If you are researching to take a term policy, you’ll mostly end up taking up a policy that belongs to some Insurance company other than LIC. The Public sector Insurer stands among those companies that charge highest amounts for a term plan and that’s obvious since it has huge number of policy holders to maintain.
For example, for a 30 year old wanting to take a 50 lac term plan, LIC (Amulya Jeevan 1) requires you to pay a premium of Rs.12700 per year for a 15 year term.
Where as, you can get the same cover with just Rs.4526 per year from Aviva (iLife) or for Rs.5019 from MetLife (MetProtect) or for Rs.5350 per year from Kotak (Kotak e-Preferred). Even the second biggest player, ICICI Prudential (ICICI Pru iProtect) provides the same cover at Rs.5791 per year.
Note: The terms in the bracket are the names of the respective term plans and most of them might only be available online.
This is a conscious effort from Insurance companies to make policies available for online purchase since removing the agents commission will certainly decrease the premium to be paid by the customer (see: How to get Insurance policy for low premium).
Following the trend, LIC of India has also decided to soon bring a pure term insurance plan that will have significantly less premium compared to Amulya Jeevan 1 (current term plan).