Reading time: 18 minutes
Let me ask you something: If you are not available for your family tomorrow, would your family be able to:
- Pay off the ₹60 lakh home loan?
- Fund your kids’ ₹40-80 lakh education costs?
- Maintain their current lifestyle for the next 20 years?
- Cover medical emergencies and daily expenses?
If the honest answer is “No” or “Maybe,” you need to read this carefully.
Most Indian families are one tragedy away from financial disaster. Not because they don’t care, but because they’re either uninsured or drastically underinsured.
Here’s the good news: For less than what you probably spend on coffee each week, you can secure ₹1 crore+ protection for your family through LIC’s pure term insurance plans.
LIC now offers 6 different term insurance plans – from basic standardized plans to advanced online options. This guide covers ALL of them so you can pick exactly what fits YOUR situation.
Let me show you exactly how.
What Is Pure Term Insurance? (The Simple Explanation)
Think of pure term insurance as financial protection in its purest form.
How it works:
- You pay a small annual premium (say ₹10,000-15,000/year)
- In return, if you die during the policy term (20-30 years), your family gets a large payout (₹1 crore, ₹2 crores, or more)
- If you survive the policy term, you get nothing back
Wait, nothing back? Isn’t that a waste?
No. That’s exactly why it’s so powerful.
Think about it:
- Do you complain that your car insurance didn’t pay you when you didn’t have an accident?
- Do you feel cheated by health insurance if you stayed healthy all year?
Of course not. Insurance is protection, not investment.
By removing the “savings” component, pure term insurance lets you buy MASSIVE protection for tiny premiums.
The Math That Changes Everything
Option 1: Traditional Endowment Plan
- Premium: ₹50,000/year for 20 years
- Coverage: ₹10 lakhs
- At maturity: Get back ₹15-18 lakhs (with bonuses)
Option 2: Pure Term Insurance
- Premium: ₹12,000/year for 20 years
- Coverage: ₹1 CRORE
- At maturity: Get nothing back
But here’s what matters: Your family gets 10 times more protection with pure term insurance for 75% less premium.
And the ₹38,000/year you save? Invest it in mutual funds, PPF, or equity. Over 20 years at 12% returns, that’s ₹30+ lakhs built separately.
Bottom line: Term insurance + separate investments beats traditional plans hands down for protection + wealth creation.
Why Choose LIC’s Pure Term Plans Over Others?
Fair question. There are 24 life insurance companies in India. Why LIC?
Reason 1: Trust & Legacy
LIC has been around since 1956. That’s 70 years of settled claims, even during:
- 1991 economic crisis
- 2008 global financial meltdown
- 2020 COVID pandemic
When your family needs that ₹1 crore most, you want a company that will be there. LIC’s claim settlement ratio consistently stays above 98%.
Reason 2: Government Backing
LIC is owned by the Government of India. It’s not going anywhere. Private insurers are great, but there’s psychological comfort in knowing the government stands behind your coverage.
Reason 3: Offline + Personal Touch
Yes, there are online-only term plans with flashy websites. But when you’re filling medical forms, understanding exclusions, or dealing with a claim, having a licensed LIC advisor who knows your situation personally? Priceless.
Reason 4: Special Rates
LIC offers lower premiums for:
- Women (10-15% discount)
- Non-smokers (20-30% discount)
- High sum assured (bulk discount on ₹50 lakhs+)
These add up to significant savings over 20-30 years.
LIC’s 3 Pure Term Plans Explained (2026 Edition)
LIC offers three offline pure term plans. Let me break down each one so you can pick what fits YOUR situation.
All 6 LIC Term Insurance Plans at a Glance (March 2026)
Before we dive deep, here’s a quick overview of EVERY term plan LIC currently offers:
| Plan Name | Plan No. | Best For | Key Feature | Buy Channel |
|---|---|---|---|---|
| LIC Bima Kavach | 288 | Everyone | Standardized, simple, affordable | Offline (Agent/Branch) |
| LIC Saral Jeevan Bima | – | Basic needs, first-time buyers | IRDAI-mandated simple plan | Offline (Agent/Branch) |
| LIC New Jeevan Amar | 955 | Flexible coverage needs | Increasing cover option, high customization | Offline (Agent/Branch) |
| LIC Yuva Term | 875 | Young professionals (18-45) | Lowest premiums for youth | Offline (Agent/Branch) |
| LIC Yuva Credit Life | 877 | Loan holders | Decreasing cover matches loan | Offline (Agent/Branch) |
| LIC Tech Term | 954 | Tech-savvy, online buyers | Digital purchase, instant issuance | Online only |
Which section should you read?
- Want the simplest, most affordable? → Read Bima Kavach & Saral Jeevan Bima
- Want flexibility and options? → Read New Jeevan Amar
- Under 45 years old? → Read Yuva Term
- Have a home/business loan? → Read Yuva Credit Life
- Prefer buying online? → Read Tech Term
Let’s explore each one in detail.
Plan 1: LIC Bima Kavach (Plan 288) – The NEW Standardized Plan ⭐
Think of this as: The newest, government-standardized term plan designed for mass adoption.
Launch Date: Introduced in 2025 as part of IRDAI’s push for simple, affordable life insurance.
What Makes Bima Kavach Special?
1. Standardized Product
- Approved by IRDAI with strict standardization rules
- Same features across ALL insurers offering this product
- Easier to compare across companies
2. No Frills, Just Protection
- Pure term cover with no add-ons or complications
- Competitive premiums (often 10-15% lower than traditional plans)
- Simple eligibility rules
3. Two Payout Options
Lump Sum: Entire sum assured paid at once to nominee
Monthly Income: Nominee receives monthly installments over 5-10 years
- Example: ₹1 crore cover = ₹8.33 lakhs/month for 10 years
- Helps families manage money better
Eligibility & Coverage
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 70 years |
| Policy Term | 10-40 years |
| Minimum Cover | ₹25 lakhs |
| Maximum Cover | ₹10 crores (subject to underwriting) |
| Premium Payment | Regular Pay only (annual/half-yearly/quarterly/monthly) |
Real Premium Examples (Approximate)
30-year-old male, non-smoker, ₹1 crore, 30-year term:
- Annual: ₹11,000-13,000
30-year-old female, non-smoker, ₹1 crore, 30-year term:
- Annual: ₹9,500-11,500
35-year-old male, non-smoker, ₹2 crore, 25-year term:
- Annual: ₹28,000-32,000
Who Should Buy Bima Kavach?
✓ First-time term insurance buyers (simple, no confusion) ✓ Those who want standardized product (easy to compare with other insurers) ✓ Families needing straightforward protection ✓ People who want monthly income payout option for nominee ✓ Budget-conscious buyers (competitive premiums)
Plan 2: LIC Saral Jeevan Bima – The IRDAI-Mandated Simple Plan
Think of this as: The most basic, no-questions-asked term plan every insurer MUST offer.
Background: IRDAI mandated ALL life insurers to offer this standardized term plan to make insurance accessible to everyone.
What Makes Saral Jeevan Bima Unique?
1. Same Across All Insurers
- LIC’s Saral = HDFC’s Saral = ICICI’s Saral
- Exact same terms, conditions, features
- Only premium rates differ slightly
2. Ultra-Simple
- No medical tests for cover up to ₹50 lakhs (age-dependent)
- Simplified proposal form
- Faster issuance
3. Affordable Entry Point
- Designed for low-income groups
- Premiums kept deliberately low
Eligibility & Coverage
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 70 years |
| Policy Term | 5-40 years |
| Minimum Cover | ₹5 lakhs |
| Maximum Cover | ₹25 lakhs only (deliberately kept low) |
| Premium Payment | Regular Pay only |
Real Premium Examples (Approximate)
30-year-old male, ₹25 lakhs, 30-year term:
- Annual: ₹3,000-3,500
40-year-old female, ₹10 lakhs, 20-year term:
- Annual: ₹2,500-3,000
50-year-old male, ₹25 lakhs, 15-year term:
- Annual: ₹8,000-10,000
Who Should Buy Saral Jeevan Bima?
✓ Low-income families (₹2-5 lakh annual income) ✓ Rural/semi-urban buyers unfamiliar with insurance ✓ Those who want minimal documentation/medical tests ✓ People needing basic cover to supplement other policies ✓ Senior citizens (up to age 65) getting first insurance
Important: ₹25 lakh maximum cover is NOT enough for most urban families. Use this as additional cover, not your primary protection.
Plan 3: LIC New Jeevan Amar (Plan 955) – The All-Rounder
Think of this as: The Swiss Army knife of term plans. Works for almost everyone.
What Makes It Special?
Two Coverage Options:
Option 1: Level Sum Assured
- Cover stays constant throughout
- Example: ₹1 crore from year 1 to year 30
Option 2: Increasing Sum Assured
- Cover starts at base amount
- Increases by 10% every year for 15 years
- Then jumps to 200% of base from year 16 onwards
- Example: Start with ₹1 crore, reaches ₹2.5 crores by year 15, stays ₹2 crores from year 16+
Why increasing cover matters: Your income and responsibilities grow over time. Your protection should too.
Premium Payment Flexibility
Regular Pay: Pay premiums throughout policy term (like 30-year policy = 30 years of premiums)
Limited Pay: Pay for shorter period, coverage continues
- Pay for 10 years, covered for 20 years, OR
- Pay for 15 years, covered for 30 years
Single Premium: Pay once upfront, covered for entire term
Which to choose?
- Regular Pay: Best for salaried (spreads cost)
- Limited Pay: If you want to finish premium payments before retirement
- Single Premium: If you have lump sum (bonus, inheritance, property sale)
Claim Payout Options
Your nominee can choose to receive the death benefit as:
Lump Sum: Entire ₹1 crore at once
Installments:
- Get it monthly/quarterly/annually over 5-15 years
- Helps if your spouse isn’t good with managing large sums
- Provides steady income stream
Who It’s Perfect For
✓ Anyone aged 18-65 wanting substantial term cover ✓ Families with growing responsibilities (young kids, loans) ✓ Self-employed professionals with variable income ✓ Those who want flexibility in coverage and premiums
Eligibility at a Glance
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 80 years |
| Policy Term | 10-40 years |
| Minimum Cover | ₹25 lakhs |
| Maximum Cover | No upper limit (subject to underwriting) |
Real Premium Examples (Approximate)
30-year-old male, non-smoker, ₹1 crore cover, 30-year term:
- Regular Pay: ₹12,000-14,000/year
- Limited Pay (15 years): ₹18,000-22,000/year
30-year-old female, non-smoker, ₹1 crore cover, 30-year term:
- Regular Pay: ₹10,000-12,000/year (lower than male rates)
35-year-old male, smoker, ₹2 crore cover, 25-year term:
- Regular Pay: ₹45,000-55,000/year (smoking penalty applies)
Note: Actual premiums depend on exact age, health status, medical tests. These are illustrative only. Add 18% GST.
Plan 4: LIC Yuva Term (Plan 875) – For Young Professionals
Think of this as: Jeevan Amar’s younger, more aggressive sibling designed specifically for millennials and Gen Z.
What’s Different?
Entry Age: Maximum 45 years only (vs 65 in Jeevan Amar)
Why it exists: Lock in super low premiums while you’re young and healthy. A 25-year-old pays WAY less than a 40-year-old for the same cover.
Minimum Cover: ₹50 lakhs (higher than Jeevan Amar’s ₹25L)
Maximum Cover: Up to ₹5 crores (sufficient for high-earning professionals)
Same Great Features
- Level or Increasing Sum Assured options
- Regular, Limited Pay, or Single Premium
- Women and non-smoker discounts
- Lump sum or installment claim payouts
- High sum assured rebates
Who It’s Perfect For
✓ Fresh graduates starting their first job (22-25 years) ✓ Young couples planning kids (25-35 years) ✓ Early-career professionals with rapidly growing salaries ✓ Those who understand: Buy insurance when you DON’T need it, so it’s there when you DO
Eligibility at a Glance
| Feature | Details |
|---|---|
| Entry Age | 18-45 years |
| Maximum Maturity Age | 75 years |
| Policy Term | 15-40 years |
| Minimum Cover | ₹50 lakhs |
| Maximum Cover | Up to ₹5 crores |
Real Premium Examples (Approximate)
25-year-old male, non-smoker, ₹1 crore cover, 35-year term:
- Regular Pay: ₹9,000-11,000/year (lowest possible rates!)
30-year-old female, non-smoker, ₹2 crore cover, 30-year term:
- Regular Pay: ₹17,000-20,000/year
40-year-old male, non-smoker, ₹3 crore cover, 25-year term:
- Regular Pay: ₹45,000-55,000/year
The earlier you buy, the less you pay. The math is undeniable.
Plan 5: LIC Yuva Credit Life (Plan 877) – The Loan Protector
Think of this as: A specialized plan that tracks your loan balance and protects your family from inheriting your debt.
How It Works (The Unique Part)
Decreasing Sum Assured:
Unlike regular term plans where cover stays constant, this plan’s coverage reduces over time to match a typical loan repayment schedule.
Example:
- You take a ₹80 lakh home loan today
- Buy Yuva Credit Life with ₹80 lakh cover
- After 5 years, outstanding loan: ₹65 lakhs → Insurance cover also reduces to ₹65 lakhs
- After 15 years, outstanding loan: ₹30 lakhs → Cover reduces to ₹30 lakhs
Why this matters: You don’t overpay for protection you don’t need. As your loan reduces, so does your cover (and your premium reflects this).
The Math Behind It
The plan uses a “notional loan amortization schedule” based on interest rate you choose (6-12% annually).
Practical translation: Tell LIC “I have an ₹80 lakh loan at 9% interest for 20 years,” and they calculate the reducing cover accordingly.
Who It’s Perfect For
✓ Home loan borrowers (₹40L-₹2 crore loans) ✓ Business owners with term loans for equipment/expansion ✓ Anyone with personal loans they don’t want family to inherit ✓ Cost-conscious buyers who want cheaper premiums than level term
Eligibility at a Glance
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 80 years |
| Policy Term | 5-30 years |
| Minimum Cover | ₹50 lakhs (₹20 lakhs for specific loan-backed cases, ages 21-45) |
Real Premium Examples (Approximate)
35-year-old male, non-smoker, ₹60 lakh initial cover (reducing), 20-year term:
- Limited Pay (10 years): ₹25,000-30,000/year
- Much cheaper than level ₹60L cover because coverage decreases
Note: Premiums for decreasing cover are 30-50% lower than equivalent level cover plans.
Plan 6: LIC Tech Term (Plan 954) – The Digital-First Plan ⭐
Think of this as: LIC’s answer to online-only insurers. Fully digital, paperless, instant.
Launch Year: 2019, regularly updated
Buy Channel: ONLINE ONLY at licindia.in or LIC mobile app
What Makes Tech Term Different?
1. 100% Digital Purchase
- No agent required (though agent code can be included)
- Fill proposal form online
- Upload documents via website/app
- e-Sign with Aadhaar OTP
- Policy bond delivered via email
2. Instant Policy Issuance
- For eligible cases (younger age, standard health, lower cover)
- Policy issued in minutes, not days
- Premium payment and policy bond simultaneously
3. Competitive Premiums
- Often 5-10% cheaper than offline plans
- Lower operational costs passed to customers
- No agent commission in direct purchase mode
4. High Coverage Limits
- Up to ₹25 crores maximum sum assured
- One of the highest in LIC’s portfolio
Coverage Options
Two Benefit Options:
Level Cover: Sum assured stays constant
Increasing Cover: Sum assured increases by 5% annually (simpler than Jeevan Amar’s 10%)
Eligibility & Coverage
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 80 years |
| Policy Term | 10-40 years |
| Minimum Cover | ₹50 lakhs |
| Maximum Cover | Up to ₹25 crores |
| Premium Payment | Regular Pay or Limited Pay |
Real Premium Examples (Approximate)
30-year-old male, non-smoker, ₹1 crore, 30-year term:
- Annual: ₹11,000-13,000 (slightly lower than offline plans)
28-year-old female, non-smoker, ₹2 crore, 35-year term:
- Annual: ₹18,000-21,000
40-year-old male, non-smoker, ₹5 crore, 20-year term:
- Annual: ₹85,000-1,00,000
Who Should Buy Tech Term?
✓ Tech-savvy individuals comfortable with online processes ✓ Those who prefer DIY over agent interaction ✓ People wanting instant policy issuance ✓ Cost-conscious buyers (5-10% premium saving) ✓ High earners needing very large cover (₹10-25 crores)
Who Should AVOID Tech Term?
✗ Those unfamiliar with online forms/documentation ✗ Complex health histories requiring agent guidance ✗ People wanting hand-holding through medical tests ✗ Those preferring face-to-face claim support
Important: Even with online purchase, you can add agent code to get post-purchase support.
Plan 1: LIC New Jeevan Amar (Plan 955) – The All-Rounder
Think of this as: The Swiss Army knife of term plans. Works for almost everyone.
What Makes It Special?
Two Coverage Options:
Option 1: Level Sum Assured
- Cover stays constant throughout
- Example: ₹1 crore from year 1 to year 30
Option 2: Increasing Sum Assured
- Cover starts at base amount
- Increases by 10% every year for 15 years
- Then jumps to 200% of base from year 16 onwards
- Example: Start with ₹1 crore, reaches ₹2.5 crores by year 15, stays ₹2 crores from year 16+
Why increasing cover matters: Your income and responsibilities grow over time. Your protection should too.
Premium Payment Flexibility
Regular Pay: Pay premiums throughout policy term (like 30-year policy = 30 years of premiums)
Limited Pay: Pay for shorter period, coverage continues
- Pay for 10 years, covered for 20 years, OR
- Pay for 15 years, covered for 30 years
Single Premium: Pay once upfront, covered for entire term
Which to choose?
- Regular Pay: Best for salaried (spreads cost)
- Limited Pay: If you want to finish premium payments before retirement
- Single Premium: If you have lump sum (bonus, inheritance, property sale)
Claim Payout Options
Your nominee can choose to receive the death benefit as:
Lump Sum: Entire ₹1 crore at once
Installments:
- Get it monthly/quarterly/annually over 5-15 years
- Helps if your spouse isn’t good with managing large sums
- Provides steady income stream
Who It’s Perfect For
✓ Anyone aged 18-65 wanting substantial term cover ✓ Families with growing responsibilities (young kids, loans) ✓ Self-employed professionals with variable income ✓ Those who want flexibility in coverage and premiums
Eligibility at a Glance
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 80 years |
| Policy Term | 10-40 years |
| Minimum Cover | ₹25 lakhs |
| Maximum Cover | No upper limit (subject to underwriting) |
Real Premium Examples (Approximate)
30-year-old male, non-smoker, ₹1 crore cover, 30-year term:
- Regular Pay: ₹12,000-14,000/year
- Limited Pay (15 years): ₹18,000-22,000/year
30-year-old female, non-smoker, ₹1 crore cover, 30-year term:
- Regular Pay: ₹10,000-12,000/year (lower than male rates)
35-year-old male, smoker, ₹2 crore cover, 25-year term:
- Regular Pay: ₹45,000-55,000/year (smoking penalty applies)
Note: Actual premiums depend on exact age, health status, medical tests. These are illustrative only. Add 18% GST.
Plan 2: LIC Yuva Term (Plan 875) – For Young Professionals
Think of this as: Jeevan Amar’s younger, more aggressive sibling designed specifically for millennials and Gen Z.
What’s Different?
Entry Age: Maximum 45 years only (vs 65 in Jeevan Amar)
Why it exists: Lock in super low premiums while you’re young and healthy. A 25-year-old pays WAY less than a 40-year-old for the same cover.
Minimum Cover: ₹50 lakhs (higher than Jeevan Amar’s ₹25L)
Maximum Cover: Up to ₹5 crores (sufficient for high-earning professionals)
Same Great Features
- Level or Increasing Sum Assured options
- Regular, Limited Pay, or Single Premium
- Women and non-smoker discounts
- Lump sum or installment claim payouts
- High sum assured rebates
Who It’s Perfect For
✓ Fresh graduates starting their first job (22-25 years) ✓ Young couples planning kids (25-35 years) ✓ Early-career professionals with rapidly growing salaries ✓ Those who understand: Buy insurance when you DON’T need it, so it’s there when you DO
Eligibility at a Glance
| Feature | Details |
|---|---|
| Entry Age | 18-45 years |
| Maximum Maturity Age | 75 years |
| Policy Term | 15-40 years |
| Minimum Cover | ₹50 lakhs |
| Maximum Cover | Up to ₹5 crores |
Real Premium Examples (Approximate)
25-year-old male, non-smoker, ₹1 crore cover, 35-year term:
- Regular Pay: ₹9,000-11,000/year (lowest possible rates!)
30-year-old female, non-smoker, ₹2 crore cover, 30-year term:
- Regular Pay: ₹17,000-20,000/year
40-year-old male, non-smoker, ₹3 crore cover, 25-year term:
- Regular Pay: ₹45,000-55,000/year
The earlier you buy, the less you pay. The math is undeniable.
Plan 3: LIC Yuva Credit Life (Plan 877) – The Loan Protector
Think of this as: A specialized plan that tracks your loan balance and protects your family from inheriting your debt.
How It Works (The Unique Part)
Decreasing Sum Assured:
Unlike regular term plans where cover stays constant, this plan’s coverage reduces over time to match a typical loan repayment schedule.
Example:
- You take a ₹80 lakh home loan today
- Buy Yuva Credit Life with ₹80 lakh cover
- After 5 years, outstanding loan: ₹65 lakhs → Insurance cover also reduces to ₹65 lakhs
- After 15 years, outstanding loan: ₹30 lakhs → Cover reduces to ₹30 lakhs
Why this matters: You don’t overpay for protection you don’t need. As your loan reduces, so does your cover (and your premium reflects this).
The Math Behind It
The plan uses a “notional loan amortization schedule” based on interest rate you choose (6-12% annually).
Practical translation: Tell LIC “I have an ₹80 lakh loan at 9% interest for 20 years,” and they calculate the reducing cover accordingly.
Who It’s Perfect For
✓ Home loan borrowers (₹40L-₹2 crore loans) ✓ Business owners with term loans for equipment/expansion ✓ Anyone with personal loans they don’t want family to inherit ✓ Cost-conscious buyers who want cheaper premiums than level term
Eligibility at a Glance
| Feature | Details |
|---|---|
| Entry Age | 18-65 years |
| Maximum Maturity Age | 80 years |
| Policy Term | 5-30 years |
| Minimum Cover | ₹50 lakhs (₹20 lakhs for specific loan-backed cases, ages 21-45) |
Real Premium Examples (Approximate)
35-year-old male, non-smoker, ₹60 lakh initial cover (reducing), 20-year term:
- Limited Pay (10 years): ₹25,000-30,000/year
- Much cheaper than level ₹60L cover because coverage decreases
Note: Premiums for decreasing cover are 30-50% lower than equivalent level cover plans.
Complete Comparison: Which LIC Term Plan Should YOU Pick?
| Your Situation | Best Plan | Why |
|---|---|---|
| First-time buyer, want simple & affordable | Bima Kavach or Saral Jeevan Bima | Standardized, easy to understand, competitive rates |
| Need only ₹5-25 lakhs cover | Saral Jeevan Bima | Perfect for low-income families, minimal documentation |
| Age 25-35, no major loans | Yuva Term | Lowest premiums, lock rates early |
| Age 30-45, have home loan | Yuva Credit Life | Matches loan liability, 30-50% cheaper |
| Age 35-50, general protection | New Jeevan Amar | Flexibility, higher coverage options, increasing cover choice |
| Age 50-65, late starter | New Jeevan Amar or Bima Kavach | Available at older ages |
| Want coverage to increase with age | New Jeevan Amar (Increasing option) | Matches growing responsibilities |
| Want cheapest possible | Yuva Term or Tech Term (online) | Youth-focused + digital = lowest rates |
| Prefer buying online, tech-savvy | Tech Term | Fully digital, instant issuance, 5-10% cheaper |
| Need very high cover (₹10-25 crores) | Tech Term | Highest maximum cover available |
| Want monthly income payout for family | Bima Kavach | Installment payout option built-in |
| Complex health, need agent guidance | New Jeevan Amar or Yuva Term | Offline plans with full agent support |
The Special Discounts That Can Save You Lakhs
Discount 1: Women’s Advantage (10-15% Lower Premiums)
Why: Women statistically live longer (life expectancy ~72 vs ~68 for men in India), so lower mortality risk = lower premiums.
Real savings:
- Male: ₹14,000/year for ₹1 crore
- Female: ₹12,000/year for ₹1 crore
- Saving: ₹2,000/year × 30 years = ₹60,000 over policy life
Ladies, don’t skip this! Many women skip buying their own term insurance (“My husband has cover”). Wrong. If you’re a homemaker and something happens to you, your family needs to hire cook, nanny, tutor, driver. Your economic value is HUGE. Get covered.
Discount 2: Non-Smoker Rates (20-30% Lower)
How they verify: Urinary cotinine test during medical exam. Cotinine is a nicotine breakdown product. If you’ve smoked in last 3-6 months, it shows up.
Don’t lie. Seriously. If you die in year 2 and LIC investigation discovers unreported smoking, claim gets rejected. Your family gets nothing. Not worth it.
Real savings:
- Smoker: ₹18,000/year for ₹1 crore
- Non-smoker: ₹12,000/year
- Saving: ₹6,000/year × 30 years = ₹1.8 lakhs!
Bonus motivation to quit: Kick the habit, wait 12 months, apply as non-smoker, save lakhs.
Discount 3: High Sum Assured Rebate (Bulk Discount)
The more coverage you buy, the lower the rate per ₹1 lakh of coverage.
Example:
- ₹50 lakh cover: ₹14 per ₹1,000 sum assured
- ₹1 crore cover: ₹12 per ₹1,000 sum assured
- ₹2 crore cover: ₹10 per ₹1,000 sum assured
This means: Doubling your cover doesn’t double your premium. It’s only about 60-70% more.
How to Actually Buy LIC Term Insurance (Step-by-Step)
Step 1: Find a Licensed LIC Advisor
Don’t buy from:
- Random WhatsApp forwards
- Unlicensed “financial advisors”
- Friends/relatives without proper credentials
Do buy from:
- POSP (Point of Sale Person) with valid IRDAI certificate
- Full-fledged LIC Development Officers
- LIC branch offices directly
- Verified corporate agents/brokers
How to verify: Ask for IRDAI license number, check on irdai.gov.in
Need help finding one? 👇
WhatsApp “LIC TERM” to 7651032666
I’ll connect you with verified advisors in your area (Himachal Pradesh and across India)
Step 2: Calculate Your Exact Cover Need
Your advisor should help you with this, but here’s the formula:
Cover Needed = (Annual Income × 15-20) + All Outstanding Loans + Future Goals – Existing Savings
Example:
Annual income: ₹15 lakhs × 20 = ₹3 crores
Home loan outstanding: ₹60 lakhs
Kids' education (2 children): ₹1.2 crores
Existing mutual funds/PF: -₹40 lakhs
───────────────────────────────
TOTAL COVER NEEDED: ₹4.4 crores
Round up to ₹5 crores for buffer.
Step 3: Fill the Proposal Form (Be 100% Honest)
Form 300/340 is your proposal form. Every answer matters.
Critical sections:
- Existing health conditions (BP, diabetes, thyroid, cholesterol)
- Past surgeries or hospitalizations
- Family medical history (cancer, heart disease)
- Smoking/tobacco/alcohol use
- Hazardous hobbies (scuba diving, mountaineering, flying)
- Occupation (some jobs = higher risk premium)
NEVER lie or hide information. LIC has 3 years to investigate claims. If they find unreported health issues, claim gets rejected.
Step 4: Medical Examination
When required:
- Sum assured above ₹50 lakhs-₹1 crore (varies by age)
- Age above 45-50 years
- Any adverse health declaration
What’s involved:
- Height, weight, BMI check
- Blood pressure
- Blood tests (sugar, cholesterol, liver, kidney)
- Urine test (cotinine for smoking, other parameters)
- ECG (if age 40+)
- Sometimes: Stress test, ultrasound (for very high cover or older ages)
Cost: FREE. LIC arranges and pays for all medical tests.
Timeline: Results in 3-7 days typically.
Step 5: Underwriting & Premium Loading
LIC reviews your medical reports and assigns you to a risk category:
Standard Rate: Healthy individual, no issues → Normal premium
Loaded Rate: Some health concerns (controlled BP, borderline diabetes) → Premium increased by 25-50%
Declined: Serious health issues → Application rejected
Don’t panic if loaded. A 25% loaded premium on term insurance is still WAY cheaper than not having coverage.
Step 6: Pay First Premium & Get Policy Bond
Payment methods:
- Cheque/DD
- Online payment (NEFT/RTGS)
- Credit card (might have processing fee)
- Auto-debit (for future renewals)
Policy bond delivery: Physical + email within 15-30 days
Step 7: Free-Look Period (15 Days from Receipt)
You get 15 days to review everything:
- Sum assured correct?
- Term correct?
- Nominee details correct?
- Premium as quoted?
- Any unexpected exclusions?
If you’re not satisfied: Return the policy within 15 days for full refund (minus stamp duty + medical costs).
USE THIS PERIOD. Read every page of your policy document. Ask questions.
What Happens When You File a Death Claim?
Understanding this builds confidence.
Step 1: Intimation (ASAP)
Nominee/family member informs:
- LIC branch where policy was issued
- Any LIC branch nearby
- LIC customer service helpline
- Online through LIC portal
Documents needed initially:
- Death certificate (original)
- Policy bond
- Claimant’s ID proof
Step 2: Claim Forms Submission
LIC provides claim forms. Nominee fills:
- Claim Form A (death claim)
- Claimant’s statement
- Medical attendant certificate (if death was due to illness)
- Police FIR/post-mortem (if death was accidental/unnatural)
Step 3: Investigation (If Death Within 3 Years)
Why 3 years? That’s the “contestability period.” LIC can investigate to check if there was fraud or non-disclosure.
What they check:
- Medical records from hospitals
- Prescription history from chemists
- Employment records
- Financial transactions (sometimes)
Scary? Not if you were honest in your proposal.
If you disclosed diabetes, they won’t reject for diabetes. But if you hid it and died of diabetes complications? They can reject.
Step 4: Settlement
Timeline (as per IRDAI rules):
- Claims should be settled within 30 days of receiving all documents
- If delayed, LIC pays interest (current rate varies, check IRDAI website)
Payout:
- Lump sum: Direct bank transfer (NEFT/RTGS)
- Installments: Recurring transfers as per chosen frequency
Tax: Death benefit is 100% tax-free to nominee under Section 10(10D). They receive the entire amount.
Tax Benefits: Save While You Protect
Benefit 1: Premium Deduction (Section 80C)
What you get:
- Deduction up to ₹1.5 lakh per financial year
- Combines with other 80C investments (PPF, ELSS, home loan principal, etc.)
Example:
- Annual term premium: ₹15,000
- EPF contribution: ₹50,000
- PPF investment: ₹70,000
- Home loan principal: ₹30,000
- Total 80C: ₹1,65,000
Since limit is ₹1.5L, you get deduction of ₹1.5L, saving ₹46,500 tax (in 30% bracket).
Important: Only available in Old Tax Regime. New Tax Regime doesn’t allow this deduction.
Benefit 2: Tax-Free Death Benefit (Section 10(10D))
What it means:
- Nominee receives the entire sum assured tax-free
- No income tax, no deduction, no TDS
Conditions for 10(10D) exemption:
- Premium must not exceed 10% of sum assured (pure term plans easily qualify)
- For policies issued after April 1, 2023: Aggregate annual premium across certain policies shouldn’t exceed ₹5 lakh for tax-free maturity
Since term insurance has no maturity benefit, the ₹5 lakh cap is mostly irrelevant. Death benefit remains tax-free.
Common Questions (And Honest Answers)
“What if I lose my job? Can I stop paying premiums?”
No and yes. If you stop paying:
- Policy gets a grace period (30-90 days depending on premium mode)
- Still covered during grace period
- After grace period, policy lapses
- You lose all coverage
Better option: Most LIC plans allow “Paid-Up” conversion. If you’ve paid at least 3 years of premiums, you can stop paying. Coverage reduces proportionally, but continues.
Best option: Keep paying if at all possible. That’s when you need insurance most (financial trouble).
“My company gives ₹50 lakhs group term insurance. Do I still need this?”
YES. Employer coverage:
- Stops when you change jobs
- Stops when you retire
- Stops if you’re fired/laid off
- Usually inadequate (50L is not enough for most families)
Get your OWN term insurance that travels with you.
“Can I buy multiple term policies from different companies?”
Absolutely! In fact, it’s smart. Diversify your risk:
- ₹2 crores from LIC
- ₹1 crore from HDFC Life
- ₹1 crore from ICICI Prudential
If there’s any issue with one claim, others still pay out.
“What if I develop diabetes or BP after buying?”
Already have the policy: No problem. Your premium stays the same. Coverage continues. LIC can’t cancel.
Trying to buy new policy: Will pay higher (loaded) premium or might get rejected.
This is why you buy insurance when healthy.
“Suicide clause – what about it?”
Standard exclusion: If insured commits suicide within one year of policy start, death claim is rejected. (Some insurers have 2-year clause.)
After one year, suicide is covered. Family gets full death benefit.
“Can I increase my cover later?”
Generally, no. You’d need to buy a separate new policy (at your current age, which means higher premium).
This is why: Buy adequate cover from day 1. It’s cheaper to buy ₹3 crores at age 30 than to buy ₹1 crore at 30 and ₹2 crores more at 40.
Pure Term vs. Endowment: The Final Showdown
I’ve been avoiding this comparison, but let’s settle it:
| Aspect | Pure Term (₹12k/year) | Endowment (₹50k/year) |
|---|---|---|
| Coverage | ₹1 crore | ₹10 lakhs |
| If you die in year 5 | Family gets ₹1 crore tax-free | Family gets ₹10 lakhs + bonuses (~₹12L) |
| If you survive 20 years | You get ₹0 back | You get ₹15-18 lakhs back |
| But what if you invested the ₹38k/year difference? | ₹38k/year @ 12% for 20 years = ₹30 lakhs | N/A |
| Total family wealth (if you survive) | ₹30 lakhs investment corpus | ₹15-18 lakhs |
| Total family benefit (if you die year 5) | ₹1 crore | ₹12 lakhs |
Winner: Term insurance + separate investment, by a landslide.
When endowment makes sense: If you have ZERO financial discipline and won’t actually invest the difference. At least endowment forces you to save.
But if you can set up an SIP? Term insurance all the way.
Your Action Plan (Do This Week)
Step 1 (Today): Calculate your coverage need using the formula I shared earlier
Step 2 (This Week): Contact us for premium quotes
Step 3 (This Month): Complete medical tests, fill proposal form, buy policy
Step 4 (Ongoing): Set up auto-debit so you never miss a renewal
Don’t delay. Every birthday increases your premium. Every health issue makes you less insurable.
Need Personal Help? Let’s Talk.
I’m Shagun Verma, a licensed LIC Insurance Advisor based in Himachal Pradesh. I’ve helped hundreds of families get properly insured with the right term coverage.
Here’s what I can do for you (FREE consultation):
✓ Explain all 6 LIC term plans and which fits your situation best
✓ Compare Bima Kavach vs New Jeevan Amar vs Tech Term vs others
✓ Calculate your exact coverage requirement based on income, loans, goals
✓ Get you accurate premium quotes for ALL plans (not generic estimates)
✓ Guide you through online purchase (Tech Term) OR offline process (others)
✓ Explain when to choose increasing cover vs level cover
✓ Explain medical requirements for your coverage level
✓ Guide you through proposal form (avoid rejection due to errors)
✓ Coordinate your medical tests with LIC-approved centers
✓ Help with policy bond verification during free-look period
✓ Assist with claim process if needed (hopefully never)
No pressure. No commission talk. Just honest guidance.
How to reach me:
WhatsApp “LIC TERM HELP” to 7651032666
Website: lifeinsuranceadvisor.in
I’ll send you a simple questionnaire. Based on your answers, I’ll call you within 24 hours with:
- Recommended plan(s)
- Exact premium quotes
- Coverage gap analysis
- Next steps
Why work with me?
- Licensed LIC advisor (not a random agent)
- Based in Himachal Pradesh, serve clients across India
- Specialized in pure term insurance (not pushy about traditional plans)
- Post-sale support for claims, renewals, policy changes
Important Disclaimers & Compliance
Product Information: All plan details, features, and eligibility criteria are based on LIC’s product offerings as of March 2026 and are subject to change. Always refer to the latest official policy documents and brochures from LIC for accurate, up-to-date information.
Plan Numbers for Verification:
- LIC Bima Kavach: Plan 288
- LIC Saral Jeevan Bima: (Standardized IRDAI plan – no specific LIC plan number)
- LIC New Jeevan Amar: Plan 955, UIN: 512N350V02
- LIC Yuva Term: Plan 875, UIN: 512N355V01
- LIC Yuva Credit Life: Plan 877, UIN: 512N357V01
- LIC Tech Term: Plan 954, UIN: 512N354V01
Premium Figures: All premium amounts mentioned are approximate and illustrative only. Actual premiums depend on:
- Exact age (years and months)
- Health status and medical underwriting results
- Smoking/tobacco use
- Sum assured chosen
- Policy term selected
- Premium payment mode
- Any medical loading applied
Add 18% GST to all quoted premiums. Always obtain personalized premium illustration from a licensed LIC advisor before making decisions.
Tax Treatment: Tax benefits under Section 80C and Section 10(10D) are subject to conditions and prevailing Income Tax Act provisions:
- Section 80C deduction available only in Old Tax Regime (not in New Tax Regime)
- Section 10(10D) exemption requires premium ≤10% of sum assured
- For policies issued after April 1, 2023, aggregate annual premium cap may apply
- Tax laws can change; consult a qualified Chartered Accountant
Medical Requirements: Medical examination requirements, tests needed, and sum assured thresholds vary by:
- Age at entry
- Sum assured applied for
- Health declaration in proposal
- LIC’s underwriting guidelines at time of application
Always disclose complete and accurate health information. Non-disclosure can lead to claim rejection.
IRDAI Compliance: Insurance is a subject matter of solicitation. Insurance products are subject to risk. Please read all policy terms, conditions, and exclusions carefully before concluding a purchase. This article is for educational purposes only and does not constitute personalized insurance advice or recommendation.
Claim Settlement: Claim settlement processes, timelines, and investigation procedures are governed by IRDAI regulations and LIC’s claim settlement policies. The contestability period (typically 3 years) allows LIC to investigate claims for fraud or material non-disclosure.
Verification: For official product information:
- Visit: licindia.in
- Download official brochures for Plan 288 (Bima Kavach), 955 (New Jeevan Amar), 875 (Yuva Term), 877 (Yuva Credit Life), 954 (Tech Term), and Saral Jeevan Bima
About the Author:
Shagun Verma
Licensed LIC Insurance Advisor
Serving Clients Pan-India
Contact: 7651032666
Protect your family today. Because tomorrow might be too late.
WhatsApp “LIC TERM HELP” to 7651032666 for free consultation on all 6 LIC term plans.
Leave a Reply