LIC Tech Term online term insurance plan: Features, benefits, eligibility, other details

LIC’s New Tech-Term is a ‘Pure Risk Premium Life Insurance Plan’ which provides financial protection to the insured’s family in case of his/her unfortunate demise. Term insurance policies are most suited for working people who have dependents (children, parents) and want to protect themselves against life’s uncertainties (death) at a reasonable cost, according to the LIC webiste.

Under this insurance policy, against payment of regular premium, the insurer agrees to pay the beneficiaries the sum assured in the event of your premature death during the policy term. However, if you survive till the end of the policy term, nothing is payable to you.

The minimum age at entry is 16 years and the maximum entry age is 65 with minimum policy tenure of 10 years and a maximum of 40 years. The minimum basic sum assured is Rs 50,00,000.

LIC New Tech-Term policy eligibility

  • The person should be a Resident Indian residing in India. He should not be an Overseas Citizen of India(OCI) or a Person of Indian Origin (PIO).
  • NRIs also can apply while their stay in India subject to the condition that the applicant is residing in any one of the permissible countries (A list of permissible countries is provided in the section “know your premium”).
  • Minimum entry age: 18 years (Completed).
  • Maximum entry age: 65 years (Nearest Birthday)
  • Maximum Cover – Term/ Age Maximum Term 40 or age 80 whichever comes earlier.
  • He/she must have own earned income.
  • One cannot propose for anyone other than self.
  • Income should be sufficient to cover all existing and proposed insurance coverage under all insurers.
  • The customer should have earned income. Pension income/ Rent income/Interest income is not considered earned income.

According to the LIC website, below are some restrictions one should note before buying this term plan online;
1). These are general guidelines. Actual eligibility depends on income as per submitted documents and total policies taken by the applicant in the past with LIC and other Insurance companies.
2). Previous insurance (Sum Assured) if any will be deducted from the current proposed Sum Assured to arrive at your eligibility.
3). Decision of the LIC’s underwriters will be final and no kind of representation will be entertained by LIC.
4) Proposals may get dropped/declined/postponed – because of less income, not fulfilling the above criteria(s), or for any other reason as per LIC’s rules. Proposal-Deposit paid by life-proposed will then be refunded in such condition after deducting the cost of medical tests – including Service Charges with applicable GST. No interest is paid on Proposal Deposit.
5) Minimum own earned Income required is Rs 3.00 Lakh per annum. Income from Property, Rent, Interest Income, etc, will not be considered to decide the eligibility of the Plan.
6) This Plan is not allowed for housewives and pregnant ladies. Also, for female lives, proposals may be submitted after six months from the date of last delivery.
7) Major students may apply only against “Collateral Security for Education Loan” for a maximum of Rs 50 Lakhs Sum-assured. Otherwise this plan will not be allowed to major students.
8) Minimum Qualification for this Plan is a 12th Standard Pass or equivalent.

LIC New Tech-Term policy benefits on death

In case of unfortunate death of the life assured during the policy term sum assured will be paid.
In case of death by way of an accident, the accident-benefit rider sum-assured (if/as opted) will be payable subject to the restrictive clause of an overall limit of Rs 100 Lakhs (for all LIC’s policies put together).

Maturity Benefit
On survival to the end of the policy term, nothing will be payable and the contract will terminate automatically.

  • Minimum Premium and Premium Paying Term
  • The minimum installment premium will be
  • Rs 3,000 for regular/limited premium policies and
  • Rs 30,000 for single premium policies.
  • Regular premium: Same as policy term
  • Limited Premium : [policy term minus 5] years for a policy term of 10 to 40 years.
  • Limited Premium : [policy term minus 10] years for a policy term of 15 to 40 years.
  • Single premium: One time payment at inception.Options available under LIC’s New Tech-Term

LIC Tech Term offers two options to choose “Sum Assured” in case of death :
Option I: Level sum assured:
The absolute sum assured to be paid on death will be the same as the Basic Sum Assured and remains constant throughout the policy duration.
Option II: Increasing sum assured:
According to the LIC Tech Term FAQ, “Absolute amount assured to be paid on death shall remain equal to Basic Sum Assured till completion of the fifth policy year. Thereafter, it increases by 10 per cent of the basic sum assured each year from the sixth policy year till the fifteenth policy year till it becomes twice the Basic Sum Assured. This increase will continue under an in-force policy till the end of the policy term; or till the date of death; or till the fifteenth policy year, whichever is earlier. From the sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.”

Death benefit payments
Death benefits will be paid as per the choice of the policyholder mentioned below
1 Lumpsum- The amount will be paid in lumpsum to the nominee.
2 In Installments- In lieu of a lump sum payment under an active policy, this option allows you to receive Death Benefit over a selected 5-year period in installments. As selected, the installments will be paid in advance at intervals of annually, half-yearly, quarterly, or monthly.

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