LIC Term Plan is a life insurance plan offered by Life Insurance Corporation of India (LIC). It provides life cover for a fixed period which can be chosen by the policyholder. The sum assured is paid in the event of death of policyholder during the policy period.
Basically, the LIC Term Plan is a type of term life insurance, which provides life cover for a fixed period of time. When the policyholder passes away during the policy period, the sum assured is paid to the nominee.
The key advantages of LIC Term Plan are as follows:
1.Affordable: LIC Term Plan is one of the most affordable life insurance plans available in India. Because of its low premium, almost anyone can buy this plan.
2.Wide Coverage: This plan offers coverage up to Rs. 25 lakhs, which provide financial assistance to the policyholder in the event of his/her untimely death.
3.Tax Benefit: The premiums paid towards the LIC Term Plan are eligible for tax deduction u/s 80C of the Income Tax Act, 1961. This makes the plan more attractive and affordable.
4.Flexibility: The policyholder can choose the sum assured, policy term and premium amount depending on their budget and requirements.
5.Provides Security: LIC Term Plan secures the financial future of the policyholder’s family in the event of his/her death.
In a nutshell, the LIC Term Plan is a type of term life insurance plan offered by Life Insurance Corporation of India. It provides the policyholder with life cover for a fixed period of time, along with benefits such as affordability, wide coverage, tax benefit, flexibility and financial security to the policyholder’s family.