Jagoinvestor

September 20, 2011

LIC online term plan is coming soon

LIC online Term Plan is soon coming to markets ! . There is some good news for all those who would either like to take up a term plan or who are looking to upgrade (increase) their life insurance cover! It is recently disclosed by LIC that Term Plans will be sold online and offline and the premiums will be cheaper than the current rates offered.

LIC online term plan

I personally never thought that LIC would come up with online term plan because of its dependence on agents’ network for selling its products. But this is a good move from LIC as their share of term plan market is eaten away by private insurers from last few years. At the moment, a person has to pay a very high premium for term plan through LIC. For example, the premium for 25 lacs cover with LIC term plan at the moment is around 7,000 – 8,000, whereas it’s around 3,000-3,500 in companies like ICICI iProtect & Kotak e-preferred.

“We are in the process of designing a pure term product which would be sold through both online and through agents,” LIC’s ED- marketing S Roy Chowdhury. “The rates will be lower than what is charged at the moment,” he added.

LIC uses mortality table 1994-96 at the moment

Do you know why LIC premiums are higher? One of the reasons is that they follow old mortality tables which has older death experience ratio. A lot has changed in last 10-15 yrs and we have much better access to health care and lifestyle, which has changed the number of death. Most of the new companies in Life insurance use the latest mortality data but LIC is still using old data and that’s pushing their premiums. Now LIC is planning to revise the mortality rates based on the last 10-15 yrs of experience and hence the premiums would drop down from its current level.

Note that mortality experience are different for different age groups and classes, so it’s not necessary that mortality rates will go down it might happen that mortality rates for age group 25-35 goes up because of the bad lifestyle and new age ailments (stress, junk food, etc). So keep that point in mind. (9 most asked questions about Term Insurance)

How cheap will be LIC online term plan ?

LIC online term plan will be cheaper than the current term plan they offer but expect it to be 15%-25% lower than current premiums. Do not expect a very steep decrease like 50%-60%, because LIC is a very different ball game than other life insurance companies. LIC has accessed in each corner of India and the new online term plan they will launch will be targeted at a very big group and scattered across various cities. It will be offered online and also offline (through agents).

How will this impact Insurance Industry ?

With whatever little I know I can see that urban class will welcome this move with open heart and a lot of people who trusts LIC like anything and even a lot of people who are not big fan of LIC will wait and watch for this online term plan from LIC and would like to go for it only. This move will lead to more sales of LIC term plans in bigger cities and reduce the term plan selling of different other companies (to some extent).

What do you think about LIC online term plan . Are you going for it ? Are you waiting for it ?

Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

262 Comments
Inline Feedbacks
View all comments
abhishek
abhishek
8 years ago

Hi Manish, I am 26, unmarried & wok in private sector. annual income is 5 L. Need a term insurance & a health insurance as well.
What should I go for ? Is LIC term plan good enough ?

Divakar
Divakar
9 years ago

I have taken Aviva 1cr term plan, and i am recently moving to Oman for my job….Will this term plan covers death benefit in GCC countries…

ketan
ketan
10 years ago

hi manish,

any update in Lic New Term Plan… online or offline.

Raj
Raj
10 years ago

Hello Manish,
Firstly, great work with this site and kudos to all the members.
My question is, you suggest to go for cheapest term insurance irrespective it being LIC or Kotak. Why so? Isn’t it risky with private companies in claim settlement process? Any insights on that?

Raj
Raj
Reply to  Jagoinvestor
10 years ago

But still, who knows whether private companies will even last till the term period?

jugal
jugal
10 years ago

planning to go in for hdfc click 2 protect, the claim ratio seems to be nice & the trust of HDFC makes me go for it above religare & others

ABHISHEK
ABHISHEK
11 years ago

Manish Sir,

Please tell me about Aegon Religare iTerm plan. I suppose it is the cheapest one. My age is 29 and my cover option is 1 crore.

Vaibhav
Vaibhav
11 years ago

Manish,

I’m still unsure if the LIC online ONLINE term plans are available or not. Can you please confirm? Also, the official link where this can be purchased from would be heplful.

Vaibhav

bhushan
bhushan
11 years ago

hi manish can u please tell me which term policy merchant navy people should consider . which term policy will cover on job period i.e. if some one dies during working on ship in international or national water . will merchant navy people considered nri or resident indian .

Muralidhar
Muralidhar
11 years ago

Thanks for the info. I am 35 now. I work in a state Govt. department. I earn around 4 lakhs p.a. I have LIC policy for 1.5 lks, and PLI for 10 lks. Dependents wife and 2 children age under 3.
.
1. how much insurance do I need more?
2. If I take term insurance which company would you recommend?
3. Should discontinue my existing Insurance( as I am paying 48k p.a. as premium)

plz advise.
regards
muralidahr

muralidhar
muralidhar
Reply to  Jagoinvestor
11 years ago

Thanks a lot for that. Rmaining info I got from your blog. Its like everything you need on term insurance. Thank you once again.

Gautam Variya
Gautam Variya
11 years ago

Hi Manish,

i was thinking to buy Term plan but get confuse from which company should i go.
i was thinking to take from HDFC OR AVIVA but when i read review from site
http://www.mouthshut.com/product-reviews/ of both the company i worry to buy or not. than i think to buy from LIC but lic is to costly in compare with HDFC and AVIVA.
please guide from which company should i go ?
My DOB 23rd sep 1981, Annual income 4 lac
M-9925094083

Aditya
Aditya
11 years ago

Hi Manish,

I am grossly underinsured and very confused on how much I need to be insured and how to re-structure my existing LIC policies. I feel they have very high premium and very low Sum Assured.

Current LIC policies
————————–
I have 4 LIC policies with a total annual premium of Rs. 35,000 and a Sum Assured of only 10 lacs in all (Jeevan Saral (Annual Premium – 13k), Bima Gold Plus (Annual Premium -7K), Jeevan Anurag (Annual Premium – 4K) & one another (Annual Premium -11K) only). These are all endowment policies and not term insurance.

I need to re structure my insurance portfolio (make some of the LIC policies paid up and take another term insurance) so as to increase my cover which is currently low.

Family – Mom ,Dad (both retd.) , Wife (working) & planning for a kid
Age 29

Kindly suggest on how to go about re-structuring it and what term insurance would you suggest

Thanks in advance.

Warm Regards,
Aditya

Anup
Anup
11 years ago

Hi Manish…
Thanks for such an informative article! I could zero in on HDFC Click 2 Protect term plan after reading this article and doing a lot of reading. I think HDFC has better claim settlement ratio and a reliable company.

Ganesh
Ganesh
11 years ago

Hi Manish,
Thanks for sharing the knowledge.
I am 34 now and looking for an insurance for 30yr & 50 lakhs, could you suggest me few options. Also, could you guide me what kind of riders generally available or I can look for.
Thanks
Ganesh

Manish
Manish
11 years ago

Hi Manish,

Please suggest best term plan for me.

my age is 30,and anual income is 6lakh. Also can we buy two term plan from different company. Incase of demise Nominee will get sum assured from both the company. Pls Let me know more about LIC term plan.

Manish
Manish
Reply to  Jagoinvestor
11 years ago

Need to know if LIC has launched its online term plan, if no any idea or expected date!!
Also now after googling I came on two company. HDFC click2protect and Bharti Axa.
Please suggest which one will be good.

Thanks,
Manish

Praveen
Praveen
12 years ago

Hi Manish,

Can you please help me choose among these 4.

Age of Insurer 30, Policy Term 30 years , Cover 50,00,000.

1. HDFC click2 protect= 6517

2. Bharti AXA : 4494

3. Kotak – 6,544 ( additional change of Cover during 5,15,10,20,25 Policy year)

4. Aegon Religare- 4494

The terms and conditions are same for all. Now how to make a choice ? Very confusing.

regards,
Praveen

Vish
Vish
12 years ago

Hi,
Just happened to come across this news about LIC’s Online Term Plan.
http://www.thehindubusinessline.com/industry-and-economy/banking/lic-files-applications-for-2-more-online-products/article4026155.ece

According to this, looks like they have already launched one Online Term plan, but I am not able to find it on their website..
Anybody has any clue ??

Ravikanth
Ravikanth
12 years ago

Hi Manish,

It seems to be LIC new online term plans not yet released.. Meanwhile I read your related posts of Online term insurance policies offered by Pvt. Insurers.
I decided to split my 1 crore term insurance into HDFC (50 lakhs) & Aviva (50 lakhs). Need your suggestion on the same.

Also like to know whether their premium will be same throughout the term period ?

Santosh
Santosh
12 years ago

Hi Manish,

I have purchased Jeevan Saathi plan form LIC and I have paid 3 years now.
Can I convert this plan into LIC’s term plan policy.

Thanks,
Santosh

Parveen Goyal
Parveen Goyal
12 years ago

Thanks Mr.Manish

Parveen Goyal
Parveen Goyal
12 years ago

I am having a term plan of LIC under table 190 for worth Rs 25lacs with annual payment of installment.Can it now be converted into a single payment plan.My age is 43 now and bought this plan at the age of 40.

Kindly clarify me bay mail.

Thanks