LIC Term Insurance — Compare Plans, Premium Calculator & Honest Reviews
By Mahesh Chaubey, CFP — Last reviewed: May 2026
Reviewed by Laveena Vijayi — BharatSaver Editorial Team
Reviewed by Laveena Vijayi — BharatSaver Editorial Team
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. For comprehensive financial planning, use our retirement corpus calculator to determine the right coverage amount. 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 — Comparison Guide
| Plan Name | Min Age | Max Age | Max Cover | Online Buy? | Best For |
|---|---|---|---|---|---|
| LIC Tech-Term (954) | 18 | 65 | No Limit | Yes | Cheapest pure term cover online |
| LIC Jeevan Amar (955) | 18 | 65 | No Limit | No (Agents) | Offline buyer seeking agent help |
| Saral Jeevan Bima (859) | 18 | 65 | ₹25 Lakh | Yes | Simple, low-cover starter plan |
| LIC Jeevan Kiran (870) | 18 | 65 | No Limit | Yes | Risk-averse buyers wanting ROP |
Subject to LIC's underwriting and maximum coverage limits based on income.
1. LIC New Tech-Term — Plan No. 954
Type: Online-only, pure term (non-participating)
Key benefit: Lowest LIC premiums thanks to online rebate.
Best for: Self-directed, tech-savvy buyers who want cheapest pure protection from LIC.
Key benefit: Lowest LIC premiums thanks to online rebate.
Best for: Self-directed, tech-savvy buyers who want cheapest pure protection from LIC.
2. LIC New Jeevan Amar — Plan No. 955
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
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 — 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.
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). Compare your options with our tax regime calculator and explore savings alternatives like our FD vs PPF calculator and PPF calculator for comparing investment returns.
- Multiple Premium Payment Terms: Choose from Single, Regular, or Limited premium payment terms to align with your financial capacity. Compare these with our LIC premium calculator for all available plans.
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. For comprehensive wealth planning, compare with our FD vs PPF calculator, explore mutual fund options, and check fund overlaps for diversification.
| 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.
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.
Beyond Term Insurance: Complete Financial Planning
- Calculate Your Coverage Needs: Use our retirement corpus calculator to determine the right insurance amount for your family's financial security.
- Compare Fixed Income Options: Check our FD vs PPF calculator, explore PPF returns, and use our loan optimizer for personal finance needs.
- Tax Optimization: Plan your tax strategy using our tax regime calculator to maximize post-tax returns on your insurance and investments.
- Diversified Investing: If considering equity investments, use our mutual fund screener and mutual fund overlap calculator to build a balanced portfolio.
- Government Schemes: Explore supplementary retirement income with Atal Pension Yojana (APY), National Pension System (NPS), or Sukanya Samriddhi Yojana (SSY) for child planning.
Also Read: Related LIC Plan Guides
While term insurance provides pure protection, LIC's endowment plans offer a combination of savings and insurance. Compare them here, and use our LIC maturity calculator to understand full-term benefits:
- LIC Jeevan Anand: A classic plan that combines savings with whole-life cover.
- LIC Jeevan Umang: Provides a guaranteed income for life after the premium paying term.
- LIC Jeevan Labh: A limited premium payment plan for goal-based savings.
- LIC Single Premium Endowment: One-time investment with guaranteed returns and life cover.
- LIC Jeevan Utsav: Another endowment option for medium-term planning.
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. To create a comprehensive financial safety net, consider combining term insurance with other savings and investment vehicles.
For Your Insurance Needs: Use our LIC premium calculator to compare all available plans, explore maturity benefits if considering endowment plans, and check surrender value options for policy flexibility. If you have dependents, the LIC child plan calculator can help secure their future.
For Investment & Savings: Compare with our FD vs PPF calculator, explore PPF investment returns, use mutual fund screener for equity options, and check fund diversification to build a balanced portfolio.
For Complete Financial Planning: Calculate your total retirement needs with our retirement corpus calculator, optimize your tax situation using our tax regime calculator, manage your debt with our loan optimizer, and explore government schemes like APY, NPS, and SSY for additional income streams.
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