LIC Digi Term Insurance Plan: Eligibility, Premium Payment, Benefits of this Coverage Online

Life Insurance Corporation of India (LIC) has launched a new plan called Digi Term by LIC for online customers and Yuva by LIC for offline customers. It is an individual, no parity, no linkage, pure risk life plan that offers financial protection to the family of the insured in the event of his unfortunate death during the political term.

LIC launches 4 new term life insurance plans; check eligibility, premiums and other benefits

What is LIC Digi Term?
LIC Digi Term is an individual, unlinked, unmatched, pure risk life plan that provides financial protection to the family of the insured in the event of his unfortunate death during the policy term.

This product does not guarantee a fixed death. benefitsregardless of actual experience. As a result, the policy does not qualify for any discretionary benefits, such as bonuses or surplus stock.

What are the key features?

• Flexibility to choose between two death benefit options: level sum assured and increasing sum assured.
• Flexibility to choose between Single Premium, Regular Premium and Limited Premium Premium payment o Choose the Policy Term/Premium Payment Term or Opt for benefit payment in installments. o Special rates for women.
• Benefit from an attractive refund for a high sum insured.
• There are two categories of premium rates, namely: (1) non-smoking rates and (2) smoking rates. The application of the non-smoking rates will be based on the results of the urine cotinine test. In all other cases, the smoking rates will apply.

Eligibility
a) Minimum entry age: [18] years (Last birthday)
b) Maximum entry age: [45] years (Last birthday)
c) Minimum age at maturity: [33] years (Last birthday)
d) Maximum maturity age: [75] years (Last birthday)

Basic sum insured
Minimum Basic Sum Insured: Rs. 50,00,000/-.
Maximum Basic Sum Insured: Rs. 5,00,00,000*

Basic sum insured range Multiple sum insured

• From Rs. 50,00,000/- to Rs. 75,00,000/- = Rs. 1,00,000/
• Above Rs. 75,00,000/- to Rs. 1,50,00,000/- = Rs. 25,00,000/-
• Above Rs. 1,50,00,000/- to Rs. 4,00,00,000/- = Rs. 50,00,000/-
• Above Rs. 4,00,00,000/- = Rs. 1,00,00,000/-

Policy Term

• Policy Term: 15 to 40 years with regular/single/limited 10-year premium
• Policy term: 20 to 40 years with a 15-year limited premium.

Premium payment
This plan offers three different payment options: regular premium, limited premium, and single premium. If the premium payment option is regular and limited, it can be made on an annual or semi-annual basis, and the premium can be paid regularly during the premium payment period.

How is it calculated?
The age at the time of taking the insurance, gender, smoking status, policy term, premium payment period and death benefit option selected will affect the premium payable. The minimum premium for a single premium is Rs 30,000. The minimum premium in instalments under regular and limited premium modes is Rs 3,000.

Death benefit
The death benefit payable in the event of the death of the insured during the policy term after the date of commencement of risk but before the maturity date, provided the policy is in force and the claim is admissible, shall be “Sum Assured on Death”.

In the case of regular premium and limited premium payment, the “sum insured in case of death” is defined as the highest of the following:

• 7 times the annualized premium; or
• 105% of the “Total Premiums Paid” up to the date of death; or

Absolute insured amount to be paid in the event of death.

• Under the single premium payment framework, the “sum insured in case of death” is defined as the highest of the following:
• 125% of the Single Premium; or
• Absolute insured amount to be paid in the event of death.

Benefit of maturity
In the event of the insured surviving to the end of the policy term, no maturity benefit will be paid.