term life insurance review
LIC
“Why waste time say lot word, when few word do trick?”
High-trust public-sector option, but pure online term plans should still be compared for price and simplicity.
- Overall score 7.8/10
- Top fit: public-sector-buyers, brand-trust-seekers
- Compare plan-level pages before purchase.
Quick Facts
Founded
1956
Headquarters
Mumbai, India
Ownership
Wholly owned by the Government of India, established under the Life Insurance Corporation Act, 1956
Official Website
https://licindia.in ↗Score breakdown
Claim settlement statistics
We do not publish a claim settlement percentage for LIC unless we can source it. Read our rating methodology for how these feed our scores.
Claim Settlement Ratio
Very strong (recent disclosed trend)
High settlement indicates reliable payout.
Formula & sourceComplaints Ratio
Check recent policyholder complaints before buying
Lower values indicate better customer support.
Formula & sourceIndustry benchmark
In FY 2024-25, general and health insurers together paid 87.5% of all health claims they handled by number, repudiated 7.92% and had 4.58% outstanding at year end. By amount, only 71.14% of the money claimed was paid; 13.98% was disallowed under policy terms (deductions such as room-rent limits and non-payable items). Source: IRDAI Annual Report 2024-25, Table I.29. These shares use all claims handled as the base, so they run slightly lower than the settlement ratio we compute for each insurer.
Three numbers that get confused
Claim settlement ratio
Claims settled as a share of claims registered. Count-based, so many small settled claims can flatter it.
Settled within 3 months
A speed measure, not a payout measure. Often quoted because it looks higher.
Incurred claim ratio
Claim amount paid against premium collected. A different thing entirely, and frequently mislabelled as settlement ratio.
We take ratios from IRDAI publications and insurer statutory filings, never from insurer marketing, and show each year separately rather than blending them. See our metric definitions and benchmarks for the formula behind each figure, or go straight to the primary sources: IRDAI annual reports and insurer public disclosures.
All plans
Jeevan Amar
7.7/10Useful LIC term option for buyers who strongly prefer the public-sector brand.
Rs 10k-26k
Tech Term
7.8/10Online LIC term option that should be compared against private digital term plans.
Rs 9k-24k
Editorial notes
Plain-English take
LIC is often chosen for trust, not lowest price. That is valid for some families, but make sure you are buying pure term insurance and not being nudged into a savings-linked policy.
For term insurance, the insurer matters, but the clean disclosure trail matters more. Do not hide smoking, income, medical history, or risky hobbies just to reduce the premium.
Pros and cons
Pros
- Very high brand trust
- Large servicing footprint
- Strong claim familiarity among families
Cons
- Premiums can be higher
- Digital buying may feel less polished
- Offline sales may push non-term products
Who this is for
Our verdict on LIC
tldr.money editorial score: 7.8/10
High-trust public-sector option, but pure online term plans should still be compared for price and simplicity.
This is our own editorial assessment, not a customer rating. We do not publish testimonials and we are not paid for placement. See how we score insurers for the inputs and their limits.
LIC Frequently Asked Questions
Is LIC good for term insurance?+
What should I check before buying LIC term insurance?+
Editorial Team
Research and writing by the tldr.money editorial team. We link the IRDAI publications and insurer documents behind our figures, and say so plainly when a figure is not yet verified.
FAQ
Should I shortlist LIC?
It can be, but shortlist it with at least two competitors and compare plan-level exclusions before buying.
Which LIC plan is top pick?
Use the plan cards above to review score, verdict, and segment fit before finalizing.
Other insurers to compare
The insurers scored closest to LIC in this category.
Get practical updates
Weekly no-fluff finance breakdowns for India.