LIC Term Insurance Plans – Complete Guide (2025)
Life Insurance Corporation of India (LIC) is India’s largest life insurer, and over the years, its term assurance (term life) plans have become very popular for pure protection. In this guide, you’ll get a full breakdown of LIC’s term insurance offerings, their features, how to pick the right one, and some pros and cautions — plus comparison with other insurers.
What Is Term Insurance & Why LIC’s Term Plans Matter
Term insurance is a type of life insurance that provides pure risk cover — you pay premiums for a fixed policy term, and if something happens during that term, your beneficiary gets a death benefit. There is no maturity benefit (unless it’s a special variant), so it’s usually the most cost-effective way to provide financial protection to your family.
- As RenewBuy explains, term insurance is “straightforward … risk coverage during a fixed term.” RenewBuy
- LIC’s term plans are trustworthy due to LIC’s brand, its massive reach, and its claim settlement experience.
LIC’s Term Assurance Plans: Key Options
According to LIC’s official website, here are their main term / term-assurance plans: Liferay DXP
| Plan Name | Plan Number / UIN | What Makes It Special |
|---|---|---|
| Digi Term | Plan No. 876, UIN: 512N356V02 | Online-only, very flexible term, high sum-assured rebate. Liferay DXP+2Liferay DXP+2 |
| Yuva Term | Plan No. 875, UIN: 512N355V02 | Geared toward younger buyers; covers them during early working / loan years. Liferay DXP |
| Digi Credit Life | Plan No. 878, UIN: 512N358V01 | Designed to cover loan liabilities — if life assured dies, loan burden on family reduces / disappears. Liferay DXP |
| Yuva Credit Life | Plan No. 877, UIN: 512N357V01 | Similar to Digi Credit Life but for younger people, via offline channel too. Liferay DXP |
| New Tech-Term | Plan No. 954, UIN: 512N351V02 | LIC’s pure protection online plan; without profit, very affordable risk cover. Liferay DXP |
| New Jeevan Amar | Plan No. 955, UIN: 512N350V02 | Offers choice: Level Sum Assured or Increasing Sum Assured. RenewBuy |
| Saral Jeevan Bima | Plan No. 859, UIN: 512N341V01 | Pure risk cover, simple design, minimal complexity. Liferay DXP+1 |
Key Features & Benefits of LIC Term Plans
Here are consistent features across most LIC term plans, plus plan-specific highlights:
- High Coverage at Low Cost
LIC’s New Tech-Term, as per LIC’s site, provides very high insurance coverage for relatively low premiums. Liferay DXP - Flexible Premium Payment
- Online LIC plans often allow single, regular, or limited premium payment. The Financial Express
- Premium payment frequencies typically include monthly, quarterly, half-yearly, or annual in many LIC plans (per RenewBuy). RenewBuy
- Death Benefit Options
- Level Sum Assured: Fixed death benefit.
- Increasing Sum Assured: The sum assured increases — useful to counter inflation or to match rising responsibilities (family, loan). Several LIC plans (e.g., New Jeevan Amar) support this. https://www.insurancedekho.com+1
- High Sum Assured Rebate
LIC often gives discounts (“rebates”) on premium when you choose a very high sum assured. This is particularly helpful for pure term plans. - Riders / Add-On Benefits
LIC provides optional riders which you can buy in addition to the base term plan. Common riders include:- Accidental Death & Disability Rider — pays extra in case of death by accident, and may waive future premiums if disability happens.
- Accidental Death Benefit Rider — additional sum to the nominee on accidental death.
- Special Rates for Women / Non-Tobacco Users
In some LIC term plans (especially online ones), premium rates are more favorable for women and for non-smokers. - Tax Benefits
- Premiums paid for LIC term plans are eligible for tax deduction under Section 80C of the Income Tax Act.
- The death benefit paid to nominees is generally tax-free under Section 10(10D) (if plan meets conditions). Also mentioned in general term-insurance overviews.
- Ease of Purchase
- Some LIC plans like Digi Term or New Tech-Term are online only, meaning you can apply via LIC’s website without going to an agent.
- This reduces cost and simplifies process.
Eligibility Criteria & Key Terms
Here are some common eligibility parameters for LIC term plans, plus specific details for certain plans:
| Parameter | Typical LIC Term Plan Range |
|---|---|
| Entry Age | 18 to 65 years for many plans. RenewBuy |
| Minimum Sum Assured | Varies: for example, LIC New Tech-Term starts at very high SA (RenewBuy lists 50 Lakh as entry for some). RenewBuy+1 |
| Policy Term | Varies significantly depending on plan. (LIC allows flexibility in many of its term plans.) The Financial Express |
| Premium Payment Term (PPT) | Depends: single pay, limited pay, or full regular pay. |
| Smoking / Non-Smoking Categories | LIC differentiates risk rates based on tobacco usage; for certain plans, non-smoker rates are significantly better. |
| Medical Examination | Typically required for higher sum assured; for lower SA or younger age, minimal or no medical may be needed (depends on LIC’s underwriting policy). |
Latest Updates (2024–2025) on LIC Term Plans
- On 5 August 2024, LIC launched Yuva Term (Plan 875) and Digi Term (Plan 876), along with Yuva Credit Life (UIN 512N357V01) and Digi Credit Life (UIN 512N358V01). Liferay DXP
- These new products are part of LIC’s push to offer more online-first and youth-focused insurance solutions. B. Balachandran+1
- LIC’s New Tech-Term remains a core online protection plan. Liferay DXP
LIC Term Plan Comparison – Which One Should You Buy?
Here is a side-by-side comparison of LIC’s top term plans to help you choose:
| Plan | Best For | Advantages | Things to Consider |
|---|---|---|---|
| New Tech-Term | Those wanting pure protection via online mode | Very high SA for cost, flexible premium payment, special rates for women/non-smokers, rider options | No maturity benefit, but that’s typical for term plans. Online process only. |
| Digi Term (876) | Online buyers, tech-savvy users | Full flexibility in term/PPT, high sum-assured rebates, online-only | Requires online underwriting, maybe stricter medical. |
| Yuva Term (875) | Young professionals, newly married | Designed for youth, lower cost if buying early, covers early liabilities | May outgrow SA; choose with future needs in mind. |
| Digi Credit Life (878) | People with loans (home, personal, etc.) | Covers loan liability, cheaper than loan-life insurance | Benefit only on death, not living; check coverage amount vs loan size. |
| Yuva Credit Life (877) | Young people with debt (student loan, personal loan) | Protection for young borrowers, offline+online options | Need to match credit-life SA with actual loan. |
| New Jeevan Amar (955) | Those who want flexibility in sum-assured growth | Option for increasing SA, flexible term, good for rising responsibilities | Premium may be higher for increasing SA; needs good planning. |
| Saral Jeevan Bima (859) | Simple, low-cost protection | Pure risk cover, minimal complexity, good for small-to-medium SA | No maturity benefit; best for pure protection only. |
Why Choose LIC Over Other Insurers — and Some Caveats
Advantages of LIC Term Insurance:
- Brand Trust & Legacy
LIC is a household name. It has a vast branch network, and many people feel more secure trusting LIC for long-term protection. - Financial Strength
As India’s biggest life insurer, LIC has strong capital backing and high claim-settlement capacity. - High Sum Assured Rebate
For very large cover, LIC often gives premiums that are more favorable than other insurers. - Flexible Premium Payment Options
LIC’s term plans accommodate different payment styles (single, limited, regular). - Rider Options
LIC provides well-known riders (accidental death/disability) which enhance protection. - Digital Push
With Digi Term, New Tech-Term, and Yuva Term, LIC is making good progress in digital protection, reducing paperwork and cost.
Cautions / Things to Watch Out:
- Premiums Can Be Higher: On some user forums, people say LIC term plans cost more than private insurers. Reddit
- Service Experience: While LIC’s claim settlement is strong, some users report that other service aspects (policy servicing, branch visits, paperwork) are old-fashioned. Reddit+1
- Underwriting Delays: In some cases, proposals (especially online) take time for LIC to underwrite. Reddit
- No Maturity Benefit: As with most term plans, you don’t get money back if you survive the policy term (unless it’s a special variant, but LIC’s core term products are protection-only).
Sample Premium Illustrations and Calculation Logic
To understand how LIC calculates term plan premiums, here’s a simplified logic + sample table:
- Factors Determining Premium:
- Age
- Sum Assured
- Term Duration (policy term)
- Premium Payment Term (PPT)
- Smoking / Non-smoking status
- Gender (in some plans)
- Mode of payment (monthly/annual)
- Underwriting / medical status
- Example (Hypothetical)
Below is a sample table — this is a simplified illustration, not LIC’s exact premium table.
| Age | Sum Assured | Policy Term | PPT | Smoking | Estimated Monthly Premium |
|---|---|---|---|---|---|
| 25 | ₹1 Crore | 20 years | Regular Pay | Non-Smoker | ~₹500 (estimate) |
| 35 | ₹1 Crore | 20 years | Regular Pay | Non-Smoker | ~₹700 (estimate) |
| 30 | ₹2 Crore | 25 years | Limited Pay (10 yrs) | Smoker | ~₹2,500 (estimate) |
Note: These are illustrative estimates. LIC’s real premium will depend on its detailed rate tables, medical underwriting, and exact plan.
How to Buy LIC Term Insurance: Step-by-Step
- Decide Your Required Cover (Sum Assured)
Estimate how much life cover you need: future expenses, loan liabilities, family maintenance, inflation, dependents. - Choose The Right LIC Plan
Use the comparison table above: decide among Digi Term, Tech-Term, Yuva Term, etc. - Choose Policy Term & Premium Payment Term (PPT)
- Longer PPT = lower premium per payment but more total paid
- Single or limited pay might make sense if you have cash upfront
- Policy term should cover till dependents become less dependent
- Medical / Underwriting
- Be truthful about health
- Higher SA or older age → likely medical required
- Underwriting impacts premium and final acceptability
- Add Riders (if needed)
- Consider accidental death/disability rider
- Make sure additional cost is justified by added benefit
- Purchase
- For online plans (like Digi Term or New Tech-Term): buy directly on LIC’s site → smooth digital experience
- For offline options: go to LIC branch or use an agent
- Nominate Beneficiary
- Very important: you must correctly nominate who will get the death benefit
- Update nomination if family or financial situation changes
- Review Annually
- As life changes (marriage, kids, loan), reassess your cover
- Consider increasing SA if needed or taking another term plan
LIC Term Insurance vs Other Providers
When comparing LIC term plans with other insurers (via platforms like PolicyBazaar, RenewBuy, etc.), keep in mind:
- LIC may give very high sum assured rebates for large covers.
- Private insurers might offer lower premiums for the same SA and term, depending on their underwriting and cost structure.
- LIC’s claim settlement reputation is strong, but service speed or digital convenience may lag in some areas.
- Using a term comparison tool (like on PolicyBazaar or RenewBuy) helps you run premium simulations for LIC vs others and decide.
Summary: Is LIC Term Insurance Right for You?
Choose LIC Term Plans if:
- You trust LIC’s brand and lean toward the safety of a PSU insurer.
- You want a pure protection policy (not an investment plan).
- You need very high cover and want rebates at high SA.
- You are comfortable buying online (for Digi Term / Tech Term) or via branch (for other plans).
Be Cautious If:
- You find LIC’s premiums too high compared to private players.
- You prefer digital-first service and minimal paperwork — check how LIC underwrites online for big policies.
- You don’t like long waiting times for underwriting or claim.
- You want liquidity or maturity benefit — term plans don’t typically return money if you survive the term
