LIC Tech Term Plan

term insurance
Protect your loved ones against death, disability and Illness
/ /

LIC Tech Term Plan is a non-linked, non-participating pure risk premium plan that provides financial security to the assured’s family in the event of the assured's tragic death during the policy duration. Under this plan, you will get a guaranteed death benefit, which means a high amount of expected at the time of policyholders death. financial protection for your family, quick claim settlement, and easy online renewal. This plan helps you keep you and your loved ones safe. 

If you are not happy with the policy's terms and conditions, the policy may be returned to the insurance company within 30 days of the free-look period available under the policy, specifying the grounds for objections. Upon receipt of the same, LIC shall cancel the policy and refund the balance of the premium deposited after deduction of the proportionate risk premium (for the base plan and rider, if any) for the duration of protection for medical expenses incurred on examination, special records, if any, and charges for stamp duty.

Best Features of LIC Tech Term Plan

LIC Tech Term Plan comes with the following list of features that makes it a great choice:

  • It gives you the flexibility to choose from 2 benefit options that are Level Sum Assured and Increasing Sum Assured.
  • LIC Tech Term Plan gives you the flexibility to choose a premium payment method from 3 options namely Singular Premium Payment, Regular Premium Payment, Limited Premium Payment.
  • Female policyholders enjoy a better hand with LIC Tech Term Plan as the plan ensures special rates for its women policyholders.
  • LIC Tech Term Plan also provides some attractive benefits such as a high sum assured rebate.
  • LIC Tech Term Plan offers different categories of premium rates for smokers and non-smokers. There are 2 categories of premium rates i.e., Non-Smoker rates and Smoker rates. If you wish to apply for non-smoker rates it shall be based on the findings of the Urinary Cotinine test. 
  • You can enhance the coverage of the plan by opting for the Accident Benefit rider against the payment of an additional but nominal premium.
  • You can opt for payment of benefits in installments.
  • In the grace period of LIC Tech Term plan, the policy will expire or lapse if premium is not paid by you. Although 5 consecutive years are allotted from the date of unpaid premium so that one can resume their plan if they wish to. 

Benefits of LIC Tech Term Plan

Following are the benefits available with LIC Tech Term Plan:

1. Death Benefit

LIC Tech Term comes with the following death benefits which are available to the plan’s beneficiaries on the assured’s untimely death:

For Regular Premium and Limited Premium Payment Policy

Higher of:


 

  1. 7 times the annualized premium
  2. As of the date of death, 105% of all premiums paid
  3. Absolute sum promised to be paid upon death
For Single Premium Policy

Higher of:


 

  1. 125% for Single Premium.
  2. The absolute sum that is promised to be paid upon death.


 

Absolute sum promised depends on:

  • Level Sum Assured: The absolute sum promised is paid to the nominee upon the death of the assured. The amount shall be equal to the basic sum assured and shall remain the same for the entire length of the policy.
  • Increasing Sum Assured: For the 1-5 years, the absolute sum assured to be paid upon death is equal to the Basic Sum Assured. After that, it raises by 10 % of the Basic Sum Assured each year from the 6 policy year to the fifteenth year until it becomes double the Basic Sum Assured. 

This rise will occur until the end of the policy period or until the date of death or until the fifteenth policy year, whichever is earlier, in an in-force policy. The absolute sum assured to be paid on death remains unchanged from the 17 policy year and onwards, i.e. twice the basic sum assured until the completion of the policy period.

2. Rider Benefit

There are around 2 ways for this plans, that are as follows:

Lump-Sum PayoutUnder this option, if the assured dies due to some accident, the entire sum assured along with the death benefit under the base plan shall be paid to the nominee in one go.
Installment PayoutsIn this case, some amount of the death benefit could be obtained in a lump sum and the rest of the sum assured could be obtained in regular installments over a period of 5, 10, or 15 years. This method comes in handy if one wants to ensure a regular flow of income for their loved ones. 

4. Rise In Insured Sum Benefit 

The sum assured is the predetermined amount that the recipient of your life insurance policy will obtain in case of your death. Assume you purchased an assured sum of INR 50 Lakh as a tech-term plan and selected a rising amount assured. After 5 consecutive renewals have passed, the assured amount will continue to increase by 10% for ten years without any obstruction. 

5. Healthy Lifestyle Reward Benefit

LIC Tech Term Policy takes care of policyholders by giving them health rewards that can be obtained by not consuming any toxic substances such as cigarettes, narcotics, tobacco, or any other hallucinogenic content. The online platform will ask you if you are a non-smoker or a smoker at the time of purchase. 

6. Female Discount Benefit 

LIC Tech Term Plan offers exciting benefits for female policyholders. If you take this term insurance, you will receive a premium discount as a special benefit for female assured life. The discount percentage can vary from 10% to 20%. Let's say, if INR 6,248 is submitted at the age of 30 years, the policyholder will only pay INR 5,896 at the same age.  

7. Higher Sum Insured Benefit

The LIC term insurance policy often provides you the benefit of choosing an annual or single premium rate with a higher sum assured. A maximum discount of 20% is given with respect to the chosen assured sum. 

What is Covered?

LIC Tech Term Plan is available in 3 variants of the plan that cover the various contingencies mentioned above. The various variants are listed in-depth below:

A. LIC Anmol Jeevan

This is a pure term insurance plan which includes no bonus facility. So, if the assured passes away during the tenure of the policy, the death benefit is paid to the nominee already listed in the policy. Here the policy coverage:

  • Death Benefit: Death benefit is available in case of the death of the policyholder. In case of the sad demise of the policyholder, his nominee shall be paid the sum assured. In life, the policyholder gets coverage for your life till 80 years of age. Whereas in death cover , The plan covers all kinds of deaths except suicides in the first year of the plan.

Here’s how it works –

Example – 

Name of the InsuredMr. Tripathi
Age30 years
Term of the Plan20 years
Premium Payment Term and Frequency  Limited premium payable yearly
Sum Assured INR 5 Lakh
Premium Amount for Non-smoking Male (exclusive of GST)

INR 8,360/- (for level Sum Assured)

INR 12,060/- (for increasing Sum Assured)

Benefits payable –

  1. If Mr. Tripathi dies during the tenure of 20 years, INR 5 Lakh would be paid and the plan would be terminated. This can be paid either as a lump sum or in installments as opted at the time of policy purchase.
  2. The premium of INR 8,360/ INR 12,060 (as the case may be) will be waived off for the remaining period if he suffers from unintended complete permanent disability, but the coverage will continue. If he dies afterward or suffers during the term from a terminal illness, INR 5 Lakh would be compensated and the plan would be terminated. However, if he survives the tenure of the scheme, no profit will be compensated upon maturity.

     

B. LIC Amulya Jeevan

This is a comprehensive insurance term plan which comes with some additional benefits such as the bonus facility. Unde this term insurance plan, the death benefit is offered to the nominee of the plan in event of the death of the policyholder, during the term of the policy. Advantages of LIC Amulya Jeevan are:

  • Death Benefit: Death benefit is available in case of the death of the policyholder. In case of the sad demise of the policyholder, the nominee shall be paid the sum assured. The Life coverage under this variant is available till 80 years of age. The variant covers all kinds of deaths except suicides in the first year of the plan.

Here’s how it works –

Example – 

Name of the InsuredMr. Tripathi
Age30 years
Term of the Plan20 years
Premium Payment Term and Frequency  Single premium
Sum Assured INR 25 Lakh
Premium Amount for Non-smoking Male (excluding GST)

INR 87,120 (for level Sum Assured)

INR 1,24,920 (for increasing Sum Assured)

Benefits payable –

  1. If Mr. Tripathi died during the tenure of 20 years, INR 25 Lakh would be paid and the plan would be terminated.
  2. The premium of INR 87,120/INR 1,24,920 (as the case may be) will be waived for the remaining term if he suffers from unintended complete permanent disability or a serious condition covered by the policy, but the coverage will continue. If he dies afterward or suffers during the term from a terminal illness, INR 25 Lakh would be compensated and the plan would be terminated. However, if he survives the tenure of the policy, no profit will be compensated upon maturity.

     

C. LIC e-Term Plan

This is a detailed term insurance plan which offers comprehensive coverage to the family of the policyholder. This plan can be easily purchased online. Coverage of the policy are:

  • Death Benefit: Death benefit is available in case of the death of the policyholder. In case of the sad demise of the policyholder, his nominee shall be paid the sum assured. The Life Cover coverage is available till 80 years of age. 

Here’s how it works –

Example – 

Name of the InsuredMr. Tripathi
Age30 years
Term of the Plan20 years
Premium Payment Term and Frequency  The limited premium payable yearly
Sum Assured (Non-smoker)INR 50 Lakh

Benefits payable –

  1. If Mr. Tripathi died during this 20-year period, INR 50 Lakh would be paid and the plan would be terminated.
  2. The premium will be waived off for the remaining period if he suffers from unintended complete permanent disability, but the coverage will continue. If he dies afterward or suffers during the term from a terminal illness, INR 50 Lakh would be compensated and the plan would be terminated. However, if he survives the tenure of the policy, no profit will be compensated upon maturity.

What is Not Covered?

LIC Tech Term plan is not applicable in the case of suicidal deaths. In case the assured commits suicide anytime before a period of 12 months from the date of purchase of the plan or the revival of the lapsed program, the nominee shall only be entitled to:

  • 90% of the single premium paid, in case of single premium policy
  • 80% of the premiums paid till the date of death, in case of regular/limited premium policy.

LIC Tech Term Plan Eligibility

Eligibility Criteria
Minimum Age At Entry


 

18 years


 

Maximum Age At Entry


 

65 years


 

Term For PolicyIt ranges from 10 to 40 years
Mode For Payment Of Premium
  • Single Pay: Premium is paid in a lump sum. However, the minimum premium paid shall be not less than INR 30,000. 
  • Regular Pay: Premium is paid during the entire term of the policy. However, the minimum premium paid shall not be less than INR 3,000.
  • Limited Pay: If the policy term lies between 10-40 years, then the premium term is 5 years less than the total term of the policy. If the policy term lies between 15-40 years, then the premium term is 10 years less than the total term of the policy.
Premium Payment Frequency Annually and Half-yearly 
Maximum Age At Maturity80 years
Minimum Basic Sum AssuredINR 50 Lakh
Maximum Basic Sum Assured

There is no limit on the maximum sum assured. However, the basic sum assured shall be in the multiples of:


 

  • INR 5 Lakh, if the Basic Sum Assured of the policy lies between INR 50 Lakh to INR 75 Lakh and
  • INR 25 Lakh, if the Basic Sum Assured of the policy is above 75 Lakh.

LIC Tech Term Plan Claim Process

LIC Tech Term Plan comes with a quicker, simpler, and hassle-free claim process that can be undertaken in case of the tragic demise of the assured. Here is an overview of the respective claim processes for different types of claims under LIC Tech Term Plan:

  1. Death Claims

The beneficiary of the policy should inform the branch of the death of the policyholder and thus initiate the process of death claim. 

Documents required for death claims

The documents required for the process are:

  • Claim Form 'A' in Form No. 378, duly filled and signed by the nominee. If the policy has been in place for a period of 3 years or more, then claim form no. 3783A may be used.
  • Copies of the Death certificate along with the original copy
  • The original documents of the policy and the deeds of agreements, if any.
  1. Maturity Claims
  • One needs to submit the Discharged Receipt with the original policy document in Form No. 3825 at least one month before the due date so that the invoice is issued prior to the due date of the claim for maturity.
  • The servicing branch then sends the intimations in the next two months for the claim due.

LIC Tech Term Plan Riders

The assured has the option to opt for LIC Accidental Rider benefit under regular premium and limited premium option. There are 2 options under this rider:

  • Lump Sum Accident Rider Benefit: Under this, if the assured dies due to an accident, Sum Assured will be payable as a lump sum, along with the death benefit under the base plan. It may be chosen during the premium payment term by adding an extra premium. However, the accidental sum assured shall not exceed the basic sum assured under the plan.
  • Installment-Wise Accident Rider Benefit: This option allows you to collect the death benefit in installments rather than the lump sum. These installments could be selected for a period of 5 or 10 or 15 years.

LIC Tech Term Plan Review

LIC Tech Term Plan is a pure life cover which can only be purchased online. In the case of a tragic death of the life assured, this plan pays a sum equal to the amount assured to the beneficiaries upon payment of the normal premiums. The plan comes with a grace period of 30 days. Thus, you will have 30 days for the payment of yearly or half-yearly premiums from the date of when you had first failed to pay the premium. 

LIC is one of the most trusted insurance companies of India which gives this plan an added advantage among all term plans. LIC featured a Claim Settlement Ratio of 97.79% in FY19. The LIC Tech Term Plan Policy can be purchased to receive compensation for a chance of an ill-fated death.

LIC Tech Term Plan FAQs
visa verified mastercard pcidss compliant rupay
  • Paytm Insurance Broking Private Limited. Address: 136, 1st Floor, Devika Tower, Nehru Place, NEW DELHI, South Delhi, Delhi, India, 110019
  • Registration No. 700. Valid till 16/02/2023
  • CIN - U66000DL2019PTC355671