How to Buy Term Insurance Plans Online from LIC – A Beginners Guide

Life insurance Corporation of India is the only public sector life insurance company and is of a giant stature. During the year 2018-19 the company under new business added 214 lakh policies with first year premium of 41000 crore. It has a market share of 72% in this face paced growing insurance industry of India. It has won the trust of its customer by paying and settling claims as high as 98.5% year after year and maintained its track record of a trusted partner in this field.

It has very well implemented the agency model and introduced some great rewards and incentives for its agents which is one of the reasons of the great success story of this public sector enterprise. It has made a total investment of 29 lakh crore out of which the major chunk is in India and which is vital and most important for the Indian economy.

Thus a company like LIC has a great importance not only in the lives of common public who are the policyholders of the company but the overall economy of India in which it invests so heavily and give it a chance to flourish and rise.

Talking about the product mix of the company, it markets and sells a wide range of all types of life insurance products. Its product development and actuarial team continuously engages to bring new and unique products to its customers at affordable prices so that life insurance products can reach out to maximum people and the old problem of low insurance penetration and density can be tackled.

Three of the bestselling products of LIC are listed below with a brief details about them.


  • LIC New children money back plan – It is a traditional money back product specially introduced for children for 0-12 years. The policy matures at child becoming of 25 years of age. The age of the proposer must be in the range 18-55 years. Minimum sum insured is 100k and the parents can purchase this policy for education or marriage of their child.


  • LIC Jeevan Akshay – It is an immediate annuity pension plan with maximum entry age permitted as 30-85 years and minimum sum insured 100k for offline and 150k for online mode. It is a good option for people who require a continuous stream of pension income on monthly basis for their expenses or to run the household.


  • LIC Jeevan Anand – It is a participating traditional endowment plan of LIC with entry age permitted between 12-60 years. The policy matures at maximum age of 70 years with a policy term of 10-35 years. This product has been discontinued now.

Below we discuss one term insurance policy of LIC named as LIC Tech Term, which you can easy purchase online from the comfort of your home and get insured with a sum insured of 1 crore and may be higher than that. This is a policy available to be purchased only in online mode with no involvement of intermediaries. This is a non-linked, non-participating, pure risk term plan which acts as a protection umbrella for the dependants of the insured in case of his unfortunate and untimely death.

Key features:

  • Minimum and maximum age at entry 18-65 years. And the policy will mature at a maximum age of 80 years. The policy term will be 10-40 years.
  • There is no limit to the sum insured that can be opted. The sum insured will be in multiple of 500k if sum insured is between 5000k to 7500k. Above 7500k sum insured the sum insured may increase in a multiple of 2500k.
  • The policy is available in two options of level sum insured and increasing sum insured. In the increasing sum insured option the base sum insured increases over the policy period by a specified amount and in level option it remains the same throughout the policy period.
  • It is a pure term policy and no benefit is payable on the policyholder surviving the policy term.
  • There is also an option of choosing from regular and limited premium payment. In the regular option the premium payment term is same as the policy term whereas in limited premium option, premium can be paid for policy term minus 5 years or 10 years. In this option the instalment premium will increase by some amount as the premium paying duration is becoming shorter.
  • Different rates are applicable for smokers, non-smokers and women policyholders. The premium chart is available on the LIC website.
  • There is an accidental death benefit rider available apart from the sum insured under the base policy. The rider sum insured cannot increase the sum insured under the base plan of the policy.
  • There is an option to take the death benefit payable under the policy in instalments in full or part over a chosen period of 5, 10 or 15 years. This option has to be exercised by the policyholder over his lifetime. The interest rate applicable for arriving at the instalments shall be fixed by the LIC time to time.
  • No loan or surrender value is applicable under this plan. The policy will have a suicide exclusion which states the policy will not cover suicide in 12 months of its inception and LIC will only pay suicide claims up to a specified percentage of premium paid till date.


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