Life Insurance Corporation of India (LIC) has launched a term insurance plan called LIC Digi Term – a non-par, non-linked, life, individual, pure risk plan, which provides financial protection to the insured’s family in case of unfortunate death of the policyholder.
LIC’s Digi Term is a non-par, non-linked, life, individual, pure risk plan, which provides financial protection to the insured’s family in case of unfortunate death of the policyholder during the policy term.
This is a non-par product under which benefits payable on death are guaranteed and fixed irrespective of actual experience. Hence, the policy is not entitled to any discretionary benefits like bonus etc or share in surplus.
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Where can you buy LIC’s Digi Term?
You can buy this plan online only directly through LIC India website – http://www.licindia.in.
LIC’s Digi Term key features:
Flexibility to choose from two death benefit options: Level Sum Assured and Increasing Sum Assured.
- Flexibility to choose from single premium, regular premium and limited premium Payment
- Flexibility to choose the policy term/premium paying term
- Opt for payment of benefit in instalments.
- Special rates for women.
- Benefit of attractive high sum assured rebate.
- Two categories of premium rates namely – Non-Smoker rates and Smoker rates. The application of Non-Smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases, the smoker rates will be applicable.
Eligibility conditions and other restrictions:
- Minimum Age at entry: 18 years
- Maximum Age at entry: 45 years
- Minimum Age at Maturity: 33 years
- Maximum age at Maturity: 75 years
- Minimum Basic Sum Assured: Rs 50,00,000
- Maximum Basic Sum Assured: Rs 5,00,00,000
(The Basic Sum Assured above Rs 5,00,00,000 may be considered on case to case basis in accordance with underwriting decision as per the board approved underwriting policy subject to the decision of reinsurer on acceptance/terms and conditions for acceptance of such case.)
Policy Term and Premium Payment Term:
- Premium Payment Term: Regular, limited premium of 10 years; limited premium of 15 years, single premium;
- Policy Term: 15 to 40 years under regular/single/limited premium of 10 years;
- Policy Term: 20 to 40 years under limited premium of 15 years;
- Minimum Premium: The minimum instalment premium will be Rs 3,000 for regular/limited premium payment policies;
- The minimum instalment premium will be Rs 30,000 for Single premium payment policies.
Benefits:
Benefits payable under an in-force policy shall be as under:
Death Benefit: Death benefit payable on death of the life assured during the policy term after the date of commencement of risk but before the date of maturity, provided the policy is in force and claim is admissible shall be “Sum Assured on Death”.
Under regular premium and limited premium payment, “Sum Assured on Death” is defined as the highest of:
- 7 times of annualised premium; or
- 105% of “Total Premiums Paid” upto the date of death; or
- Absolute amount assured to be paid on death.
Under Single premium payment, “Sum Assured on Death” is defined as the higher of:
- 125% of Single Premium; or
- Absolute amount assured to be paid on death.
Maturity Benefit:
On survival of the life assured to the end of the policy term, no maturity benefit is payable.
