LIC Tech Term – Online Term Insurance Plan No. 854 Review
LIC is planning to launch another online term insurance plan now. LIC Tech Term Online Life Insurance Plan is being launched by LIC to compete with private insurance companies which are offering several features of their term plans. LIC Tech Term Insurance Plan offers good features and low discount for specific individuals. What are the features of LIC Tech Term Insurance Plan? Are there any negative points in this term insurance plan? Should you opt for LIC Tech Term Insurance Plan?
What is Term Insurance Plan?
If you are already aware, skip this section.
The term insurance plan is one where in case of unfortunate death of the policy holder, their family (its nominee) would get sum assured. This is the only risk coverage plan and does not have the maturity benefit or survival benefit. Hence such term plans come with lower premiums compared to other life insurance plans.
What are benefits of Term Insurance Plans?
Here is the infographic that shows some of the benefits of term insurance plans.
Are there any existing Term plans from LIC?
Currently LIC already offers term insurance plans.
2) LIC Amulya Jeevan – II
3) LIC Anmol Jeevan – II
4) LIC Bhagya Lakshmi
5) LIC New Jeevan Mangal
Currently LIC is planning to launch LIC Tech Term Online Term insurance plan.
Features of LIC Tech Term Insurance Plan No. 854
Here are some of its key features.
1) LIC Tech Term Plan is non linked and non participating term life insurance plan.
2) This is 2nd Online Term Insurance Plan from LIC. Currently it has LIC e-Term Insurance plan which is the online term insurance plan.
3) Minimum Sum Assured is Rs 50 Lakhs.
4) Maximum sum assured – No limit
5) You can opt for this term plan for Single Premium, Regular Premiums or limited period premium payout options.
6) This term plan offers a level sum assured and increasing sum assured.
7) You have an option to get death benefit in a lump sum or in installments.
8) This plan offers Life insurance coverage up to 80 years of age.
9) Optional accidental death benefit rider available in this insurance plan.
10) Lower premiums for Women individuals.
11) Lower premium rates for non smoking individuals.
12) This LIC Tech Term Insurance plan no. is 854.
What is the eligibility to take LIC Tech Term Insurance Plan No. 854?
Here are the eligibility criteria to take this plan.
1) Minimum age of entry is 18 years.
2) Maximum age of entry is 65 years.
3) Maximum age of maturity is 80 years
4) Minimum basic sum assured – Rs 50 Lakhs.
5) Maximum sum assured – No limit
6) This policy is available for 10 to 40 years tenure
7) You can opt for 5 years or 10 years premium paying term
What is the approximate premiums payable under LIC Tech Term Insurance Plan?
There is limited information on this policy about premiums payable under this life insurance plan. There could be changes. Here are the sample premium rates. These are approx rates rounded off to nearest 100. There is GST extra.
1) If a 20 year individual opts for Rs 1 Crore sum assured for 10 years and premium payment also 10 years, premium works out to be Rs 5,500 for male individual and Rs 5,200 for female individual.
2) If a 30 year individual opts for Rs 1 Crore sum assured for 10 years and premium payment also 10 years, premium works out to be Rs 6,300 for male individual and Rs 5,900 for female individual.
3) If a 40 year individual opts for Rs 1 Crore sum assured for 10 years and premium payment also 10 years, premium works out to be Rs 10,300 for male individual and Rs 8,500 for female individual.
What are various benefits available in this LIC Tech Term Insurance Plan?
#1 – Death Benefit
(a) Level Sum Assured – This is a simple plan and in case of unfortunate death of insured, the nominee would get sum assured which is called as level sum assured.
(b) Increasing Sum Assured – This is different variant. In case of unfortunate death of insured, the nominee would get sum assured which would depend based on which year the insured died.
(i) Death happened 0 to 5 years of taking the policy – Sum Assured is payable to the nominee.
(ii) Death happened between 6 to 15 years – Sum Assured payable would increase by 10% year on year.
(iii) Death happened after 15 years – Sum assured would remain same, year on year. This means, whatever sum assured it would have become till 15 years, it would remain after 15 years.
#2 – Maturity Benefits – Since this is a term insurance plan, there are no maturity benefits.
#3 – Surrender Benefits – There are no surrender benefits available for this term insurance plan.
How does Death Benefit in installment works?
This plan comes with the unique feature of getting death benefit in installments (optional). Generally death benefit is payable in a lump sum. This is like any other life insurance plan. However, one can also get such death benefit in installments as indicated below
1) One can opt for death benefit payable in 5 years or in 10 years or in 15 years.
2) One can opt for the partial amount as a lump sum and the balance amount to get in installments in 5 years, in 10 years or in 15 years.
Why you should opt for LIC Tech Term Life Insurance Plan No 854?
Here are some of the pros of considering this plan
1) This is an online term insurance plan where there is no agent involved and hence comes with lower premiums.
2) This plan comes with Life insurance coverage up to 80 years. You can opt it if you think you may need it.
3) Optional Accidental Death Benefit rider available in this plan
4) There are flexible payment options i.e. single premium, regular premiums and limited period premium payout options.
5) Lower / discounted premium rates for women and non smokers.
6) The increasing sum assured is good as the sum assured would not remain same throughout the policy period. As an example, if you have taken plan 10 years back, you might have regretted with low sum assured.
7) LIC has 2nd high claim settlement ratio of 98% for FY2017-18 published by IRDA in Jan-2019. CSR should be one of the criteria in considering a good term insurance plan.
Why you should NOT opt for LIC Tech-Term Insurance Plan?
Here is negative points. We would update this section (if required) once we get any additional negative points.
LIC is trusted brand in India. It has a high claim settlement ratio (CSR). Considered this, LIC charges little higher premiums compared to term plans issued by private insurance companies.
You may also like: Should you opt for Term Plan with Returns?
Some of the FAQs LIC Tech Term Insurance Plan
1) Can we switch from existing LIC eTerm insurance plan for this new plan?
This plan has unique features. Hence, you may want to switch to its new plan. However, it is not possible. You may need to take this new plan and close old e-term plan if you wish to opt new plan
2) How this plan is compared to term insurance plans from private insurance companies?
There are several term insurance plans in India. The existing LIC eTerm plan has limited features. Private insurance companies have floated several term plans with unique features. This new plan comes with several good features which can be comparable inline with private insurance plans. The only thing you notice is that the premium in private insurance term plans would be lower.
3) Are there any High Sum Assured Rebate on this plan?
Currently this info is not available, we would update as soon we get complete info on this plan.
Should you opt for LIC Tech Term Insurance Plan No.854?
This new term insurance plan from LIC has good features. It has several unique features compared to its existing LIC e-Term Plan. LIC is floating this plan to compete with private insurance companies that have already had plans with these features. Premiums for the LIC term plan would be little higher compared to a term plan from private insurance companies. However, considering LIC brand, one can opt for such Term Insurance plans.
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LIC Tech Term – Online Term Insurance Plan – Should you opt