What is term insurance?
In simple terms term plan is the assurance that you buy on your life for a fixed number of years. That is if anything happens to you during that period your nominee will be pad a claim. If he policyholder remains all well even after the policy term expires he or his family gets nothing.
A term plan is cheaper than other traditional plans because of the simple reason that nothing is payed in case the policy holder survives the policy term.
What is the difference between term plan and a endowment life insurance plan?
The basic difference between a term plan and a endowment plan is that at the end of the policy term the policy holder is paid a handsome amount in a endowment plan whereas in a term plan the policy holder gets nothing. A term plan is cheaper in cost as compared to a endowment plan.
What term plans are available in LIC?
LIC has recently introduced Jeevan Amar term plan. While Jeevan Anmol provides a insurance cover to a maximum of 25 lakhs, Jeevan Amar provides life cover more than 25 lakh and there is o limit on the maximum amount.
Amulya Jeevan plan has been discontinued by LIC of India
Jeevan Amar is term plan launched by LIC of India in Aug, 2019. The plan is very flexible in terms of premium payment, claim settlement and increasing life cover. The main features of Jeevan Amar plan are
- Regular, limited or one time premium payment
- Claim settlement in one, 5, 10 and 15 installments.
- Fixed or increasing life cover
- Lowest premium for non-smokers and females
Amulya Jeevan (discontinued)
Why are LIC term plans expensive than other insurance providers?
LIC plans are priced at a premium for simple reason that LIC has got the claim settlement ration as the best in the industry. As of now there are more than 28 life insurance companies operating in India and LIC is on the top of the list in settling life insurance claims since long time.