LIC Tech Term Plan

For a person who is looking to invest in a term insurance plan but has a limited budget, the LIC Tech Term plan is an ideal choice. This online, pure risk term plan offers life insurance cover at relatively low premium rates in exchange for well-rounded coverage. LIC Tech Term plan is also convenient because of the online renewal system in place. The plan was introduced by LIC to facilitate easy access to term plans for those looking to buy from the comfort of their homes. In addition to covering potential financial expenses of the insured's family, the Tech Term plan comes with additional benefits in the form of riders for enhanced coverage.

*For your information, LIC Tech Term Plan can be availed only through an online application process.

Key Features of LIC Tech Term Plan

1. Premium Payment

   In terms of premium payment, the LIC Tech Term plan offers enormous flexibility. Policyholders have the option to choose from Single, Regular or Limited premium payment based on their financial position.

   LIC sets the premium payable after carefully assessing factors such as age at entry of policyholder, policy term, gender, smoking status, sum assured, among others.

   • If the policyholder decides to opt for a Single premium payment, it is fairly obvious that the amount is paid as a lump sum. However, it is important to note that this mode of payment is associated with a minimum premium of Rs. 30,000 and buyers don't have the choice to go lower. Therefore, if you are on a tighter budget, you might want to look at the other variants discussed below.
   • On choosing the Regular or Limited modes of payment, the premium can be paid on a yearly or half-yearly basis. These variants are significantly easier on the pockets with the minimum premium set at Rs. 3000.

2. Death Benefit Payout

   In another impressive feature, the LIC Tech Term plan allows room for choice in the death benefit payout. In the event of the unfortunate demise of the Life Assured, the dependents or beneficiaries of the plan have the option to receive the death benefit as Level Sum Assured or Increasing Sum Assured.

   • Level Sum Assured: As the name suggests, the sum assured in this case remains constant or level throughout the policy tenure.
   • Increasing Sum Assured: This option, on the other hand, features a constant amount payable for the first 5 years of the policy period. What is interesting in this option is that the benefit payable by the insurer increases by 10% per annum from the 6th year up till the 15th year. From then on, the sum assured becomes constant for the remainder of the policy term.

   * It is important to note that the death benefit option chosen at the time of buying, cannot be changed later by the policyholder or the claimant.

   The death benefit payable under the LIC Tech Term plan in the event of the policyholder's death depends on the premium payment option opted for by the insured.

   The sum assured payable under the Single premium payment mode can either be the absolute sum assured at the time of policy inception, or 125% of the total premium paid by the policyholder.

   On the contrary, for those who opt for Regular or Limited premium payment options, the sum assured payable by the insurance company is calculated either as [A] 105% of all the premium payments that have been made by the policyholder till his death, [B] 7 times of the annualised premium, or [C] the absolute sum assured at the time of policy inception.

   Sample Premium Illustration for LIC Tech Term Plan

   In order to help you make an informed decision, we bring to you a sample illustration of the annual premiums payable under the two death benefit options discussed above.

   As an example, we have considered a non-smoker male who has chosen the Regular premium payment option in exchange for life cover at a basic sum assured of Rs. 1 Crore.

   Age of Policyholder	Policy Term	Level Sum Assured	Increasing Sum Assured
   20	20	Rs. 5,368	Rs. 7,020
   30	20	Rs. 7,216	Rs. 10,350
   40	20	Rs. 13,770	Rs. 21,252

   * Premiums illustrated are exclusive of GST

   In the next example, we have assumed that the non-smoker male opted for the Single premium payment option in exchange for life cover at a basic sum assured of Rs. 1 Crore.

   Age of Policyholder	Policy Term	Level Sum Assured	Increasing Sum Assured
   20	20	Rs. 64,592	Rs. 85,140
   30	20	Rs. 87,120	Rs. 1,24,920
   40	20	Rs. 1,66,230	Rs. 2,56,036

   * Premiums illustrated are exclusive of GST

   • If you aren't convinced yet, this next feature should push you towards seriously considering this plan. The LIC Tech Term Plan comes with the option to receive the death benefits in installments. The key purpose of this feature is to essentially act as income replacement in case the sole earning member of a family dies under unfortunate circumstances. With a regular stream of income flowing in, it strikes out the possibility of the family running out of funds to support their basic living expenses.
   • Under this option, the family of the life assured receives the death benefit at monthly, quarterly, half-yearly, or yearly intervals for a total period of 5, 10, or 15 years. LIC has established the standard minimum instalment amount at Rs. 5,000 for monthly installments, Rs. 15,000 for quarterly installments, Rs. 25,000 for half-yearly installments and Rs, 50,000 for yearly installments.

3. Rebates on higher sums

   LIC Tech Term Plan also offers attractive rebates on higher sums assured. Policyholders can avail significant discounts on their premiums if the sum assured at policy inception is Rs. 1 Crore or above. In the tables below, we have attempted to present the discount rates applicable under each death benefit option available to policyholders. As indicated in the tables, these discounts tend to be different for different age groups. Note that the lower the age, the higher the rebate.

   Level Sum Assured

   Age of Policyholder	Rs. 1 Crore to less than Rs 2 Crore	Rs. 2 Crore and above
   Up to 30 years	12%	20%
   31 to 50 years	10%	15%
   51 years and above	5%	7%

   Note: High Sum Assured rebate as a percent of Tabular Annual/Single Premium

   Increasing Sum Assured

   Age of Policyholder	Rs. 1 Crore to less than Rs 2 Crore	Rs. 2 Crore and above
   Up to 30 years	10%	18%
   31 to 50 years	8%	13%
   51 years and above	4%	6%

   Note: High Sum Assured rebate as a percent of Tabular Annual/Single Premium

Benefits of LIC Tech Term Plan

Optional Rider Benefits

Through the Accident Benefit Rider, LIC allows its policyholders to enhance their coverage under the LIC Tech Term plan. An additional sum is paid to the beneficiaries along with the assured death benefit in the event that the policyholder's death occurs in an accident or as a result of one. For your information, benefits under this add-on are only applicable if you opt for Regular or Limited premium payment.

If you choose to avail of this rider, please note that the sum assured under this rider is always paid in a lump sum and policyholders cannot claim the amount in installments.

Eligibility Criteria of LIC Tech Term Plan

Exclusions Under Tech Term Plan

• Beneficiaries cannot claim benefits under the LIC Tech Term Plan if the policyholder commits suicide within 12 months from the date of commencement of the policy or the date of policy revival.
• LIC only entertains claims for up to 80% of the premiums paid (90% in case of single premium payment) till the date of death.

Exclusions under Accident Benefit Rider

Claimants cannot hold LIC accountable for paying the sum assured under the Accident Benefit Rider if the Life Assured succumbs to her/his death as a result of the following:

• Attempted suicide, self-injury, insanity, or if the policyholder was under the influence of liquor, drugs, or narcotics.
• The plan shall stand void if death occurs while being engaged in aviation or aeronautics.
• LIC is not liable to a pay death benefit in the event of death due to injuries from participating in riots, civil commotion, rebellion, war, and invasion.
• Further, death caused while indulging in adventurous sports such as hunting, mountaineering, steeplechasing, racing of any kind, paragliding, or parachuting, is also exempted from the cover.
• In case the Life Assured breaches the law with criminal intent the policy shall stand terminated.
• Benefits under the Accident Benefit Rider cannot be availed if death occurs as a result of employment in the armed forces.

You can refer to the policy brochure to check the complete list of exclusions.