In India, term insurance is a cornerstone of financial planning, offering high coverage at affordable premiums to secure your family’s future. The Life Insurance Corporation of India (LIC), a state-owned insurance giant established in 1956, has long been synonymous with trust and reliability. With a 99.29% claim settlement ratio in FY 2024-25, LIC continues to lead the market. Its digital platform, LIC Digital, has transformed the way customers purchase term insurance, making the process seamless, paperless, and accessible. This 1400-word guide explores how LIC Digital simplifies buying term insurance in 2025, highlighting its features, benefits, drawbacks, and answers to frequently asked questions.
Why Term Insurance Matters in 2025
Term insurance provides pure life cover, paying a death benefit to nominees if the policyholder passes away during the policy term. With rising living costs, medical inflation at 14% annually, and economic uncertainties, term plans ensure financial stability for dependents, covering expenses like loans, education, or daily needs. LIC’s digital platform, launched to enhance customer convenience, leverages advanced technology like eKYC, e-signatures, and WhatsApp integration to streamline policy purchases. In 2025, LIC Digital makes term insurance accessible to millions, from urban professionals to NRIs, with minimal hassle.
Overview of LIC’s Term Insurance Plans on LIC Digital
LIC offers several term insurance plans through its digital platform, catering to diverse needs:
- LIC New Tech-Term (Table 854)
A non-linked, non-participating, pure protection plan available exclusively online, offering sum assured from ₹50 lakh to no upper limit. - LIC Jeevan Amar
An offline and online non-linked, non-participating term plan with flexible premium options (single, regular, limited) and coverage up to ₹5 crore. - LIC Saral Jeevan Bima
A standard term plan with simple eligibility, ideal for first-time buyers, offering coverage up to ₹25 lakh.
These plans are accessible via www.licindia.in or the LIC Digital App, ensuring a hassle-free purchase process.
How LIC Digital Simplifies Term Insurance Purchase
1. Paperless Process
LIC Digital uses eKYC and e-signatures, eliminating physical documentation. Aadhaar-based verification and OTP authentication complete identity checks in minutes.
2. Online Premium Calculator
The LIC Digital platform provides a premium calculator to estimate costs based on age, sum assured, policy term, and health status, ensuring transparency.
3. WhatsApp Integration
Starting May 9, 2025, policyholders can send “HI” to +91-8976862090 on WhatsApp to view policies, pay premiums via UPI or cards, and get instant updates.
4. Instant Policy Issuance
Post-payment, policies are issued instantly and emailed, with a 15-day free look period for review and cancellation.
5. Flexible Premium Options
Choose single, regular, or limited premium payments, with discounts for women and high sum assured (₹1 crore+).
6. Rider Options
Enhance coverage with riders like accidental death, critical illness, or premium waiver, available online.
7. 24/7 Customer Support
Access support via the LIC Digital App, WhatsApp, SMS (ASKLIC [Policy Number] to 9222492224), or toll-free numbers (+91-22-68276827).
8. User-Friendly Portal
The LIC Customer Portal allows registered users to view policy details, pay premiums, and download tax certificates, with new users signing up using policy number and date of birth.
Pros of Buying Term Insurance via LIC Digital
- Hassle-Free Process: eKYC, e-signatures, and WhatsApp integration eliminate paperwork and physical visits.
- High Claim Settlement Ratio: 99.29% ratio ensures reliable payouts, with 96% of non-investigative claims settled in one day.
- Affordable Premiums: Starting at ₹820/month for ₹2 crore coverage (18-year-old, non-smoker, 38-year term), with 5% online discounts.
- Flexible Coverage: Sum assured from ₹25 lakh to no limit, with options for level or increasing sum assured.
- Digital Convenience: The LIC Digital App and WhatsApp allow policy management, premium payments, and claim tracking anytime, anywhere.
- Trusted Brand: LIC’s government backing and $13.6 billion brand value (4th in India, 2025) ensure trust.
- Tax Benefits: Premiums qualify for deductions up to ₹1.5 lakh under Section 80C, and death benefits are tax-free under Section 10(10D).
- Rider Flexibility: Add-ons like critical illness or accidental death enhance protection, available online.
Cons of Buying Term Insurance via LIC Digital
- Higher Premiums: LIC’s premiums (e.g., ₹1,443/month for ₹5 crore, 18-year-old) are higher than private insurers like Bajaj Allianz or HDFC Life, which offer similar coverage at lower rates.
- Subpar Digital Experience: Some users report glitches in the LIC Digital App or delays in customer service compared to private insurers.
- Suicide Exclusion: No death benefit for suicides within 12 months of policy start or revival; nominees receive only 80% of premiums paid.
- No Loan Facility: Unlike endowment plans, term plans like Tech-Term offer no loan options, limiting liquidity.
- Limited Rider Options: Fewer riders compared to private insurers, who offer critical illness or disability waivers at lower costs.
- Complex Navigation: The LIC portal can be less intuitive for first-time users, requiring guidance for eKYC or payments.
- Higher Complaint Volume: LIC’s large customer base leads to more complaints, though resolved under IRDAI oversight.
How to Buy Term Insurance on LIC Digital
- Visit LIC Digital: Go to www.licindia.in or download the LIC Digital App from Google Play Store.
- Select Plan: Choose Tech-Term, Jeevan Amar, or Saral Jeevan Bima based on coverage needs.
- Use Premium Calculator: Enter age, sum assured, policy term, and health details to estimate premiums.
- Complete eKYC: Verify identity using Aadhaar and OTP or upload documents (PAN, address proof).
- Add Riders: Select optional riders like accidental death or critical illness.
- Make Payment: Pay via UPI, net banking, or cards, or use WhatsApp (+91-8976862090) for instant payments.
- Receive Policy: Get the policy document via email instantly, with a hard copy mailed within 5–7 days.
Case Study: Hassle-Free Purchase with LIC Digital
Anita, a 30-year-old IT professional, buys LIC New Tech-Term (₹2 crore sum assured, 30-year term) via LIC Digital. Using the premium calculator, she estimates her annual premium at ₹12,000 (female, non-smoker) with a 5% online discount. She completes eKYC with Aadhaar in 5 minutes and pays via UPI on WhatsApp. The policy is issued instantly, emailed, and accessible on the LIC Digital App. If Anita passes away during the term, her family receives ₹2 crore tax-free, ensuring their financial stability. The process takes under 30 minutes, with no paperwork or agent visits.
Tips for Maximizing LIC Digital’s Benefits
- Buy Online: Avail 5% discounts and faster processing by purchasing through LIC Digital.
- Compare Plans: Use the premium calculator to evaluate Tech-Term, Jeevan Amar, or Saral Jeevan Bima for cost and coverage.
- Opt for High Coverage: Choose ₹1 crore+ sum assured for women’s discounts and tax-free death benefits.
- Use WhatsApp: Manage policies and payments via +91-8976862090 for quick access.
- Check Tax Eligibility: Confirm deductions under Sections 80C and 10(10D) with a tax advisor.
- Renew On Time: Avoid lapses with a 30-day grace period to maintain coverage and NCB benefits.
- Explore Riders: Add critical illness or accidental death riders for enhanced protection.
FAQs About LIC Digital Term Insurance
1. What is LIC Digital?
LIC Digital is LIC’s online platform, including the website (www.licindia.in) and LIC Digital App, for buying, managing, and claiming term insurance policies.
2. How does LIC Digital simplify term insurance purchase?
It offers eKYC, e-signatures, WhatsApp payments, and a premium calculator for a paperless, instant process.
3. What is the claim settlement ratio of LIC?
LIC has a 99.29% claim settlement ratio for FY 2024-25, with 96% of non-investigative claims settled in one day.
4. Are there discounts for online purchases?
Yes, a 5% discount applies to online purchases, and women get special premium rates for high sum assured (₹1 crore+).
5. What happens if I miss a premium payment?
A 30-day grace period is provided. If unpaid, the policy lapses but can be revived within 5 years.
6. Are death benefits tax-free?
Yes, death benefits are tax-free under Section 10(10D), provided premiums don’t exceed 10% of the sum assured for policies issued after April 1, 2012.
Conclusion
LIC Digital makes buying term insurance in 2025 hassle-free with its paperless eKYC, WhatsApp integration, and instant policy issuance. Plans like New Tech-Term and Jeevan Amar offer high coverage, tax benefits under Sections 80C and 10(10D), and a 99.29% claim settlement ratio, ensuring reliability. While higher premiums and limited rider options are drawbacks, the platform’s digital convenience and LIC’s trusted brand make it a top choice. Visit www.licindia.in or download the LIC Digital App to secure your family’s future with ease. Protect your loved ones today with LIC Digital’s seamless experience.
