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

31 comments

  • Sushmita

    I am 47 years and my Tech term got approved with extra premium of 2.5 per thousand for 50 lacs. Is it worth paying…my medical reports shows little elevation in GGT level…should I try for any other term policy. Can u advice me of any term policy withou medical test.

    • Hello Sushmita, Most of the insurance plans would do medical examination if the policy holder has crossed 45 years of age. You can reach out HDFC Life or ICICI Prudential Life also to recheck this one time. If they are able to provide without medical examination, your premium could be like others.

  • Sabesh

    Dear Suresh,

    Thank you for your valuable advice. After two month of research through online an field enquiry about term insurance and bad experience with private insurance, I am finalised to go with LIC. Myself I am 29 years old. Salaried person and my annual income Rs.2.5 lakhs. Myself married and I have two children. I want to go with increasing sum assured of Rs.50,00,000. Is it good option or other wise I shall go with Rs.75,00,000 normal sum assured

  • Sabesh

    Dear Suresh, is it worth to take accidental rider with term plan or shall we take standalone accidental insurance. What is your suggestion?
    Please advice

    • Many individuals think that they don’t want seperate policy and this can be in-built. In such case taking under same plan would be better. But if you think that you can increase accidential death benefit sum assured in future, taking a separate policy would be better.

  • Sabesh

    What are the income proof for salaried person to getting this policy?

  • Srinicas

    My age 40 now if i take lic tech term plan for 35years how much i pay for year

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