LIC Term Insurance — Ultimate Guide (2025)
Quick Take — Which LIC Term Insurance Plan Is Best for You?
For most buyers who want low cost + high trust, LIC New Tech-Term (Plan No. 954) is the best overall choice because of its competitive online-only premium. If you prefer in-person guidance for a high-value policy, consider the offline counterpart LIC New Jeevan Amar (Plan No. 955). For very small/simple needs, Saral Jeevan Bima is a good starter. I generally advise against Return-of-Premium (ROP) plans like Jeevan Kiran unless you prefer guaranteed return of paid premiums and accept significantly higher cost.
LIC Term Insurance Plans (2025) — Full Product List & Short Guide
1. LIC New Tech-Term — Plan No. 954 (UIN: 512N339V02)
Type: Online-only, pure term (non-participating)
Key benefit: Lowest LIC premiums thanks to online rebate.
Eligibility: Age 18–65; policy term 10–40 years.
Best for: Self-directed, tech-savvy buyers who want cheapest pure protection from LIC.
Key benefit: Lowest LIC premiums thanks to online rebate.
Eligibility: Age 18–65; policy term 10–40 years.
Best for: Self-directed, tech-savvy buyers who want cheapest pure protection from LIC.
2. LIC New Jeevan Amar — Plan No. 955 (UIN: 512N338V02)
Type: Offline equivalent of Tech-Term, sold via agents.
Key benefit: Agent support and servicing convenience.
Best for: Buyers who value face-to-face help for application & servicing.
Key benefit: Agent support and servicing convenience.
Best for: Buyers who value face-to-face help for application & servicing.
3. Saral Jeevan Bima — Plan No. 859 (UIN: 512N342V02)
Type: Standardized pure-term product mandated by IRDAI for simplicity.
Key benefit: Simple features, accessible; usually covers up to ₹25 Lakh.
Best for: First-time buyers and low-cover needs.
Key benefit: Simple features, accessible; usually covers up to ₹25 Lakh.
Best for: First-time buyers and low-cover needs.
4. LIC Jeevan Kiran — Plan No. 870 (UIN: 512N359V02) — ROP
Type: Return-of-Premium term plan.
Key benefit: All base premiums returned on survival (excl. taxes, rider premiums).
Best for: Highly risk-averse buyers who want a savings-like result — but be aware of the high cost.
Key benefit: All base premiums returned on survival (excl. taxes, rider premiums).
Best for: Highly risk-averse buyers who want a savings-like result — but be aware of the high cost.
5. Bhagya Lakshmi — Plan No. 919 (UIN: 512N299V02)
Type: Non-participating, limited payment protection for low-income households.
Best for: Rural / economically weaker segments.
Best for: Rural / economically weaker segments.
6. New Jeevan Mangal — Plan No. 940 (UIN: 512N308V02)
Type: Micro-insurance with ROP element; protection + small savings.
Best for: Micro-insurance segment wanting a small savings component.
Best for: Micro-insurance segment wanting a small savings component.
Note: Some legacy plans (e.g., Anmol Jeevan II) have been withdrawn or replaced; always check LIC’s product brochure for current availability.
Key Features & Benefits of LIC Term Insurance
- High Sum Assured: LIC term plans offer substantial coverage amounts, often going up to ₹1 crore and beyond, ensuring your family's financial needs are fully met.
- Affordable Premiums: For a non-smoker, a high-value lic term insurance 1 crore policy can be secured for a very competitive monthly premium, especially when purchased online.
- Flexible Payout Options: Nominees can choose to receive the death benefit as a lump sum, as a regular income, or a combination of both, providing flexibility to manage finances.
- Rider Availability: You can enhance your protection by adding riders for accidental death, disability, or critical illness.
- Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C, and the death benefit payout to the nominee is tax-free under Section 10(10D).
- Multiple Premium Payment Terms: Choose from Single, Regular, or Limited premium payment terms to align with your financial capacity.
LIC vs. Private Insurers — Premium & Feature Comparison
LIC combines a nationwide service network and a long history of paying claims, making it the natural choice for buyers who value offline support and brand trust. Recent online plans (Tech-Term, Digi Term) now offer competitive pricing for self-service buyers.
| Feature | LIC (e.g., Tech-Term) | Top Private Insurer A | Top Private Insurer B |
|---|---|---|---|
| Premium Cost | Generally competitive, especially for online plans. | Often very competitive, can be lower. | Competitive, especially with wellness-linked discounts. |
| Claim Settlement Ratio (CSR) | Very High (98.52% for FY2022-23) | High (97-99% range) | High (97-99% range) |
| Trust Factor | Highest (Govt.-backed) | High (Regulated by IRDAI) | High |
| Features & Riders | Standard options (AD&DB, CI) | Often more innovative features | Wide range of flexible riders |
| Purchase Process | Improving online, still strong offline | Excellent, seamless online experience | Strong digital-first experience |
Riders & Add-ons — What to Consider (and What to Avoid)
Worth considering
- Accidental Death & Disability (AD&DB): inexpensive and high incremental protection.
- Critical Illness (CI): useful if you don’t have robust health cover.
Use caution
- Return-of-Premium (ROP): high cost; financially often inferior to buying pure term + investing the difference.
- Excessive layering of riders: can push your monthly outlay much higher; buy only what materially improves your family’s protection.
Claim Settlement — Step-by-Step & Timelines
Intimation
Nominee files claim at servicing branch with death certificate, original policy & KYC.
Verification
LIC verifies documents; may request hospital records or post-mortem if required.
IRDAI timelines
Non-investigated claims to be settled within 30 days of receiving all documents; investigations can extend timelines (up to ~120 days for complex cases).
Tip
Keep digital copies & a claim folder for your nominee to speed the process.
How to Buy LIC Term Insurance Online — Quick Steps
- 1
Calculate Premium
Use the calculator to set sum assured, age and term.
- 2
Visit LIC e-services portal
Choose the New Tech-Term option and start application.
- 3
Fill the form
Provide personal, health & nominee details accurately.
- 4
Upload Documents & Pay
Upload PAN/Aadhaar and necessary documents; pay the first premium.
- 5
Complete Medical Exam
Complete any medical tests requested by LIC.
- 6
Receive Policy Documents
Receive policy documents digitally / physically after issuance.
Frequently Asked Questions (Short Answers)
Real Case Studies & Customer Experiences
Case Study 1: Raj, the Early Planner. Raj, a 28-year-old software engineer, bought a ₹1 Crore LIC term insurance plan until age 65. His premium was just ₹1,200/month. By buying early, he locked in a low rate for his entire working life.
Case Study 2: Sunita, the Late Starter. Sunita, a 45-year-old business owner, realized she was underinsured. She opted for a ₹1.5 Crore cover until age 70. Her premium was higher, around ₹4,500/month, but it gave her immense peace of mind.
Conclusion & Recommended Next Step
LIC term insurance offers an unparalleled combination of trust and security. For most users, the LIC Tech-Term plan offers the best balance of low cost and high trust.
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