What is difference between term policies of LIC and other private insurers?

LIC offers 25 lakhs term policy with higher premium; a private insurer offers 15 lakh + 10 lakh accident benefit = 25 lakh term policy with less premium. Which one is better? What is the catch in it? Which term policy for Rs. 25 lakh is good. Shall I go for private insurers? I am confused.

9 Replies to “What is difference between term policies of LIC and other private insurers?”

  1. Amulya Jeevan is a term insurance plan from LIC that provides a coverage of Min. 25 lacs either on normal death or on accidental death. The premium is the lowest in the industry. Have a look on the jugglery of words. In case a person dies normally, his family will be benefitted by 15 lacs only. you’ll have a full fletched coverage of 25 lacs in any of the cases.
    Go for Amulya Jeevan. A number of private insurance people also buy term insurance from LIC.

  2. Mohan has explained it simply. LIC’s term insurance is a straight line policy. How many people die in accident out of 100 or 1000 policy holders? The actual cover in 15+10 is only 15 lacs.They are selling accident cover compulsorily, which is otherwise available at a very nominal rate.

    Have a nice day!.

  3. Firstly please know the fact that all insurance companies are regulated By IRDA which is a Indian Goverment body so there is nothing like Goverment Insurance by LIC, Secondly, You want a cover for 25lakhs, if your age is below 30years, than you will get the cover with less premium, but please check on the details, given by the company cause a lot of misleading goes on into the market, also compare all the insurance companies altogether and see what suits the best, If you want me to help you more, drop me a line at
    [email protected], just type Insurance query in the subject line.
    Thank You.

  4. LIC term plans are one of the costliest in market. They also don’t have any riders available. But there are two big reasons for going with LIC.
    1. High claim settlement ratio(maybe it’s the highest in market)
    2. Peace of mind.

    So, if you are looking for a term plan with no rider, you can go for LIC. I don’t think higher premium is necessarily bad. For more, you can click on the link below.

  5. Go for LIC Policy. Private insurer is giving you Term Insurance + Personal Accident Policy. PA Policy Premium comes 150 per lac per year Sum Insured. Term Insurance Premium comes around 1000-2000 per lac per year.

  6. dear friend the mohan answer is the best out of ,all and when you take 25 lakhs term policy in lic it avilable for natural / acidental death too.

    but in private company as you stated for accidental death only u get 25 lakhs cover if at all death due to ill health or and other reson you will get 15 lakhs only see the tricks of some smart sales people as one of our friend pointed out lic premiums are not high { rether its cheaper then any other company for a given task with out any sub clasues} i would like to suggest another term policy like you just pay 50k for 3 years and assuer your family a 25 lakhs at any stage on death, in addition you may get approximately 20 lakhs on 20th year. with sbi unit plus – ii , the best 2 advantages with this is you will be c overd till 100 yeras & you are getting good returns also at some stage of life with out loseing life cover { as in case of term policy the max as is 65 years , later you do not have life cover } if intrested toknow more on sbi plan drop a mail to [email protected] you age

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