LIC Convertible Term Assurance Policy

Name: LIC Convertible Term Assurance Policy

Type of policy: Term Insurance

For buying policy: No

Term insurance is a fantastic product that every single family needs to have, for its earning member(s). It is a pure life insurance policy that gives your family a cover in case of an eventuality to the bread winner.

Coming from LIC, the unique feature of this policy is that this term plan can be later converted into endowment or whole life plan. But a policy that covers risk to life for just seven years is insufficient, needless to say. Income earning individuals must cover their life for as long as they hope to stay earners or at least until they retire, in other words. In case you have already taken this policy, don’t convert it to a traditional policy after 7 years. Don’t remain uninsured and cover yourself with a term policy.

We typically recommend an insurance cover of 4-10 times your annual income and for as long a term as is available for your age. Find out the ideal cover for you using this calculator.

 Product features:

 

Parameter

Value

Minimum age at entry

20 years

Maximum age at entry

50 years

Maximum policy term

7 years or till age of 57, whichever is earlier

Minimum sum assured

Rs 50,000

Maximum sum assured

1,00,00,000

 Illustration:

Below table shows indicative premiums for a non-smoking male. Premiums for females may be lower.

 

Your age

Term

Indicative Annual Premium

(For cover of Rs.50 lakh )

25 years

7 years

Rs. 27,000

30 years

7 years

Rs. 29,500

40 years

7 years

Rs. 43,000

50 Years

5 years

Rs. 76,500

 Returns: If the insured survives term, no benefits are paid. Insurance should be viewed as an expense rather than investment. Both work best when independent.

Better alternative

Online policies with similar features can be bought at less than nearly half the premiums on offline policies like this one. Hope LIC brings out its own online policies soon.

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.


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