LIC Tech Term Plan
What is the New LIC Tech Term Plan?
LIC introduced the New Tech-Term Plan (Plan No. 854) on 23rd November 2022, right after withdrawing its earlier Tech-Term plan on 22nd November 2022. This updated plan is a smart and affordable option for those looking for simple and complete life insurance protection.
It is a pure term insurance plan, which means it offers financial support to your family in case of your unfortunate death, but has no maturity benefit.
This plan is non-linked (not tied to the stock market) and non-participating (does not offer bonuses), focusing only on life risk coverage. It is available both online and offline, making it accessible and convenient for all.
Eligibility Criteria of New LIC Tech Term Plan
Here is the eligibility criteria of the LIC Tech Term Plan:
| Parameters | Criteria |
|---|---|
| Minimum Age to Buy | 18 years (Last Birthday) |
| Maximum Age to Buy | 65 years (Last Birthday) |
| Maximum Age at Maturity | 80 years (Last Birthday) |
Key Features Of LIC New Tech Term Plan
Here are the features of the LIC New Tech Term Plan and other key details that you should know before buying the plan:
| Feature | Details |
|---|---|
| Plan Type | Non-linked, Non-participating, Individual, Pure-risk premium plan |
| Benefit Options | Level Sum AssuredIncreasing Sum Assured |
| Premium Payment Options | Single PremiumRegular PremiumLimited Premium |
| Policy Term (Min - Max) | Minimum: 10 yearsMaximum40 years (Level Sum Assured)Based on age and sum assured (Increasing Sum Assured) |
| Premium Paying Term | Regular: Same as policy termLimited:Policy Term: 5 years (10-40 years term)Policy Term: 10 years (15-40 years term)Single Premium: Not applicable |
| Minimum Sum Assured | ₹50,00,000 |
| Maximum Sum Assured | No limit (subject to underwriting decision) |
| Sum Assured In Multiples Of | ₹5,00,000 (for ₹50L to ₹75L)₹25,00,000 (for above ₹75L) |
| Premium Rate Categories | 1. Non-Smoker (based on Urinary Cotinine Test)2. Smoker |
| Special Benefits | Special rates for womenHigh Sum Assured RebatesOption to take benefits in installments |
| Rider Option | Accident Benefit Rider (available at extra premium) |
Benefits of LIC Tech Term Plan
To understand the plan in a better way, it is always better to be aware of the benefits of the new LIC Tech Term Plan:
- 01
Death Benefit
If the policyholder dies during the policy term, the nominee will receive a “Sum Assured on Death” based on the premium type:For Regular or Limited Premium Plans, the death benefit is the highest of:7 times the yearly premium (excluding taxes and extras)105% of total premiums paid till deathThe absolute amount assured on death (based on the option selected)For Single Premium Plans, the death benefit is the higher of:125% of the single premium paidThe absolute amount assured on death
- 02
Available Options For Death Benefit
You have to choose the death option at the start of buying the plan only:Level Sum Assured: The sum assured stays the same throughout the policy.Increasing Sum Assured:First 5 years: Sum assured stays the same.Years 6 to 15: Increases by 10% each year.From the 16th year onwards: Remains fixed at twice the basic sum assured.Note: There is no maturity benefit in this plan. This means if the policyholder survives till the end of the policy term, no payout is made. It is a pure protection plan meant only for life risk cover.
- 03
Special Premium Rates for Women and Non-Smokers
Women and non-smokers get special discounted rates under this plan. Non-smoker rates are based on a Urinary Cotinine Test. This helps promote a healthy lifestyle and makes the plan more affordable for these groups.
- 04
Online and Offline Purchase
The plan can be bought online easily without any agent, saving time and cost. You can also apply offline by visiting the nearest LIC office. For full details, you can check LIC's official website. The online feature makes the purchase and claim process simpler for the policyholders.
How does the LIC Tech Term Work?
To understand the premium payment of the plan, you can go through the illustration given here:
- 01
Sample Premium Chart (Rs. 1 Crore Sum Assured, Non-Smoker, Male, Standard Life)
1 Option - Level Sum Assured
Name Age Policy Term Regular Annual Premium Limited Pay (Term - 5 yrs) Limited Pay (Term - 10 yrs) Single Premium Veena 20 20 years ₹7,047 ₹8,091 ₹10,266 ₹75,603 Mukul 30 20 years ₹9,135 ₹10,527 ₹13,572 ₹1,00,833 Nikhil 40 20 years ₹17,889 ₹20,737 ₹26,878 ₹2,03,187 2 Option - Increasing Sum Assured
Name Age Policy Term Regular Annual Premium Limited Pay (Term - 5 yrs) Limited Pay (Term - 10 yrs) Single Premium Rajat 20 20 years ₹9,345 ₹10,769 ₹13,795 ₹1,02,617 Shashank 30 20 years ₹13,083 ₹15,219 ₹19,669 ₹1,47,562 Aman 40 20 years ₹27,846 ₹32,396 ₹42,224 ₹3,20,684
How To Buy LIC Tech Term Plan?
To buy the LIC Bima Plan online, you have to go through the given steps:
- Step 1: Go to the official LIC website (www.licindia.in).
- Step 2: On the homepage, go to Buy Policies Online or select the plan category (like LIC Term Assurance Plans).
- Step 3: Choose the specific plan you want to buy.
- Step 4: Click on Learn More to open the application page.
- Step 5: Fill in the form and upload the required documents.
- Step 6: Submit the form and make the payment online.
LIC Tech Term Add-On
Here is a simpler explanation of the LIC Tech Term Rider:
| Feature | Details |
|---|---|
| Eligibility | Available with Regular and Limited Premium payment options. |
| Minimum Condition | Can be opted for if at least 5 years of premium payment are left. |
| Coverage Duration | Until the end of the premium-paying term or age 70, whichever is earlier. |
| Benefit Type | Lump sum amount paid on accidental death, along with the base plan benefit. |
| Rider Premium Limit | Cannot exceed 30% of the base plan's premium. |
| Rider Sum Assured Limit | Cannot exceed 3 times the Basic Sum Assured of the base plan. |
| Payment Mode | Additional premium payable during the premium paying term. |
Available Add-On Cover
The LIC Accident Benefit Rider is an optional add-on that offers extra financial security in case of accidental death. It is available under the Regular Premium and Limited Premium payment options of the LIC New Tech-Term Plan.
| Feature | Details |
|---|---|
| Eligibility | Available with Regular and Limited Premium payment options. |
| Coverage Duration | Till the end of the premium paying term or age 70, whichever is earlier. |
| Benefit Type | Lump sum amount paid on accidental death, along with the base plan benefit. |
| Rider Premium Limit | Cannot exceed 30% of the base plan's premium. |
| Rider Sum Assured Limit | Cannot exceed 3 times the Basic Sum Assured of the base plan. |
| Payment Mode | Additional premium payable during the premium paying term. |
Terms And Conditions Of LIC Tech Term
Here are the terms and conditions of the LIC Tech Term Plan in the most simplified way:
| Feature | Details |
|---|---|
| Premium Payment Options | Single Premium, Regular Premium, Limited Premium |
| Payment Frequency | Yearly or Half-Yearly (for Regular and Limited modes) |
| Minimum Premium | ₹30,000 (Single Premium), ₹3,000 (Regular/Limited Premium) |
| Premium Factors | Depends on age, gender, smoking status, sum assured option, policy term, and premium paying term |
| Grace Period | 30 days from the due date for Yearly/Half-Yearly payments.The policy stays active during this period. |
| Lapse Condition | Policy lapses if the premium is unpaid after the grace period. |
| Revival of Lapsed Policy | Within 5 years from the first unpaid premium, requires all dues + interest (currently 9.50% p.a., compounding half-yearly).It is subject to LIC's approval. |
| Add-on Revival | Only along with the base policy revival |
| Paid-Up Value | Not available |
| Surrender Value | Regular Premium: No benefitSingle Premium: URPV (Unexpired Risk Premium Value) payable anytime.Limited Premium: URPV payable after 2/3 years of payment. |
| Policy Loan | Not allowed |
| Forfeiture Clause | If false/misleading information is found, the policy will be void as per Section 45 of the Insurance Act, 1938 |
| Policy Termination | Occurs on:Death benefit payoutSurrender the benefit payoutPolicy maturityEnd of the revival period without revivalFree look cancellationForfeiture |
| Taxes | Applicable as per the Government of India or the relevant Tax Authority rules |
Rebates & Loadings
Rebates are the discounts offered by the LIC, and loading is the extra charge. Let's understand these two terms properly and their relevance in the New LIC Tech Term:
High Sum Assured Rebate
LIC offers discounts on premiums (called rebates) if you choose a higher sum assured. These are based on your age and the sum assured amount.
1 Option : Level Sum Assured
Age Band (Last Birthday) Sum Assured ❮ ₹1 Cr ₹1 Cr to ❮ ₹2 Cr ₹2 Cr & Above Up to 30 years No rebate 13% rebate 22% rebate 31 to 50 years No rebate 11% rebate 17% rebate 51 years and above No rebate 6% rebate 9% rebate 1 Option : Increasing Sum Assured
Age Band (Last Birthday) Sum Assured ❮ ₹1 Cr ₹1 Cr to ❮ ₹2 Cr ₹2 Cr & Above Up to 30 years No rebate 11% rebate 20% rebate 31 to 50 years No rebate 9% rebate 15% rebate 51 years and above No rebate 5% rebate 8% rebate Modal Loading
If you choose to pay premiums in Half-Yearly mode (instead of Yearly), an extra charge called modal loading is applied:Yearly Premium: No extra charge (0% loading)Half-Yearly Premium: 2% extra added to the base premium
Exclusion Of New LIC Tech Term- Suicide Clause
If the Life Assured (whether sane or insane) commits suicide within 12 months, the benefit will be limited as follows:
Policy Type Exclusion Details Single Premium Policy 80% of the Single Premium paid (excluding taxes, rider, and extra premiums) will be refunded to the nominee. Regular / Limited Premium Policy 80% of the total premiums paid till the date of death (excluding taxes, rider, and extra premiums) will be refunded, only if the policy is in force. Lapsed Policy No benefit is payable under a lapsed policy. Note: This exclusion applies if suicide occurs within 12 months of:The date of risk commencement (policy start date), orThe date of revival, in case the policy was revived earlier.
FAQs
LIC New Tech-Term Plan (Plan No. 854) is a pure term life insurance policy that offers financial protection to your family in case of your untimely death. It is a non-linked, non-participating, individual risk-cover plan.
You can choose from two options:
- Option I (Level Sum Assured): Fixed coverage throughout the policy term.
- Option II ( Increasing Sum Assured): Sum assured increases by 10% each year (from the 6th to 15th year), and remains double the basic sum assured thereafter.
- Minimum: ₹50,00,000
- Maximum: No limit (subject to underwriting approval)
You can pay premiums through:
- Single Premium
- Regular Premium (entire policy term)
- Limited Premium (policy term minus 5 or 10 years)
Yes. LIC offers High Sum Assured Rebates depending on your age, the option selected (Level/Increasing), and the sum assured amount.
Yes. Women and non-smokers are eligible for special premium rates. Non-smoker status is determined through a Urinary Cotinine Test.