The LIC Tech Term Plan is an online, pure-protection term insurance policy offered by the Life Insurance Corporation (LIC) of India. Designed to provide financial security for policyholder’s families in the event of the insured’s untimely demise, this plan offers coverage at affordable premiums. As an online-exclusive policy, it is accessible and convenient for tech-savvy individuals who prefer a hassle-free buying experience. Let’s explore its key features, benefits, eligibility criteria, and why it could be an ideal choice for life coverage.
What is LIC Tech Term Plan?
The LIC Tech Term Plan is a non-participating, non-linked, pure risk premium plan that provides a high sum assured at economical rates. Unlike other insurance products that offer savings or investment components, this plan focuses solely on life coverage, ensuring that your family is financially protected in your absence. Since it’s available exclusively online, it’s easy to access, purchase, and manage digitally.
Key Features of LIC Tech Term Plan
- Pure Protection: Focuses on providing financial protection without any savings or investment components.
- High Coverage, Low Premium: Offers substantial coverage amounts at competitive premium rates.
- Online Purchase: Available only online, allowing easy access for tech-savvy customers.
- Policy Term Flexibility: Choice of policy terms ranging from 10 to 40 years.
- Flexible Payout Options: Provides different options for death benefit payouts, including lump-sum and installment payouts.
- Optional Riders: Add-ons like accidental death benefit riders enhance the policy coverage.
Why Choose LIC Tech Term Plan?
The LIC Tech Term Plan is ideal for individuals seeking a straightforward life insurance policy focused on protection rather than savings. Here’s why it’s a great option:
- Affordable Premiums: As a pure term plan, it offers higher coverage at affordable prices.
- Customizable Coverage: Choose between regular, limited, or single premium payment options.
- Online Application: Convenient and quick digital application process.
- Financial Security: Ensures that your family’s financial needs are met if something happens to you.
Benefits of LIC Tech Term Plan
Death Benefit:
In the unfortunate event of the policyholder’s death, the nominee receives the sum assured.
Options to receive the death benefit in lump sum or in regular installments over 5, 10, or 15 years.
Flexibility in Premium Payment:
Three options for premium payment: regular, limited, or single payment.
Regular premiums can be paid yearly or half-yearly, adding flexibility for different budgets.
Tax Benefits:
Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.
Death benefits received are exempt from tax under Section 10(10D), making it tax-efficient.
Grace Period:
A grace period of 30 days is provided for half-yearly and annual premiums, offering added flexibility in premium payment.
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Eligibility Criteria for LIC Tech Term Plan
| Eligibility Parameter | Criteria |
|---|---|
| Minimum Age | 18 years |
| Maximum Age | 65 years |
| Minimum Sum Assured | ₹50 lakh |
| Maximum Sum Assured | No limit |
| Policy Term | 10 to 40 years |
| Premium Payment Mode | Annual, Half-Yearly, Single |
How to Buy LIC Tech Term Plan Online
Purchasing the LIC Tech Term Plan online is simple and straightforward. Here’s how to get started:
Visit the LIC Website:
Go to LIC’s official website and navigate to the ‘LIC Tech Term Plan’ section.
Fill in Basic Details:
Provide personal information such as name, age, and contact details.
Select Sum Assured and Payment Term:
Choose the amount of coverage and policy term based on your financial needs and goals.
Calculate Premiums:
Use the premium calculator to get an estimate based on the selected coverage.
Complete the Proposal Form:
Fill in all necessary details, and submit the form online along with required documents.
Make Payment:
Pay the premium online via net banking, credit/debit card, or UPI.
Complete Medical Tests:
Depending on your age and sum assured, you may be required to undergo a medical examination.
Receive Policy Confirmation:
Once approved, the policy will be issued, and you will receive the digital policy document.
Different Sum Assured Options Under LIC Tech Term Plan
The LIC Tech Term Plan offers two sum assured options:
- Level Sum Assured: The sum assured remains constant throughout the policy term.
- Increasing Sum Assured: The sum assured increases every year, providing additional coverage over time.
Each option has its benefits, and policyholders can select one based on their financial planning needs.
Riders Available with LIC Tech Term Plan
Policyholders can enhance their coverage by adding an optional rider:
- Accidental Death Benefit Rider:
- Provides an additional payout in case of death due to an accident.
- Rider benefit is paid along with the base policy’s death benefit, increasing the financial support for the family.
Pros and Cons of LIC Tech Term Plan
Pros
- High coverage at affordable premiums
- Flexibility in payout options for death benefit
- Simple online buying process
- Tax benefits under Section 80C and Section 10(10D)
Cons
- No maturity benefits as it is a pure protection plan
- Limited riders compared to other term plans
- Strictly online, may not suit those who prefer in-person assistance
FAQs on LIC Tech Term Plan
Can I cancel my policy if I am not satisfied?
Yes, you can cancel the policy within the free-look period, generally 15 days from receipt of the policy document.
What happens if I stop paying premiums?
For regular and limited premium payment modes, the policy will lapse if premiums are not paid within the grace period. However, you may revive it within a specified period.
Are there any medical tests required?
Medical tests may be necessary based on age, sum assured, and health conditions.
Can NRIs buy LIC Tech Term Plan?
Yes, NRIs are eligible to purchase this plan, provided they meet the eligibility criteria.
The LIC Tech Term Plan offers robust protection and peace of mind at an affordable cost. Ideal for individuals looking for pure life coverage without any investment component, it ensures that your family’s financial needs will be met even in your absence. With flexible premium payment options, sum assured choices, and online convenience, it’s a compelling choice for those seeking a reliable term plan from a trusted insurer.
