LIC Tech term - Death Benefit
27 Jan, 2021 by Rakesh
LIC Tech term - Sum Assured - 1 crore.
Annual Premium - 13050 (15399 including gst)
Premium Payment mode - Regular
A) Death Benefit:
Death benefit payable in case of admissible death claim under this policy before the stipulated Date of Maturity provided the policy is inforce shall be “Sum Assured on Death”.
For Regular premium and Limited premium payment policy, “Sum Assured on Death” is defined as the highest of:
- 7 times of annualised premium; or
- 105% of all the premiums paid as on the date of death; or
- Absolute amount assured to be paid on death.
Please help me understand from the 3 conditions listed above, which one shall qualify as death benefit.
The above is taken from the LIC Tech term policy document.
Apologies for the delayed response.
You can ignore this clause. In the case of term insurance, you will always be paid the sum assured you have opted for (purely because the sum assured will always be higher than the other two options - 7X annual premium or 105% of premium paid)
Hope this explains. Do let us know if you have any follow up questions.