LIC Term Insurance Plan – Everything You Need to Know in 2025

When it comes to financial protection for your family, term insurance remains one of the most essential tools. Among all providers in India, the LIC term insurance plan stands tall as one of the most trusted and widely chosen options. With decades of credibility, wide coverage, and attractive premium options, LIC has helped millions secure peace of mind.

But if you’re wondering how LIC term plans work, what benefits they offer, how much coverage you need, and whether it’s the right option for you in 2025—this guide covers it all in simple, clear language.

🔎 What Is a LIC Term Insurance Plan?

A LIC term insurance plan is a pure life insurance product offered by the Life Insurance Corporation of India. It provides financial coverage for a specified term. If the insured person passes away during the policy term, LIC pays the sum assured to the nominee. However, if the policyholder survives the term, there is generally no maturity benefit—unless you choose a plan with a return of premium.

✅ Key Features of LIC Term Insurance:

• High life cover at affordable premiums

• Choice of policy terms (10 to 40 years)

• Option to add riders like accidental death benefit

• Online and offline purchase options

• High LIC claim settlement ratio ensures your family gets the promised benefit

🛡️ Why Choose a LIC Term Insurance Policy in 2025?

1. Trust & Legacy

LIC is not just another insurer. With over 60 years in the industry, it is the largest life insurance provider in India and is backed by the Government of India. It enjoys unmatched trust among Indian households.

2. High Claim Settlement Ratio

LIC boasts one of the highest claim settlement ratios, which means your loved ones are more likely to receive the claim without hassle.

3. Affordable LIC Term Insurance Premium

LIC’s term plans offer substantial life cover at affordable premiums. For instance, a 30-year-old non-smoker male can get a ₹1 crore sum assured at premiums starting from around ₹8,000 annually.

4. Digital Accessibility

LIC has stepped up its game with LIC online term plans and the LIC e-term plan, allowing users to buy, manage, and renew policies completely online.

📋 Top LIC Term Insurance Plans to Consider

Let’s compare some of the best LIC term plans available in 2025.

🔹 LIC Tech Term Plan

• Type: Pure term insurance

• Purchase: Online only

• Policy Term: 10 – 40 years

• Sum Assured: ₹50 lakh onwards

• Riders Available: Accidental death benefit

This is a comprehensive, LIC online term plan best suited for tech-savvy individuals who prefer paperless processes.

🔹 LIC Jeevan Amar Plan

• Type: Pure term plan

• Purchase: Offline through agents or LIC branches

• Policy Term: 10 – 40 years

• Minimum Sum Assured: ₹25 lakh

• Flexibility: Choose between level and increasing sum assured

Perfect for those who want face-to-face guidance during the buying process.

🔹 LIC Term Plan with Return of Premium (ROP)

• Type: Term plan with a maturity benefit

• Key Feature: Returns all paid premiums if you survive the term

• Suitability: Best for people who prefer not “losing” money if they outlive the policy

While it comes at a higher cost, it offers a psychological cushion for those who want some return on investment.

💡 How to Choose the Right LIC Term Plan?

Here’s what you should consider before buying a LIC life insurance term plan:

1. Your Age and Health

Younger and healthier individuals get lower premiums. Always disclose health details honestly.

2. Coverage Needed

Use the LIC term insurance calculator to determine the right sum assured based on your income, liabilities, and future needs.

3. Term Duration

Ideally, your term should cover your working years. If you’re 30 now, choose at least a 30-year term.

4. Premium Affordability

Check your budget and compare plans. Use the LIC premium calculator to get accurate estimates.

5. Add-on Riders

Enhance your policy with riders like accidental death, critical illness, or disability benefit.

🧮 Example: Using the LIC Term Insurance Calculator

Let’s take an example.

• Name: Ramesh, Age: 35

• Annual Income: ₹10 lakhs

• Dependents: Wife, 2 kids

• Existing Loans: ₹30 lakhs

🔢 Recommended Coverage:

Using the LIC calculator, Ramesh needs around ₹1.5 crore sum assured LIC to cover his family’s living costs and liabilities.

• Premium (LIC Tech Term): ~₹10,000/year for 30 years

• Death Benefit LIC: ₹1.5 crore payout to nominee in case of unfortunate death

📲 How to Buy a LIC Term Plan Online?

You can easily buy a LIC e-term plan by following these steps:

1. Visit www.licindia.in

2. Choose the term insurance product

3. Use the calculator to estimate the premium

4. Fill out the application form

5. Complete medical tests (if required)

6. Pay the premium and get the policy document digitally

You can also consult a LIC agent if you prefer offline support.

🎯 Key Benefits of LIC Term Insurance

✔ Financial Security for Family

Your family receives a death benefit LIC amount that can cover future expenses, education, and daily needs.

✔ Tax Benefits

You can claim deductions on premiums under Section 80C and claim exemption on the death benefit under Section 10(10D) of the Income Tax Act.

✔ Peace of Mind

Whether you choose a term plan without maturity benefit or one with return of premium, the emotional assurance it brings is unmatched.

🙋‍♂️ FAQs: LIC Term Insurance Plan (2025)

❓1. What is the minimum age to apply for a LIC term plan?

You can apply from the age of 18 years, while the maximum entry age is usually around 65 years.

❓2. Can I increase the coverage after buying the policy?

No, you cannot increase the sum assured LIC mid-term. You’d need to buy a new policy for additional cover.

❓3. Is LIC term insurance better than private companies?

While private companies offer competitive pricing, LIC wins in trust, wider reach, and a strong claim settlement ratio.

❓4. What happens if I miss a premium payment?

You usually get a grace period of 30 days. If the premium is not paid within that, the policy may lapse—but can be revived later with conditions.

❓5. What is the nominee’s role in LIC term plan?

The nominee in LIC term plan is the person designated to receive the death benefit. Always keep this updated.

❓6. Is LIC Tech Term Plan better than Jeevan Amar?

LIC Tech Term is great if you prefer buying online and want lower premiums. Jeevan Amar is ideal for those who prefer customization and offline purchase.

❓7. What is the average LIC term insurance premium for ₹1 crore cover?

For a healthy 30-year-old male, it’s approximately ₹8,000–₹10,000 per year, depending on the plan and term.

✅ Conclusion: Should You Buy a LIC Term Insurance Plan in 2025?

If you’re looking for pure term insurance, backed by the trust and reputation of India’s largest insurer, a LIC term insurance plan is a smart and secure choice. With options like Tech Term and Jeevan Amar, LIC caters to both digital-savvy users and traditional buyers.

Whether you want simple coverage or added benefits like premium returns or accidental riders—LIC offers a flexible suite of plans that balance affordability and protection.

👉 Don’t wait until it’s too late. Protect your loved ones today with the right LIC term insurance policy.

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