LIC Term Insurance for 1 Crore

In recent years, term insurance plans have gained a lot of popularity due to the wide range of benefits they offer, such as high sum assured, low premiums, multiple riders, and plenty of options for customising death benefit payouts and premium payment frequencies. With this surge in demand, several new private players have entered the market, offering competitive policies with attractive perks. While many people, especially younger generations, are leaning toward these newer providers, some established insurers still dominate the market due to their strong track records.

One such reliable name is the Life Insurance Corporation of India (LIC), which stands as the country’s oldest and largest public sector insurer, serving a vast number of clients. While LIC offers a wide range of life insurance products, today we’ll focus on its term insurance policies, specifically those offering ₹1 crore coverage.

Given the rising inflation, increasing cost of living, and your growing financial responsibilities, opting for a ₹1 crore coverage plan seems like a sensible choice. But the real question is, should LIC be your go-to life insurer?

(Note: It's important to remember that the ideal term insurance cover amount varies for each person, depending on factors like income, age, dependents, and current financial situation. You can easily calculate your ideal coverage using a free tool!)

Now, let’s look closer at LIC, its operational efficiency, and the top LIC term insurance plans offering ₹1 crore coverage.

(Thinking about your financial security? Why not book a free consultation with us? Understanding the details of term insurance policies, filled with complex legal, medical, and financial jargon, is crucial. We offer clear guidance through every step, ensuring a seamless and SPAM-free experience, trusted by over 10,000 clients!)

LIC as a Term Insurance Provider 

The Life Insurance Corporation of India (LIC) began its journey in 1956, making it the oldest public sector life insurance provider in the country.

Over the years, LIC has expanded its range of financial products to include endowment plans, ULIPs, pension plans, micro insurance plans, and term insurance policies. LIC has built a large and loyal customer base thanks to its long-standing reputation and diverse product offerings.

Metrics of LIC

• Claim Settlement Ratio (CSR): This metric shows how many claims an insurer has settled compared to how many it has received in a given year. While it’s an important factor in evaluating an insurer’s reliability, it shouldn’t be the only thing you look at when choosing a life insurance provider. A trustworthy insurer's CSR should be at least 97%. It's best to avoid companies with a CSR below 80% or above 100%, as these extremes could point to delays in claim settlements or higher chances of claim rejections.

Insight: LIC’s CSR is better than the pre-set benchmark of 97, and the numbers have only gotten better over the years. This is a promising start. However, please remember that while CSR is a crucial metric in determining the credibility of the insurer, it isn’t the only factor to be considered when you choose a term insurer. 

• Amount Settlement Ratio (ASR): The ASR tells you if an insurer is settling claims fairly, no matter the size. It helps you understand whether the insurer is just settling small claims to improve its CSR or handling all claims properly. An ASR of 90% or higher means your nominee will likely face no issues when claiming benefits, whether the claim amount is large or small.

Insight: LIC’s Amount Settlement Ratio is well above the 90% benchmark, which is a great sign for its existing policyholder as it indicates that the insurer’s claim settlement potential is exceptional. This also signifies that the insurer has promising sustainability for the foreseeable future, which is extremely important in the case of long-term financial commitments like term insurance plans. 

• Complaint Volume: This metric tracks how often customers file complaints, especially related to claim settlements. A lower complaint volume suggests that the insurer processes claims smoothly and without complications. You don’t want your family to face hassles when claiming the death benefit, particularly when they’re already dealing with emotional and financial stress from a loss.

Insight: Considering that the industry-best complaint volume from 2020 - 2023 is 2.3, you would expect a number that is much closer to this. While LIC’s complaint volume numbers have decreased significantly, we are still concerned about the high numbers that they have reflected over 2020 - 2022. 

• Average Annual Business Income: While not directly tied to an insurer's credibility, understanding its annual business volume gives you insight into the size of the company and its client base. It's a good idea to go with a medium or large insurer that has a solid client base and a history of managing insurance claims effectively, as you’ll be entrusting them with a significant cover amount.

Insight: Considering how LIC is the oldest life insurance provider in the industry, such high business volume is not exactly surprising, but it is surely reassuring.

Top LIC Term Insurance Plans for 1 Crore Coverage

1. LIC's New Tech Term: A Snapshot LIC's New Tech Term policy isn't the most comprehensive option available. It's pretty basic but still has its merits. Here’s what it offers:

• Death Benefit Options: The plan starts with a minimum coverage of ₹50 lakhs. The maximum coverage depends on your eligibility and the insurer’s discretion. You can choose from a Level Sum Assured, where the coverage amount remains constant, or an Increasing Sum Assured, which grows by 10% annually starting from the 6th year, up to 200% or until the policyholder’s death or the end of the 15th policy year.
• Premium Discounts for Women: Female policyholders benefit from significantly lower premiums.
• Premium Variations: Premiums differ for smokers and non-smokers.
• Accidental Death Benefit Rider: This optional rider provides additional coverage if the policyholder dies due to an accident.
• Drawbacks: The premiums, both for smokers and non-smokers, are notably higher than many other plans. The plan offers only one rider and is available exclusively online, which might not appeal to everyone, especially those who prefer purchasing insurance through traditional channels.

2. LIC's New Jeevan Amar: Expanded Online Access LIC's New Jeevan Amar is essentially an online variant of the New Tech Term with many similar features but with a few tweaks:

• Death Benefit Minimum: Starts at ₹25 lakhs, with the maximum varying based on individual eligibility.
• Availability: This policy is only available online.
• Drawbacks: It’s not the most affordable or comprehensive plan on the market. Like the New Tech Term, it features only one rider and is restricted to online purchases, which may not suit everyone's preferences.

At a glance, neither LIC’s New Tech Term nor New Jeevan Amar would be the top pick for anyone looking for a ₹1 crore coverage. They offer basic term insurance without many additional benefits in other plans.

What are the Top 5 Term Insurance Plans for 1 Crore Coverage in 2025?

1. Max Life Smart Secure Plus Plan:

• Offers Accidental Death Benefits, Zero Cost Term Plan Options, inflation-linked cover increases, and waivers for premiums on total and permanent disability or critical illness.
• Attractive for smokers with relatively lower premiums.
• Drawback: The terminal illness benefit pays out only a partial sum assured upon diagnosis.

2. HDFC Life Click2Protect Super:

• Highly customisable with a zero-cost option that returns all premiums paid (excluding GST and rider premiums) if the policy is terminated on a specified date.
• Includes Accidental Death Benefit and Critical Illness Benefit covering 60 or 19 diseases.
• Drawback: It’s priced on the higher side.

3. Bajaj Allianz Smart Protect Goal:

• Offers a standard Critical Illness Rider and maturity benefits via premium returns.
• Drawback: Lacks an Accelerated Critical Illness option and terminal illness benefit.

4. ICICI Prudential iProtect Smart:

• Features four payout options and offers a Life Stage Option, increasing cover during major life events.
• Provides a Smart Exit Benefit for a refund of premiums under certain conditions.
• Drawback: Operational efficiency could be improved.

5. TATA AIA Sampoorna Raksha Supreme:

• Known for its affordability and comprehensive coverage, including an in-built terminal illness benefit and flexible premium payment options.
• Offers Accidental Death and Total Permanent Disability Benefits.
• Drawback: Minimum income eligibility is ₹10 lakhs, which might limit accessibility for some.

Each of these plans has its unique features and potential drawbacks. If you're in the market for a ₹1 crore term plan, these options merit a closer look to find the one that best suits your needs.

Why Should You Buy Term Insurance Policies from Ditto?

At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Tharun below love us:

✅No-Spam & No Salesmen

✅Rated 4.9/5 on Google Reviews by 5000+ to 9000+ happy customers

✅Backed by Zerodha

✅100% Free Consultation

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