nsurance Regulatory and Development Authority of India (IRDAI) in its conti...
After a really long wait, Life Insurance Corporation (LIC) of India has launched its first online term plan called LIC e-Term. After the immense success of online term plans by a couple of life insurers, almost all the life insurance companies hit the market with their online term plans.
Some life insurers improvised and rolled out online term plan with riders, Term with return of premium option, Online ULIP and many other online insurance plans. But all throughout there was a common question in the mind of the online customer – why doesn’t LIC have an online term plan? Finally, that question has been answered and nation’s biggest life insurance company has launched it’s maiden online policy - LIC e-Term.
Click here to read details of LIC e-Term
It’s been more than four years since the first online term plan was launched and the whole industry was waiting for LIC to launch its online plan. Ironical as it may seem, all the private players have been eagerly waiting for LIC to launch its online term plan. While all are aware that LIC will instantly grab the largest market share even in the online segment, the silver lining is that with LIC’s entry the market size will increase exponentially. Now that LIC has launched its online insurance policy, this becomes like an approval seal to the entire category of online insurance plans.
LIC e-Term is a regular premium non-participating pure term plan. Like other life insurers, LIC has also kept differential premium rates for smokers and non-smokers. The pricing of LIC e-Term which was the most crucial aspect has been somewhat as expected. It is much lower than the offline term plans of LIC but still higher than most of the online term plans in the market. But there is little doubt that the LIC brand name will overcome this aspect of high price. The minimum sum assured for non-smoker category is 50 lacs. The entry age for this policy is 18 years to 60 years and the maximum policy term is 35 years.