If you are looking for the best term insurance cover in India, buying an LIC term plan would be your best bet. The Life Insurance Corporation of India is a pioneer of life insurance in the country. As you can guess, their products stand out from the rest and offer you fantastic value for the money you pay. In this article we explore the benefits and covers of an LIC term plan. Take a look if you are thinking about getting such a cover.
What risks are covered by LIC term plan?
Term insurance is bought with a single aim in mind – to provide for your family if you die unexpectedly. In other words, the sum assured from a term cover would provide your loved ones with the money they need to carry on with their lives in a comfortable manner, in your absence. Money is crucial and is needed for many purposes. So when you buy a term plan, you cover many financial risks that your family may face:
- Loss of income: If you are the sole breadwinner of the family, where will your dear ones get the cash from to pay their bills, buy food or carry on with their education? This is a very scary thought, but your term plan can cover them. The death benefit from the LIC term plan can act as your income replacement and help your family members to pay their bills in an effortless manner.
- Mortgage and debts: Is your home still your bank’s property as you haven’t finished paying off the home loan? If yes, then you need an LIC term plan to cover the risk of your family becoming homeless after your early demise. If you die without clearing your mortgages, your family may struggle with the EMIs and also end up defaulting on them. The results, as you can guess, will be catastrophic. So buy a term insurance policy and cover this very important risk.
- Financial milestones: If you have young kids are yet to complete their education, set up their professional lives and get married, you need a term life insurance policy. The LIC term plan will ensure your kids can meet their life milestones smoothly even if you die before the events take place. The sum assured will provide them with the needed finances and help them achieve all the dreams you dreamt for them.
These are some of the most significant risks that are covered by an LIC term plan. Buy a plan if you feel these risks need to be covered in your life as well.
How to calculate premium for LIC term plan?
If you decide to get an LIC term plan, you should be aware of the premium you have to pay. The premium is calculated based on these factors:
- The cover you choose: The cover you choose will be the biggest deciding factor for the premium calculation. You will have to pay a higher premium for a higher cover and a lower premium for a lower cover.
- The duration of the plan: This is also an obvious factor to understand. If you get your term cover for a period of 10 years, your premium amount will be lower as compared to a cover for 20 years.
- Your age: Younger people pay a lower premium on their term plans as compared to their older counterparts. This is mainly because young people are fitter and their risk of getting a critical illness or death is lower in life. So buy a term plan early on in life to save a lot of money on your LIC term plan.
- Your lifestyle habits: Finally, we have the lifestyle habits such as smoking and drinking. If you smoke, your premium will be much higher as compared to a non-smoker.
In a nutshell
To put it in a nutshell, an LIC term plan covers your life in a truly wholesome manner. The term cover from LIC has been designed in such a way that you get to insure your life in a comprehensive manner, without having to empty your wallet. Term insurance is vital and if you still haven’t got a cover, look to buy an LIC term life insurance plan. It will surely prove to be a wise decision on your part.
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