LIC’s Convertible Term insurance is a term plan with low and affordable premium which can be later converted to an endowment or a whole life plan. This is best suited for people who have just started working and are not earning very high, but would like to purchase insurance for their family’s protection and wish to take an endowment or a limited payment whole plan later with a much higher premium. Thus in this plan, the premium is quite low initially before the plan is changed or converted.
Death Benefit – The entire Sum Assured is paid to the nominee on death of Life Insured before the policy ends.
Maturity Benefit – Being a pure protection plan there is no benefit is payable on maturity as this is a pure protection plan.
Income Tax Benefit - Life Insurance premiums paid up to Rs.1,50,000 are allowed as a deduction from the taxable income each year under section 80C. Maturity benefits too are tax exempt as per Section 10(10D)
|
Minimum |
Maximum |
Sum Assured (in Rs.) |
50,000 |
1 crore |
Policy Term (in years) |
5 |
7 |
Premium Payment Term (in years) |
Equal to policy term |
Equal to policy term |
Entry Age of Policyholder (in years) |
20 |
50 |
Age at Maturity (in years) |
- |
57 |
Payment modes |
Yearly, Half-yearly, Quarterly, Monthly and Salary Savings Scheme |
The below illustration is for a healthy Male (non-tobacco user) opting for:
Sum Assured= Rs.50,00,000
Policy Term = 7 years
Premium values of LIC Convertible Term Assurance for various ages at which policy is bought.
Riders – No riders are available in this policy
You stop paying the premium - If the policy holder stops paying the premium, then all benefits of the policy will cease after the expiry of the grace period from the due date of the first unpaid premium.
You want to surrender the policy – There are no surrender benefits under this plan.
You want a loan against your policy – Loan facility is not available under this plan.