LIC Term Insurance Plans

Quick Overview

Life Insurance Corporation of India (LIC) term insurance plans are pure protection policies. They provide a high life cover for a fixed period at affordable premiums. LIC is India’s oldest and most trusted life insurer, backed by the Government of India.

The insurer has a strong claim settlement track record, a wide branch presence across the country, and simple policy structures that are easy to understand. Many buyers prefer LIC for long-term reliability and financial security.

Established in 1956, LIC remains India’s largest life insurer with over 55% market share. With over 14.8 lakh agents across India, LIC maintains a strong reach and distribution.

In this guide, we will walk you through popular LIC term insurance plans in detail.

LIC Term Insurance Plans: Performance Metrics

Metrics/Values	FY 22-23	FY 23-24	FY 24-25	Avg FY 22-25
Claim Settlement Ratio (CSR)	98.66%	98.24%	98.15%	98.35%
Amount Settlement Ratio (ASR)	95.19%	95.18%	NA	95.5%(Avg FY 21-24)
Annual Business Volumes (in Crores)	₹2,32,050.60	₹2,22,671.00	₹2,26,785.49	₹2,27,169.00
Amount Paid in Death Claims (in Crores)	₹18,397.8	₹17,861.8	₹20,793.4	₹19,017.6
Volume of Complaints per 10,000 claims	4.9	4.2	4.6	4.57
Solvency Ratio	1.9x	1.98x	2.11x	2.00x

Note: The insurer has a good CSR and ASR, a very strong scale of business, and a decent solvency position.

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List of LIC Term Insurance Plans

1) Digi Term

The term policy is a pure term plan and among the more affordable choices that LIC provides. It offers a sum assured from ₹50 lakh to ₹5CR (Above 5Cr Reinsurer approval required). However, the plan does not offer any riders or modern features like an early exit benefit or a life stage upgrade.

Eligibility Criteria

Eligibility	Criteria
Age Band	18 to 45 years
Policy term	Maximum of 40 years or till the age of 75, whichever is lower
Payout Options	The Death Benefit can be received in instalments over 5, 10, or 15 years (monthly, quarterly, half-yearly, or yearly) instead of a lump sum
Premium Payment term	Single, Regular, Limited Pay (10Pay & 15Pay)
Premium Payment Frequencies	Half-yearly and yearly
Varaints	Level and increasing cover (increases by 10% of Basic SA each year from the sixth policy year till fifteenth policy year)

2) Bima Kavach

The term policy by LIC is a pure protection plan which offers a SA of ₹ 2 cr with no limit (subject to U/W. With this plan, you can opt for an accident benefit rider and a cover enhancement option. However, the plan lacks riders such as a waiver of premium or critical illness.

Eligibility Criteria

Eligibility	Criteria
Age Band	18 to 65 years
Maturity Age	28 to 100 years
Policy term	Maximum of 82 years
Payout Options	Lump sum and Installments
Premium Payment term	Single, Limited (5, 10, 15 years), Regular
Premium Payment Frequencies	Half-yearly and yearly
Varaints	Level and increasing cover

For a 35-year-old non-smoker, the annual premium for a ₹2 crore cover up to age 70 is around ₹43,660 for men and ₹34,595 for women.

3) New Tech Term

The pure term insurance policy is a non-linked, individual pure-risk plan available only through LIC’s website. The policy offers an accidental benefit rider but misses modern features like an early exit benefit or a life stage upgrade.

Eligibility Criteria

Eligibility	Criteria
Age Band	18 to 65 years
Maturity Age	40 years or till the age of 80, whichever is lower
Payout Options	Can be received in instalments over 5, 10, or 15 years (monthly, quarterly, half-yearly, or yearly) instead of a lump sum
Premium Payment term	Policy Term minus 5 (for PT 10–40) or Policy Term minus 10 (for PT 15–40) and Regular
Premium Payment Frequencies	Half-yearly and yearly
Varaints	Level and increasing cover

Besides the above three plans, LIC offers plans like Yuva Term, New Jeevan Amar and Digi Credit Life (a pure decreasing term assurance plan).

Benefits of LIC Term Insurance Plans

Financial Protection for Family

LIC term plans provide a lump sum payout to your family if something happens to you during the policy term, helping them manage daily expenses, liabilities, and long-term goals without financial stress.

High Coverage

These plans offer a large life cover at slightly higher premiums. The Digi Term plan offered by LIC is relatively affordable.

Tax Benefits Under Sections 80C and 10 (10D)

Premiums paid are eligible for tax deductions under Section 80C of the old regime, while the death benefit received by nominees is tax-free under Section 10 (10D).

Online Convenience

LIC term plans can be bought and managed online through LIC’s digital platforms. From policy purchase to tracking your claim status, the process is paperless and saves time.

Eligibility Criteria for LIC Term Insurance Plans

The eligibility criteria like age, medical requirements, income and more vary for different policies offered by LIC.

Learn more about the eligibility criteria required to purchase a term plan.

What Is Covered and Not Covered Under LIC Term Insurance Plans?

Inclusions	Exclusions
Natural death (e.g., cardiac arrest)	Suicide within the first policy year
Death due to terminal or critical illness	Death due to participation in undisclosed hazardous or extreme sports
Death due to natural disasters or pandemic-related	Death due to intoxication or substance abuse
Accidental death	Death while committing a criminal act or homicide

Note: As per IRDAI rules, if the policyholder dies by suicide within the first year of buying or reviving the policy, the insurer will only refund around 80% of the total premiums.

LIC Term Insurance Plans vs Private Insurers

If we were to compare LIC’s term plans with private insurers, the core difference lies in trust vs flexibility. LIC enjoys unmatched brand credibility and long-standing customer confidence, making it the preferred choice for conservative buyers.

However, private insurers typically offer lower premiums, wider rider choices and modern features. Private companies also innovate faster, offering features like early partial payout on claims, terminal illness payout options, and smoother online journeys.

For example, Axis Max Life Smart Term Plan Plus offers an accelerated benefit of ₹2 Lakhs out of the base sum assured within 1 working day upon intimation of death (after waiting period of 1 policy year). Similarly, HDFC Life Click 2 Protect Supreme offers a terminal illness benefit (up to ₹ 2 crores) and an income benefit on accidental disability.

LIC Premiums vs Private Term Plans

Age	LIC Bima Kavach	HDFC C2P Supreme	ICICI iProtect Smart Plus	Axis Max Smart Term Plan Plus	Bajaj Life Etouch II
25	₹27,935	₹21,003	₹17,014	₹18,400	₹16,105
30	₹34,410	₹26,471	₹21,237	₹22,556	₹20,717
35	₹43,660	₹35,241	₹28,238	₹28,506	₹26,953
40	₹56,055	₹44,798	₹39,594	₹38,760	₹36,951

The listed premiums are for a non-smoker profile, male with a sum assured of ₹2 crore (Coverage till age 70, without first year discounts).

Key Insight: LIC Bima Kavach is more expensive than all other private insurance term plans.

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Ditto’s Take on LIC Term Plans

LIC’s term plans suit people who want a simple life cover for their dependents and can afford higher premiums, from a trusted institution. It lacks several inbuilt features such as instant payouts on claim intimation, premium break options, terminal illness benefits, health management services, and automatic cover increases across life stages.

Important riders like critical illness cover, waiver of premium, and payouts for accidental disability are not available, which may limit overall flexibility and long-term protection. Additionally, LIC mostly does not offer any salaried/digital or first-time insurance buyer discounts.

If you are looking for a term plan from insurers with personal customization and affordable riders, we recommend comprehensive plans, which align with your long-term goals. Explore more about how our experts evaluate term plans through Ditto’s cut.

Note: Ditto is not a partner of LIC. All information in this article is based on details available on LIC’s official website and other publicly available sources.

Frequently Asked Questions

Which is the best LIC term insurance plan?

LIC’s Digi Term Plan is widely considered due to its affordability, flexible payout options, and the ability to choose level or increasing cover. The right plan ultimately depends on your age, cover needs, and budget.

Can I buy LIC term insurance online?

Yes. LIC allows you to buy term insurance online through its official website, making the process quick and paperless from application to policy issuance.

How can I locate a LIC branch?

You can find a LIC branch by using the branch locator on the official LIC website.

How can I pay LIC premiums?

You can pay LIC premiums online through net banking, UPI, debit/credit cards, or the LIC mobile app. Offline options include ECS/auto-debit, cheque at an LIC branch, or through LIC agents.

How can I contact LIC?

You can contact LIC through their customer care helpline at +91-22-68276827 or chat at their WhatsApp number at +91-8976862090. You can also visit the nearest branch for in-person support.

Last updated on: 27 Jan, 2026