LIC 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 ₹ 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 ₹ 2.9 to ₹ 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
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Hi,
Please clarify whom one should contact in case of any claim under LIC Tech Term policy. It is well known that for offline policies the claim can be submitted to the policy issuing branch but this being an online policy it is not clear how the claim/ settlement will be processed.
Hello Ramesh, Since this is online policy, you need to call customer support and provide claim documentation through online/email as per the mode indicated by them
Sir. What are the hidden terms and conditions
These are already covered in the article. You may go thru them
Mr. Suresh,
Tech Term is online policy. So no agent is involved.
In case of claim do LIC treat the claim with same mentality against offline policy claims where agents are involved for supporting the claimant.
Shriniwas, Since everything is online these days, the claim process would go in normal way provided we submit the documents as per the insurance company guidelines. As per IRDA guidelines if the policy has crossed 3 years, insurance company cannot reject insurance claim citing some reason. This is another move to create trust on online policies.
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.
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
You can go for increase sum assured so that you can pay less premium now and as and and when years pass, your premium + sum assured would increase
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.
What are the income proof for salaried person to getting this policy?
Your payslips would be sufficient. Pls check with LIC customer care
My age 40 now if i take lic tech term plan for 35years how much i pay for year
around 27000 per year. other companies like bajaj alliance are providing the same with10k lesser premium.
Dear Suresh,
I have already 50 Lac term insurance from HDFC click 2 plus. Can i take additionally 50 lac or discontinue the old one and take 1cr. which one is better? advice me
I would advice you to take additional Rs 50 Lakhs with different insurance company. In case claim is not honored in future for 100 reasons, there is another chance to get such claim approval from another company. I have done this personally in HDFC and ICICI Prudential
hi.. what would u advise regarding premium paying mode yearly or single premium? single premium appears to be much cheaper compared to regular premium. pls advise
I would personally prefer to go regular premiums and avoid single premium. Simple fact is that single premium minus regular yearly premium can be invested in simple FD and can earn some money
hi,
can you please give me the annual premium difference jeevan amar and tech term plan for a sum assured of 8 cr as i am planning to purchase on term ploicy
Hi,
I just wanted to check about rider benefit. If I opt for both normal SA and AB rider for say 50 lacs, the insurance is of total 1 crore?
Hello Krishna, If you are opting for Rs 50 Lakhs normal sum assured and Rs 50 Lakhs for Accident Death benefit rider, the total sum assured would be Rs 1 Crore. However such Rs 1 Crore is paid to nominee if the insured dies due to accident, otherwise if it is non accident death, nominee would get Rs 50 Lakhs only.
Hi,
I want to take this policy for me and my wife. But my wife is house wife. Can you tell me can I take the policy for my wife? I am ready to pay single term. Please let me know does it possible.
Hello Suresh, As per guidelines, LIC Term plan can be taken directly by the person and others cannot take it on their behalf. Pls talk to LIC customer care to get more info on this
Any medical investigation need this techterm for 50 year Sir when claim were we have to go,vl get any problems
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.
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
Hi Suresh,
I am currently in US and when I am trying to fill up the online its asking me to fill the NRI questionnaire Annexure-2 (https://www.licindia.in/Customer-Services/NRI-Center/Annexure_-II).
I am unable to find the answers for the under 3->b,c,e. I called to customer care but no help. Could you please help into these questions?
Hello Satya, I am not able to help you here. You may need to reach out to LIC customer support only till you get this clarity.
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?
Ramagaru, This is optional rider where you need to pick-up online while taking this policy. Additional premium would be applicable for that.
Whether the default plan covers accidental benefit?
No. all these are optional benefits
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