LIC Term Insurance Plan-25 Lakhs

Choosing the right life insurance cover is not just about affordability. It is about understanding whether the coverage amount is enough for your family’s needs. Many buyers, especially first-time policyholders, start with a lower sum assured to keep premiums manageable. This is where a LIC term insurance plan of ₹25 lakhs often comes into consideration as a basic protection option from a trusted insurer.

In this article, we explain the LIC plans that offer a ₹25 lakh cover, their benefits and limitations, premium range, and who this amount of coverage is suitable for.

Best LIC 25 Lakh Insurance Plans

LIC's New Jeevan Amar (Plan No. 955)

This is the offline counterpart of New Tech-Term with the same structure and benefits.

• Minimum Sum Assured: ₹25 lakh.
• Premium Payment: Flexible options include single, regular, or limited premium payments.
• Additional Benefit: You can enhance coverage with the optional Accidental Death Benefit Rider. 
• Available through offline channels such as agents and brokers

LIC's e-Term Plan (Plan No. 825)

The older e-Term plan has been withdrawn and replaced by plans like LIC Digi Term and New Tech-Term, which also operate online. 

• Minimum Sum Assured: ₹25 lakh for the aggregate category (individuals with standard health conditions, potentially including smokers).
• Key Feature: It was an online-only plan, allowing for a paperless and often more convenient purchase process.

Note: For the non-smoker category, the minimum sum assured is typically higher, at ₹50 lakh.

LIC's Saral Jeevan Bima (Plan No. 859)

This plan is designed to be a simple, standard term insurance product with uniform terms across the industry, making it easy for customers to understand and compare. 

• Sum Assured Range: It has a fixed range from ₹5 lakh to a maximum of ₹25 lakh.
• Key Feature: The policy includes a mandatory 45-day waiting period for non-accidental death from the policy start date. If death due to non-accidental causes occurs during this period, 100% of the premiums paid (excluding taxes) are refunded, and the basic sum assured is not paid. 
• Availability: Can be purchased both online and offline.

Note: Premiums shown are annual, regular pay, and for non-smoker profiles. Actual premiums will vary depending on medical underwriting, exact policy terms, age, and plan variant.

Insurers price their flagship term plans more competitively to encourage higher cover amounts, which is why premiums do not rise proportionally with increased sum assured.

In contrast, Saral Jeevan Bima, being a standardized IRDAI-mandated plan with limited flexibility, is often priced higher than flagship plans like LIC Digi Term, despite offering lower coverage.

What are the Benefits of the LIC ₹25 Lakh Policy?

01

Death Benefit

The primary benefit is the payout of the sum assured to your family in the event of your untimely death during the policy term.

02

Affordable Premiums

This coverage amount allows for relatively low premium rates, especially for young buyers, making financial protection accessible.

03

Debt Relief

The payout can be used by your family to pay off small to medium-sized debts like personal or car loans, preventing a financial burden on them.

04

Tax Benefits

Premiums paid for these policies are eligible for tax deductions under Section 80C (old regime), and the death benefit received by the nominee is tax-exempt under Section 10(10D) of the Income Tax Act, 1961.

05

Sovereign Guarantee

LIC operates under the LIC Act, 1956, which provides a Central Government guarantee for the payment of sums assured, including applicable bonuses, under LIC policies. This means that in the unlikely event LIC is unable to meet its obligations, the Government of India is legally bound to ensure policy payouts, adding an extra layer of security and trust for policyholders.

Why Do You Need a LIC ₹25 Lakhs Policy?

A ₹25 lakh policy is a must-have if:

• You have outstanding loans (car loan, personal loan, etc.) that you want your family to clear in your absence.
• You are an early earner with a modest income and limited financial dependents.
• You have a tight budget but still want to provide essential financial security for your loved ones.
• You plan to increase your life cover later in life as your income and responsibilities grow.

How To Buy the LIC ₹25 Lakhs Plan Online?

While plans like LIC's e-Term plan are available online, the New Jeevan Amar plan for this specific amount is typically bought offline through an agent. To purchase online via the official LIC website or an aggregator: 

1. Visit the website and fill out a form with basic details like your name, age, and contact information.
2. Select a suitable plan (e.g., Saral Jeevan Bima Plan) and customize the sum assured to ₹25 lakh (for the aggregate category) and the policy term.
3. Complete any necessary medical examinations as required by the underwriting process.
4. Pay the premium online to complete the purchase.

Why Choose Ditto for Term Insurance?

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You can book a FREE consultation. Slots are running out, so make sure you book a call now or chat on WhatsApp with our expert IRDAI-certified advisors.

Ditto’s Take on LIC Term Insurance-25 Lakhs

The LIC term insurance plan of ₹25 lakhs offers basic financial protection, but it is often not enough to ensure long-term financial security, especially as inflation and future responsibilities increase. While this amount may help cover short-term expenses, it is unlikely to fully support larger goals such as children’s education, retirement needs, or unexpected medical costs.

If you have to choose a ₹25 lakh plan due to budget constraints, income eligibility issues or educational restrictions, it is best treated as a starting point rather than a final solution. Ditto strongly recommends using a cover calculation tool and upgrading to higher coverage as your income grows or your financial situation improves, so your life insurance keeps pace with your family’s real needs.

Note: LIC is not a partner insurer of Ditto. The information outlined in this article is sourced directly from the insurer’s website and other publicly available sources.