What is LIC's Tech Term Plan? Who Is Eligible For It?
What Is LIC's Tech Term Plan?
The Tech term plan provided by LIC is known to be a non-linked, non-participating, completely online, and pure risk premium plan. With the help of this tech term plan, one can provide financial security to their loved ones in case of the unfortunate death of the person who holds the policy. In addition, if the person survives the policy term, they will receive no additional benefits on the premiums they have paid. Apart from this, the LIC tech term plan allows individuals to choose from the level sum assured and the increasing sum assured. These are the two beneficial options.
Apart from this, you can also choose policy terms and premium paying terms. With the addition of accident benefit riders, one can enhance the coverage of the tech term plan. These are some of the basics of the tech term plan. With this article's help, we aim to provide readers with complete knowledge of the LIC tech term plan and how one can take its benefits. Besides this, we are also going to showcase the eligibility criteria for the same, so let's begin.
LIC Tech Term Plan: What Are Its Benefits?
Given below are the benefits of the tech term plan from LIC; all these benefits make the tech term plan an excellent insurance policy for individuals to take and secure the financial future of their families.
Death Benefit
In case of the unfortunate death of a policyholder, the person who is listed as a beneficiary receives a lump sum payment amount which the policyholder has been depositing via premium. This lump sum amount is going to be seven times the annualized premium decided by the LIC or 105% of the total premium amount paid till the death of the policyholder. The family gets whichever is higher from these options.
Besides this, the absolute sum is assured to the family of the policyholder between the two types. The first one is the level sum assured or increased sum assured. Also, the death benefit can be taken in installments over 5, 10, and 15 years by the beneficiary.
Benefit On Surrender
When you opt for the LIC tech term plan, you are not inclined to have the support of traditional surrender value. When you go for the policy surrender for both options, a specific amount will be refunded to you from the LIC depending on how much premium you have paid and for how long you have continued the policy.
Tax Benefits
With the LIC tech term plan, you will be availing of all the standard tax benefits which are given to any of the LIC plans and on their returns as well.
LIC Tech Term Policy: Eligibility Criteria
Given below are the eligibility criteria for availing tech term LIC plan for yourself.
- Tenure:- Starting from 10 years to 40 years maximum.
- Premium Payment Term (PPT):- For regular payment methods, PPT is equal to policy tenure. For limited payment methods, PPT will be minus five years of the policy tenure. For 15 to 40 years, PPT is going to be policy tenure minus ten years.
- Mode Of Premium Payment:- For both regular and limited pay - half-yearly and annual payments can be made.
- Age:- Starting age is 18 years, and the maximum age is 65 years.
- Maturity Age:- Maximum 80 years.
- Grace Period For Paying Premium:- 30 days.
- Sum Assured:- Minimum amount is Rs 50,00,000 to no maximum limit.
- Liquidity:- You cannot avail loan on this LIC policy.
Exclusions In LIC Tech Term Policy
The main goal of LIC with this term plan was to build a term insurance policy that works well with the needs of urban Indian society. The LIC tech term fits perfectly for those people who are looking for ways to make an investment in the shortest time possible in their fast-paced life. This LIC policy comes with one exclusion which is based on the suicide scenario. Here in the suicide clause, all the standard rules of LIC are followed. With single premium plans, beneficiaries will get 90% of the premium refunded to them if the suicide takes place within 12 months of the commencement of the risk.
On the other hand, for regular and limited plans, 80% of the premium will be paid till the death of the person, provided that the suicide took place in the first 12 months of commencement of the policy or its revival.
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Wrapping Up
So this is what the tech term plan by LIC is all about. With this one policy from LIC, you will be able to secure money for your family's future needs. It is considered to be one of the most straightforward term insurance plans provided by LIC and speaks of its popularity. We can say it has made its name in the hearts of millennials who are in a new phase of their lives as they embark on the journey of having a family of their own.
Is it a good idea to buy the LIC tech term plan?
Term insurance is considered to be the best way in which one can ensure your family will have secure finance in the future and in your absence. With a tech-term plan, your family is going to receive a sum of money as a death benefit. On the other hand, if death happens during the term, the money you have been paying as a premium will be given to your family in order for them to meet their monetary needs.
How much is the premium one needs to pay for the LIC tech term insurance?
One can start with as low as Rs 3000 for both regular and limited pay. Now in the case of all LIC policies, rebates are present on the premium amount, which is given by the individual in a yearly or half-yearly fashion. For annual payments, the rebate percentage is 2%. For half-yearly, it is 1%.
What are the alternatives to LIC's tech term?
LIC Jeevan Amar is an excellent alternative to the LIC tech term plan because both policies provide a sum assured in case of death. LIC Jeevan Amar can only be bought offline. Apart from this one significant change, most of the things in these two remain the same. As a result, if you don't want to purchase tech terms from LIC, then Jeevan Amar could be an excellent option for you.
What are some of the disadvantages of having a LIC tech term plan?
The cost of LIC tech term is quite substantial if you are not healthy or old, meaning the amount you will be paying in terms of premiums will be much higher than the regular premium. The only reason for higher premiums is that with younger individuals, the possibility of death is relatively minimal.