LIC New Tech Term Plan

LIC of India withdrew the previous Tech Term Plan. The updated plan is named LIC New Tech Term and is a non-linked, non-participating, individual, pure-risk premium plan. The plan provides financial security to the insured’s family in case of any eventuality occurs during the policy term. No maturity benefit is provided if the life assured survives the policy term. This life insurance plan is available for online purchase only, so you can buy the plan in a single click without visiting a branch or connecting with an agent. LIC New Tech Term Plan allows the policyholder to select the benefit options from the level sum assured and increasing sum assured. Moreover, special rates are offered for women, making the plan preferable for women policyholders. We will further discuss the different options and benefits in detail.

Below mentioned are the key highlights of the LIC New Tech Term Plan

• Plan Type

  Term Insurance Plan

• Benefit Options

  Level and Increasing Sum Assured

• Policy Term

  10 to 40 years

• Premium Payment

  Single, Regular, and Limited Premium

• Rebates

  On High Sum Assured

• Premium Rates Category

  Non-Smoker Rates and Smoker Rates

The following are the eligibility criteria and restrictions of the LIC New Tech Term plan

• Entry Age

  18 years - 65 years

• Maximum Age at Maturity

  80 years

• Basic Sum Assured

  Rs. 50 Lakh - No limit

• Premium Paying Term

  Regular Premium: Same as policy term
  Limited Premium: (Policy term minus 5) years for policy term 10 to 40 years
  (Policy term minus 10) years for policy term 15 to 40 years
  Single Premium: Not Applicable

The previous LIC Tech Term Plan is updated with new features to make the LIC New Tech Term Plan a preferable purchase option. The benefits are mentioned below.

Death Benefit

If the life assured dies during the policy term after the commencement date of risk, but before the date of maturity, a Sum Assured on Death is paid to the beneficiaries. The sum assured on death is payable as

For regular and limited premium policy, whichever is higher payable

• 7 times the annualized premium, or
• 105% of the total premium paid upto the death, or
• Absolute assured amount

For single premium policy, whichever is higher payable

• 125% of the single premium, or
• Absolute assured amount

The policyholder can receive the absolute assured amount on death in the following two types: Level Sum Assured and Increasing Sum Assured. Once you select an option at the time of inception of the policy, no changes are allowed later.

There’s a slight difference between the premium amount of the LIC Tech Term Plan and the LIC New Tech Term Plan. Below is the premium chart for the LIC’s New Tech Term Plan for a Basic Sum Assured of Rs. 1 Crore (non-smoker, male, standard lives).

Option I (Level Sum Assured) Premium Chart

Option II (Increasing Sum Assured) Premium Chart

* All the premiums mentioned above are exclusive of taxes. You can use the LIC New Tech Term premium calculator online, available on the Life Insurance Corporation of India’s official website, to calculate premiums for your individual plan needs.

** All the above data are provided from official LIC of India sources.

The following two options are available under LIC New Tech Term to receive the absolute amount assured on death. No alterations are allowed once you choose a death benefit option at the time of the policy inception.

Option I: Level Sum Assured

The absolute amount assured paid on death is an amount payable equal to the basic sum assured. The sum assured will remain the same throughout the policy term.

Option II: Increasing Sum Assured

The Absolute Amount Assured paid on death is an amount payable equal to the Basic Sum Assured and will remain the same till the 5th policy year completion. Thereafter, the increase will be as under.

The policyholder is eligible to take the following optional benefits available under LIC New Tech Term Plan.

Optional Riders

The policyholder can opt for LIC’s Accidental Death Benefit Rider under the LIC’s New Tech Term Plan. The rider can be availed under the regular and limited premium payment modes by paying an additional premium during the policy paying term. If the policyholder opts for the rider and in case of accidental death, an Accidental Benefit Rider Sum Assured is payable with the death benefit of the base plan.

Receive Death Benefit in Instalments

The policy allows receiving the death benefit in instalments over 5 years instead of receiving the amount in a lump sum. The minimum amount of instalments is paid in advance as opted for different modes of payment.

The New Tech Term Plan by LIC of India offers additional features that make the plan an excellent purchase option for the policyholder. The features are mentioned below.

Payment of Premiums

The plan provides different premium payment options to make the payment, i.e., in Regular Premium, Limited Premium, or Single Premium modes. The premium amount depends on various factors, including entry age, smoking status, gender, policy term, policy paying term, and sum assured amount.

Grace Period

For regular and limited premium payment options, a grace period of 30 days is provided to make the due payment from the date of the first unpaid premium. The grace period is also applicable for the payment of riders. If the premium is not paid within this period, the policy lapses.

Revival

A lapsed policy can be revived within 5 consecutive years from the date of the first unpaid premium. The policyholder should pay all the outstanding premiums, including the interest. If the policy is not revived within the revival period, the policy automatically terminates. The revival of riders is allowed with the base policy only.

Rebates

Rebates are applicable under the LIC New Tech Term plan for the following circumstances.

(i) High Sum Assured Rebate

The following rebates are eligible for regular, limited, and single premium payment.

Under Option I: Level Sum Assured

Under Option II: Increasing Sum Assured

(ii) Modal Loading

The rebates are eligible for regular and limited premium payment

Surrender of the Policy

Specifically, the plan provides no surrender value. However, in the case of Level Sum Assured and Increasing Sum Assured, the LIC New Tech Term Plan refunds an amount.

For Regular Premium Policies: No amount is refundable.

For Single Premium Policies: An applicable refund shall be payable anytime during the policy term.

For Limited Premium Policies: An applicable refund shall only be payable if the full premium is paid for at least

• Two consecutive years (for less than 10 years premium paying term policy)
• Three consecutive years (for 10 years or above premium paying term policy)

Tax Benefit

The policyholder can save taxes as per the standard Income Tax benefits. It is advised to connect with a financial advisor to learn more about taxes and savings in detail.

Free Look Period

Suppose the policyholder is not satisfied with the policy’s terms and conditions. In that case, they can return the policy within 30 days from the date of receipt of the policy document. The policyholder needs to state the reasons for objections to receiving the policy. The Life Insurance Corporation of India shall cancel the policy and return the amount of the premium deposited after deducting applicable charges.

Suicide is excluded under the LIC’s New Tech Term Plan as per conditions specified as

Under Single Premium Payment Policy

If the life assured commits suicide within 12 months from the commencement of the risk, the beneficiary shall receive 90% of the Single Premium paid.

Under Regular/ Limited Premium Payment Policy

If the life assured commits suicide within 12 months from the commencement of the risk or within 12 months from the date of revival, the beneficiary shall receive 80% of the premium paid till the date of death.

* Nothing is payable under a lapsed policy.

If you are the sole breadwinner of your family, then their security is all you care about, whether emotional or financial. With LIC New Tech Term Plan, you make an intelligent decision to secure your family for the unfortunate cases when you are no more around them. Buying LIC New Tech Term Plan is easy and affordable to protect your family's financial needs. With the flexibility and options available, the policyholder can customize the plan according to their individual needs.

Are you unable to select the right sum assured amount or make an informed decision to buy a suitable term insurance plan? Life Insurance Corporation of India has a 24X7 customer support system to extend customer satisfaction. You can use LIC New Tech Term Calculator or quickly connect with RenewBuy POSP advisors.