrs old, taking a term insurance of 50L for 15 yrs, the premium will be 13250 INR (2.65 * 100 * 50)
LIC eTerm (non smoker)
As per http://www.licindia.in/LICs_e-TERM_PLAN_eligibilty.html
For a 30 yrs old, taking a term insurance of 50L for 15 yrs, the premium will be 4250 INR (0.85 * 100 * 50)
Super, isn't it?
We were waiting for it and finally it has been released.
This is really cheaper compared to the offline (manual) term plan that they have.
Is it cheaper than the other private companies? No.
But it comes with the LIC brand which many in india prefer.
So, whats a term plan?
In simple words, its an insurance for your death.
Just like we pay insurance for the car and if there is no claim, we don't get any money back.
In the same vein, we pay a premium for a sum assured for a year and if we survive, we lose the premium.
Oh, I don't want to lose my premium?
Its way cheaper.
If you take traditional LIC plans, you would shell out 25k (for a 25 yrs old) for a sum assured of 5L(although this will have a promise of maturity etc etc)
Can't I take a term plan with return of premium?
Yes, you can, its offered by many companies (e.g. HDFC) - but the premium is higher and not worth it.
If you take pure term plan and invest the remaining part (that you will be paying in a return of premium plan), you will end up with a huge surplus.
Google it up.
Difference in premium between offline and online plans:
LIC Anmol Jeevan:
As per http://www.licindia.in/LICs_Anmol_Jeevan-II_Plan_conditions.html
For a 30 yrs old, taking a term insurance of 50L for 15 yrs, the premium will be 13250 INR (2.65 * 100 * 50)
LIC eTerm (non smoker)
As per http://www.licindia.in/LICs_e-TERM_PLAN_eligibilty.html
For a 30 yrs old, taking a term insurance of 50L for 15 yrs, the premium will be 4250 INR (0.85 * 100 * 50)
Super, isn't it?
