Is 8% Discount on Insurance Premium Through Digital Payment Available for All or Only New Policies (LIC)?

Introduction to Digital Payment Discounts on Insurance Premiums

Insurance companies worldwide have recognized the importance of digital transformation, offering various incentives to customers who choose to make payments through digital channels. One of the prominent offers in this regard is an 8% discount on insurance premiums for payments made through digital means, such as online or via mobile apps. This practice has gained traction, with specific terms and applicability varying from one insurer to another.

The Case of LT Life Insurance (LIC)

The Life Insurance Corporation (LIC) of India, one of the largest life insurance companies in the world, has also joined this trend by offering an 8% discount to policyholders who opt for digital payments. However, the specifics of this offer can sometimes confuse customers. Is this discount applicable to all policies, both new and existing? Or is it exclusively for new policyholders?

Applicability to New and Existing Policies

The 8% discount on insurance premium through digital payment typically applies to both new and existing policies. This is noted to encourage more digital transactions, which can improve the efficiency of the process and reduce paperwork. However, the terms and conditions can vary based on the insurer's policies and ongoing promotions.

For the specific case of LIC, it has been observed that while the 8% discount is available, it may be targeted more towards new policies. This is seen as a strategy to encourage online transactions and to attract new customers who are more comfortable with digital interactions. However, this may not be the case for all insurers or at all times. It is always best to verify the current conditions directly with LIC or by visiting their official website for the most accurate and up-to-date information.

Specific Policies Offered Online by LIC

Currently, LIC offers only two policies for online sales:

Jeevan Akshay Immediate Pension Plan: This is a pension plan that provides regular income to policyholders right from the point of investment. It is available for purchase through digital channels and comes with the 8% discount on premium payments.

E Term Assured Plan: This is a term insurance plan that provides coverage to the policyholder up to a specific age. Like the Jeevan Akshay plan, it is also available for purchase through online means and benefits from the 8% discount.

How the Discount Is Presented

When visiting the LIC homepage, customers may see the 8% discount prominently displayed. Upon proceeding to purchase a policy, the focus shifts to the amount that needs to be paid, with no direct mention of the discount being applied. This could lead to confusion about whether the discount is indeed being offered, and how it affects the overall premium amount.

It is important to note that there is no immediate bifurcation of the premium and discount during the checkout process. The system may calculate the discount internally but does not show this breakdown to the customer until after the payment is made. This means that once the payment is processed, the customer will see the final amount without the discount being explicitly highlighted.

Conclusion

While there is an 8% discount on insurance premiums for digital payments, its applicability and presentation can vary. For LIC policies, the 8% discount is available for both new and existing customers but may be more commonly offered to new policyholders. Two specific policies are currently available for online purchase:

Jeevan Akshay Immediate Pension Plan

E Term Assured Plan

It is always advisable to check directly with LIC for the latest and most accurate information regarding this and any other promotional discounts.