LIC Tech Term Insurance Plan – Positives and Negatives

LIC Tech Term Insurance Plan – Positive and Negatives-minLIC Tech Term Insurance Plan – Positives and Negatives

After 2 months of delay, LIC has finally launched Tech Term Insurance Plan, which is open now from 1st September, 2019. We have reviewed this earlier 2 months back and indicated it as one of the best term insurance plans, though it comes with high premiums. What are the features and benefits of LIC Tech Term Insurance Plan? What are the Positive and Negative Factors in LIC Tech Term Insurance Plan?

Also Read: How is LIC Jeevan Amar Offline Term Insurance Plan?

Features and Benefits of LIC Tech Term Plan

This LIC Term plan is non linked and without profit plan.

This LIC term plan is online plan only. You cannot buy it offline.

This is a pure term insurance plan. Means there is no maturity benefit or surrender benefit.

Lower premium for non smoking individuals.

You can take this term plan only for self who should have earnings/income. You cannot take policy for others.

Any individual who is in the age group of 18 to 65 years is eligible to take this plan.

You can renew this LIC term plan up to 80 years of age.

The minimum sum assured is Rs 50 Lakhs.

There is no maximum sum assured limit.

You can consider this plan for 10 to 40 years tenure.

This LIC Tech Term Plan number is 855 and UIN is 512N333V01.

What are the Positive Factors in LIC Tech Term Plan?

1) Pure Term Plan: This is pure online term insurance plan. Term plans come with lower premiums compared to endowment or money back insurance plans.

2) Online Term Insurance Plan: Offline term insurance plans comes with high premium as one need to depend on LIC agents and they would get a commission on that. However, with online term insurance plans, there is no dependency. You can buy them online and renew them online.

3) Flexible Tenure: This plan comes with 10 to 40 years tenure, which is flexible for all kinds of age groups. If you are in the 20s, you can consider 40 years term plan. If you are in the 40’s you can consider 20 years term plan depending on your need.

4) Flexible Premium Options: While term plans come with only monthly, half yearly or yearly premiums, this LIC term plan comes with single premium too. If you do not want to renew every year, you can consider taking single premium term insurance plan.

5) Sum Assured Options: Its earlier e-Term plan has only one sum assured. However, in LIC Tech Term plan it offers Level Sum Assured (simple sum assured) and Increasing sum assured (10% increase year on year from 6th year to 15th year). Currently private insurance companies already offering this feature, however LIC is a little late in the game.

6) Flexible Sum Assured Payments: Generally in case of death, the nominee would get a lump sum payment. The LIC Term plan offers 2 kinds of sum assured payments. One is regular i.e. lump sum payment on death of policy insured. The second is where you can opt for installments of such sum assured.

7) Riders: This LIC Tech Term plan comes with an accidental death benefit rider (optional). However, if opted comes with additional premium.

8) Active even when you are outside India: These days, many of us are going abroad / foreign country either for short term or long term. This term plan covers across globe wherever you are working.

9) High Claim Settlement Ratio: LIC has a high claim settlement ratio of 98% for 2017-18 (Based on IRDA Claim Settlement Ratio in 2019). It means that LIC is honoring 98% of claims that is received by them. Claim settlement Ratio is considered as one of the key factors in considering a term insurance plan.

What are the Negative Factors in LIC Tech Term Plan?

1) High Premium: LIC has a high claim settlement ratio of 95% to 98% in the last few years. Hence, it demands higher premium for its term plan. There are several private insurance companies that have a high claim settlement ratio, but still comes with lower premiums.

2) High Credit Card Charges for premiums paid: LIC Term plan provides payment options to be done through credit card too. The credit card charges are in the range of Rs 2.9 to Rs 5,500 per transaction depending on the premium paid.

3) Exclusion of Suicide in less than 1 year: If the policy holder commits suicide within 1 year of taking this plan, the nominee would not get any amount from LIC. 

If you want to consider this LIC Tech term plan, please read the complete review here.

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Suresh KP

LIC Tech Term Insurance Plan – Positive and Negatives


  • Ishwaedith

    Any medical investigation need this techterm for 50 year Sir when claim were we have to go,vl get any problems

  • Arun

    Consisering the warmth and trust of LIC which enjoys 70% market share even after 19 years of competition the little higher premium is surelry worth paying.. we cant expext LIC to lower premium at the cost of claim assurance.
    Buying seciurity for family for bad times is not like buying free mobile card that can be chsnged do easily.
    Hats off LIC for the true service and financing nation building…

    • Arun, This is what we indicated too. However, any individual would keep thinking why they charge high premium. It is only on the market share, trust in the brand and high claim settlement ratio.

  • Psk

    Mr. Satya, do not take single premium. U deposit the same amount in Fixed deposit, pay the premium thru that interest u r going to get. In future, if u think, immediately u can disconnect. Ur money always with you

  • Ramaguru

    Thanks Suresh for the article.

    I would like to know about the accidental benefits. Whether the default plan covers accidental death?

    If yes, what is the additional benefit of accidental rider?

  • Satya

    Thank you Suresh for the information. Currently I’m 29 years old anr I would like to take this plan term for 35years(age 65) and would like to do payment as single mode (pay at a time). Is it good idea to take the single payment instead of regular annual payments? Kindly let us know the pros and cons.

    • Satya, Major Positives 1) You might get lesser premium compared to 35 years premium 2) You don’t need to renew year on year. Major negatives 1) You can take differential amount (single premium – yearly premium) and deposit in simple FD and get return on that. This would turn to be positive to you and overall premium paid for 35 years could be still lower 2) You need to renew this year on year. There are several other ones, but minor. I would advice you to go for yearly premium and deposit balance amounts in some FD or debt funds

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