LIC ₹1 Crore Term Insurance Plan

The Life Insurance Corporation of India (LIC) has been India’s most trusted insurer for decades. Many buyers still associate LIC with safety, stability, and long-term reliability.

But in 2026, trust alone is not enough. Private insurers now offer lower premiums, smoother digital journeys, and more flexible features. So the real question is: Does LIC’s ₹1 crore term insurance still deliver value, or is it only about legacy? Let’s break this down.

LIC’s ₹1 Crore Term Plans

1. LIC New Tech Term (Plan 954)

LIC New Tech Term is an online-only term insurance plan that you can buy directly from the insurer, without any agent. It is available for individuals aged 18 to 65 years and can be taken for a term of up to 40 years or until age 80, whichever comes earlier. To apply, you must have completed senior secondary education (Class 12).

Cover options:

• Level Cover: The sum assured stays the same throughout the policy
• Increasing Cover:
  • Years 1–5: Death benefit equals the chosen sum assured
  • Years 6–15: Increases by 10% every year
  • From year 16 onwards: Stays at double the original sum assured

You can also add an accident benefit rider, which pays an extra amount if death occurs due to an accident. This rider is available during the premium-paying term or until age 70, whichever is earlier.

What this plan does not offer: 

• No critical illness, waiver of premium, or disability riders
• No terminal illness benefit or life-stage upgrades
• No premium discounts for online buyers, salaried individuals, or existing LIC customers

2. LIC New Jeevan Amar (Plan 955)

New Jeevan Amar is largely identical to the New Tech Term plan in structure and benefits. The key differences are:

• Lower minimum sum assured: starts at ₹25 lakh
• Available across offline channels, including via LIC agents and brokers

This plan suits buyers who prefer offline assistance or a lower starting cover.

3. LIC Digi Term (Plan 826)

LIC Digi Term is an online-only plan with more flexible premium payment options:

• Single premium
• Regular premium
• Limited pay (10 or 15 years)

Premiums can be paid yearly or half-yearly. Coverage ranges from ₹50 lakh to ₹5 crore. Higher covers require reinsurer approval.

Cover options:

• Level Sum Assured: The death benefit remains the same throughout the policy term.
• Increasing Sum Assured:
  • Years 1–5: Death benefit equals the base sum assured
  • Years 6–15: Death benefit increases by 10% every year
  • From year 16 onwards: Death benefit remains at double the original sum assured

If you choose to receive the death benefit in instalments over 5, 10, or 15 years, LIC calculates the payouts using an interest rate linked to 10-year government security (G-Sec) yields. This rate is usually about 2% lower than prevailing market rates, which can reduce the total payout compared to a lump sum.

This can result in a lower total payout compared to taking the amount as a lump sum. The plan does not offer any riders or salaried/digital discounts.

4. LIC Yuva Term (Plan 875)

LIC Yuva Term mirrors the Digi Term plan in features, cover options, and limits. The only difference is availability. Yuva Term can be purchased only through offline channels, such as LIC agents and brokers.

How to Choose the Best LIC ₹1 Crore Term Insurance Plan?

01

Evaluate your Financial Responsibilities

Consider household expenses, loans, and future goals like education. Your cover should replace your income and support your dependents.

02

Check Premium Affordability

Select a premium you can comfortably pay every year for the full policy term, not just in the initial years.

03

Factor in Inflation

LIC term plans often run for 25 to 40 years. Make sure a ₹1 crore cover will remain adequate as living costs rise over time.

Performance Metrics of LIC vs Other Players (Average of 2022–25)

LIC maintains a strong and consistent CSR, reflecting its long-standing claim-paying record. However, several private insurers now match or even exceed LIC’s CSR, often with lower complaint levels and more digital-first processes.

Note: LIC is reliable, but high CSRs are no longer exclusive to LIC. Several private insurers now offer equally strong claim records with better service efficiency.

Are There Any Hidden Clauses?

1. Mandatory Medical Tests: Applicants, especially for higher coverage or older ages, must undergo medical tests. These may include blood and urine tests (including nicotine checks), ECG, BMI, and sometimes X-rays. Additional tests like TMT or 2D echo may be required. Recent quitters or vape users can still be classified as smokers, leading to higher premiums.
2. Limited Online Availability: Only the LIC Digi Term and the New Tech Term are available online. Plans like New Jeevan Amar and Yuva Term must be bought offline through agents, which can slow the process. LIC has also launched a newer plan, Bima Kavach, but it comes with a minimum sum assured of ₹2 crore, limiting accessibility for many buyers.
3. No Return of Premium Option: LIC does not offer return-of-premium term plans. While some private insurers do, these plans are usually costlier and offer lower overall value.
4. Suicide Clause: If death occurs due to suicide within the first 12 months, LIC refunds 80% of premiums paid. Full cover applies after 12 months.

Note: Premiums shown are for level sum assured with regular premium payment, for a non-smoker profile, till age 65. Actual premiums may vary based on underwriting, age, and individual risk profile.

Why Choose Ditto for Term Insurance?

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You can book a FREE consultation. Slots are running out, so make sure you book a call now.

Ditto’s Take on LIC’s ₹1 Crore Term Insurance

LIC’s ₹1 crore term insurance plans offer reliable, no-frills protection backed by long-standing trust. However, they lack modern features like instant payout on claim intimation, health management services, premium break, and flexible add-ons like critical illness cover, waiver of premium offered by many private insurers.

While LIC has improved digitally, private insurers generally offer better features, pricing, and smoother service. Since all insurers are regulated by IRDAI, the right choice depends on whether you prioritise legacy and simplicity or flexibility and value.

Note: LIC is not a partner insurer of Ditto. The information outlined in this article is sourced directly from the insurer’s website and other publicly available sources.