It is impossible to compromise your family’s financial security in the uncertain world of today. However, a lot of people continue to put off purchasing life insurance due to paperwork, medical exams, or unclear policy language. That obstacle is specifically addressed by LIC’s Digi Term:
- A pure protection plan — you only pay for life cover, no returns on maturity.
- Entirely digital application (depending on eligibility), with minimal documentation.
- Transparent benefit structure and fast processing.
Let’s examine how this stacks up against alternatives and why many experts still think that term insurance is the best “buy low, hedge risk” option for the majority of people.
LIC Digi Term Plan 876
Plan No. 876 (UIN: 512N356V02) – Estimate Your Term Insurance Premium
Real-World Data & Market Insight
- According to several industry reports, only about 10–15% of households in India have sufficient life insurance.
- Many top insurers in metro India will offer a 30-year, non-smoking male a ₹1 crore (₹10 million) term plan for less than ₹800–1,000 a month.
- A 2024 IRDAI report states that approximately 90% of term insurance claims (death benefit) are resolved in less than 30 days.
- Since term plans offer significant leverage at a low cost, experts frequently advise consumers to “buy the most term cover you can afford in your 20s and 30s, and invest the remainder in equities or mutual funds.”
The majority of Indian households have even more faith in LIC because of its reputation and legal protections.
Key Features & Benefits (How LIC Digi Term works)
| Feature | What It Means for You |
|---|---|
| Pure Risk Cover Only | There is no advantage to maturity. You only pay for life insurance. |
| Death Benefit Options | Level Sum Assured (fixed for the duration of the term) is Option I. Option II: Increasing Sum Assured: from year 6 to year 15, the sum assured rises by 10% annually up to 2× basic SA, after which it remains constant. |
| Definition of Death Benefit | The payable sum is the maximum of: • 7× annualized premium, or • 105% of total premiums paid so far, or • Absolute amount assured (depends on option) |
| No Surrender Value | You can’t give up for money. Only the “Unexpired Risk Premium” is due if you cancel before maturity (for single or limited premium plans). |
| Suicide Exclusion | The nominee receives 80% of premiums paid (excluding extras and taxes) if the insured commits suicide within a year of the policy’s start (or revival). |
| Grace Period | 30 days grace for premium payment |
| Free Look Period | 30 days from receipt to review/cancel |
| Lapse / Revival | If a premium is not paid after the grace period, the policy expires. Later revival is possible (subject to provisions). |
| Claims Turnaround Time (TAT) | – Death claims (non-investigated): 15 days – Death claims requiring investigation: decision & payment within 45 days |
| Policy Servicing & Other TATs | Changes to addresses, nominations, corrections, and duplicate policies must be made within seven days of each other. |
| Grievance Redressal | Recognition right away; resolution of the complaint within 14 days; and, if not, recourse to the Ombudsman or Consumer Courts |
All details based on LIC’s CIS / KYP document. In case of discrepancy, the full policy document governs.
How It Compares — Term Insurance in Today’s Landscape
- Term plans with add-on riders (critical illness, waiver, etc.) are available from a number of private insurers. The Digi Term from LIC is more straightforward and only addresses death benefits.
- Limited premium terms are permitted by certain competitors (e.g., pay for 10 years, 15 years, but cover for 30 years). Additionally, “limited premium” and “regular premium” schemes are supported by LIC.
- Claim settlement speed: LIC’s 15-day (non-investigated) turnaround is competitive among major insurers, while private players frequently advertise a 7–10 day turnaround.
- Brand trust: In many regions of India, particularly in semi-urban and rural markets, LIC is seen as more reliable due to its long history and government support.
Expert Opinion & Analysis
“For most salaried individuals, a high-coverage term insurance remains the backbone of financial planning. Everything else builds over it.”
— Chartered Financial Planner, Mumbai
“Delay in buying term cover costs more in higher premiums later. Buy early, lock in low rates.”
— Life Insurance Industry Analyst
Term insurance is still one of the most “insurance leverage” products when looking at risk-return ratios: you pay small premiums to cover a very high future risk (death). The payout to an individual is fixed, but the insurer’s actuarial reserves absorb volatility even during economic downturns.
That dependable foundation is brought into a digital format with LIC’s Digi Term, which appeals to millennials, tech-savvy urban consumers, and quicker distribution channels.
FAQs (Frequently Asked Questions)
No. A pure protection plan is LIC Digi Term. It doesn’t provide surrender or maturity benefits. The amount promised is paid upon death; if not, there will be no benefit at the end of the term.
Your grace period is thirty days. The policy expires if the premium is not paid within that time frame. By meeting the requirements, you can renew the policy after it has expired (within the revival period).
No, if the policy is still in effect, the nominee is entitled to 80% of the premiums paid (less taxes and extras).
(The same 80% rule also applies to single premiums.)
No. Riders are not included in this product; it is a standalone pure term plan. If necessary, you can combine with other plans.
Within 15 days for claims that don’t need to be looked into
If enquiries are necessary, a decision and payment must be made within 45 days.
(This is contingent upon the claim and appropriate documentation being in order.)
Indeed. Instead of paying out a lump sum, LIC offers the option of paying out the death benefit in installments over a period of five, ten, or fifteen years, either in full or in part.
Indeed. You have 30 days from the date of policy receipt to review, cancel, and receive a refund (subject to deductions) in accordance with the terms of the policy.
It is the highest of:
7 × annualised premium, OR
105% of total premiums paid so far, OR
Absolute amount assured (depending on death benefit option)
No, you cannot change the terms or sum assured in the middle of the policy once it has been accepted and set. If you eventually need more coverage, you can buy an additional policy.
The majority of servicing requests (such as address changes, corrections, and duplicate issuance) are handled by LIC in less than seven days.
Reinforcement
The financial future of your family should be certain, not uncertain. With clarity, speed, trust, and little fuss, LIC Digi Term enables you to secure that certainty. Pure protection is what you pay for, and LIC fulfils this promise in writing.