Term life insurance plans come in affordable investments. These plans offer incredible benefits in case the policyholder passes away in times of the plan’s tenure.
Generally, no maturity value is payable in this plan in case the policyholder survives up to the termination of the tenure. Term insurance plans offer great coverage at lower premium rates. Such plans are termed as basic life insurance due to their work structure.
LIC Term Plan is one of the reputed and reliable term insurance plans for ages and a large number of people rely on LIC due to its great convenience and incredible features.
Basics About LIC Term Plans
Term insurance is the one and only insurance product that is available in the category of pure insurance. Perhaps, you know that a term plan is the most fundamental type of life insurance plan because it provides coverage only on account of the demise of the policyholder, after which the respective insurance company provides the payment of the sum assured to the beneficiaries or nominees.
In case the policyholder lives through the respective policy term, he or she or his or her nominees will not receive anything. Term insurance is the most affordable type of insurance available in the market. Before choosing LIC Term Plan, you need to have a clear idea about some important points. The most important ones are discussed below:
Coverage
Coverage is one of the most important factors while it comes to purchasing a term plan. It is based on a number of factors and the most important ones are the family’s lifestyle, responsibilities, the current life-stage of the policy applicant, inflation, liabilities, and so on.
Due to the affordable payment structure, most people can easily afford the plan and can thus protect their families with sufficient funds in case of an unfortunate demise. You can expect to get a great coverage with LIC Term Plan.
Life-Stage and Count of Family Members
A person needs to understand that a term plan is not purchased for the benefit of the respective policyholder but for his/her family. This insurance policy is purchased to provide security to the financial future of policyholders’ near and dear ones in the absence of him/her.
People need to consider the number of family members and this count changes at various phases in life. It can be realized that the responsibilities of a single or unmarried person are absolutely different from a married person.
The capability of maintaining the Lifestyle
The selected term plan needs to be such that it permits the family to keep up with the lifestyle that they are accustomed to even in the absence of the bread winner. You need to also consider the insurance amount or sum assured within the term plan amongst factors like rising costs, expenses, inflation etc., so that the expectations and requirements of the family can be properly fulfilled.
Claim Settlement Ratio
Claim Settlement Ratio is referred to as the claim ratio that is to be paid to the nominees by the insurer and the total claims obtained by it from policyholders. You need to emphasize this factor carefully.
A higher of this ratio means the chances of receiving the claim amount by nominee or family is higher following the demise of the policyholder. You can check it on the official website of the respective insurance company.
Service Standards and the Claim Settlement Procedure
An ideal life insurance company must have a standard claim settlement process, which means that it needs to settle claims as quickly as possible in a straightforward and hassle-free way when the family of the policyholder requires utmost financial help.
It is a very important factor, as the family will be in terrible strain as well as emotional pain because of the unexpected loss of a family member. A positive and co-operative customer support is very crucial at this time to improve the reliability and credibility of the insurance company.
Steps to Follow for LIC Term Plans
Online
LIC offers an incredible Term Plan known as e-Term Plan that is only available through the online mode. The policy applicant must log onto the website of LIC and needs to select the suitable online term offered by LIC. After that, they must choose the respective coverage and fill in the required details.
The premium is determined through the filled in details. Then, the respective policy applicant must pay the premium amount of the chosen LIC online term plan online via debit card, net banking, or credit card facilities. The policy is then issued shortly.
Intermediaries
The LIC term plans that are not available through the online mode can be easily purchased from brokers, agents, banks etc. These intermediaries will help with the overall application process.
Purchase LIC Term Plan today.
