LIC Digi Term (Plan 876)

The Ultimate Guide to LIC's Digi Term (Plan 876): Pure Risk Protection for Your Family in Bhadra

When discussing Financial Planning in Bhadra, the foundation of any solid financial portfolio is absolute family protection. While investment plans grow your wealth, a pure term insurance plan acts as an unshakeable shield around your family's future in your absence.

Welcome to the comprehensive guide on LIC's Digi Term (UIN: 512N356V02 | Plan No.: 876). As the most trusted Insurance Expert in Rajasthan and the leading Insurance Advisor Bhadra, Ashuram Insurance Expert brings you complete transparency regarding this highly popular term insurance plan.

1. What is LIC's Digi Term?

LIC's Digi Term is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan. This means it is a pure protection plan that provides financial protection to the insured's family in case of his/her unfortunate death during the policy term.

Because it is a "Non-Par" (Non-Participating) product, the benefits payable on death are guaranteed and fixed irrespective of actual experience. Hence, the policy is not entitled to any discretionary benefits like bonus etc. or share in Surplus.

Key Highlights

• Special rates for women: The plan recognizes the longevity of women and offers special, lower premium rates for them.
• Health-Based Pricing: The plan offers two categories of premium rates namely (1) Non-Smoker rates and (2) Smoker rates. The application of Non-Smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases, the Smoker rates will be applicable.

2. Eligibility Conditions and Sum Assured Limits

Before incorporating this into your Saving and Investment Planning, you must meet the strict age and coverage criteria:

Coverage Limits (Sum Assured)

• Minimum Basic Sum Assured: Rs. 50,00,000/- (Fifty Lakhs)
• Maximum Basic Sum Assured: Rs. 5,00,00,000/- (Five Crore). Amounts above 5 Crore may be considered on a case-to-case basis.

(Note on Multiples: From Rs. 50 Lakh to Rs. 75 Lakh, it is in multiples of Rs. 1 Lakh. From Rs. 75 Lakh to Rs. 1.5 Crore, multiples of Rs. 25 Lakh. From Rs. 1.5 Crore to Rs. 4 Crore, multiples of Rs. 50 Lakh. Above Rs. 4 Crore, multiples of Rs. 1 Crore).

3. Premium Payment and Policy Terms

Flexibility is a core strength of LIC's Digi Term. You can choose from Single Premium, Regular Premium and Limited Premium Payment options.

4. Decoding the Death Benefit Options

As your trusted LIC Agent Near Ambedkar Chowk, we want you to fully understand the payout structure. Death benefit payable on death of the Life Assured during the policy term after the date of commencement of risk but before the date of maturity, provided the policy is inforce and claim is admissible shall be "Sum Assured on Death".

Defining "Absolute Amount Assured:"

• Option I (Level Sum Assured): The absolute amount assured shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.
• Option II (Increasing Sum Assured): Remains equal to Basic Sum Assured till completion of 5th policy year. Increases by 10% each year from the 6th to 15th year till it becomes twice the Basic Sum Assured. Constant thereafter.

Important: The Death Benefit Option once chosen cannot be changed later. Also, on survival of the life assured to the end of the policy term, no maturity benefit is payable.

5. Settlement Options: Regular Income for Your Family

A key feature for Family Financial Security is the option to take Death Benefit in instalments over a period of 5 or 10 or 15 years instead of lump sum amount. The instalments shall be paid in advance at yearly, half-yearly, quarterly or monthly intervals.

6. Rebates, Grace Period, and Liquidity

• High Sum Assured Rebates: LIC rewards higher coverage up to 37% for Regular/Limited Premium (above 5 Crore) and up to 33% for Single Premium.
• Grace Period: 30 days allowed for payment of yearly/half-yearly premiums from First Unpaid Premium date.
• Revival: A lapsed policy can be revived within 5 years.
• Liquidity & Paid-Up: No paid-up value and NO loan facility available.
• Surrender: No surrender value generally. Exceptions apply for Single Premium or Limited Premium where unexpired risk premium is refunded. Nothing payable on Regular Premium surrender.
• Suicide Exclusion: If suicide occurs within 12 months, nominee gets 80% of total premiums paid.