LIC Tech Term – Online Term Insurance Plan No. 854 Review (Updated on 1-Sep-19 after this plan is launched)
LIC has launched online term insurance plan now from today i.e. .1st September, 2019. LIC Tech Term Online Life Insurance Plan is 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?
Also Read: Best 1 Crore Term Insurance Plans to consider in 2019
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.
1) LIC e-Term – Pure Online term plan
2) LIC Amulya Jeevan – II
3) LIC Anmol Jeevan – II
4) LIC Bhagya Lakshmi
5) LIC New Jeevan Mangal
Now LIC has launched 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 pure term protection “Online Term Assurance Policy”.
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 ₹ 50 Lakhs.
4) Maximum sum assured – No limit
5) You can opt for this term plan for Single Premium or Regular Premiums 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 premium rates for non smoking individuals.
11) This LIC Tech Term Insurance plan no. is 854.
12) LIC Tech Term Plan Unique number is – UIN – 512N333V01
13) LIC Tech Term Plan 854 launch date is 1st September, 2019. Means it would be available from this date.
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 – ₹ 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
8) Person getting insured should have their own earned income. One cannot propose for others.
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 ₹ 1 Crore sum assured for 10 years and premium payment also 10 years, premium works out to be ₹ 5,500 for male individual and ₹ 5,200 for female individual.
2) If a 30 year individual opts for ₹ 1 Crore sum assured for 10 years and premium payment also 10 years, premium works out to be ₹ 6,300 for male individual and ₹ 5,900 for female individual.
3) If a 40 year individual opts for ₹ 1 Crore sum assured for 10 years and premium payment also 10 years, premium works out to be ₹ 10,300 for male individual and ₹ 8,500 for female individual.
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What are various benefits available in this LIC Tech Term Insurance Plan?
#1 – Death Benefit
(a) Option-I – 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. It is also called “absolute amount assured to be payable on death” in policy document.
(b) Option-II – 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 where One can opt for death benefit payable in 5 years or 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 and regular premiums options.
5) Lower / discounted premium rates for 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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Suresh KP
LIC Tech Term – Online Term Insurance Plan – Should you opt
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LIC customer care are always busy no one is responding either in mail or any cust care of lic…. and zonal office as we chose while taking policy at the time they say we do not have any information please contact
cetral office of lic i.e in nariman point mumbai where no one responding for any thing …please tell me now what to do???????????
If you have taken policy offline, majority of the info would be available in the respective LIC office. Have you reached to them? Also what is your query?
My age is 30yrs non smoker if i pay single premium of 2.5lakh in 2020 after 40yrs in case any death how much amount will my nominee get can u tell me pls i am confused.it says 125 percent in benefit which means will i get only 5-10 lakh on death ?
Sumanth, Pls visit LIC Tech Term Online link available in LIC website. Based on age and sum assured, the regular premium or single premium is displayed. You are going other way e.g. you are thinking how much money would be paid if you pay single premium of Rs 2.5 Lakhs. Don’t go with that method. Here is the LIC link. https://onlinesales.licindia.in/eSales/liconline
In case of this online term place, will there be a service branch assigned to me in my city? In case of death claim, which branch should the beneficiary consult?
You need to call LIC customer care and follow the process for submitting the claim
Hello Suresh.
Thanks for the article.
Does LIC Tech Term policy comes with critical illness cover.? If yes, do you know the list/number of illness.?
Hello Sir,
What types of exclusions in this plan (or what types of death not cover in this plan)?
Hello Mahesh, There is only 1 exclusion. If the policy holder commits suicide within 1 year of taking this plan, the nominee would not get any amount from LIC.
Hello Sir,
I’m confuse. In this LIC Tech Term plan acident death covering without acidental rider? or we need to buy acidental rider to cover all acidental types of death.
Hi Mahesh, Accident Death Benefit is not inbuilt in LIC Term Plan. You need to purchase them seperately. Here is what happens 1) In regular plan without taking accident death benefit rider. If insured individual dies due to accident, nominee would get sum assured 2) In plan where accident death benefit rider is taken for specific sum assured. If insured individual dies due to accident, nominee would get sum assured + accident death sum assured.
Sir, accident death or permanent disability can I get sum assure amount from 854 tech term plan ?
And what accidents rider benefit meaning???
Hi Himesh, It offers only accident death benefit rider. Means of an insured individual mets with accident and dies, nominee would get sum assured + accident death benefit sum assured = total sum assured. One would not get if permanent disability happens due to accident
Hello sir..I am planning for term insurance. Either HDFC life or LIC tech term. HDFC claim settlement ratio is good but then it’s private on which whether one shud rely or not considering the scenario after 20-25 years. However in LIC, it’s not easy to get the amount for nominee in case of death of policy holder. Please suggest whether to go for HDFC or LIC
Hello Sahil, Both are good 1) HDFC private insurer, comes with low premiums, however LIC comes with premiums 2) In case of settlement (what you indicated) there should be be any delay from LIC side too 3) If you think only from premium point of view, go for HDFC life, else even LIC is good.
I tried, the form had error and does not proceed when it is asking to select one of the dangerous options from a drop down. It should have none as one of the option. occupation
I want to buy LIC tech turn plan no854
Hello Pawan, I hope you got all the info you were looking for this plan. You can visit LIC India Online to buy this insurance plan. Here is the link. https://onlinesales.licindia.in/eSales/leadgen
I tried, the form had error and does not proceed when it is asking to select one of the dangerous options from a drop down. It should have none as one of the option. occupation
Unfortunately, we do not have option. You can contact LIC customer care number
Sir, the new offline term plan – jeevan amar seems to have been launched. however the new online term plan 854 is still not yet out. Is this new online plan still in pipeline to be announced by LIC ?
this new term insurance plan is yet to be launched. Pls wait for some more time
LIC e term policy launched
eTerm plan from LIC is old one. Tech term which is new plan is yet to be launched
Sir, I am not able to find this term plan in LIC portal. Can you provide the link to apply online?
Hello Satya, This plan is not yet rolled out. Pls await for the date. It is expected to roll-out in next 1-3 weeks time frame.
Thank you for the update Suresh.
Sir… Please calculate my premium in e_tech on line policy
D. O.b… 29.09.1972
Male
Non smoker
Regular premium yearly
5000000/
Up to 80years
Sir, Accident rider means which including permanent or partial disabled???
Hell Mariappan, There are various riders like 1) Accident death benefit rider. If there is death due to accident, nominee would get the sum assured 2) Accident disability rider. In this if the insured person mets with accident and is either fully or partially disabled, then the risk coverage indicated in the policy would be paid.
HI Suresh,
What is the use of taking accident death benefit rider. If death happens, anyway nominee will get the sum assured, right, even if no rider is taken?
Dheeraj, Then you have not understood this rider at all. Let me explain to you with example. Mr.Ramesh has taken Rs 1 Crore sum assured plan and accident death benefit rider of Rs 50 Lakhs
1) If Mr.Ramesh dies in accident, his family/nominee would get Rs 1 crore sum assured + Rs 50 Lakhs accident death benefit rider = Rs 1.5 Crores in total
2) If Mr.Ramesh has natural death (Not accident), his family/nominee would get Rs 1 crore sum assured. Nothing beyond that.
I hope you understand the rider benefit now.
I cannot find this plan in LIC website. If anyone has a link so that I can enter the details and start this plan will be useful.
This is yet to be launched by LIC. Date of launch is awaited
Hello Sir,
Thanks for the Information. I’m Planning to take a new Term Insurance Plan and was reviewing many term plans private firms as. I compared from policy bazzar.com . I was planning to go with Exide Smart Term Plan or Edelweiss Tokio Zindagi Pluse . Since I saw this latest post from LIC Pure Term Insurance Im now thinking whether to go with this term plan (LIC) or Exide / Edelweiss.
Just need your Suggestions & advise.
Thanks,
Girsh P M
Hello Girish, Exide Life claim settlement ratio + Edelweiss Tokio life insurance have increased only in the last 2 years. Earlier it was less than 90%. Means 10% of its claims are being rejected. These two are small insurance companies compared to other insurers. Considering such high rejection ratio earlier, I would advice you to consider top 5 CSR company policies at this point of time.
Hello Sir,
Thanks for the Information. I’m Planning to take a new Term Insurance Plan and was reviewing many term plans mentioned in your blog mostly private firms as I’m an regular reader of your blog. I was planning to go with HDFC or Maxlife. Since I saw this latest post from LIC Pure Term Insurance Im now thinking whether to go with this term plan or HDFC.
Just need to Suggestions.
Thanks,
Saravanan.V
Hello Saravanan, This new LIC plan is yet to be launched. As indicated the premiums could be on higher side. If you can wait till this is launched, you can review both LIC new term plan + HDFC life term plan + Max Life term insurance plan and take a final call.
Thanks Sir for the reply.
When will this launch? Can’t find anything in LIC website
Hello Raj, It is expected to launch soon. Launch Date not yet available.
We have to pay GST which is a deterrent
I agree