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LIC’s Digi Term Insurance Plan (Plan No. 876): Complete
Guide, Benefits, Premium, and Eligibility
Introduction
Life insurance is one of the most important financial tools
for protecting your family’s future. Among the various types of life insurance
available in India, term insurance is considered the most affordable and
effective option. It provides high life cover at a relatively low premium,
ensuring financial security for your loved ones in case of an unfortunate
event.
The Life Insurance Corporation of India (LIC),
India’s most trusted and government-backed insurance company, introduced LIC’s
Digi Term Insurance Plan (Plan No. 876) to meet the needs of today’s
digitally aware customers. This plan is designed for individuals who prefer a simple,
online, transparent, and cost-effective term insurance policy.
In this detailed guide, we will explain everything you need
to know about LIC Digi Term 876, including features, benefits,
eligibility criteria, premium details, riders, claim settlement, and why it is
a suitable option for long-term financial protection.
What is LIC’s Digi Term Insurance Plan 876?
LIC’s Digi Term Insurance Plan (Plan No. 876) is a pure
protection, non-linked, non-participating term insurance plan that is
available through online mode. This plan offers financial protection to
the policyholder’s family in the form of a lump sum death benefit in
case of the policyholder’s death during the policy term.
Since it is a pure term plan, there is no maturity
benefit if the policyholder survives the policy term. The primary objective
of this plan is risk coverage, not investment or savings.
Why Choose LIC Digi Term Plan 876?
There are many term insurance plans available in the market,
but LIC Digi Term stands out due to the following reasons:
- Backed
by LIC of India, a government-owned insurer
- Online
purchase with minimal paperwork
- Affordable
premium compared to offline plans
- Flexible
premium payment options
- High
claim settlement reputation of LIC
- Suitable
for salaried, self-employed, and professionals
Key Features of LIC Digi Term Insurance Plan
1. Pure Term Insurance Coverage
The plan provides only life insurance coverage. There
are no survival or maturity benefits.
2. Online Policy
This plan is available through online channels,
making it convenient and cost-effective.
3. Level Sum Assured
The sum assured remains constant throughout the
policy term.
4. Flexible Premium Payment Modes
Policyholders can choose from:
- Single
Premium
- Regular
Premium
- Limited
Premium Payment Term
5. Non-Linked and Non-Participating
The plan is not linked to the stock market and does not
participate in profits.
Eligibility Criteria for LIC Digi Term Plan 876
Before buying the policy, it is important to understand the
eligibility requirements.
Minimum and Maximum Age
- Minimum
Entry Age: 18 years
- Maximum
Entry Age: 60 years
Maximum Maturity Age
- 80
years
Policy Term
- Minimum:
10 years
- Maximum:
40 years
Minimum Sum Assured
- ₹25,00,000
(may vary based on LIC guidelines)
Premium Payment Options
LIC Digi Term Plan offers flexibility in premium payment to
suit different financial needs.
1. Single Premium
Pay the entire premium in one lump sum at the beginning of
the policy.
2. Regular Premium
Pay premiums throughout the policy term.
3. Limited Premium
Pay premiums for a limited period while enjoying coverage
for the full policy term.
Premiums can be paid monthly, quarterly, half-yearly, or
yearly, depending on the chosen mode.
Death Benefit Under LIC Digi Term Plan
In case of the policyholder’s death during the policy term,
the death benefit payable to the nominee will be:
- Sum
Assured on Death
The sum assured on death is usually the highest of:
- Basic
Sum Assured
- 7
times the annualized premium
- Absolute
amount assured at death
This ensures meaningful financial support to the nominee.
Maturity Benefit
LIC Digi Term Insurance Plan does not offer any maturity
benefit. If the policyholder survives the entire policy term, no amount
is paid, and the policy terminates.
This is standard for pure term insurance plans and allows
premiums to remain affordable.
Riders Available with LIC Digi Term Plan
To enhance coverage, LIC allows optional riders at an
additional cost.
LIC Accidental Death Benefit Rider
- Provides
additional payout in case of accidental death.
- Enhances
overall protection at a low extra premium.
Riders must be chosen at policy inception and are subject to
terms and conditions.
Tax Benefits Under LIC Digi Term 876
Section 80C
Premiums paid are eligible for tax deduction under Section
80C of the Income Tax Act, subject to prevailing limits.
Section 10(10D)
The death benefit received by the nominee is tax-free,
subject to applicable tax laws.
Tax benefits depend on current tax regulations and may
change in the future.
Claim Settlement Process
LIC is known for its strong claim settlement track record.
The claim process under Digi Term Plan is straightforward.
Steps to File a Claim
- Inform
LIC about the claim
- Submit
claim form and required documents
- Verification
by LIC
- Claim
settlement to nominee
Common documents include:
- Death
certificate
- Policy
document
- Identity
proof of nominee
Advantages of LIC Digi Term Insurance Plan
- Trusted
government-backed insurer
- Simple
and transparent policy structure
- High
coverage at affordable premiums
- Online
convenience
- Strong
customer service network
- Suitable
for long-term family protection
Limitations of LIC Digi Term Plan
- No
maturity or survival benefit
- Limited
rider options compared to private insurers
- Online-only
purchase may not suit everyone
Who Should Buy LIC Digi Term Plan 876?
This plan is ideal for:
- Young
professionals starting their careers
- Married
individuals with dependents
- Parents
planning children’s future security
- Self-employed
individuals seeking affordable protection
- Anyone
who wants pure life cover without investment
LIC Digi Term vs Traditional LIC Term Plans
|
Feature |
Digi Term 876 |
Offline Term Plans |
|
Purchase Mode |
Online |
Offline |
|
Premium |
Lower |
Slightly higher |
|
Paperwork |
Minimal |
More documentation |
|
Convenience |
High |
Medium |
Important Things to Consider Before Buying
- Assess
your financial responsibilities
- Choose
adequate sum assured
- Select
suitable policy term
- Declare
health and lifestyle details honestly
- Compare
premium payment options
Frequently Asked Questions (FAQs)
Is LIC Digi Term Plan 876 safe?
Yes, it is offered by LIC of India, which is fully owned by
the Government of India.
Can NRIs buy this plan?
As per LIC guidelines, NRIs may be eligible subject to
conditions.
Is medical test required?
Medical examination may be required based on age and sum
assured.
Can I increase sum assured later?
No, the sum assured cannot be increased after policy
issuance.
Conclusion
LIC’s Digi Term Insurance Plan (Plan No. 876) is a
reliable, affordable, and transparent term insurance solution for individuals
looking for pure life protection. With LIC’s strong brand value, online
convenience, and flexible premium options, this plan is well-suited for
long-term financial security planning.
While it does not offer investment or maturity benefits, it
fulfills the core purpose of term insurance—protecting your family
financially when they need it the most. Before purchasing, always evaluate
your coverage needs and understand the policy terms carefully.
Disclaimer
This article is for informational purposes only.
Policy features, benefits, and tax rules are subject to change as per LIC and
government regulations. Always refer to the official LIC brochure or consult an
authorized advisor before making a purchase decision.