Reasons to buy LIC Term Insurance Plans Online

For the convenience of the insurance buyers and to provide best to them, the Life Insurance Corporation of India launched its online term plan in 2014. Currently the company offers two different online term assurance plan i.e. LIC Tech Term and LIC Jeevan Amar. LIC Tech Term plan is a pure protection online term insurance plan, which provides financial protection to the insured’s family in case of any eventuality. LIC Term Insurance plan can be purchased through the online application process in an easy and hassle-free way.

The policies can be purchased by going to the company’s website, filling out the application and submitting it through the web portal. Once the premiums are paid online, the cover begins automatically. However, this is subject to medical screening as well.

There is no functional difference between a policy that is bought online as opposed to one that is bought offline.

Let’s take a look at the reasons to purchase LIC term insurance plan online.


Buying an LIC policy online is the most convenient way to buy life insurance. No extra charges need to be paid to the agent, and there is no hassle in the procurement of the papers or documents. The interface of the LIC insurance website is well organised and easy to manoeuvre through.

There is also a matter of safety while handling the policy and the procedures online. The payments pass through a secure gateway.


Price is one of the main deciding factors for anybody looking to take out a life insurance policy. One of the biggest benefits of purchasing a term plan online is the low cost of the premiums/ The premium of online term insurance is about 30 to 40% cheaper than the offline term insurance. A non-smoker in his 30’s can purchase a life insurance policy of Rs. 1 crore for a premium of just about Rs. 8000. This discount in the premiums is because the insurance company saves on the agent’s commission and administration charges. This may be a biased opinion, but the target group of people that buy online term insurance is considered healthier than the ones who buy it offline. They can afford to have better medical plans and benefits; therefore, the premiums are much lower.

For these reasons, buying an LIC Term Insurance policy online is cost-effective.

Easy Payments

One does not need to visit the bank or the insurance provider’s office to pay the premiums. Online life insurance policy payments are quite convenient to do, and they can be done with a few clicks of the mouse. These can be done using a credit card, debit card or by way of net-banking.

The lump-sum that is paid to the beneficiaries or appointed nominees can also be done online and is quite convenient especially in the time of a crisis. The customers would greatly appreciate the ease of transaction when it comes to this matter.

Higher Insurance Cover

Insurers offer a varied range of policies and covers online as opposed to their offline counterparts. If a policyholder is offered 65 years of coverage on an offline policy, the same can be availed for 70 years on the website. These differences go a long way in determining the best course of action while purchasing the LIC insurance plan.

Insurance companies offer covers for up to 1 crore rupees with meagre premiums.

Claim settlement ratio is the ratio of the financial standing of the company to the number of claims that have been settled. LIC is known to have the highest claim settlement record in the industry with a ratio of about 97.7%.


Term insurance provides basic life cover. However, if the policyholder chooses to have additional covers apart from just death cover, these riders are also provided. These additional covers can be added to the primary cover effectively and conveniently. The policyholders can decide based on the prices that are clearly stated on the website.

These add-ons include- but are not limited to- additional cover for souse/partner for an additional amount, accidental benefits, coverage for treatments like chemotherapy or dialysis, etc.


While buying online LIC Term Insurance, one can conduct their research. Everything that needs to be known about the policy can be found online. Upon this research, the policy that is most suited to the customers’ needs can be purchased.

Whereas, upon buying it from an insurance agent, it is possible that they might try to force a particular policy on you. The hidden terms and conditions may not be disclosed, and the policy is left unreviewed. Buying from an agent would limit one’s choices.

Brand Interaction

Buying an LIC term policy online lets the customer interact with the brand first-hand. The information obtained can be used to compare premiums, quotes, and different customer reviews.

Primarily, this ensures that no fraudulent activity takes place. This situation might arise when the customer is just at the mercy of the insurance agent.


In the case of buying an LIC policy online, the middleman is cut out. Endless policies that are tailor-made to your requirements can be found online. The need of the insurance agent is completely negated as this is quite lengthy. The forms need to be filled out manually, and then this sent for underwriting.

Many customers appreciate the convenience offered by online transactions.

Exclusive Policies

Apart from the advantages as mentioned above, another perk of purchasing the LIC insurance plan online is that the website mentions certain policies that are not available with the agents or at the branches. The online website also offers attractive discounts and slashed prices of premiums.

Lately, people have been encouraged to buy their term plans online. The process of buying an LIC insurance plan from an agent is quite outmoded despite being long-established. The process is cumbersome and results in a lot of running around.

With the growth of the e-commerce field, the online market for life insurance policies is booming, and the choices are endless- it is a fast-growing segment. This online demand is a result of internet literacy among Indians and the rise in competition among various insurance companies. This hassle-free option is now being adopted by many. Online purchases when it comes to insurance policies is the way to go.