LIC Digi Term Plan 876 Review 2026 — Worth Buying?

When it comes to securing your family's financial future, a term insurance plan is a must, and LIC Digi Term Plan 876 is one of the most popular options in India, offering a range of benefits and features that make it an attractive choice for many

In India, 2026, term insurance has become a practical and essential investment option for many individuals, and LIC Digi Term Plan 876 is one of the most sought-after plans, offering a high sum assured at an affordable premium, with the added benefit of a digital platform for easy premium payments and policy management, and with a claim settlement ratio of over 95%, it's no wonder that many are opting for this plan, but is it really worth buying, let's take a closer look at the features and benefits of LIC Digi Term Plan 876 and compare it with other term insurance plans and investment options like FD and PPF

LIC Digi Term Plan 876 is a non-participating, non-linked, term insurance plan that offers a death benefit to the nominee in the event of the policyholder's death, with the option to choose from different premium payment terms and sum assured options, and with a minimum sum assured of ₹50,000 and a maximum sum assured of ₹1 crore, it's a plan that caters to a wide range of individuals, from those looking for a basic term insurance plan to those seeking a more comprehensive coverage, and with a premium starting from ₹300 per month, it's an affordable option for many, but how does it compare to other term insurance plans and investment options, let's take a closer look

Key Features of LIC Digi Term Plan 876

LIC Digi Term Plan 876 offers a range of features that make it an attractive option for many, including a high sum assured at an affordable premium, with a minimum sum assured of ₹50,000 and a maximum sum assured of ₹1 crore, and with a premium starting from ₹300 per month, it's an affordable option for many, and with the option to choose from different premium payment terms, including single premium, regular premium, and limited premium, it's a plan that caters to a wide range of individuals, and with a death benefit that includes the sum assured and any accrued bonuses, it's a plan that provides comprehensive coverage, and with a claim settlement ratio of over 95%, it's a plan that offers peace of mind, and the plan also offers a [Maturity] (मैच्युरिटी) benefit, which is the sum assured that is paid to the policyholder if they survive the policy term

• High sum assured at an affordable premium
• Option to choose from different premium payment terms
• Death benefit includes sum assured and accrued bonuses
• Claim settlement ratio of over 95%

Benefits of LIC Digi Term Plan 876

LIC Digi Term Plan 876 offers a range of benefits that make it an attractive option for many, including a high sum assured at an affordable premium, with a minimum sum assured of ₹50,000 and a maximum sum assured of ₹1 crore, and with a premium starting from ₹300 per month, it's an affordable option for many, and with the option to choose from different premium payment terms, it's a plan that caters to a wide range of individuals, and with a death benefit that includes the sum assured and any accrued bonuses, it's a plan that provides comprehensive coverage, and with a claim settlement ratio of over 95%, it's a plan that offers peace of mind, and the plan also offers a [Premium] (प्रीमियम) waiver benefit, which waives off the premium payments if the policyholder becomes disabled or critically ill, and the plan also offers a [Sum Assured] (बीमा राशि) increment benefit, which increases the sum assured by 5% every year

• High sum assured at an affordable premium
• Option to choose from different premium payment terms
• Death benefit includes sum assured and accrued bonuses
• Claim settlement ratio of over 95%

Comparison with Other Term Insurance Plans

LIC Digi Term Plan 876 is one of the most popular term insurance plans in India, but how does it compare to other term insurance plans, let's take a closer look, for example, Plan 715 offers a similar death benefit and sum assured options, but with a higher premium, and Plan 736 offers a higher sum assured at a lower premium, but with a lower claim settlement ratio, and when it comes to investment options, FD and PPF are popular alternatives, but they offer a lower return on investment compared to term insurance plans, and with a XIRR return calculation, we can see that term insurance plans offer a higher return on investment, for example, if we invest ₹1 lakh in a term insurance plan with a premium of ₹10,000 per year, and a sum assured of ₹10 lakh, the XIRR return would be around 8%, compared to a FD or PPF which would offer a return of around 5-6%

• Plan 715 offers a similar death benefit and sum assured options
• Plan 736 offers a higher sum assured at a lower premium
• FD and PPF offer a lower return on investment compared to term insurance plans

Calculation Example

Let's take a calculation example to see how LIC Digi Term Plan 876 works, for example, if we take a policyholder who is 30 years old and wants to buy a term insurance plan with a sum assured of ₹50 lakh and a policy term of 20 years, the premium would be around ₹5,000 per year, and if the policyholder dies during the policy term, the nominee would receive the sum assured of ₹50 lakh, and if the policyholder survives the policy term, they would receive the [Maturity] (मैच्युरिटी) benefit, which is the sum assured that is paid to the policyholder, and with a XIRR return calculation, we can see that the return on investment would be around 7-8%, which is higher than what FD or PPF would offer, and the plan also offers a [Premium] (प्रीमियम) waiver benefit, which waives off the premium payments if the policyholder becomes disabled or critically ill

• Policyholder is 30 years old
• Sum assured is ₹50 lakh
• Policy term is 20 years
• Premium is around ₹5,000 per year

Conclusion

In conclusion, LIC Digi Term Plan 876 is a popular term insurance plan that offers a range of features and benefits, including a high sum assured at an affordable premium, and with a claim settlement ratio of over 95%, it's a plan that offers peace of mind, and with a XIRR return calculation, we can see that term insurance plans offer a higher return on investment compared to FD and PPF, and the plan also offers a [Sum Assured] (बीमा राशि) increment benefit, which increases the sum assured by 5% every year, and with a [Premium] (प्रीमियम) waiver benefit, which waives off the premium payments if the policyholder becomes disabled or critically ill, it's a plan that provides comprehensive coverage, and with a minimum sum assured of ₹50,000 and a maximum sum assured of ₹1 crore, it's a plan that caters to a wide range of individuals, from those looking for a basic term insurance plan to those seeking a more comprehensive coverage

Summary of LIC Digi Term Plan 876