Monday, May 26, 2014

LIC Launches 'e-Term', An Online Term Plan

Country's largest insurer the Life Insurance Corporation (LIC) of India has launched an online term insurance policy named, e-Term, that could prove to be a game changer in the segment.

Although, e-Term is slightly costlier than most online term plans offered from various private insurance companies, it is likely to become the preferred choice of most customers seeing the tremendous brand value of the insurance behemoth.

According to the Insurance Regulatory and Development Authority's (IRDA's) annual report for the fiscal year 2012-13, the claim settlement ratio of state-owned insurer was 97.73 per cent. While, among private sector insurers, only five insurers, including ICICI Prudential Life Insurance Company Limited, HDFC Standard Life Insurance Company Limited , SBI Life Insurance Company Limited, Max Life Insurance and Kotak Life Insurance, reported a claim settlement ratio of over 90% in 2012-13.

The minimum sum insured for non-tobacco user is Rs 50 lac and Rs 25 lac for tobacco user. To enter into the plan, the minimum age required is 18 years and the maximum age should not be more than 60 years.

Under the policy the minimum policy term is 10 years and the maximum is 35 years. And the premium paying frequency is annual.


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