LIC Tech Term Plan September, 2023

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 payments based on their financial position.

• 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.
• 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.

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 beneficiaries of the plan will receive a 'sum assured on death'.

If the single premium payment term is chosen, then the 'Sum Assured on Death' will be defined as the higher of:

• 125% of Single Premium.
• Absolute amount assured to be paid on death.

On the contrary, for those who opt for Regular or Limited premium payment options, the sum assured payable by the insurance company is calculated as the highest of:

• 7 times of annualised premium; or
• 105% of all the premiums paid as on the date of death; or
• Absolute amount assured to be paid on death.

Moreover, the plan offers the option to receive the death benefit as:

• Level Sum Assured
• Increasing Sum Assured

Level Sum Assured:

As the name suggests, the sum assured in this case remains constant 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 and 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.

LIC Tech Term Plan also offers attractive rebates on higher sums assured. Policyholders can avail of 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.

Level Sum Assured

Increasing Sum Assured

To let policyholders avail additional coverage, LIC Tech Term plan offers several optional benefits that help the policyholder to customize their plan as per their needs and requirements. The available optional benefits available are:

• Accident Benefit Rider, wherein you can enhance your protection in case of accidental death.
• Option to receive death benefits in instalments, wherein 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.