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LIC Tech Term Plan

LIC’s Tech-Term plan is a non-linked, non-participating online pure risk life insurance cover. It provides financial security to the family of the life assured in the event of his or her demise during the policy period. However, if the policyholder survives the term of the insurance plan, no benefits are payable.LIC’s Tech-Term plancan only be availed via the online application process.

About LIC: Life Insurance Corporation is an Indian state-owned insurance and investment company. It was formed by an Act of Parliament, viz. LIC Act, 1956, with a Rs. 5-crore capital contribution by the government. Today, the insurance company has 2048 branch offices, 8 zonal offices, 113 divisional offices, 1381 satellite offices and the corporate office. (Note - All the information contained in this page has been sourced from the official website of LIC.)

Features of LIC's Tech-Term Plan

The key features of LIC's Tech-Term plan are as follows:

  • Choice of two benefit options: Level Sum Assured and Increasing Sum Assured
  • Choice of Single Premium, Regular Premium and Limited Premium Payment
  • Choice of Policy Term/Premium Paying Term
  • Option to receive benefit in instalments
  • Special rates for women
  • Attractive high sum assured rebate
  • Two categories of premium rates namely (1) Non-Smoker rates and (2) Smoker rates
  • Option to increase coverage by opting for accident benefit rider on payment of additional premium

Benefits of LIC's Tech-Term Plan

Given that LIC's Tech-Term plan is a pure risk insurance cover, only death benefits are payable. The sum assured will be paid for admissible death claim during the policy period, provided the insurance cover is in force.

For regular premium and limited premium payment policy, the sum assured payable shall be the highest of:

  • 7 times of annualized premium or
  • 105% of all the premiums paid as on the date of demise or
  • Absolute amount assured to be paid on demise

Eg:The premiums (sample illustrative) for level sum assured and increasing sum assured for basic sum assured of Rs. 1 crore for non-smoker, male, standard lives under different premium payment options are as follows:Level Sum Assured:

AgePolicy TermRegular Annual PremiumAnnual Premium for Limited Premium Paying Term of (Policy Term minus 5) YearsPremium for Limited Premium Paying Term of (Policy Term minus 10) YearsSingle Premium
3020Rs. 7,216Rs. 8,360Rs. 10,912Rs. 87,120

Increasing Sum Assured:

AgePolicy TermRegular Annual PremiumAnnual Premium for Limited Premium Paying Term of (Policy Term minus 5) YearsPremium for Limited Premium Paying Term of (Policy Term minus 10) YearsSingle Premium
3020Rs.10,350Rs. 12,060Rs. 15,750Rs.1,24,920

For Single premium policy, the sum assured payable shall be the higher of:

  • 125% of Single Premium or
  • Absolute amount assured to be paid on demise

Rider Benefit:The life assured has the option to take LIC’s Accident Benefit Rider under Regular Premium and Limited Premium payment modes. Additional premium would have to be paid during the Premium Paying Term, provided the outstanding PPT is at least five years. The rider benefit cover shall be available during the PPT only or up to the policy anniversary on which age nearest birthday of the life insured is 70 years, whichever is earlier. If this rider is opted for, then in the event of accidental death, the rider sum assured shall be paid as a lump-sum with the death benefit under the base plan.

Option to take Death Benefit in instalments:The policy gives users the option to receive death benefits in instalments over the chosen period of 5, 10 or 15 years, instead of lump sum amount. The life assured can exercise this option during his or her lifetime for complete or part of benefits payable under the plan. The amount opted for by the insured can be in absolute value or a percentage of the total claim proceeds payable.

Eligibility Criteria - LIC’s Tech-Term Plan

ParameterDetails
Minimum age at entry18 years (Last Birthday)
Maximum age at entry65 years (Last Birthday)
Maximum age at maturity80 years (Last Birthday)
Minimum Basic Sum AssuredRs. 50,00,000
Maximum Basic Sum Assured
No Limit
The basic sum assured shall be in multiples of:
Rs. 5,00,000, if basic sum assured for the policy is Rs. 50,00,000 to Rs. 75,00,000.
Rs. 25,00,000, if basic sum assured for the policy is
above Rs. 75,00,000.
Policy Term10 to 40 years
Premium Paying Term
Regular Premium: Same as policy period
Limited Premium: [Policy Period minus 5] years for Policy Period [10 to 40] years
[Policy Period minus 10] years for Policy Period [15 to 40] years

Source: LIC’s Tech-Term Plan brochure

LIC Tech-Term Premium Details

Under LIC’s Tech-Term, individuals can choose Regular Premium, Limited Premium or Single Premium payment options and pay premium(s) online. For Regular and Limited Premium payment, the premium can be paid regularly during the Premium Paying Term with Yearly or Half Yearly modes of premium payment.

The premium payable shall depend on the age at entry of the life assured, policy term, smoking status, gender, premium paying term and sum assured option chosen. The minimum premium is Rs. 30,000 for single premium and Rs. 3,000 for regular and limited premium mode.

Other Term Plans by LIC

LIC Jeevan Amar

This is a non-linked, without profit, pure protection policy. It offers policyholders the flexibility to select from two death benefit options - level sum assured and increasing sum assured.

Features and Benefits of LIC Jeevan Amar

  • Choice of two benefit options - level sum assured and increasing sum assured
  • Special rates for women
  • Flexibility to

    • Choose from single premium, regular premium and limited premium payment
    • Choose the policy term/premium paying term
    • Option to receive benefit in installments
  • Benefit of high sum assured rebate
  • Two categories of premium rates - non-smoker rates and smoker rates

Eligibility Criteria:

ParametersCriteria
Minimum Age at entry18 years (Last Birthday)
Maximum Age at entry65 years (Last Birthday)
Maximum age at Maturity80 years (Last Birthday)
Minimum Basic Sum AssuredRs. 25,00,000
Maximum Basic Sum AssuredNo limit
Policy Term10 to 40 years

Anmol Jeevan II

This plan provides financial protection to the life assured’s loved ones in the event of the individual’s demise.

Features and Benefits of Anmol Jeevan II

  • Premiums can be paid at yearly or half-yearly intervals.

  • Sum assured is only payable on death. Maturity benefits are not applicable.

    Eligibility Criteria:

ParametersCriteria
Minimum Sum AssuredRs. 6,00,000
Maximum Sum Assured
Rs. 24,00,000
(The Sum Assured shall be in multiples of Rs. 1, 00,000/-)
Minimum age at entry18 years (completed)
Maximum age at entry55 years (nearest birthday)
Maximum cover ceasing age65 years (nearest birthday)
Minimum policy term5 years
Maximum policy term25 years

Comparison with Online Products

Plan NameWhat’s Covered?
ICICI Pru iProtect SmartICICI Pru iProtect Smart is aterm insurance planthat also provides users the option of availing health cover against 34 critical ailments.
Max Life Online Term Plan PlusOnline Term Plan Plus by Max Life Insurance secures financial future of the life assured’s family, against the risks of death, disease and disability.
SBI Life – eShieldSBI Life – eShield Plan offers two benefit structures - Increasing Cover Benefit and Level Cover Benefit. Accelerated Terminal Illness benefit is inbuilt for both the structures.

Exclusion of LIC's Tech-Term Plan

Suicide Exclusion:

  • Under Single premium policy:The plan shall become void if the life assured - whether sane or insane at the time - commits suicide at any time within 12 months from the date of risk commencement. LIC will not entertain any other claim, other than for 90% of the single premium paid.

  • Regular /Limited Premium Payment policy:The plan shall become void if the life assured - whether sane or insane - commits suicide at any time within 12 months from the date of risk commencement or within 12 months from the date of policy revival. LIC shall not entertain any claim other than for 80% of the premiums paid until the date of demise.

Review of LIC's Tech-Term Plan

LIC's Tech-Term is a pure protection term plan that provides financial protection to the family of the life assured in the event of his or her demise. It can only be availed through the online mode, and policyholders are given a lot of flexibility with regards to premium payments.

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