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LIC Tech-Term Plan Review 2020 (Table No 854): Premium Calculator, Eligibility, Benefits, Features, Riders

LIC's Tech-Term Plan is the new term insurance policy from LIC of India. After launching this amazing plan, the term insurance plan market has become more competitive, as earlier LIC Of India term insurance plans were not that effective compared to other available best Term Plans in India. In this detailed LIC's Tech-Term Plan Review guide, I will help you to decide whether you should buy LIC's Tech-Term Plan or not.


Launch Date1st September 2019
Plan DetailsTable No. 854
Policy TypeTerm Insurance
LIC's Tech-Term plan is a Non-Linked, Non-Participating, Pure Risk Premium plan which shall be sold online only and hence no intermediaries will be involved. Under this plan, there is the flexibility to choose from two death benefit options i.e. Level Sum Assured and Increasing Sum Assured.

Key Features Of LIC's Tech-Term Plan

Like every other policy, you can buy this policy as a non-smoker & smoker. And for both the premium rates will be different for obvious reasons. 

In fact, if you are a smoker, you have to go for an additional medical test like the Urinary Cotinine test. Based on the findings of the Urinary Cotinine test, the Non-Smoker/Smoker premium amount will be calculated. 


lic tech term plan review premium calculator
LIC tech term plan review premium calculator


The final sum assured value will be decided based on the death benefit option you opt for. For more details read the policy death benefits options below. There are 2 types of death benefits available.
Option I: Level Sum Assured: “Absolute amount assured to be paid on death” shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.
Option II: Increasing Sum Assured: “Absolute amount assured to be paid on death” shall remain equal to Basic Sum Assured till completion of the fifth policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the sixth policy year till the 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.

Tax Benefits - This plan will have benefits under Section 80C and Section 10 (10D). 

Surrender Value - No surrender value available under regular and limited pay option but you will get it in single pay and limited pay option.

Freelook Period - if the policyholder is not convinced with the terms and conditions of the policy, she/he can cancel the policy within 15 days from the receipt of the policy document.


Eligibility Criteria Of LIC's Tech-Term Plan


Policy Term10 to 40 Years
Premium Paying Term
  • Regular
10 to 40 Years
  • Limited Premium
[Policy Term minus 5] for Policy Term 10 to 40 Years
[Policy Term minus 10] for Policy Term 15 to 40 Years
  • Single-Premium
NA
Minimum Entry Age18 Years (Last birthday)
Maximum Entry Age65 Years (Last birthday)
Maximum Age at Maturity80 Years (Last birthday)
Minimum Basic Sum Assured50,00,000
Maximum Basic Sum AssuredNo Limit

Minimum Premium: The minimum installment premium will be Rs. 3,000/- for Regular/ Limited premium policies and Rs. 30,000/- for Single premium policies.


LIC Tech-Term Plan Premium Payment Modes

You can pay a premium as Single premium, Regular or Limited Premium (Yearly, Half Yearly) mode also. In case you go for an annual premium payment option, you will get some additional rebates as per the below table.
  • Limited Premium: Payment Term - 5 (For policy term 10 to 40 years)
  • Limited Premium: Payment Term - 10 (For policy term 15 to 40 years)

Mode and High S.A. Rebates:

Mode Rebate/LoadingMode Loading under this plan
Yearly modeNIL
Half-yearly mode2% additional of Tabular annual Premium

High Sum Assured Rebate :


Under Option 1: Level Sum Assured
Age Band (LBD)High SA rebate as % of Annual/Single Premium
Less than Rs 1 CroreRs. 1 Crore to less than Rs. 2 CroreRs. 2 Crore and above
Up to 30 yearsNil12%20%
31 to 50 yearsNil10%15%
51 years and aboveNil5%7%

Under Option 2: Increasing Sum Assured
Age Band (LBD)High SA rebate as % of Annual/Single Premium
Less than Rs 1 CroreRs. 1 Crore to less than Rs. 2 CroreRs. 2 Crore and above
Up to 30 yearsNil10%18%
31 to 50 yearsNil8%13%
51 years and aboveNil4%6%


Sum Assured in multiples of :

Sum Assured rangeSum Assured Multiple
Rs. 50,00,000 to Rs. 75,00,000Rs. 5,00,000/-
Above Rs. 75,00,000Rs. 25,00,000/-

Death Benefits of LIC's Tech-Term Plan

The death benefit is the key feature for every term insurance policy. So read this part of this LIC's Tech-Term Plan review carefully. 

For Regular Premium and Limited premium payment policy, “Sum Assured on Death” is defined as the highest of:
  • 7 times of annualized 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.

LIC's Tech-Term Plan Maturity Benefits

Like every term insurance policy, you will not get any maturity benefits after completion of the policy term. There are many term insurance policies available nowadays where you will get the premium paid back after completion of the policy tenure. But such policies are costly compared to pure term plans.

LIC's Tech-Term Plan Rider Benefits

You can choose to take the Accidental Death Benefit Rider by paying an extra amount. In case of death due to an accident, you will get the Rider benefit in addition to the Sum Assured in the plan.

LIC Tech-Term Plan Premium Calculation

Let's find out the premium amount for the below person. 
  • Enter Age: 25 
  • Policy Term: 30 
  • Gender: M 
  • Smoking Status: Non-Smoker 
  • Sum Assured: 10000000 (1 crore)
ModeBasic PremiumGSTTotal Premium
Yearly
7216
1299
8515
Half Yearly
3680
662
4342

Should I Buy LIC Tech Term Plan

LIC Of India is one of the most reputed and largest insurance company in India. In fact, they are the most trusted insurance brand in India as well. From that context, if you compare the last few years' claim settlement ratio with other insurance companies in India LIC of India is doing extremely well. 

Besides that, if you compare the premium rates of LIC Tech term Plan with other popular term insurance policies you can clearly say that they are very close. Yes, there not much difference. But from the trust point of view, it's a huge gap. 

So definitely you can go for LIC Tech term plan and save money online. Yes, the LIC Jeevan Amar plan & Tech Term Plan is almost the same, but it is better to buy LIC policy Online and save some premium amount. I hope you find this LIC Tech Term Plan Review Useful and knowledgeable.

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