Digi Term

What this product is

A pure term life plan sold only online on LIC's own website, offering large covers (₹50 lakh and up) with a choice of flat or gradually increasing payout.

You might need this if…

• You want a large term cover (₹50 lakh to several crore) and would rather buy it yourself online than go through an agent.
• You want the option to have your cover grow over time (up to double the original amount by year 15) so it keeps pace with rising expenses, instead of staying flat.
• You'd prefer to finish paying premiums well before the cover ends, using a 10 or 15-year limited premium option instead of paying for the full term.
• You just want a no-frills death benefit — you're not looking for maturity payouts, loans, or investment features.

How it actually works

• Minimum basic sum assured is ₹50 lakh, with no fixed upper cap (larger amounts go through extra underwriting); amounts must be chosen in set multiples depending on the band.
• Pick Option I – Level Sum Assured (cover stays the same for the whole term) or Option II – Increasing Sum Assured (cover holds for 5 years, then rises 10% a year until it doubles by year 15, then stays flat) — this choice is locked in once made.
• Entry age 18–45; policy can run up to 40 years under level cover, with maturity age capped around 75.
• Choose Regular premiums (for the full term), Limited premiums (paid over just 10 or 15 years), or a one-time Single premium.
• Death benefit is the highest of 7× your annualised premium, 105% of all premiums paid, or the chosen sum assured (for single premium: the higher of 125% of the single premium or the sum assured).
• Large sum assured buyers get meaningful premium rebates — bigger cover brings a proportionally cheaper rate per rupee insured.

Worked example

The tiers

Worth knowing before you decide

• There's no maturity benefit at all — if you outlive the term, nothing is paid, and there's no policy loan or paid-up value option.
• Dying by suicide within 12 months of starting or reviving the policy pays out only 80% of premiums paid, not the full sum assured.
• This plan is available only through LIC's website — it isn't sold by agents.
• You get a 30-day free-look window to cancel after receiving the policy document, with a refund minus some deductions.

Official source

⌟ Official product brochure

Learn about this category

Read the full term insurance explainer → · See all protection products →