LIC’s Tech Term: Here’s all you need to know

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Insurance is the primary instrument for securing the future of one’s near and dear ones. The Life Insurance Corporation of India (LIC), India’s largest life insurance service provider, offers a diverse range of insurance covers to the common people. LIC’s Tech-Term is probably the only plan of LIC which is not available for buying in offline mode. This term insurance plan was launched on September 1, 2019. LIC’s Tech-Term is a non-linked, without profit, pure protection ‘online term assurance policy’. It provides financial protection to the policyholder’s family in case of his/her unfortunate demise.

Features

Minimum age at entry: 18 years

Maximum age at entry: 65 years

Maximum age at maturity: 80 years

Minimum basic sum assured: Rs 50,00,000

Maximum basic sum assured: No limit

Policy term: 10 to 40 years

Premium Paying Term:

i) For regular premium: Same as policy term

ii) For limited premium: If you buy the policy for 10 to 40-year term, then the premium paying term will be five years less than the total policy term. And in case, you buy this policy for 15 to 40-year term, the premium-paying term will be 10 years less than the total policy term.

iii) For single premium: Not applicable

Premium payment option

You can opt for regular premium, limited premium or single premium payment options under this plan and premiums can be paid online. In case of regular and limited premium payment, it can be paid yearly or half yearly.

Minimum premium

The premium amount will depend on the age at entry of the policyholder, smoking status, gender, policy term, premium paying term and sum assured option chosen.

Under single premium mode, minimum premium will be Rs 30,000. On the other hand, under regular and limited premium mode, the minimum premium will be Rs 3,000.

Surrender value

In case of regular premium policies, no surrender value will be available under this plan. However, in case of single premium and limited premium payment policy, an amount may be refunded on surrender.

Policy loan

No loan will be available under this plan.

Death benefits

Death benefit payable in case of admissible death claim during the policy term.

For regular premium and limited premium payment policy, ‘sum assured on death’ is defined 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.

For single premium policy, ‘sum assured on death’ is defined as the higher of:

125% of single premium.

Absolute amount assured to be paid on death.

Absolute amount assured to be paid on death shall depend on death benefit option chosen at the time of purchase between level sum assured and increasing sum assured.

Maturity benefit

On survival of the life assured to the end of the policy term, there is no maturity benefit payable under this policy.

Rider benefit

The policyholder has an option of availing LIC’s accident benefit rider under regular premium and limited premium payment mode by payment of additional premium.

How can you buy?

You can only buy LIC’s Tech-Term plan through the LIC website. For more details, click here.