LIC Tech Term Plan

Let’s read further to know in detail LIC Tech Term Plan. 

Key Features of LIC Tech Term Plan 

• The plan offers the flexibility to choose from two options of benefit: Increasing sum assured and Level Sum Assured 

• Special premium rates of women 

• Attractive rebates on high sum assured 

• Premium rates of smokers are lower than non-smokers 

• Flexibility to select from single pay, regular and limited premium payment 

• Choose the payments of benefits in form of installments

• The plan provides the option to increase the coverage by buying accident benefit rider on payment of extra premium for the rider. 

Eligibility Criteria of LIC Tech Term Plan

The following are the eligibility criteria of the policy.

Benefits Offered by LIC Tech Term Plan

1. Death Benefit

   In case of the unfortunate demise of the policyholder during the policy term, the beneficiary receives a death benefit. 

   For regular and limited premium payment, the sum assured on death is defined as the highest of: 

   • 7 times the annualized premium or 

   • 105% of the premiums paid till death

   • The absolute sum assured at death 

   For Single Premium, sum assured on death is defined as the highest of: 

   • 125% of Single Premium 

   • The absolute sum assured at death 

   Absolute amount assured can be opted for by the policyholder at the time of policy inception and will be of two types: level sum assured or increased sum assured. The death benefit can be taken in installments over a period of 5, 10, or 15 years by the beneficiary.

2. Maturity Benefit 

   No Maturity benefit is payable upon the survival of the policyholder to the end of the policy term. 

3. Tax Benefits

    Standard income tax benefits* are available on the returns of this plan.

   * Tax benefit is dependent on changes in tax laws

Premiums for LIC Tech Term Plan

LIC Tech Term Plan is activated through a single premium payment, regular payment, or limited payment plan. The minimum payment amount for a Single Premium payment is *Rs. 30,000/-. The minimum premium amount for Regular and Limited pay is *Rs. 3,000/-. 

*Standard T&C Apply

As in the case of all LIC policies, rebates are available on the premium amount for payments made in yearly and half-yearly mode. The yearly mode of premium payment will get you a 2% rebate on the tabular premium, and the half-yearly mode of premium payment would get you a 1% rebate in tabular premium. The details are available online on the official website of the Corporation.

Additional Riders Offered Under LIC Tech Term Plan

The riders available under this plan are:

LIC’s Accident Benefit Rider

This rider benefit can be bought along with the base policy. The rider can be activated after completion of the 5 years of the policy. Under this rider, an additional sum assured amount is paid to the beneficiary of the policy in case of accidental demise of the insured person during the policy tenure.

Policy Details 

1. Grace Period 

   A grace period of 30 days is allowed for paying premiums of half-yearly or yearly premiums from the date of 1st unpaid premium. If in case the premium is not paid before the grace period, the plan lapses, and nothing will be paid. 

2. Revival 

   If the premiums are not paid within the grace period, the plan will lapse. The policyholder has the option to revive a lapsed policy during his/her life within a time of 5 consecutive years from the date of 1st unpaid premium. 

3. Surrender Benefit

   The LIC Tech Term Plan does not support traditional surrender values. However, in case of policy surrender in both level sum assured or increasing sum assured options, an amount shall be refunded to the policyholder.

4. Free Look Period 

   30 days of free look period is allowed from the receipt date of a policy, if the life assured is not satisfied with the T&Cs of the policy.  

Documents Required to Purchase LIC Tech Term Plan

To buy LIC Tech Term Plan policy, one has to provide:

• Identity proof - passport, Aadhar card, voter ID

• Address proof - Aadhar, driving license, ration card, electricity bill, voter ID, and passport

• Income proof - salary slips or IT returns.

How to Purchase LIC Tech Term Plan Online?

You can easily buy LIC Tech Term Plan online. To purchase the plan, one has to visit the LIC official website and select the LIC Tech Term Plan in the Purchase Plan Online Dropdown. Follow the steps and submit your documents and make the payment to activate your policy instantly. The Policy document has to be uploaded after scanning, and the policy gets activated instantly. This is a comparatively easier process and does not necessarily require the assistance of a LIC agent. 

Exclusions of LIC Tech Term Plan 

LIC Tech Term Plan reviews show that the plan is ideal for the urban Indian who needs to make a quick investment in this fast-paced life. He can ensure protection for his family in the sad incident of his death.  

The suicide clause is applicable under this plan, and the standard LIC rules are followed. Single premium plans allow a 90% refund of the premium amount if the suicide happens within 12 months of commencement of risk. In the case of regular and limited pay plans, 80% of the premiums paid till death are refunded, provided the suicide is within the first 12 months of commencement of policy or revival of the policy.

LIC Tech Term Plan - FAQs