When you buy an LIC tem plan, you are assured of getting the best premium rates. Many people agree that LIC offers the best value for the money they pay. The features and benefits you get with an LIC term plan are unparalleled. In this article we discuss the various aspects of the LIC term cover premiums. Take a look and get all your doubts cleared instantly.
Some of the premium rates in LIC term plan
You have many reasons to choose an LIC term plan. First and foremost, you get to have a large life cover. Next, and very importantly, you get to cover your life for an extended period of time, sometimes even for two or three decades. And finally, the LIC term plans are very affordable. As a 25-year-old, non smoking man, you can have a life cover of INR 1 crore by just paying INR 7000 annually. It is actually that cheap! Even if you are ten years older than that and have the bad habit of smoking, you can get an LIC term cover of INR 1 crore for 10 years by paying INR 15000 annually. Do you see what we mean? LIC term insurance is always affordable, no matter at what stage of life you are in.
It however makes sense for you to buy the plan early on in life as then you get it at a better rate. So buy an LIC term plan right away and stay covered for a long time.
Modes of premium payment in LIC term plan
If the above mentioned amounts seem a little high to you, don’t fret! You can pay lower amounts and still get your LIC term plan. How, you ask? Well, all you have to do is opt for a different premium paying mode. You get the lovely benefit of choosing from among four modes when you buy your term insurance from The Life Insurance Corporation of India. They are:
- The yearly mode: Here, you get to pay the entire premium of the year in one go. There is just one payment paid once a year. The value is the highest, but you get to pay it and forget about it. It is easy, quick and the most hassle free LIC term premium payment mode.
- The bi-yearly mode: Under this mode, you can pay the premium in two equal installments. You have to pay the premium every six months. The value of each installment will be lower than the previous option and more affordable for you.
- The quarterly mode: If you choose the quarterly mode, you will have to pay the premium in four installments. The total premium amount will be divided in four parts and the value of each premium will be lower. This is a good option if you want spread your premium payments out.
- The monthly mode: Last but not the least, we have the monthly premium payment mode. Under this mode, you have to pay your annual term plan premium in 12 equal installments, one each month. As understandable, the value of each installment is the lowest here, though there are more instalments to cater to. Since the value is small, this becomes a very economical mode. However, this comes with its own challenges. You have to be quite disciplined with your payments. If you forget even one installment, your entire LIC term plan cover will lapse.
These are the four different variants of the LIC term insurance premium paying modes. As we saw, there is a viable option for everyone. So assess your financial capabilities and see how well you can manage your monies to pay the term insurance premium. If you feel the yearly installment is affordable, go for it. If you feel it is too steep, opt for a smaller installment option.
In a nutshell
The Life Insurance Corporation of India aims to insure every single Indian. The company has over the years innovated many ways to make life insurance more affordable as well as accessible. The flexibility in the premium payments is just one of these innovations. So make use of this wonderful feature and get yourself a term cover in an easy and convenient manner. Go online and compare your options. Then read the policy wordings to understand what exactly you can get form the cover. Understand the premium structures as well. When that is done, choose the perfect plan and the premium payment mode and cover your life with the best LIC term life insurance plan.