LIC soon to launch cheaper online term plan

September 09, 2011 - 03:55 PM  

For the first time ever, Life Insurance Corporation of India (LIC), will sell insurance policy online. The country’s oldest insurer will be launching a pure term plan that customers can buy online as well as from an insurance agent.

LIC term insurance plans are priced comparatively higher than the online term plans of private insurance companies. Here’s a comparison of term plan rates of LIC Amulya Jeevan and rates offered by some private players on online term plans.

Male, non-smoker, age-30 years, term cover-Rs 30 lakhs, policy term-20 years.LIC Amulya Jeevan vs Online Term Plans 

Online term plans are cheaper than offline term plans. The reason for this is that in an online term plan, companies save on various costs, which they are able to pass on to their customers. There are no agents involved while selling an online term plan, which means there are no agent commissions to be paid out.

Commenting on the plans to launch a pure term product, S Roy Chowdhury, Executive Director – Marketing of LIC, said, "We are in the process of designing a pure term product which would be sold through both online and through agents. The rates will be lower than what is charged at the moment."

Term insurance plans give the highest form of protection for a small premium. The benefit is paid out to the nominee if the insured member dies within the policy period. The premium rate is fixed at the time of taking the policy and has a direct co-relation with the age of the insured along with certain other factors like gender, smoking habits etc. If the insured member survives the term of the policy, then the policy lapses and no benefit is paid out.

Internet savvy customers prefer buying a term plan online as it helps them save money on premiums. The only problem is that out of the 23 life insurance companies in India, only a handful of them offer online term plans.

Online Term Insurance Policies

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Posted in LIC Term Plan | 9789 Views

i m intressted this term plan urgent basic

By deepak shukla on Apr 16, 2012

i am interested to know lic term plans

By sriram on Jan 23, 2012

please inform the best and less premium term policy for rs.10.00 lacs & 15 Lakh for 20 years term and my age is 39 years.

By Ajay Kumar on Nov 17, 2011

please inform the best and less premium term policy for rs.50.00 lacs for 30 years term and my age is 39 years.

By laxman on Oct 12, 2011

BETTER LATE THAN NEVER, At last LIC wake up to the need of millions of people. This is the real insurance and being financial planner my advise for all prospective buyer is to go for online LIC term plan as claim ratio of LIC is best in the country.

By RAJESH BHATIA on Oct 03, 2011

LIC Policy thro online is agood news. Premium is also cheaper than the usual mode of payment. But LIC is going to introduce online facilities only for Term Insurance policies and I wish the online facility should be provided to all other general policies and if so, I will be the first person to take policy by online.

By K J RAJBHARATH on Sep 19, 2011

Dear Readers, We will inform you all as soon as LIC launches its online term plan in the markets. Till then stay tuned to all our news on LIC: http://www.myinsuranceclub.com/insurance-news/category/lic

By MyInsuranceClub on Sep 19, 2011

It is very interesting and I would also like take a term plan for 30years for Rs.20 to 25 lakhs.

By UDAY BHASKAR on Sep 18, 2011

It is really interesting to know that LIC is going to launch on line term plan. I would like to know that; When this plan is supposed to be launched? Will it provide opportunity to investors of villages and small towns? What will be the premium for 20 lac risk cover?

By DINESH KUMAR on Sep 18, 2011

i m 41 yr.can u send premium for 30lac for 25yr.

By bablu on Sep 15, 2011

EXPECTED DATE AND PREMIUM OF TERM PLAN FOR 20 YEARS AND RS30 LACS?

By OP SINGH on Sep 15, 2011

@Vijay Kumar Thakur: It is a always a good idea to take a higher cover. To calculate premiums, please click on Life Insurance Button on our site, or copy paste this link: http://www.myinsuranceclub.com/life-insurance/ Some good Pension Plans would be: 1. LIC Pension Plus, it is a Unit Linked Pension Plan where you get to reap the benefits of the open market as well 2. ICICI Pru Forever Life 3. Tata AIG Life Nirvana, which also provides death benefit.

By MyInsuranceClub on Sep 15, 2011

@lokesh sharma - Online insurance plans work on the same lines as offline plans; the only difference being that since there is no intermediary agent, the company saves money on agent commissions and other costs. These savings are passed on to the customer in terms of cheaper products. IRDA monitors and governs the workings of all plans and hence there is no risk of non-payment from the insurer. Just ensure that you fill in correct details at the time of taking a policy and the rest should all work out in your favour.

By MyInsuranceClub on Sep 15, 2011

LIC is yet to launch its Online Term Plan. Our viewers will be the first one's to get an update as soon as the plan hits the markets. Stay connected to MyInsuranceClub.com for all the latest information!

By MyInsuranceClub on Sep 15, 2011

If LIc launches OnLine Term Plan it shuld be as costly as Aviva's OnLine Term Plan, so every one can buy the same and proudly say that Lic hai to kahi aur kyu jana.

By GOPAL GUPTA on Sep 14, 2011

KAB TAK LAUNCH HOGA ON LINE TERM PLAN.KAHI LAMBA SAMAY TO NAHI LAG JAYEGA

By SATISH KUMAR on Sep 14, 2011

Sir, My edge:23 Working in production Engineer. please tell our edgelimit plan & good return benifit.Please let me know the premium for on line term plan. Term 25years, Policy cover: 35 lakh. I am 23years. Healthy.

By pramol Awaghade on Sep 14, 2011

I am very much delighted to read about on line term plan. The age limit should be realised so that a persona who has retired, can get the benifit of the on line plan. Thanks & Regards,

By subhash shriniwas deshpande on Sep 14, 2011

plz let me know about the online term plan of LIC

By makrand on Sep 14, 2011

very good news as lic has large network chains and while other offers their plans at selected cities...hopes premium will be cheaper than others also

By DR SANJEEV MANKTALA on Sep 13, 2011

there should be lower prm term plans,as other private company offers, why not lic?

By charul on Sep 13, 2011

I have bought rs30 lac lic term insurance through agent,looking for another 50 lac,how much it would cost per year primium if i will buy new plan.At present i am 53 years old. pls also inform me about suitable retirement plans available for my age.

By vijay kumar thakur on Sep 13, 2011

if lic launch cheaper term plan otherthan available online trm pln then a revolution come soon in online term pln industry,

By bhoopesh rai on Sep 13, 2011

Please let me know the premium for on line term plan. Term 20 years, Policy cover: 30 lakh. I am 28 years. Healthy. Working in MNC in Bangalore.

By Paul Jose on Sep 13, 2011

very costly ,look for aviva iso 9000-2001 company

By sachin kulkarni on Sep 13, 2011

Jab LIC hai to Khahi or kui jaana. Thanks for indrucing cheeper on line plans. Regards, Peeyush Kumar Manager Accounts & Control, Hotel Great Value, Dehradun

By Peeyush Kumar on Sep 13, 2011

It is good to see the news - Online Term Insurance with LIC. Like to know, how close the SOON is.

By Jayaprakash on Sep 13, 2011

it is really heartening to note you are coming out with on line facility. wish you all the best

By thyagarajan on Sep 13, 2011

It will be the best thing for all the people who are planning for getting a term plan. LIC is the reliable company in insurance sector and the plan will be immediatelt accepted by people.

By yogesh saraswat on Sep 13, 2011

i am very excited to hear that the lic has plan to launch on line term plan

By HARISH JAIN on Sep 13, 2011

i would like to know that how safe are online plans is there any reports of non payments at later stage since no agent is involved

By lokesh sharma on Sep 13, 2011

It's nice to learn that direct profit will go to the client not the agent. Thanks to the think tank of LIC who ultimately thaught of the policy holders, rather a suggestion in this regard is enhance the BONUS FOR ONLINE CLIENTS so that you get more no. of policy holders on line.

By R K BHATNAGAR on Sep 13, 2011

LIC should ensure prompt customer service and single window settlements.

By Kochunarayanan Kavil on Sep 13, 2011

It's time to change for lic as a oldest player in insurance sector to moment going up with the help of changing in the market.

By Hariom Ahlawat on Sep 13, 2011

I am interested to know in I can take any immediate annuity plans online.Also infom me any retirement plans available.

By Balachandran Bhaskaramenon on Sep 13, 2011

Superb comparison ...and here we poor indians thought LIC has the lowest premiums in insurance..thanks myinsuranceclub and thanks to the writer

By Yash on Sep 09, 2011

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