Overview of Digi Term Plan
LIC’s Digi Term Plan is a fully digital, non-linked, non-participating pure term insurance product, available exclusively online. It offers a minimum sum assured of ₹50 lakh and flexible premium payment options including single, regular, and limited pay. Policyholders can choose between a level sum assured or an increasing sum assured (which doubles over 15 years). With high sum assured rebates, special rates for women, and smoker/non-smoker premium differentiation, Digi Term is a reliable plan that offers basic life cover without much customization.
Experts' Review of Digi Term Plan
Written by Monish Vora
Chief Editor
LIC’s Digi Term Plan marks a significant step for India’s largest insurer into the digital-first term insurance space. The plan is refreshingly simple yet flexible, allowing buyers to select between a level sum assured (fixed throughout the term) or an increasing sum assured (which grows by 10% annually from year 6 to 15, doubling the cover by the 15th year). This inflation-beating feature is a standout, especially for young professionals planning for long-term family needs.
The plan is available to individuals aged 18 to 45, with coverage lasting up to 40 years or until age 75, whichever is earlier. It requires a minimum education qualification of 12th pass. The minimum sum assured starts at ₹50 lakh, aligning with typical term insurance offerings. The plan lacks add-on riders like critical illness, waiver of premium or accidental death/disability covers, which are commonly found in other digital term plans.
The increasing sum assured option, while attractive, comes with a higher premium, and once chosen, the death benefit option cannot be changed. Additionally, while the digital process is streamlined, LIC’s online platform and customer service are still catching up with private insurers in terms of user experience and speed.
Pros
The plan is a great pick if you are looking for something affordable.
LIC has decent track record with good claim and service metrics
Offers level and increasing cover options that provide fixed or gradually rising protection throughout the term.
Cons
The plan is not very feature-rich. Lacks a wide range of modern features like health management services and premium break.
The plan lacks terminal illness, life stage cover increase, accidental death benefit , and disability benefits commonly offered by other insurers.
LIC-Life Insurance Corporation of India
Key Insights
Founded
1956
LIC-Life Insurance Corporation of India was established 70 years ago and has built strong credibility over time, backed by its long-standing presence in the market.
Claims Experience
98.35% CSR, calculated as a 3-year average
LIC-Life Insurance Corporation of India settles 98.35% of all claims it receives demonstrating strong credibility.
Complaints
4.57 complaints per 10,000 claims registered
LIC-Life Insurance Corporation of India maintains a low volume of complaints, reflecting strong customer satisfaction and effective service.
Amount Settled
95.48% of total claim amount settled
LIC-Life Insurance Corporation of India demonstrates excellent claim payout efficiency, settling over 95.48% of the total claim amount filed, reflecting strong financial reliability.
The aforementioned ratios have been averaged over three years (FY24-FY26)
Features of Digi Term Plan
Option to take death benefit in installmets
Standout
Life Assured can choose this option for nominees to receive the death benefit as a lump sum or in instalments over 5 to 15 years
Exclusions in Digi Term Plan
Conditions or treatments that the policy clearly says it will not cover.
Death by suicide within the first policy year is not covered.
Deaths arising from participation in criminal or unlawful activities are excluded.
If the nominee is found responsible for the insured’s death, the claim will not be payable.
If a death claim is proven to be fraudulent, the insurer will not pay out the benefit.
Disclaimer: For illustration purposes only - exact terms are in the policy wording.
Variants of Digi Term Plan
Level Cover
Pure Term cover. The sum assured remains constant throughout the entire policy term.
Increasing cover
The sum assured remains constant for the first 5 years, then increases annually by 10% from the 6th year onwards, up to a maximum of 200% of the base sum assured, after which it remains fixed for the rest of the policy term.
What's missing in Digi Term Plan
No Accidental Death Benefit
No Zero Cost Option
No Terminal Illness Benefit
No Top-Up Option
No Waiver of Premium
No option to decrease your cover over time
No payout on disability
You can't recover your premiums after policy matures
No Critical Illness Benefit
No Special Exit Value
No Cover Continuance Benefit
No option to increase cover at life milestones
No Insta Payout Benefit
Reviews for Digi Term Plan
V
Varun Mehta
Went with Digi online process super smooth zyada calls nahi and non smoker discount mila thoda paisa bacha Satisfied so far For me Works we helps
R
Rahul Bajaj
Opted for this plan online process was quick and paperless and discounts for salaried non smoker made it cheaper Good value Honestly For me for
J
Jyoti Bansal
Chose this plan discounts for salaried non smoker made it cheaper and online process was quick and paperless Worth it No stress No stress so
K
Kiran U. Nair
Picked Digi online process was quick and paperless but once chosen options can t be changed later Still decent In short Honestly In short value
S
Sagar Sen
Signed up for Digi online process was quick and paperless and discounts for salaried non smoker made it cheaper Overall happy Honestly Works
Frequently Asked Questions
What is the LIC Digi Term Plan?
What are the benefits of the LIC Digi Term Plan?
What are the various riders customers can opt for with the LIC Digi Term Plan?
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