Why is LIC Term Insurance Important?

 The LIC term insurance is the simplest for of insurance offerings. If the insure survives the policy tenure, the term insurance will not give any survival or maturity benefits and if any uncertain event happens, a sum assured will be paid to the nominee of the insure.

Following are the reasons why LIC term insurance is important!

Provides financial security:

An untimely demise is unfortunate and the financial liabilities that require to be borne by the family can be a burden. To prevent such a case from arising, it is an ideal way to invest in a LIC term insurance plan that will take care of the family in financial terms. 

Highly flexible:

Flexibility is one of the significant advantages of a term plan. You can select any offline or online plans for which health plans are not mandatory. Investors can also alter the plan and customize a term plan as and when required as per the feasibility. 

Riders of insurance: 

Riders are the additional perks and benefits that come with the plans to suit the requirement of the insuree. These come with a nominal fee and should be taken only if one feels a dire need. Some of the riders that can be taken along with term plans are critical illness, death due to accidents, partial or permanent disability among others. 

Insuree should opt for a rider only in the case of genuine news and be careful through the offer document for exclusion or inclusion before opting for any rider. 

Low premium:

Since there is no involvement of the investment element in the insured amount, the premium for all term plans is very low when compared to any other type of insurance. Any individual might have to pay only about 1% of his annual income to get a life cover. Since this element is not there in the insured amount, the premium for term lic insurance is less than that of other policies. 

For instance, a policy of Rs 1 Cr will have a premium of only around Rs 7.5k for one year.