e-Term is an online term insurance plan offered by Life Insurance Corporation of India (LIC) that provides financial protection to the policyholder’s family in case of their untimely demise. The policy can be purchased online by individuals who are between 18 to 65 years old and have completed their education till 10th standard. The minimum sum assured for the policy is Rs. 25 lakhs.
Here’s an example to understand the policy. Suppose a 30-year-old non-smoker male purchases an e-Term policy with a sum assured of Rs. 1 crore for a policy term of 20 years. The annual premium for the policy would be approximately Rs. 8,500.
Here are some of the key features of the e-Term policy:
- Provides financial protection to the policyholder’s family in case of their untimely demise.
- Offers flexible policy terms ranging from 10 to 35 years.
- Provides two coverage options, viz. level sum assured and increasing sum assured.
- Offers discounted premium rates for non-smokers and women.
- Offers tax benefits as per prevailing tax laws.
Here is a table that shows the annual premium rates for e-Term policy for a sum assured of Rs. 50 lakhs:
| Age (in years) | Policy Term (in years) | Premium (in Rs.) |
|---|---|---|
| 25 | 20 | 5,700 |
| 30 | 20 | 6,900 |
| 35 | 20 | 9,900 |
| 40 | 20 | 15,400 |
| 45 | 20 | 24,300 |
| 50 | 20 | 39,500 |
| 55 | 20 | 71,100 |
Please note that these are indicative premium rates, and the actual premium rates may vary based on age, policy term, sum assured, and other factors. It is always advisable to check with the LIC agent or visit the LIC website for the latest premium rates.