The oldest life insurance provider in the nation, Life Insurance Corporation of India also known as LIC, which was established in 1956, provides the LIC Tech Term plan online. One of the most affordable ways to guarantee your family’s financial future is through term insurance. Your family will receive a certain sum as a death benefit in the unfortunate event that you pass away while the LIC Tech Term Plan is in effect. Your loved ones can use this money to meet their financial needs without sacrificing their current way of life, as well as to settle any outstanding debts or obligations you may have left behind. Like all other term plans, even this one offers no maturity benefit, which means that you won’t receive any money back even if you outlive the policy’s term.
The Life Insurance Corporation of India has introduced a brand-new online term plan. The LIC Tech Term Plan online, also known as Plan 854, is only available online and cannot be bought offline. The LIC Tech Term Plan online is comparatively less expensive when compared to other term plans offered by the LIC, as the LIC tech term plan online can be purchased only online.
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LIC Tech Term Plan Details
Let’s explore the example premiums for a male non-smoker individual with a basic sum assured of INR 1 crore, which does not include the GST in the premiums.
| Assured Level Sum | Assured Increasing Sum | ||
| Age | Policy period | Regular Annual Premium | Regular Annual Premium |
| 20 years | 20 years | Rs. 5,368 | Rs. 7,020 |
| 30 years | 20 years | Rs. 7,216 | Rs. 10,350 |
| 40 years | 20 years | Rs. 13,770 | Rs. 21,252 |
Eligibility Criteria: LIC Tech Term Plan
The below-mentioned table shows the eligibility criteria of the Tech Term Plan:
| Parameters | Details |
| Policy Period | 10 to 40 years |
| Premium Payment Term | Regular Payment term is the same as policy tenure Limited Payment- Policy minus 5 years (for 10-40 years policy tenures)Policy tenure minus 10 years (for 15-40 years policy tenure) |
| Premium Payment Mode | Regular & Limited Pay – Half Yearly and Yearly |
| Entry Age | Minimum age must be of 18 years Maximum age must be of 65 years |
| Maturity Age | 80 years |
| Grace Period | 30 Days |
| Sum Assured | Minimum sum of INR 50,00,000 No limit on the maximum sum |
| Liquidity | No availability of loan |
Key Features: LIC Tech Term Plan
The following are some key aspects of this strategy:
- The insured must be at least 18 years old and no older than 65.
- Ten to forty years are available for the policy term.
- The coverage you can select has no upper limit, but the minimum sum is Rs. 50 lakhs.
- You are eligible to avail of death benefits in two possible ways, and both the options involve the sum assured to be increased.
- You will not receive maturity benefits under this tech-term plan.
- In case a policyholder is unhappy with the tech term policy’s terms and conditions, in that case, the policyholder will receive 30 days of free look period, wherein they can return the plan and get a refund of the paid premiums.
- With an annual or biannual payment schedule, the insured can choose regular, limited, or single premium options.
Benefits: LIC Tech Term Plan
Following are some of the benefits offered by the LIC Tech Term Plan online:
Death Benefit: In case of an unfortunate event where the policyholder is deceased, the beneficiary will be given a lump sum payment equal to the higher of 7 times the annualised premium or 105 per cent of the premiums paid up until death. There is an option available for the policyholder to choose between two different types of absolute sum assured at death: level sum assured or increased sum assured. The death benefits will be given to the beneficiary in instalments over a period of five, ten, or fifteen years.
Surrender Benefit: Traditional surrender value is not supported by the LIC Tech Term Plan. An amount must be returned to the policyholder in the event of policy surrender in either the level sum assured or increasing sum assured options.
Tax Benefits: Standard income tax benefits are available on the LIC tech term plan’s returns.
Life cover Benefit: This term insurance plan provides your family with an assured sum of money in case the policyholder passes away during the period when the policy is in effect. This policy has no maturity benefit, so you won’t receive anything if you live past the policy’s term. The LIC Tech Term plan gives you the increasing cover option to automatically grow your term cover by 10% after you select a suitable sum assured based on your family’s needs. It permits you to increase your coverage to twice the amount of your base coverage. This term insurance policy qualifies for tax benefits under Section 80C of the Income Tax Act.
Benefit of Riders: Benefits for accidental death by paying an additional premium are available under regular and limited premium payment policies as an option for riders. Within the base plan’s premium payment term, this benefit of the rider option is available at any time of buying the LIC tech term plan online.
Comparison: LIC Tech Term Vs Offline Plans
On average, LIC tech term plan online is 40% less expensive than offline ones. It is mainly because there is no intermediate involved in this process. Since you can contact the business directly through its website, there is no need for a commission to go to a broker or agent.
In offline plans, the broker receives a certain percentage of each premium paid.
However, purchasing a LIC tech term plan online can avoid all the extra expenses. Lower premiums directly result from the company passing these advantages to the customer.
Conclusion:
The LIC tech term plan has many features and benefits, making it a wise choice to protect your family’s and dependents’ financial obligations while you are away. So, instead of just looking up online articles about LIC tech terms, simply go ahead and purchase the LIC tech term plan online.
Frequently Asked Questions (FAQs)
What is LIC's tech term?
Tech-Term from LIC is an “Online Term Assurance Policy” that is Without Profit, Non-Linked, Pure Protection and offers financial security to the insured’s family in the unfortunate event of his or her death.
Is it good to buy LIC Tech term plan?
Yes, it is an absolute must to secure your family’s future in case the only bread earner in the family passes away in an unfortunate event.
What is the difference between LIC Jeevan Amar and tech term?
You receive the same advantages from both the Jeevan Amar and tech term plans. However, the major difference is that in the Tech term plan of LIC, the amount of sum assured is generally high when compared to the Jeevan Amar Plan. The term tech plan is a good option if you want to purchase a plan with a sum assured of more than 25 lakhs.
What is the benefit of the LIC Tech term plan?
The length of the policy ranges from 10 to 40 years. Although there is no upper limit to the coverage you can select, the minimum sum assured is Rs. 50 lakhs. For death benefits, you have two choices: Option 1 is to keep the sum assured the same; Option 2 is to raise the sum assured.
