Finally LIC joins the online insurance club of India. Yes LIC is back with Online Term Plan e-Term. LIC e-Term is online term plan which provides financial protection to the insured’s family in case of his/her unfortunate demise. Let’s review e-Term.
LIC e-Term Features
- This plan is available through online mode only and no intermediaries will be involved.
- e-Term is pure term plan
- Two different categories are available under this plan.
1. Aggregate category – Sum assured up to Rs. 49 Lacs or Sum assured more than Rs.50 Lac
This category is for Smoker
2. Non Smoker category – Sum assured more than Rs.50 Lac
As name suggest this category is for Non-Smoker 
- Differential premium rates for Smoker/Non-Smoker lives
Eligibility:-
- Minimum Sum Assured : Rs. 25 Lacs for Aggregate category and Rs 50 lacs for Non-smoker category
- Maximum Sum Assured : No limit
- Minimum age at entry : 18 years (completed)
- Maximum age at entry : 60 years (nearest birthday)
- Maximum cover ceasing age : 75 years (nearest birthday)
- Minimum policy term : 10 years
- Maximum policy term : 35 years
- Mode of Payment: Annual Payment
- Eligible life: Proposal on own life only
Benefits:-
Death Benefit:- In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
Maturity Benefit:- On survival to the end of the policy term, nothing shall be payable.
Premium Comparison:-
The Yearly premium for LIC online term plan for 50 lacs sum assured is Rs 8,202 (for 30 yrs old male and for 30 yrs term) In below chart I tried to compare LIC’s online plan with other online term plan available in market. Interestingly compare to other private insurance term plan LIC e-Term plan is costlier. Age 30 years Term 30 Years, Risk cover 50 Lacs. 
Cost:-
If you look at only cost LIC e-Term is costly affair. We have better other online term plan in market like SBI life e-shield or HDFC click 2 Protect. Compare to existing offline term plans of LIC – Jeevan Amulya 2 this plan looks cheaper.
Claim Settlement Ratio:-
LIC offers highest claim settlement ratio last year LIC claim settlement ratio was 97.3%. Claim settlement ratio of private insurance companies like HDFC, SBI, ICICI is around 90%. So from claim settlement point of view e-Term is better.
If you have not purchased any term plan and you have apprehension in purchasing term plan from private insurance company LIC e-Term is for you.
Other Important Points:-
- No accidental benefit rider.
- Maximum age is up to 75 Yrs.
- No additional riders.
- Medical test is must.
- We have no experience about service level of LIC in terms of Online term plan.
Are you buying the LIC e-Term ? How did you find this review ?
