WHY TO TAKE TERM PLANS?
As per financial planners life cover should be worth six to seven times of your present yearly earnings. If your present yearly earning is 10 lakh then the insurance policy should provide a cover of Rs 60 lakh. Term policy is also knows as pure-risk policy, which offers an huge cover at nominal cost.  A term plan is the best choice when the motive is life cover.

WHICH TERM PLAN?
The next query is which policy. The first name that appear to mind is LIC. The state run Life Insurance Corporation of India is the oldest and major insurer in the country and all its liabilities take an complete government support.
While it is normally well-known, term plans just cover the life of the policyholder and do not offer any maturity or survival benefits. The sum of life cover (sum assured) is payable only to the nominee in case of unfortunate death of the insured during the policy term. If  the insured survives till the end of the policy term, he/she is not entitled to any benefits from the insurance company. The premiums paid during the policy term may as a result be treated as a cost to cover one’s life. So it is better to reduce the cost.
In spite of better offers from private insurance companies, there is high demand for LIC’s insurance products. It is mainly because stress-free settlement of claims after the ill-fated event of death of the insured, which is extremely significant.

Term Plans available in LIC – Anmol Jeevan & Amulya Jeevan

I have taken LIC Amulya Jeevan policy two years back. I wish to know if the plan offers accidental risk cover? Ramesh
LIC Amulya Jeevan does not offer any extra benefit in case of death because of an accident, only basic sum assured is paid.

I wish to buy a term insurance plan  which will cover terrorism, accident benefit, permanent disability, critical illness and has a good claim ratio. - Amit
LIC’s term plans Amulya Jeevan & Jeevan Anmol cover terrorism, but do not offer any rider. Critical illness rider is also not available with these term plans as riders.