LIC New Tech Term Plan is a non linked, non participating Individual Pure risk cover Life assurance Plan. LIC tech term policy is a ONLINE term insurance plan i.e. it is not available through agents and therefore one has to buy the plan online only.
Table of Contents
LIC New Tech Term Plan 954- Key Features & Eligibility
- One can opt to buy from the option of – Level sum Assured ( same risk cover for entire life) and Increasing Sum Assured ( SA will increase with time)
- Choose from Single Premium, Regular Premium and Limited Premium Payment
- Choose the Policy Term/Premium Paying Term
- Opt for payment of benefit in instalments.
- Special rates for women.
- Benefit of attractive High Sum Assured Rebate.
- Two categories of premium rates namely (1) Non-Smoker rates and (2) Smoker rates.
- Option to enhance coverage by opting for Accident Benefit Rider on payment of additional premium for the rider benefit.
LIC New Tech Term Plan -Eligibility
| Minimum Basic Sum Assured | Rs. 50,00,000 |
| Maximum Basic Sum Assured | No limit |
| Premium Paying Term – Regular premium Payment | same as policy term |
| Premium Paying Term-Limited Premium payment | Policy term- 5 year ( for 10-40 year term) Policy term- 10 year ( for 15-40 year term) |
| Single Premium | One time payment |
| Minimum Policy Term | policy term -10 to 40 yrs |
| Minimum Age at entry | 18 years (last birthday) |
| Maximum Age at entry | 65 years (last birthday) |
| Maximum Maturity Age | 80 years (last birthday) |
Benefits under LIC New Tech Term Plan
Maturity Benefit
Since it is a pure risk cover plan, no maturity benefit is attached to the plan. So. No maturity benefit.
Death benefit
The amount death benefit is paid, depends on premium payment option
For Regular & Limited Premium payment
On death of the Life Assured (During policy term) the nominee will get higher of the following
- 105% of Total Premium paid upto the date of death
- Absolute amount* assured
- 7 times of annualised premium paid till date of death
For Single Premium payment
- 125% of Single Premium.
- Absolute amount* assured to be paid on death.
Absolute amount* For Level Sum Assure is the amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.
Absolute amount
Absolute amount* For Increasing Sum Assured equal to Basic Sum Assured till completion of fifth policy year.
After 5 year sum assure will be increased by 10% of Basic Sum Assured each year from the sixth policy year till fifteenth policy year till it becomes twice the Basic Sum Assured.
From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.
| Death event occurrence | Sum Assured payment In Increasing Sum Assured Option |
| 1-5 year | Basic Sum Assured |
| 6-15 year | Basic Sum Assured is increased each year by 10% – Death occurred in 6th year – 110% SA Death occurred in 7th year -120% SA Death occurred in 8th year -130% SA . . . Death occurred in 15th year -200% SA |
| 16 year onwards | 2 times of SA ( 200%) |
Option to take Death Benefit in instalments:
One can choose to receive death benefit in instalments over the chosen period of 5 years instead of lump sum amount.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for
Different modes of payments being as under:
LIC New Tech term Plan- Death benefit Payout in instalments
Riders
The policyholder has an option of availing following Rider benefit(s):
LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death -Accidental death Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident), an
Rider sum assured cannot exceed the Basic Sum Assured.
What if you do not pay Premium
If the premiums are not paid within the grace period, then the policy will lapse. A lapsed policy can be revived, within a period of 5 consecutive years from the date of First Unpaid Premium.
Surrender Value:
No surrender value will be available under this Plan ( regular plan).
However, In case of Limited premium & single premium – some amount is given back as surrender value
- Single Premium Policies: The applicable refund shall be payable anytime during the Policy Term.
- c) Limited Premium Payment: The applicable refund shall only be payable if full premiums have been paid for at least:
- i) Two consecutive years in case of premium paying term less than 10 years.
- ii) Three consecutive years in case of premium paying term of 10 years or more.
LIC New Tech Term Plan Benefits
- Online pure risk cover plan
- Low premium amount and high Life cover benefits
- Premium can be paid in monthly or other mode Instalment
- tax benefit under section 80C.
Should you buy LIC Online term plan
The new tech term plan is replace of the old one. Before buying the plan one should explore other online private player also.
Before purchase the other options one should check
- Affordability of the plan
- other high claim settlement ration companies premium
- Your convenience
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