- LIC Tech Term Plan is a non-linked, non-participating pure risk protection policy.
- This plan provides financial protection to the dependents in case of unfortunate death of the policyholder during the policy term.
- If a policyholder survives till the end of the policy term, no benefits are paid.
- This plan is available only through online mode.
| Plan Name | LIC Tech Term Plan |
| Table No. | 854 |
| UIN No. | 512N333V01 |
| Plan Type | Term Plan |
| Launch Date | 01 September 2019 |
List of Topic Covered
Key Features of LIC Tech Term Plan
- LIC Tech Term Plan is a pure vanilla term insurance plan which only provides protection to the insured’s family.
- Flexibility to choose Sum Assured (Benefit option)
- Level Sum Assured – Absolute sum assured amount assured to be paid on death shall be equal to the basic sum assured which will remain the same throughout the policy term.
- Increasing Sum Assured – Absolute sum assured amount assured to be paid on death remains the same until the completion of 5th policy year. Thereafter it increases by 10% from 6th policy year till 15th policy year till it becomes twice the basic sum assured.
- Flexibility to choose Premium Payment
- Single premium payment
- Regular premium payment
- Limited premium payment
- Women will get special rates in this plan
- Non-smoker will get a special rate as well.
- Option to enhance your coverage by opting a rider on payment of additional premium.
- Tax benefit is also available under the LIC Tech Term Plan.
LIC Tech Term Plan Benefits
- Death Benefit in LIC Tech Term Plan – In case of unfortunate death of the policyholder during the policy term, his nominee will get the Sum Assured on Death
- For regular and limited premium payment policy sum assured on death is defined as the highest of
- 7 times of annual premium or
- 105% of all the premiums paid as on the date of death or
- Absolute amount assured to be paid on death
- For single premium payment policy sum assured on death is defined as the higher of
- 125% of Single Premium or
- Absolute amount assured to be paid on death.
- For regular and limited premium payment policy sum assured on death is defined as the highest of
Here the absolute amount assured to be paid on death will depend on the death benefit chosen at the time of taking the policy.
- Maturity Benefit in LIC Tech Term Plan – If policyholder survives till the end of the policy term, no maturity benefit is payable.
- Accident Benefit Rider – This rider is available under regular premium and limited premium payment mode. If this rider is opted and death has happened due to accident then accident benefit rider sum assured will be payable along with death sum assured.
- Death Benefit in Instalments – This is an option where a nominee can receive death benefit in installments over the chosen period of 5, 10 or 15 years instead of lump sum. You will receive the installment amount as opted. (Check chart below)
| Mode of instalment payment | Minimum instalment amount |
| Monthly | 5,000 |
| Quarterly | 15,000 |
| Half-yearly | 25,000 |
| Yearly | 50,000 |
Eligibility conditions and other restrictions in LIC Tech Term Plan
| Minimum | Maximum | |
| Basic Sum Assured | ₹50,00,000 | No Limit |
| Policy Term | 10 years | 40 years |
| Premium Paying Term | Regular Premium : same as policy term Limited Premium : (Policy term – 5 years) for policy term of 10-40 years (Policy term – 10 years) for policy term of 15-40 years Single Premium – NA | |
| Entry Age | 18 years (Last birthday) | 65 years (Last birthday) |
| Maturity Age | 80 years (Last birthday) |
How LIC Tech Term Plan Works with Example
As this is a pure protection plan so one will only get a death benefit.
Suppose Ram takes this plan with following details in regular premium:
Ram’s Lifestyle : Non-smoker, healthy
Age – 30
Policy Term – 20 years
Sum Assured – 1 Crore
Policy Term – 20 years
- Here Ram has two choices of choosing sum assured, either he can choose level sum assured or increasing sum assured. So he will pay the premium,
- For Level sum assured – 7,216
- For Increasing sum assured – 10,350
Scenario 1 – If Ram had chosen a level sum assured and he dies after paying a premium for 7 years
So in this case Ram’s nominee will receive Rs. 1 crore as death benefit and policy will close.
Scenario 2 – If Ram had chosen a increasing sum assured and he dies after paying a premium for 7 years
So in this case Ram’s sum assured from 6th year will start to grow by 10% every year. So in the 7th year his sum assured will be 1.21 crore
Therefore Ram’s nominee will receive the death benefit as 1.21 crore and policy will close.
Payment of premium in LIC Tech Term Policy
Policyholders can choose to pay regular premium, limited premium or single premium payment option under this policy.
Grace period in LIC Tech Term Plan
This is only for regular and limited premium payment. Under this plan a grace period of 30 days shall be allowed for payment of yearly or half yearly premiums. If premiums are not paid before expiry of the grace period, the policy lapse and nothing shall be payable.
Sample Illustrative premiums for LIC Tech Term Plan
Sample illustrative premiums for both the option I (Level Sum Assured) and option II (Increasing sum assured) for basic sum assured of Rs. 1 Crore, Male, Non-Smoker
Option I Level Sum Assured :
| Age (Last Birthday) | Policy Term | Regular Annual Premium | Annual Premium for Limited Premium Paying Term of (Policy Term minus 5)Years | Annual Premium for Limited Premium Paying Term of (Policy Term minus 10)Years | Single Premium |
| 20 | 20 | Rs. 5,368/- | Rs. 6,160/- | Rs. 8,008/- | Rs. 64,592/- |
| 30 | 20 | Rs. 7,216/- | Rs. 8,360/- | Rs. 10,912/- | Rs. 87,120/- |
| 40 | 20 | Rs.13,770/- | Rs. 16,110/- | Rs. 21,060/- | Rs. 1,66,230/- |
Option II Increasing Sum Assured :
| Age (Last Birthday) | Policy Term | Regular Annual Premium | Annual Premium for Limited Premium Paying Term of (Policy Term minus 5)Years | Annual Premium for Limited Premium Paying Term of (Policy Term minus 10)Years | Single Premium |
| 20 | 20 | Rs. 7,020/- | Rs. 8,190/- | Rs. 10,620/- | Rs. 85,120/- |
| 30 | 20 | Rs. 10,350/- | Rs. 12,060/- | Rs. 15,750/- | Rs. 1,24,920/- |
| 40 | 20 | Rs.21,952/- | Rs. 24,932/- | Rs. 32,568/- | Rs. 2,56,036/- |
Rebate / Loading in LIC Tech Term Plan
There are following rebates in this plan on payment of premium which shall be applicable.
- High Sum Assured Rebate (For regular, limited and single premium)
- Option I : Level Sum Assured
High sum assured rebate as a % of Tabular Annual / Single Premium
| Age (Last Birthday) | Less than Rs. 1 Crore | Rs 1 Crore to less than Rs 2 Crore | Rs 2 Crore and above |
| Upto 30 years | Nil | 12% | 20% |
| 31 to 50 years | Nil | 10% | 15% |
| 51 years and above | Nil | 5% | 7% |
2. Option II : Increasing Sum Assured
High sum assured rebate as a % of Tabular Annual / Single Premium
| Age (Last Birthday) | Less than Rs. 1 Crore | Rs 1 Crore to less than Rs 2 Crore | Rs 2 Crore and above |
| Upto 30 years | Nil | 10% | 18% |
| 31 to 50 years | Nil | 8% | 13% |
| 51 years and above | Nil | 4% | 6% |
- Modal Loading (applicable for Regular and Limited Premium payment)
| Mode | Loading as a % of tabular annual premium |
| Yearly | Nil |
| Half-yearly | 2% |
Revival in LIC Tech Term Plan
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the end of policy term
Surrender Value in LIC Tech Term Plan
- For regular premium policies – Nothing shall be payable
- For Single Premium Policies – Applicable refund shall be payable anytime during the policy term.
- For Limited Premium Payment – Refund shall be only payable if full premiums have been paid for at least,
- 2 years for premium payment terms less than 10 years.
- 3 years for a premium payment term of 10 years or more.
Loan Facility in LIC Tech Term Policy
There is no loan facility available under this plan.
Tax Benefit in LIC Tech Term Policy
- Premiums paid are exempted under section 80C of the income tax act of 1961.
- The maximum exemption can be availed is 1.5 Lakhs
- Also the Death amount received are exempted under section 10(10D).
Free Look Period in LIC Tech Term Policy
If the policyholder is not satisfied with the policy, he or she can return the policy to the corporation stating the reason for the same. After receiving the request, the Corporation shall cancel the policy and return the premium amount after deduction of risk premium, expenses incurred on medical examination, special report if any and stamp duty charges.
Exclusion in LIC Tech Term Policy
- Under single premium policy:
- If policyholder commits suicide within 12 Months from the date of commencement of risk, the corporation will not entertain any other claim except 90% of the single premium paid.
- Regular / Limited Premium Payment Policy:
- If the policyholder commits suicide within 12 Months from the date of commencement of risk provided policy is in force or within 12 months from the date of revival, the corporation will not entertain any other claim except 80% of the premiums paid till the date of death.
How to buy LIC Tech Term Plan
Step by step process to buy LIC Tech Term Plan Online
- Log on to www.licindia.in website.
- Click on Buy Policies online.
- Then select LIC Tech-Term.
- Click on buy online.
- Choose your desired sum assured, Sum assured option (Level / Increasing), policy term, premium payment option (regular / limited / single) and premium payment mode (yearly / half yearly) for regular and limited premium payment option, date of birth, gender and smoking status.
- After adding all these details, a premium calculator will calculate the premium for the selected parameters.
- After this enter Name, Address, Occupation, Qualification etc to complete the proposal form online.
- At last pay the premium online and fulfil the underwriting requirements if any.
How to make claim in LIC Tech Term Plan
There is no maturity benefit under this plan
If you are making a surrender claim, you have to inform the company in writing or contact your agent for this.
How to make a Death claim in LIC Tech Term Plan?
In case of death claim, nominee can get the death benefit by submitting required documents.
Below are the list of documents which nominee has to submit to get the policy amount.
- Claim Form ‘A’ in Form No.3783
- If policy has run for 3 years or more from date or risk, claim Form No.3783A may be used
- Certified extract from death register issued by hospital/Doctors/District level authorities.
- The original policy document with Deed of assignment
In case you face any issue, contact your agent or visit your respective servicing branch.
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I hope this helps you to understand LIC Tech Term plan really well. If you have any question about this plan, please comment below and we will get back to you immediately.