LIC Term Insurance Plans

Overview

Life Insurance Corporation of India (LIC) term insurance plans are pure protection, non-linked policies that offer high financial coverage if the policyholder dies during the policy term.

Popular LIC Term Insurance Plans

Digi Term: An online-only pure-risk plan offering ₹50 lakh to ₹5 crore as the standard cover range. Higher cover may be considered case by case, subject to underwriting and reinsurer terms.
New Tech Term: A non-linked online plan providing high sum assured options starting from ₹50 lakh for ages 18 to 65 years.
New Jeevan Amar: The minimum basic sum assured starts at ₹25 lakh, with no fixed upper limit (subject to underwriting), for ages 18 to 65.
Yuva Term: It offers ₹50 lakh to ₹5 crore (subject to underwriting) for ages 18 to 45 with a policy term of up to 40 years, or until age 75 (whichever comes first).

Established in 1956, LIC remains India’s largest life insurer with over 55% market share. With over 14.46 lakh agents across India, LIC maintains a strong reach and distribution.

In this guide, we compare LIC's current term plans, premiums, insurer-level claim metrics, major features and limitations, and how selected LIC options compare with private term plans.

LIC Term Insurance Plans: Performance Metrics

Metrics/Values	FY 23-24	FY 24-25	FY 25-26	Avg FY 24-26
Claim Settlement Ratio (CSR)	98.24%	98.15%	98.10%	98.16%
Amount Settlement Ratio (ASR)	95.19% (FY 22-23)	95.18% (FY 23-24)	96.07% (FY 24-25)	95.48%(Avg FY 23-25)
Annual Business Volumes (Crore)	₹2,22,671.00	₹2,26,785.49	₹2,60,612.97	₹2,36,689.82
Volume of Complaints per 10,000 claims	4.22	4.61	4.20	4.34
Solvency Ratio	1.98x	2.11x	2.35x	2.15x

Note: These metrics reflect LIC's overall life insurance business and are not specific to its term insurance portfolio. Latest data for FY 25-26 hasn’t been released yet for the ASR. These metrics come from the insurer’s public disclosures and IRDAI annual reports. To compare them with other insurers, you can refer to Ditto Data Lab.

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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 ₹5 crore (for sums above ₹5 crore, reinsurer approval is required). However, the plan does not offer any riders or modern features like an early exit benefit or a life stage upgrade.

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 installments 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
Variants	Level and increasing cover (increases by 10% of Basic Sum Assured each year from the sixth policy year till the fifteenth policy year)

2) Bima Kavach

LIC Bima Kavach is a pure protection plan which offers a Sum Assured (SA) of ₹2 crore with no limit (subject to underwriting). 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
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
Variants	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
Age Band	18 to 65 years
Maximum Maturity Age	80 years
Payout Options	Can be received in installments over 5, 10, or 15 years (monthly, quarterly, half-yearly, or yearly) instead of a lump sum
Premium Payment Term	Policy Term (PT) minus 5 (for PT 10–40) or Policy Term minus 10 (for PT 15–40) and Regular
Premium Payment Frequencies	Half-yearly and yearly
Variants	Level and increasing cover

Besides the three plans above, LIC offers plans like Digi Credit Life, Yuva Credit Life, Yuva Term, New Jeevan Amar, Saral Jeevan Bima, Jeevan Raksha, 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

Several LIC term plans support large sum assured amounts, but premiums can be higher than those of the private plans compared here, depending on the buyer's profile and underwriting.

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

Premiums paid are eligible for tax deductions under Section 80C of the old regime (now Section 123 read with Schedule XV), while the death benefit received by nominees is tax-free under Section 10 (10D) (now Section 11 read with Schedule II).

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

Eligibility criteria, such as age, medical requirements, income, and more, vary by policy. You can learn more about term insurance eligibility by going through our detailed guide on the same.

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

Inclusions	Exclusions
Natural death	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

When comparing LIC’s term plans with private insurers, the main difference is 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 lakh out of the base sum assured within 1 working day upon intimation of death (after a waiting period of 1 policy year). Similarly, HDFC Life Click 2 Protect Supreme offers a terminal illness benefit (up to ₹2 crore) and an income benefit on accidental disability.

LIC Premiums vs. Private Term Plans

Age	LIC Bima Kavach	Axis Max Life Smart Term Plan Plus	HDFC C2P Supreme Plus	ICICI iProtect Smart Plus
25	₹27,935	₹18,952	₹21,424	₹17,184
30	₹34,410	₹23,234	₹27,000	₹21,449
35	₹43,660	₹28,336	₹35,945	₹28,520
40	₹56,055	₹39,726	₹45,694	₹39,990

Note: The listed premiums are for a non-smoker profile, male, with a sum assured of ₹2 crore, living in a tier-1 city like Delhi (pincode 110010) and covered till age 70, without first-year discounts. These are indicative premiums and vary according to the age, sum assured, health conditions, lifestyle choices, riders, and underwriting.

Key Insight: For these sample profiles and the three private plans compared above, LIC Bima Kavach has the highest quoted premium.

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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. They lack 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.

If you are looking for a term plan from insurers with personal customization and affordable riders, we recommend going through the list of the best term insurance plans in India.

Frequently Asked Questions

Which is the best LIC term insurance plan?

There is no single best LIC term insurance plan for everyone. Digi Term may suit younger buyers who want an online-only plan with cover starting at ₹50 lakh, while Bima Kavach is designed for larger covers starting at ₹2 crore and offers an Accident Benefit Rider plus a conditional Life Stage Option. New Tech-Term supports entry up to age 65 and also offers an Accident Benefit Rider. Compare premiums, age limits, payout choices, underwriting, and feature needs before choosing. The right choice should reflect your budget and the features you actually need.

Can I buy LIC term insurance online?

Yes. You can buy some LIC term insurance online, but the purchase route depends on the plan. Digi Term and New Tech-Term are online-only. Bima Kavach can be purchased online as well as through eligible offline channels, while Yuva Term and New Jeevan Amar are sold offline through LIC intermediaries. Before applying, check the current LIC product page because purchase channels and product versions can change.

What is the LIC term insurance eligibility?

LIC term insurance eligibility varies by product. Digi Term accepts entry ages 18 to 45, while New Tech-Term and Bima Kavach allow entry up to age 65, subject to plan conditions and underwriting. Eligibility also depends on income, occupation, health, smoking status, requested sum assured, policy term, and medical results. For Bima Kavach, proposals above age 60 are considered case-by-case.

How much does an LIC term insurance premium cost?

An LIC term insurance premium depends on age, gender, smoking status, cover amount, policy term, premium-payment option, occupation, health, and underwriting. For example, a 35-year-old non-smoker buying ₹2 crore of Bima Kavach cover to age 70 is quoted at about ₹43,660 a year for a man and ₹34,595 for a woman.

What is LIC's term insurance Claim Settlement Ratio (CSR)?

LIC's term insurance claim settlement ratio is not disclosed separately by product. Ditto's current Data Lab calculates LIC's overall life-insurance claim settlement ratio at a three-year average of 98.16% for FY 2024–26, using insurer public disclosures and IRDAI annual reports. This metric covers LIC's wider life-insurance business, not only term plans.

Does LIC offer a ₹1 crore or ₹2 crore term plan?

LIC offers term plans that can support ₹1 crore and ₹2 crore term insurance cover, subject to each plan's minimum sum assured and underwriting. Digi Term and New Tech-Term start at ₹50 lakh, so ₹1 crore and ₹2 crore can fall within their accepted cover ranges. Bima Kavach starts at ₹2 crore, making it unsuitable if you want only ₹1 crore. The amount LIC ultimately offers can depend on your income, age, occupation, health, and financial underwriting, so the requested cover is not automatically guaranteed.

LIC term insurance vs. private insurers: which is better?

LIC term insurance vs. private insurers comes down to price, features, service preference, and underwriting fit. LIC offers straightforward products and a large offline network, while the private plans compared in this draft generally have lower sample premiums and broader rider or flexibility options. For example, some private plans such as Axis Max Life Smart Term Plan Plus include early claim-intimation payouts, terminal-illness acceleration, or disability-related benefits.

Which LIC term insurance riders are available?

LIC term insurance riders are plan-specific. New Tech-Term and Bima Kavach allow LIC's Accident Benefit Rider under stated conditions, while the current Digi Term brochure does not list an optional rider. LIC does offer other riders at the insurer level, including premium-waiver and critical-illness riders, but that does not mean they can be attached to every term plan. Always check the brochure and policy wording for the exact product version before buying. Rider availability, eligibility, cover limits, and extra premiums can differ.

Last updated on: 7 Sep, 2026