LIC Tech Term Plan
Life Insurance Corporation of India offers a range of comprehensive insurance products such as Term Insurance, Whole Life Plans, Endowment, and Money Back. All of its insurance products are carefully designed to cater to the needs of every individual. LIC Tech Term plan is pure protection, providing financial security to the policyholder’s family in case of the sudden demise of the insured.
LIC tech term plan can be purchased through an online application only. It offers two benefit options – Level Sum Assured and Increasing Sum Assured, and the policy applicant can choose his/her policy term and premium payment term.
LIC Tech Term Plan Features
- LIC Tech term plan comes with two benefit options: Level Sum Assured and Increasing Sum Assured.
- It offers options to choose from various premium payment options – Single-Premium, Regular Premium, and Limited Premium Payment.
- The policy applicants choose from options like policy term, premium paying term, and option to receive a benefit in installments.
- It is available at special rates for women.
- The policy offers a rebate on high sum assured.
- It has two categories of premium rates – Non-Smoker rates and Smoker rates.
- The policy comes with a rider benefit option to increase coverage on the payment of an additional premium.
LIC Tech-Term Plan Eligibility Criteria:
|Minimum age at entry||18 years (on Last Birthday)|
|Maximum age at entry||65 years (on Last Birthday)|
|Maximum age at maturity||80 years (on Last Birthday)|
|Minimum Basic Sum Assured||Rs. 50,00,000|
|Maximum Basic Sum Assured|
|The basic sum assured shall be in multiples of:|
|Rs. 5,00,000, if the basic sum assured for the policy is Rs. 50,00,000 to Rs. 75,00,000.|
|Rs. 25,00,000, if the basic sum assured for the policy is above Rs. 75,00,000.|
|Policy Term||10 to 40 years|
|Premium Paying Term|
|Regular Premium: Same as policy period|
|Limited Premium: [Policy Period minus 5] years for Policy Period [10 to 40] years|
|[Policy Period minus 10] years for Policy Period [15 to 40] years|
LIC Tech Term Plan Benefits
- LIC’s Tech Term plan is a pure protection plan wherein only death benefits are payable. The sum assured is paid upon the sudden demise of the policyholder during the policy term to the policy nominee.
- The insured gets the option to take LIC’s Accident Benefit Rider under Regular Premium and Limited Premium payment modes. Under Accident Benefit rider, in case of accidental death of the insured, the rider sum assured is paid as a lump-sum amount along with the death benefit.
- The policy offers the insured the option to receive death benefits in installments over 5, 10, or 15 years instead of a lump-sum amount.
LIC Tech Term Plan Exclusions
The term insurance plans do not cover death due to the following factors:
- Suicide within 12 months
- Breach of law with criminal intent
- Participation in any illegal or unlawful act
- Use of drugs, alcohol, solvent, etc.
- Treatment for injuries caused due to adventurous activities like mountaineering, etc.
LIC Tech Term Plan – Review
LIC’s Tech Term is a pure protection term plan which provides financial security to the insured’s family in case of his or her sudden demise within the policy period. This policy can only be availed through online mode, and the policyholders get a lot of flexible options to pay the premium and opt from the death benefit payout option.
What documents are considered as ID Proof and address proof while applying for a LIC insurance policy?
The documents that are considered for ID and Address Proof while applying for LIC insurance policy are:
Voter Identity Card
Bank Account Statement
Is it possible to buy LIC Tech Term Plan through offline mode?
No, the LIC Tech Term plan cannot be purchased offline; it is available through online mode only.
Is it mandatory to buy riders along with the LIC Tech Term Plan?
No, it is not mandatory to buy riders under the LIC Tech Term Plan. A policy applicant can opt for the rider based on their requirement and affordability as the rider comes by paying an extra premium.
What is the grace period under LIC Tech Term Plan?
In the case of limited and regular premium policies under the LIC Tech term plan, the grace period is 30 days for payment of yearly or half-yearly premiums from the date of the first unpaid premium.
Does LIC Tech Term Plan offer a maturity benefit if the insured survives the policy term?
No, the LIC Tech term plan is a pure protection plan and thus does not offer any maturity benefit if the insured survives the policy term.
Are tax benefits available on the premium paid for LIC Tech Term Plan?
Yes, the premiums paid towards the LIC Tech term plan are eligible for standard tax benefits under Section 80C of the Income Tax Act.
Does LIC Tech Term Plan provide flexibility to choose from various death benefit payouts?
Under the LIC Tech term plan, the death benefit can be received as per Limited Sum Assured, or Increasing Sum Assured basis depending on the option chosen by the policyholder.
Does the LIC Tech Term plan provide any special benefits to women?
Yes, the LIC Tech Term plan is available at a discounted rate for women.
Are tax benefits offered under the LIC Tech Term Plan?
Yes, LIC Tech Term Plan offers tax benefits under Section 80C and also on the benefit amount under Section 10 (10D) of the Income Tax Act.