Calculators LIC plans Term plans
Online-only term plan, lower premiums, no agent commission.
LIC Digi Term (Plan 876) is LIC's flagship online pure-term plan. It offers level sum assured from ₹50 lakh upward with no upper cap published, entry ages 18–65, policy terms of 10–40 years, and regular premium paying mode only. Premiums are lower than LIC's agent-channel equivalent because there is no agent commission — the same underwriting, same claim settlement, lower cost. For a 30-year-old non-smoker seeking ₹1 crore cover for 30 years, indicative annual premium is roughly ₹10,000–13,000 — competitive with private online term plans. Death benefit is paid as a lump sum to the nominee regardless of cause of death.
Max maturity age 80. Online purchase only — no agent commission.
Death of the life assured for any reason — accident, illness, or natural causes — during the policy term. The full sum assured is paid to the nominee as a lump sum. There are no partial payouts, no maturity benefit, and no survival benefit. The policy has no investment component whatsoever. Death during a lapsed policy is not covered — premiums must be current at time of death for the claim to be valid.
Suicide within the first 12 months of policy commencement (or revival, if applicable) — nominees receive 80% of premiums paid, not the sum assured. Death after policy lapse (if premiums are unpaid beyond the grace period). Any death arising from fraudulent non-disclosure of material facts at inception. Unlike endowment plans, there is no paid-up option — if premiums lapse, the policy simply terminates with no residual benefit.
For a 30-year-old non-smoker, ₹1 crore cover, 30-year term: private online term plans (HDFC Click 2 Protect, Max Smart Secure, ICICI iProtect Smart) typically quote ₹8,000–11,000/year; LIC Digi Term typically quotes ₹10,000–13,000/year — a 15–25% premium over the cheapest private option. The LIC premium is worth paying if you value government backing, the 98%+ CSR, or if your nominee's claim-filing situation would benefit from LIC's extensive branch network. It is not worth paying if you are purely price-optimising and have no preference between insurers — in that case, use an aggregator and pick the cheapest credible private insurer.
Digi Term is the right choice for urban earners comfortable buying online who have a modest price sensitivity — they don't want the cheapest private option, they want LIC credibility at the best available LIC price. Priority buyers: sole breadwinners with dependants who have never bought term cover; anyone whose family is not financially sophisticated and would struggle to deal with a private insurer at claim time; earners in the ₹10–50L income range where ₹1–2 crore of cover is proportionate and the ₹2,000/year LIC premium difference is not material. Not the right choice: people who need single-pay or limited-pay term (see New Tech-Term); people whose nominee is fully capable of handling a private insurer claim and want to minimise premium cost.
Premiums paid for Digi Term qualify for deduction under §80C of the Income Tax Act up to ₹1.5 lakh per year, provided the sum assured is at least 10× the annual premium (easily satisfied at ₹1Cr SA with ≈₹11,000 premium). Death benefit paid to nominees is fully tax-free under §10(10D) — no conditions, no threshold. There is no maturity amount, so no §10(10D) maturity tax question arises. If ADDB or CI riders are also taken, the rider premiums for CI are deductible under §80D (health insurance) up to ₹25,000/year — this is an additional deduction, not part of the §80C limit.
LIC does have an online premium calculator — it's their Quick Quote tool on the eBiz portal. Enter your name, date of birth, gender, and mobile number, then pick this plan on the next screen to see the actual premium for your profile.
This is an online-only plan — the quote and purchase flow are fully on LIC's website. No agent or branch visit needed.
Open LIC's Quick Quote tool ↗Or browse the official plan page ↗ for brochures and policy documents.
Asymmetrica isn't an insurance advisor. The analysis above is editorial, sourced from published LIC brochures. Verify eligibility, current rates, and plan-specific conditions with LIC or a licensed advisor before purchasing.
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