Life is unpredictable for all. One day you’re here and next day you’re gone away. And if you’re the breadwinner of your family, your death could leave them financially devastated for economial. That’s why it’s so important to have life insurance.
Term insurance is a type of life insurance that provides death benefit to your beneficiaries/nominee if you die during the policy term. It is best protection plan for family, which means there’s no savings component. This makes term insurance very affordable, even for people with limited means.
LIC is one of the most trusted and popular life insurance companies in India. Their term insurance plans give sufficient coverage options, so you can find one that’s right for your needs and budget for your family.
What is LIC term insurance?
LIC term insurance is a type of life insurance that provides death benefit to your beneficiaries/nominee if you die during the policy. The death benefit is a lump sum of money that your beneficiaries/nominee can use to cover their financial expenses, such as funeral costs, debts, child education, and living expenses.
Why is LIC term insurance important?
Term insurance is important for all specially in youth age because it provides financial protection for your family in case of your death. If you die unexpectedly, your family will be left without your income. Term insurance help your family has the financial resources they need to get by.
How to choose the right LIC term insurance plan
There are few factors to consider when choosing LIC term insurance plan:
- The amount of coverage you need
- Policy term
- Premium amount
- Policy features
- Present Age
Here are some key features of the LIC Term Insurance Plan:
- Death benefit: The death benefit is the amount of money that will be paid to your nominee/beneficiaries in case of your death during the policy . The death benefit can be used to pay off your debts, provide for your family’s financial needs, or anything else that you and your family would like.
- Premiums: The premiums for the LIC Term Insurance Plan are very affordable, even for high coverage levels. The premiums are payable monthly, quarterly, half-yearly, or annually as you want.
- Policy term: You can choose the policy term that best suits your needs, from 10 years to 35 years. The longer the policy term, the higher the premiums will be depend your age.
- Tax benefits: The premiums for the LIC Term Insurance Plan are tax-deductible, which can save you money on your taxes.
FAQs about the LIC Term Insurance Plan:
1. What is the difference between term insurance and whole life insurance?
Term insurance is best protection plan for your family, which means that it only provides death benefit. Whole life insurance, on the other hand, is a combination of protection and investment. Whole life insurance policies have premiums that are higher than term insurance policies, but they also offer maturity benefit. Simply, Whole life insurance is investment plan for returing and Term insurance is protection plan for family.
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2. How much life insurance do I need?
The amount of life insurance you need depends on your individual circumstances or future need. You should consider your income, expenses, debts, and the financial needs of your family.
3. What are the pros and cons of the LIC Term Insurance Plan?
The pros of the LIC Term Insurance Plan include:
* Affordable premiums
* High coverage levels
* Flexible terms
* Tax benefits
The cons of the LIC Term Insurance Plan include:
* No maturity benefit
* Premiums are payable for the entire policy term
Here are some tips for choosing a life insurance plan:
- Consider your individual needs: The amount of life insurance you need will depend on your individual circumstances. You should consider your income, expenses, debts, and the financial needs of your family.
- Compare different plans: There are many different life insurance plans available, so it’s important to compare different plans before you choose one. Compare the premiums, coverage levels, terms, and benefits of different plans to find the best one for you.
- Read the fine print: Before you buy a life insurance plan, be sure to read the fine print. This includes the terms and conditions of the plan, as well as the exclusions and limitations.
LIC Term Insurance Plan is best option for you, if you are looking an affordable and comprehensive life insurance plan to protect your family. This plan give high coverage levels, low premiums, flexible terms, and tax benefits. If you are looking good life insurance plan for your family, LIC Term Insurance Plan is best option to consider.
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To learn more about LIC term insurance, visit the LIC website or speak to a financial advisor. You also use Investment Calculator — Direct Link — Investment Calculator