The Life Insurance Corporation of India (LIC) has long been part of our collective memory. Since its inception in 1956, it’s grown into India’s largest life insurer, trusted by millions across generations.
But in 2025, with private players offering intuitive digital experiences and competitive premiums, does LIC still hold its ground when it comes to term insurance?
That’s exactly what we’ll unpack today, looking beyond legacy and into value, coverage, and cost.
Ready to secure ₹1 Crore for your loved ones? With Ditto, compare LIC’s top term plans, calculate your premium, and apply online in minutes.
Looking for a ₹1 crore term plan from LIC?
LIC provides several variants under this umbrella, with options for different coverage amounts, policy terms (usually 10 to 40 years), and age eligibility. These plans come with customizable payment modes and features suited for individuals who want high coverage at affordable premiums.
Here’s a quick comparison of LIC’s ₹1 crore plans before we dive deeper:
Key Features of LIC ₹1 Crore Term Plans
Explore the key features and eligibility criteria of LIC’s ₹1 Crore Term Plans to understand which options best suit your protection needs and financial profile.
| 1 Crore LIC Term Plan Name | Entry Age | Maximum Maturity Age | Sum Assured | Policy Term |
|---|---|---|---|---|
| LIC New Tech Term | 18-65 years | 80 years | Rs 50 lakhs to no limit. | 10-40 years |
| LIC New Jeevan Amar | Rs 25 lakhs to no limit. | |||
| LIC Digi Term | 18-45 years | 75 years | Rs 50 lakhs to 5 Crore | 15-40 years |
| LIC Yuva Term |
LIC’s ₹1 Crore Term Plans: Online and Offline Plans Compared
A 1 Crore cover sounds huge, but with LIC’s term plans, it might cost a lot less than you think, so let’s find out how affordable they actually are.
1. LIC New Tech Term
LIC’s Tech Term plan is available only for online purchase directly from LIC (D2C). It is designed for individuals aged 18 to 65 years and can be taken for a policy term of up to 40 years or until the age of 80, whichever is earlier. Applicants must have at least completed the 12th grade.
The plan offers two variants:
- Level Cover: The sum assured remains fixed throughout the policy term.
- Increasing Cover: For the first 5 years, the death benefit equals the basic sum assured (X). From the 6th to the 15th year, it increases by 10% of X each year, reaching double the original sum assured (2X) by the 15th year. From the 16th year onwards, the death benefit remains at 2X until the policy ends.
An optional Accident Benefit Rider is available, which pays an additional sum assured in case of accidental death. This rider is valid only during the premium paying term or until the life assured turns 70, whichever comes first.
But the plan does not include riders for Critical Illness (CI), Waiver of Premium (WOP), or Accidental Total Permanent Disability (ATPD). There are no early exit benefits, life stage upgrades, or terminal illness benefits. Also, no discounts are offered for salaried individuals, digital buyers, first-time insurance buyers, or existing LIC customers.
2. LIC New Jeevan Amar
The New Jeevan Amar Plan (Plan 955) is very similar to the New Tech-Term Plan but with a few differences:
- The minimum sum assured starts at ₹25 lakh instead of ₹50 lakh.
- It is available for purchase not only online but also through all offline channels, including LIC agents and brokers.
This plan gives customers the flexibility to buy through traditional offline methods, with a lower entry-level sum assured compared to the online-exclusive New Tech-Term Plan.
3. LIC Digi Term Plan
The Digi Term Plan is a term insurance policy offered by LIC that you can buy only online, without involving any agents. There are flexible payment options; you can pay the entire premium at once (single pay), pay regularly throughout the policy period (regular pay), or pay premiums for a limited time of 10 or 15 years. Payments can be made either yearly or half-yearly.
The sum insured ranges from ₹50 lakh to ₹5 crore. If you want more than ₹5 crore coverage, it requires special approval from reinsurers.
There are two types of cover options in this plan:
- Level Sum Assured: The death benefit remains constant throughout the policy duration.
- Increasing Sum Assured: For the first 5 years, the payout is equal to the chosen sum assured. From the 6th year onwards, the death benefit increases by 10% every year, reaching twice the original sum assured at the 15th year. After this, it stays at double the initial amount for the remaining term.
| Did You Know? If you opt to receive the death benefit as instalments over 5, 10, or 15 years, the payouts are calculated using an interest rate linked to 10-year government securities (G-Sec) yields, typically about 2% lower than the prevailing yield. This can result in a slightly lower total payout over time compared to a lump sum payment. |
This plan also does not offer any rider benefits. Additionally, there are no discounts.
4. LIC Yuva Term Plan
The Yuva Term Plan (Plan 875) is essentially the same as LIC’s Digi Term Plan in terms of features and benefits. However, unlike the Digi Term Plan, which is exclusively available for purchase online through LIC’s digital platform, the Yuva Term Plan is accessible through all traditional offline channels, including LIC agents and brokers.
Note: The LIC ₹1 Crore Term Plans lack important riders and do not offer modern features such as instant payout on claim intimation, premium break options, or zero cost plans, which are commonly available with many private insurers.
How to Choose the Best LIC ₹1 Crore Term Insurance Plan?
Selecting the right LIC ₹1 Crore term plan is a crucial step toward securing your family’s financial future. With multiple options available, here’s how to pick the one that fits your needs best:
1) Evaluate your financial responsibilities:
Consider your family’s lifestyle, future expenses, and liabilities like home loans, EMIs, and education costs. Your sum assured should ideally replace your income and support your dependents comfortably.
2) Check premium affordability:
LIC offers trusted coverage with competitive rates. Choose a plan whose premium fits your budget, not just today, but for the long haul.
3) Factor in inflation and rising costs:
Most LIC term plans offer coverage for 25–40 years. Make sure your ₹1 Crore cover will hold up against future inflation and increased living expenses to keep your family protected for decades.
Claim Settlement Ratios (2022–2025 Average)
Understanding claim settlement ratios (CSRs) is crucial for choosing a reliable insurer. Here’s how LIC’s consistently high CSR compares to other top players in the industry.
| Insurer | Average CSR (%) | Complaints Volume per 10,000 claims | Annual Business (in Crores) | Solvency Ratio | Remarks |
|---|---|---|---|---|---|
| LIC | 98.35% | 4.57 | 227,129 | 2 | Industry leader, strong legacy |
| HDFC Life | 99.55% | 1.33 | 30,560 | 1.94 | Consistently high, digital-first approach |
| ICICI Prudential | 98.03% | 11 | 19,774 | 2.05 | Robust claim support, wide reach |
| Axis Max Life | 99.62% | 5.67 | 10,719 | 1.88 | Excellent track record, customer-centric |
| Tata AIA | 99.21% | 3 | 9,253 | 1.82 | High CSR, strong service reputation |
| SBI Life | 98.24 | 5.62 | 34,468 | 2.04 | Reliable, but slightly below top tier |
| Bajaj Allianz | 99.21 | 3.95 | 11,508 | 4.37 | Improving steadily |
| Industry Avg | 98.66% | 17.67 | 3,411.73 | 2.04 | Benchmark for top-tier performance |
Are There Any Hidden Clauses?
While LIC is known for its reliability, there are a few limitations you should be aware of before signing up:
- Mandatory Medical Tests: LIC requires certain term insurance applicants, especially those above a specified age or opting for higher coverage, to undergo medical tests that help determine their health status and eligibility. These tests commonly include blood work (like CBC, lipid profile, liver and kidney function, and fasting blood sugar), urine analysis (including nicotine checks), ECG for heart assessment, BMI measurement, and sometimes a chest X-ray.
| Did You Know? Depending on the applicant’s health or policy details, additional specialized tests such as a treadmill test (TMT) or 2D echocardiography may also be required. LIC uses a urine cotinine test to classify you as a smoker or non-smoker. If you’ve quit recently or use nicotine patches/vapes, you may still test positive and get smoker rates, which can raise premiums significantly. The specific tests recommended vary based on individual and policy factors. |
- Limited Online Purchase Options: Only the Digi Term (Plan 826) and New Tech Term (Plan 954)plans are available for quick online purchase. Plans like New Jeevan Amar (Plan 955), with a lower minimum sum assured of ₹25 lakh, and Yuva Term (Plan 875) require buying through LIC agents or brokers offline, which may slow the process.LIC has improved its online services but still lags behind private insurers in post-sales support and claims processing efficiency.
- No Return of Premium (ROP) Variant: LIC doesn’t offer a version where you get your premiums back if you survive the policy term. While many private insurers do offer ROP plans, Ditto usually advises against them as they tend to be more expensive and offer lower value.
| Did You Know? By IRDAI regulations, LIC’s base term cover cannot have exclusions beyond suicide in the first 12 months. However, there are other implicit exclusions not always explicitly mentioned in the policy documents, which typically apply only to optional riders. If death occurs by suicide within the first 12 months of policy start or revival, LIC will refund 80% of premiums paid (or surrender value in some cases). Full cover applies after 12 months. |
LIC 1 Crore Term Plan vs Other Insurers
| Plan Name | Male 25 | Female 25 | Male 30 | Female 30 | Male 35 | Female 35 |
|---|---|---|---|---|---|---|
| LIC Digi Term | ₹14,578 | ₹13,122 | ₹15,892 | ₹14,328 | ₹17,456 | ₹15,876 |
| LIC New Tech Term | ₹14,112 | ₹12,684 | ₹15,432 | ₹13,896 | ₹17,028 | ₹15,456 |
| HDFC C2P Supreme | ₹12,915 | ₹10,978 | ₹16,804 | ₹14,284 | ₹20,528 | ₹17,449 |
| ICICI iProtect Smart Plus | ₹12,123 | ₹10,305 | ₹14,343 | ₹12,192 | ₹18,460 | ₹15,827 |
| Axis Max Smart Term Plus | ₹11,640 | ₹9,894 | ₹14,086 | ₹11,973 | ₹18,621 | ₹15,692 |
| Bajaj E-touch II | ₹11,238 | ₹10,672 | ₹14,297 | ₹11,699 | ₹17,610 | ₹15,283 |
Note: All premiums listed are for Level Sum Assured, regular premium payment, inclusive of GST, and can change based on underwriting or personal risk profile.
Conclusion
LIC’s ₹1 Crore Term Insurance offers trusted, straightforward protection with flexible options, ideal for those valuing legacy and simplicity. However, it lacks advanced features like critical illness cover, waiver of premium, and customizable benefits. While LIC has improved its digital platforms, its service and claims processing still lag behind private insurers. Private companies often provide more comprehensive plans with diverse riders and innovative features, enhancing the policyholder experience. Although LIC’s government backing fosters trust, all Indian insurers are regulated by IRDAI, which enforces strong solvency norms to protect policyholders. LIC’s Digi Term plan is cost-effective for basic coverage, but if you’re seeking richer benefits, better pricing, or a smoother online experience, private insurers are worth serious consideration. It’s important to compare plans based on individual needs to find the best fit.
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