LIC's New Tech-Term Plan

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.