LIC Tech Term Plan: Eligibility, Benefits, How to Apply, Application Form

LIC’s Tech Term Plan

LIC's Tech Term Plan is a Non-linked & Non-participating pure risk premium policy that provides financial coverage to the family of policyholders in the event of his/her unfortunate death during the policy tenure. This policy can be purchased only through an online application process by visiting the LIC's official website and can be availed anytime as per convenience. There are no intermediaries/agents involved in the purchase of this policy, which makes it cheaper than the other LIC term plans.

Eligibility criteria and other specifications

ParametersLIC Tech Term Plan
Entry Age

Minimum - 18 years 

Maximum - 65 years

Maturity Age80 years
Minimum Policy Tenure10 years
Maximum Policy Tenure40 years
Minimum Sum AssuredRs 50,00,000
Maximum Sum Assured
  • No upper limit
  • Sum assured shall be in multiples of Rs.5 lakh if the sum assured is between Rs.50 lakhs to Rs.75 lakhs.
  • Sum assured shall be in multiples of Rs.25 lakh if the sum assured is above Rs.75 lakhs.
Mode of premium installmentsHalf-yearly, Yearly or Single Premium.
Premium Payment Term

Regular Premium - Same as policy term.

Limited Premium - 

  • For policy tenure of 10-40 years = Policy Term minus 5 years
  • For policy tenure of 15-40 years = Policy Term minus 10 years

Single-Premium - At time of purchase

Also Read: Top 16 things to know before you buy a Health Insurance Policy

Features of LIC Tech Term Plan

1. Death Benefit:

Death Benefit payable in the case of death of the insured during the term, provided the policy is active shall be "Sum Assured on Death".

In Regular Premium & Limited Premium payment options, "Sum Assured on Death" is described as the highest of:

  • 7 times of annualized premium
  • 105% of all the premium payments made as on the date of death
  • Absolute amount assured to be paid upon death.

In Single Premium Option, "Sum Assured on Death" is described as the higher of

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

The absolute amount assured which is payable on death will depend upon the chosen option for death benefits at the time of buying the policy. The options are:

  • Level Sum Assured

Under the level sum assured option, the absolute amount assured to be paid on death will be equal to the Basic Sum Assured, which is going to be the same during the policy term.

  • Increasing Sum Assured

Under this option, the absolute amount assured to be paid upon death will remain equal to Basic Sum Assured till the completion of 5 years of policy. From the 6th year, it increases by 10% of the basic sum assured till the 15th year, when it becomes twice the basic sum assured. The increase in sum assured will continue till the end of the policy year or till the 15th year or till death, whichever is earlier. From the 16th policy year, the absolute sum assured will remain steady till the end of the policy term.

2. Maturity Benefit

The LIC's Tech Term Plan is a pure term insurance policy. So, it doesn't offer any maturity benefits at the end of the policy term. In other words, if the policyholder survives during the term of the policy, no maturity benefit is payable by the LIC.

3. Rider Benefit

The policyholders have the option to avail LIC's Accident Benefit Rider in regular & limited premium payment options by paying additional premium along with the premium for basic sum assured under Tech Term Plan, on a condition that the outstanding premium payment tenure is at least 5 years. The benefit cover under this rider is available only during the Premium Payment Term or up to the policy anniversary at which Life Assured's nearest birthday age is 70 years, whichever is earlier.

On opting for the LIC's Accident Benefit Rider, the rider sum assured will be paid as a lump sum along with the basic sum assured in case of death of the policyholder by accident.

4. Death Benefit Payout Option:

In case of death of the policyholder, the nominees have the option to receive death benefits in installments over a specified period of 5,10 or 15 years rather than a lump sum amount.

This option can be exercised by the insured during his/her lifetime. The installments will be payable as per the chosen option: Yearly, Half Yearly, Quarterly or Monthly subject to minimum installment amount in each of these options as highlighted below:

Installment ModeMinimum amount
YearlyRs.50,000
Half-YearlyRs.25,000
QuarterlyRs.15,000
MonthlyRs. 5,000

5. Premiums Payment Options:

Under this plan, you can choose Regular Premium, Limited Premium or Single Premium options for the premium payments & the payments can be paid online. In the case of regular premium & limited premium options, the premium payments can be made during the term through yearly or half-yearly payments.

The premium for the policy will depend on the factors like age, smoking status, gender, term of policy, premium payment option, sum assured option, etc. In regular & limited premium options, the minimum premium has been set at Rs.3000. The minimum premium payable in case of a single premium option is Rs.30,000.

6. Sample Premium Illustration:

Below are the premium illustrations assuming the insured as a non-smoker, male looking for a sum assured of Rs.1 Crore for both the Level Sum Assured & Increasing Sum Assured Options. The premium rates have been shown under different premium payment options:

Level Sum Assured

Age Term of PolicyRegular Annual Premium OptionAnnual premium for limited premium payment option with: Policy Term- 5 Yrs

Annual premium for limited premium payment option with: 

Policy Term-10Yrs

Single Premium Option
2020Rs.5,368Rs.6,160Rs.8,008Rs.64,592
3020Rs.7,216Rs.8,360Rs.10,912Rs.87,120
4020Rs.13,770Rs.16,110Rs.21,060Rs.1,66,230

The above mentioned premiums are exclusive of GST.

Increasing Sum Assured

Age Term of PolicyRegular Annual Premium OptionAnnual premium for limited premium payment option with: Policy Term- 5 Yrs

Annual premium for limited premium payment option with: 

Policy Term-10Yrs

Single Premium Option
2020Rs.7,020Rs.8,190Rs.10,620Rs.85,140
3020Rs.10,350Rs.12,060Rs.15,750Rs.1,24,920
4020Rs.21,252Rs.24,932Rs.32,568Rs.2,56,036

The above mentioned premiums are exclusive of GST.

7. Rebates & Loadings

The LIC’s Tech Term Plan offers high sum assured rebates & has a structure for loadings as well. Let’s have a look:

  • High Sum Assured Rebate

The high sum assured rebates applicable are shown below:

For Level Sum Assured Option

AgeSum Assured Rebate as a % of Tabular Annual/ Single Premium 
Less than 1 Crore1 Crore to 2 Crores2 Crores & above
Up to 30 YearsNA12%20%
31-50 YearsNA10%15%
51 Years & aboveNA5%7%

For Increasing Sum Assured Option

AgeSum Assured Rebate as a % of Tabular Annual/ Single Premium 
Less than 1 Crore1 Crore to 2 Crores2 Crores & above
Upto 30 YearsNA12%20%
31-50 YearsNA10%15%
51 Years & aboveNA5%7%
  • Modal Loading

Modal Loading is applicable only for Regular & Limited premium payment options.

Mode of PaymentAs a percentage of Tabular Annual Premium
Half Yearly2%
YearlyNA

8. Period of Grace (applicable only for Limited & Regular premium options):

For the payment of yearly or half-yearly premiums, a grace period of 30 days shall be permitted from the date of the first unpaid premium. During this grace period, the policy will be considered active without any interruptions as per the terms & conditions of the policy.

If the premium payment is not made before the expiry of the grace period, then the policy will cease to remain active. No benefits will be applicable after the expiry period.

9. Revival:

Policy will lapse in case the premiums are not paid within the grace period.

Such a policy can be revived during the lifetime of the assured life but subject to conditions that revival needs to be done within a period of 5 consecutive years from the first unpaid premium date or as per regulations & before the maturity by making payments for all due premiums along with the applicable interest as specified by the LIC. Also, the policyholder would need to submit proof of continued insurability, if required.

The decision regarding the revival of a lapsed policy will be made by the LIC and it carries the rights to accept/reject the revival request.

10. Free Look Period:

In case the policyholder is dissatisfied with the terms & conditions of the policy, the policy could be returned to the LIC within 30 days of receiving the policy bond document stating the arguments against the policy.

The LIC will then cancel the policy upon receiving the request and refund the premium amount to the policy buyer after deducting expenses such as medical tests, special reports, stamp duty charges, proportionate risk premium cover for that period.

11. Suicide Exclusion:

  • In single premium payment option:

If the Life Assured dies by suicide at any time within 12 months from the commencement of the policy, the policy will become invalid. And the LIC will not be liable for any claims except for 90 percent of the single premium paid.

  • In regular & limited premium payment options:

The policy will become invalid if the Life Assured dies by suicide at any time within a period of 12 months from the commencement of the policy, given that the policy is active, or within a period of 12 months from the date of revival. The LIC will not be liable for any claims except for 80% of the premiums paid by the insured till death.

How to buy LIC’s Tech Term policy?

You can follow the following steps to purchase the Tech Term policy online:

  • Log on to LIC’s official website - www.licindia.in to purchase the policy. Then click on the “ Buy Policy Online” option on the display. Select Plan number 854 which is the Tech Term plan.
  • Then click on the “Buy Online” under Tech Term Plan. On the next page, click on the "Click to buy online" option.
  • A new window will appear on the screen where you will need to fill in the required contact details. After filling the information, click on the "Calculate Premium" option at the bottom of the page. Then, an Access ID will appear on the screen (note it for future references) & you'll have to enter the OTP sent on your mobile or email id. Click on "Proceed" after filling the OTP number.
  • A new page will open asking for personal, product & rider information. In the product information section, you'll have to choose & fill the sum assured, Death SA option (Level/Increasing), policy tenure, Premium Payment Option, mode of payment, Premium Payment term, Date of proposal & smoker/non-smoker option.
  • After that, if you want to include the LIC's Accident Benefit Rider (For Regular/Limited Premium Option) then select "Yes" and fill the desired rider sum assured. Otherwise, select "No". Click "Calculate Premium" after filling in all the information.
  • The page will display premium details including the amount to be paid as per the parameters selected on the previous page. Check all the details & then click the "Confirm & Proceed" option appearing at the end of the page.
  • Enter required details such as name, surname, address, marital status, gender, qualification, occupation, etc. appearing on the screen. Also, fill the entire form by entering the information required on further screens & keep on proceeding to the next section.
  • At last, make the premium payment for the policy through Net Banking, Debit/Credit card, Amex card, IMPS, UPI & e-wallets.

Also Read:

Corona Health Rakshak & Corona Kavach Policy: Eligibility, Tenure, Coverage & Points of Difference
What is Arogya Sanjeevani Policy - Health Benefits, Eligibility, All Details
Unit Linked Insurance Plans (ULIP) - Types, Eligibility, Benefits, process to Apply
PM Vaya Vandana Yojana (PMVVY): Scheme Eligibility, Interest Rate, Process to Apply
National Pension Scheme (NPS )- Tax Benefits, Eligibility, Features, How to Open, Application Form
Post Office Saving Schemes: Plans, Types, Benefits, Interest Rates
Senior Citizens Savings Scheme (SCSS): Interest Rate, Eligibility, Benefits, Calculation

Comments

Send Icon