Life Insurance Corporation of India (LIC) term insurance protects your family financially by paying a death benefit if the life assured passes away during the policy term. LIC term insurance plans offer different coverage options, eligibility requirements, and premium structures to suit varying protection needs.
Key Features
Pure Risk Cover: Most pure risk plans provide a death benefit without a maturity payout if you survive the policy term, subject to the policy terms.
Flexible Payouts: Depending on the plan, nominees can receive the death benefit as a lump sum or through periodic installments.
Premium Discounts: Eligible applicants may receive preferential rates based on gender, smoking status, and the sum assured.
Online Purchase: Plans such as New Tech-Term and Digi Term offer convenient online purchase options.
Optional Riders: LIC’s Accident Benefit Rider (UIN: 512B203V03) is available under eligible policy configurations, subject to the applicable terms and conditions.
LIC’s long-standing reputation and extensive reach have made it a household name in India’s insurance market. But when it comes to term insurance, does its legacy translate into the best value for money?
Today, private insurers offer competitive premiums, a wider choice of riders, and flexible payout options. While LIC continues to benefit from strong brand recognition and an extensive offline network, its term plans may not offer the same combination of affordability and features as some private alternatives.
In this guide, we compare LIC term insurance plans by premiums, features, and claim settlement performance against the top term insurance companies in India to help you decide whether LIC is right for your financial needs.
Offers single, regular, and limited premium payment options, allows the death benefit to be received in installments, and has a maximum maturity age of 60 years.
For the plans listed above, refer to their respective policy documents for detailed feature information. LIC also offers other term plans, including Saral Jeevan Bima, Yuva Term, and Digi Credit Life, which you can explore directly on LIC’s official website.
Note: LIC New Tech-Term and LIC Digi Term are available online. LIC Bima Kavach and LIC Jeevan Raksha are available through online and offline channels. Purchase eligibility and availability are subject to LIC's current terms and conditions.
Where LIC Term Plans May Fall Short
In-Built Features: LIC term plans lack in-built benefits such as terminal illness cover, automatic cover continuance during financial difficulties, instant claim payouts, and health and wellness services that most modern term plans from private insurers offer.
Rider Options: LIC's rider choices are limited. Critical illness, waiver of premium, and disability riders are unavailable, while the Accidental Death Benefit Rider (ABDR) is offered with select plans. At Ditto, we recommend prioritizing the critical illness and waiver of premium riders, while you can skip the ADBR since term insurance covers all kinds of deaths by default, including accidental ones.
Premium Value: LIC New Tech-Term costs approximately ₹12,267 annually for ₹1 crore of cover for a healthy, non-smoking 25-year-old male seeking coverage until age 65. In comparison, HDFC Life Click2Protect Supreme Plus costs ₹10,327, while Axis Max Life Smart Term Plan Plus costs ₹10,160 annually. In this example, LIC costs around ₹1,940 to ₹2,107 more per year.
The difference may not translate into additional benefits, so compare premiums and policy features before buying. Actual premiums depend on the applicant's profile, coverage options, and underwriting.
LIC: Performance Metrics
Metrics (Average FY 2024-26)
LIC
Industry Average
Claim Settlement Ratio (CSR)
98.16%
99.00% (Mean)
Amount Settlement Ratio (ASR) (Average of FY 2023-25)
Note: The above metrics reflect LIC's overall life insurance performance and are not limited to any particular product. The data is sourced from IRDAI Annual Reports and LIC’s public disclosures. For more data like this, explore the Ditto Data Lab.
LIC Sample Premiums by Age & Cover Amount
The following profiles assume healthy, non-smoking, salaried individuals living in a tier 1 city such as Delhi (PIN code: 110010), with a level life cover of ₹2 crore until age 65 (without any rider).
Profile
LIC New Tech-Term
LIC Bima Kavach
25, Male
₹21,996
₹24,420
25, Female
₹19,344
₹20,230
30, Male
₹25,428
₹29,785
30, Female
₹21,528
₹24,050
Note: Premiums shown are illustrative, and the final premium may vary by age, health, tobacco use, occupation, policy term, payment structure, and underwriting.
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LIC Term Insurance vs. Other Insurers: Key Differences
Choosing between LIC and private insurers depends on the premium, coverage features, rider options, and servicing preferences.
Price: For a 30-year-old, non-smoking male seeking ₹2 crore cover until age 70, the indicative annual premiums are ₹23,234 for Axis Max Life Smart Term Plan Plus and ₹21,449 for the ICICI Life iProtect Smart Plus. In this comparison, LIC costs around 48% more than Axis Max Life and 60% more than ICICI Life. Premiums vary by policy terms, underwriting, and payment options, so compare personalized quotes before deciding.
Features: Plans such as HDFC Life Click 2 Protect Supreme Plus and Axis Max Life Smart Term Plan Plus offer in-built features like terminal illness benefits and accelerated claim payouts, which are not available in LIC term plans. Specific benefits are subject to policy terms and conditions.
Service: LIC has an extensive offline presence and agent network, while private insurers may offer more digital-first servicing options.
Claims: LIC recorded a three-year average CSR of 98.16% for FY 2024–25 to FY 2025–26, close to the industry mean of 99.00%. Given LIC’s substantial claim volumes, this reflects strong settlement performance, although Axis Max Life recorded 99.71% over the same period.
Who Should Consider LIC?
Buyers who value LIC’s established brand, prefer agent-assisted or offline support, and want a term plan that meets their coverage needs.
Who May Prefer Alternatives?
Buyers who prioritize competitive premiums, additional riders, various in-built features, or digital servicing may consider private insurers. For more details, explore our guide to the best term insurance plans in India.
Why Choose Ditto for Term Insurance?
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Conclusion
LIC is a well-established insurer with a strong brand presence and an extensive offline network. However, its term insurance plans may not always offer the most competitive premiums or the widest range of features or riders compared with private insurers. The right choice depends on your budget, coverage needs, and preferred service experience.
The best LIC term insurance plan for you depends on your coverage needs, budget, eligibility, and preferred benefits. Compare premiums and policy terms before deciding. If you value LIC’s brand familiarity and agent-assisted support, its term plans may be worth considering. Otherwise, compare quotes from at least three insurers to evaluate premiums, coverage, exclusions, and available riders before deciding.
Frequently Asked Questions
Is LIC term insurance a good choice for my family's financial protection?
LIC term insurance can be a suitable choice if you value its established brand, extensive agent network, and offline support. However, compare premiums, coverage, exclusions, and available riders with private insurers before deciding. Choose a plan that provides adequate life cover at a premium you can comfortably afford.
How is LIC Digi Term different from LIC New Tech-Term in cost, and how do I buy it?
LIC Digi Term and LIC New Tech-Term are online-only pure-risk plans starting at ₹50 lakh in life cover. Digi Term allows entry between 18 and 45 years, with a maximum maturity age of 75, while New Tech-Term accepts applicants aged 18 to 65 and offers maturity up to age 80. Both offer level or increasing cover, but premium-payment options and policy durations differ. For a 30-year-old male non-smoker seeking ₹1 crore cover until age 65, indicative annual premiums are ₹12,136 for Digi Term and ₹14,181 for New Tech-Term. Actual premiums depend on your profile, coverage choices, and underwriting.
Does LIC New Jeevan Amar pay a maturity benefit or surrender value if I outlive the policy?
No. LIC New Jeevan Amar is a pure term insurance plan, so you receive no maturity benefit if you survive the policy term. The plan has no surrender value, although LIC may refund an Unexpired Risk Premium Value if you surrender an eligible single-premium or limited-premium policy before maturity, subject to minimum premium-payment conditions. Regular-premium policies do not receive this refund. If applicable, the amount is calculated according to the policy terms. LIC New Jeevan Amar also appears under withdrawn plans, so it will not be available for fresh purchases.
How do LIC term insurance premiums for ₹1 crore compare with HDFC Life and Axis Max Life?
For a healthy, non-smoking 25-year-old salaried man in Delhi seeking ₹1 crore in life cover until age 65, the indicative annual premium is ₹12,267 for LIC New Tech-Term, ₹10,327 for HDFC Life Click2Protect Supreme Plus, and ₹10,160 for Axis Max Life Smart Term Plan Plus. In this example, LIC costs about ₹1,940 more per year than HDFC Life and ₹2,107 more than Axis Max Life. Actual premiums vary by health, smoking status, policy options, riders, and underwriting. Compare quotes with identical coverage and payout options before deciding.
What is the maximum age limit for buying LIC term insurance and for policy maturity?
LIC's maximum entry and maturity ages vary by plan. LIC New Tech-Term allows entry up to 65 years, with maturity up to 80 years. LIC Digi Term has a maximum entry age of 45 years and a maturity age of 75 years. LIC Bima Kavach allows entry up to 65 years, although applications above 60 are assessed case by case, and offers maturity up to 100 years. LIC Jeevan Raksha has a maximum entry age of 45 years and maturity age of 60 years. Check the latest LIC term insurance brochures for the applicable eligibility conditions before applying.
Does LIC term insurance pay the death benefit if the death is by suicide?
Yes, but the payout depends on when the death occurs. Under LIC plans such as New Tech-Term, Digi Term, and Bima Kavach, suicide within 12 months of policy commencement or revival generally results in a refund of 80% of eligible premiums paid, rather than the full sum assured. After the applicable 12-month exclusion period, the normal death benefit is payable, provided the policy is in force and the claim is admissible. The exact conditions depend on the policy version.
Does LIC offer a term insurance plan with return of premium?
No. As of October 2026, LIC does not list a return-of-premium term plan for fresh purchase. Its current pure term plans, such as LIC New Tech-Term and Digi Term, do not provide maturity payouts if you survive the policy term. At Ditto, we generally recommend buying pure term insurance and investing the premium difference separately rather than choosing return-of-premium plans.
