LIC Convertible Term Assurance

LIC Convertible Term Assurance Policy

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.

• Low premium term insurance plan which can be converted to a limited payment whole life plan or an endowment plan
• Specially designed for people who cannot afford a high premium now but wish to have it at a later date

Benefits you get from LIC Convertible Term Assurance Policy

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)

Eligibility conditions in LIC Convertible Term Assurance Policy

Sample illustration of premium amount in LIC Convertible Term Assurance Policy

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.

Additional Features and Benefits of LIC Convertible Term Assurance Policy

Riders – No riders are available in this policy

What happens if?

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.