With the launch of LIC eTerm policy (table no 825), the first LIC Online Term Plan the competition between all insurance companies in the sector of online term plan has increased. This is not LIC way to launch a policy as they mostly depend on their insurance agents. But when the online term insurance market is going larger day by day how long LIC can stay away from this. So to beat other popular online term plans LIC launched ETerm plan. Is LIC ETerm plan is the best online term insurance? How much premium one has to pay for a sum assured amount in case of LIC ETerm plan compared to others? Let’s check out the complete review of LIC E Term plan here.
LIC Online Term Plan – eTerm Review, Questions and Answers
Let’s review LIC Online Term Plan in a different way. I have documented all possible questions one should ask while buying an online term insurance plan and answered them as per the LIC eterm plan features. One can easily know every single detail about LIC Online Term Plan at the end of this article.
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1. Is eterm plan different from other term plans as per key features?
Frankly speaking there is different to separate this plan form other online term plans. The only thing to mention is for smoker and non-smoker premium rates are different.
2. I am a smoker. Can I buy LIC E Term plan?
LIC E Term plan can be categorized in 2 ways. Aggressive and Non-smoker. If you are a smoker then you will be under aggressive category and in such a condition your maximum sum assured value can’t be more than 49 lakh. But if you are a non-smoker then you can enjoy higher life cover.
3. Can I buy eterm plan with the help of an Agent?
An agent can help you to fill up the online application form. But he/she will not get any commission from that purchase. So that means LIC E Term plan is a pure online term plan, one can’t buy this plan by visiting LIC office or from a LIC agent. I am damn sure that your agent will never mention about this plan if you are not aware about term plans. So keep researching.
4. Up to which age I can continue my life cover?
LIC E Term plan provide life cover till the age of 75 years. This is the maximum age covered by any online term plan in current market.
5. For how much tenure one should buy LIC E Term plan?
You can choose from 5-35 years of term under this policy. But it is always advised to buy a term plan till you retire. E.g. if you age is 30 years and you are planning to retire by 55 years then take a term plan of 25 years. Or in the safe side 30 years so that till the age of 60 years your life covered.
6. Can I cover my wife’s life under this policy?
If you are buying this policy in your wife name then only your wife’s life will be covered. Term plans are only to cover death risk of single person’s life, who is buying that plan.
7. What will happen if I survive till policy term?
You should know that a pure term plan only provide death risk cover, no maturity benefit. But now there are few plans like Max Life Online Term plan where one can opt for lump-sum with monthly income option. But LIC online term plan has no such feature.
8. I already have a term plan with other company. Do I have to share the same with LIC when buying LIC E Term plan?
Off course. This is a mandatory clause and if you fail to do so your family may suffer in future due to insurance claim rejection. So never hide any such facts.
9. Is medical test mandatory for LIC E Term plan?
Medical test will depend mainly on your declaration and the sum assured amount you are asking for. If you honestly mention every detail of your medical history and ask for less life cover then it may not ask for medical test. But for a large life cover it is mandatory.
10. Should I buy another plan as Medical test is not mandatory for that?
Why you want to hide your medical history? It’s better to say the truth and then buy the policy. Remember you are buying this plan for your family, not just to save income tax or finishing one of your tasks. Even if company does not ask for medical test, you should cross question them why they don’t want it? Because in future they may get a chance to harass your family by not settling your insurance claim.
11. Do I have to pay for the medical test?
Don’t worry they will deduct the amount from you only.
12. My premium got changed after medical test. Is it normal?
Yes, most of the time when we fill the online form to buy LIC E Term plan it will generate the premium s per the data provided. But after that you have to go through with the medical test. If something is wrong during that test you have to pay higher premium.
13. What details one has to provide to buy LIC online term plan?
As soon as you visit LIC Direct website and click to fill the form you can find the information. Mainly one have to provide education details, occupation, PAN details, form 16/ITR for last 3 years or pay slip for last 3 months, existing life insurance plans, medical history etc.
14. How cheap is LIC E Term plan premium is?
LIC E Term plan premium is comparatively very high. You can check out the online term plan premium calculation chart here.
15. Can I buy LIC E Term plan to save income tax?
Off course you can buy LIC E Term plan to save income tax. But you are considering a term insurance plan for income tax saving? You should know the importance of a term plan and then buy. For income tax saving there are plenty of other products in market.
16. How to buy LIC E Term plan online?
Visit LIC Direct website and follow the step by step process explained clearly. I am planning to write a complete step by step article on how to buy line online term plan.
17. Do LIC has any customer support where I can ask if I face any issue online.
You can contact firstname.lastname@example.org or call to toll free number 1800-22-7717. But I am not sure about LIC customer support response. I have contacted them via mail for few queries, but response was as smooth as I expected.
18. Can I pay LIC E term plan premium monthly?
No. One can only pay annual premium under this policy.
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19. What is the premium difference between eTerm and Amulya Jeevan ii
For a 30 year non-smoker, to buy eterm plan of 50 lakh cover for 30 years one have to pay Rs 9,850 premium / year. For the same condition one have to pay Rs 11,650 / year for LIC New Amulya Jeevan ii.
20. If I forget to pay premium?
You will get 30 days of grace period to pay your annual premium. After that your policy may be lapsed. Set up proper reminder function so that you can’t miss the premium payment date.
21. What happen if I forget to pay my premium even after grace period?
In that case your policy will get lapsed. One can revive a lapse eTerm plan within 2 years from the first unpaid premium. You may have to pay some extra amount or penalty as per LIC rules. You can contact your nearest LIC official regarding that.
22. How is LIC’s claim settlement ratio?
I don’t think LIC deserve this question or not. Without any doubt LIC is the best company and holding the top position from long time in the list of claim settlement ratio. I if you see the data you will agree that no other company can touch them in near future.
23. Can I buy some additional riders with this plan?
No. This is a straight forward product. It is not attached with any accidental or illness rider benefit.
24. Can my life covered if I travel outside India?
Yes, this is one good point about LIC ETerm plan. One’s life will covered even if you travel permanently outside till policy term. Means if you become an NRI in future, your life will be covered as you bought that policy in India before.
25. I don’t want to buy LIC E Term plan. What are the alternatives?
You have a huge list of online term plans. Better you read the article and decide your own. But it is always advised to go with the big brand names like LIC, HDFC, ICICI, MaxLife, Kotak etc.
26. Can I surrender my old term plan and buy LIC E Term plan?
Yes, you can surrender your previous term insurance plan and buy LIC E Term plan. In that case declaration is also not mandatory as you have closed that.
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27. I already bought LIC Amulya Jeevan offline term plan. Can I buy LIC E Term plan now?
You have to cancel your Amulya Jeevan plan before purchasing LIC E Term plan. To do that it is better to write a mail to LIC authorities that you want to switch old Amulya Jeevan with new LIC E Term plan.
28. Can I cancel LIC E Term plan after payment done?
It depends. You can cancel your policy till medical test done or till documents dispatched. So make sure you contacted them on time and get LIC E Term plan cancelled. You can also get a cooling off period.
29. What is cooling off period for eterm plan?
After receiving all policy documents and bond if you find there is any mismatch, you can cancel LIC eTerm plan with in 30 days. This is called cooling off period.
30. I am not satisfied with LIC service, how can I register a complaint against LIC?
You can visit LIC grievance page. There you can find the contact details and raise your complaint accordingly.
Hope this article will help you to buy LIC online term plan easily. If you have any further queries please write a small comment, I will try to answer all your questions regarding LIC eTerm plan.