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:
Increasing Sum Assured:
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.
