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LIC Tech Term Plan

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LIC Tech Term Plan - Table No. 854

LIC’s newly launched tech-term plan is a non-linked, non-participating online pure risk premium plan which provides large cover at affordable premiums also it provides financial protection to the insured’s family in case of unfortunate death of the policyholder during the policy term. This plan will be available through online application process only and can be purchased anytime, anywhere at your convenience. 
Launch Date 1st Sep, 2019
Plan Details Table No. 854
Policy Type Term Insurance

Key Features of LIC Tech Term Policy

  • 2 Options to choose the life cover
    • Level sum assured
    • Increasing sum assured
  • Flexibility to choose the policy term and premium paying term.
  • Flexibility in choosing the death benefit payout
    • In lump sum 
    • In installments over 5,10 or 15 years
  • Flexibility to choose how long to pay premiums
    • Single premium
    • Regular Premium
    • Limited Premium
  • Accident death benefit rider is available
  • Lower premium rates for non-smokers
  • Lower premium rates for women
  • High sum assured rebate.
  • Tax benefits
Let us understand more about this plan in detail.

How does LIC Tech Term Plan work?

Choice of Cover - You have the option of selecting this option at the time of purchase.
  • Level Sum Assured - Here the cover amount will remain the same throughout the policy term. 
  • Increasing Sum Assured - Here the cover amount will increase with the policy term. There will be no change in the cover amount in the first 5 years. This will be called the Basic Sum Assured (BSA). The cover amount will increase by 10% of the BSA every year, for the next 15 years or the end of the policy term (whichever is earlier). After that, the cover amount will not increase. The increase Sum Assured will be capped at 2 times the Basic Sum Assured. 
Premium payments - Depending on your comfort levels you can choose to make premiums based on the following:
  • Single Premium - Pay just once and enjoy the cover throughout the policy term without worrying about any future payments. Best for those who do not have a source of regular predictable income and have cash-in-hand now. 
  • Regular Premium - In this option, you have to pay every year, throughout the policy term. So if you have chosen a term till the age of 80, you will have to make payments till that time
  • Limited Premiums - This option has become popular with the onset for longer policy terms. Best for those who want to finish paying their premiums during their working years or immediately after that and continue enjoying the cover for the full term. You can choose a premium payment term as follows:
    • Policy term minus 5 years
    • Policy term minus 10 years

Death Benefit Payout - You can choose to have the death benefit payable to the nominee in lumpsum or in parts.
  • Lumpsum Payout - The entire death benefit of Sum Assured will be paid to the nominee at one go.
  • Installment Payouts - You can also choose to have part of the death benefit in lumpsum and the balance in installments over a period of 5, 10 or 15 years. This mode can be useful in case you want to maintain a regular cash flow for your loved ones.

Rider - You can choose to take the Accidental Death Benefit Rider by paying an extra amount. In case of death due to accident, you will get the Rider benefit in addition to the Sum Assured in the plan.

Premium comparison of LIC Tech Term Plan

This comparison of premiums will give you a better idea of how the plan is priced in comparison to other plans from LIC and its competition.

Sum Assured - 1 crore
Policy Term - 10 years
Age of policyholder - 40 years
Non-smoker, Male

Annual premiums including taxes will be as follows:
Plan Annual Premium
HDFC Life’s Click 2 Protect 3D Plus Rs. 11,166
ICICI Prudential’s iProtect Smart Rs. 11,192
LIC’s e-Term Plan Rs. 17,464
LIC’s Jeevan Amar Rs. 18,956
LIC's Tech Term Plan Rs. 12,107

LIC Tech Term which is an online plan is much cheaper than LIC e-Term Plan (Online) and LIC Jeevan Amar Plan (Offline). 

Benefits in the LIC Jeevan Tech Term Plan

Death Benefit
In case of sad demise of policy holder, his nominee will be paid the Sum Assured.

Maturity Benefit 
As this is a pure term insurance plan, there is no maturity benefit.

Eligibility Conditions in LIC Tech Term Policy

  Minimum Maximum
Age at Entry 18 years (Last Birthday) 65 years (Last Birthday)
Maturity Age - 80 years (Last Birthday)
Policy Term 10 years 40 years
Basic Sum Assured Rs. 50 Lakhs No Limit
Premium Payment Options Regular Premium : Same as policy term
Limited Premium : Policy Term - 5 (For policy term 10 to 4 years)
Limited Premium : Policy Term - 10 (For policy term 15 to 40 years)
Single Premium : Single Payment

Other Features of LIC Tech Term Policy

Tax Benefits - This plan will have benefits under Section 80C and Section 10 (10D). 
Surrender Value - No surrender value available under regular and limited pay option but you will get it in single pay and limited pay option.
Free look Period - if the policyholder is not convinced with the terms and conditions of the policy, she/he can cancel the policy within 15 days from the receipt of the policy document.

That pretty much explains the workings of the LIC Tech Term Insurance Policy. If you have any questions on this plan, please drop a comment and we will surely get back with our inputs.

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