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LIC Tech Term Plan

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LIC tech-term plan is a not-for-profit, protection-oriented, non-linked online term insurance plan that makes room for financial assistance for the policyholder if he/she were to meet an unfortunate demise. The plan is made available for purchase through online mediums only.

The six significant benefits of owning the LIC Tech Term Policy are:

  • Death Benefit
  • Increased coverage amount
  • Health rewards
  • Flexible ways to settle premiums
  • Discount for women
  • High Coverage amount benefit

Death Benefits

Death Benefit is the sum amount of money that is compensated by the insurance company to the policyholder when the policyholder’s nominee makes a valid life insurance claim. The insurance company pays the death benefit to the beneficiaries mentioned in the contract, which is often decided by the policyholder when buying the policy.

The death benefit of Tech Term policy by Life Insurance Corporation of India can prove to be a precious source of finance to aid the policyholder's family. A few factors that chart the purpose of death benefits are:

Financial Security

Having LIC Tech-Term plan’s death benefit to your aid makes room for absolute peace of mind. The policyholder can be assured that if an unfortunate event such as their demise were to happen, their family wouldn't bear the burden of a cash crunch.

No Room for Debt

It is amidst events like demise where expenses will skyrocket. Not many predict the spike of such expenses because it is rarely taken into consideration. However, with a death benefit to your family aid, the option to incur debt to tackle expenses is significantly reduced.

Increased Coverage Amount

LIC Tech Term Plan is an increasing term insurance plan, which means the sum assured chosen initially will be bound to increase by a certain percentage every year. This type of insurance plan is designed with the primary objective of having inflation and changing circumstances bound to take place in life.

A simple way to explain this concept is if a policy seeker bought a tech term plan that promises a sum insured amount of Rs. 50 Lakh and opts for increasing sum assured. The policyholder, after getting past five consecutive premium renewals, the coverage amount promised to the policyholder, will keep rising 10% for ten years without any complications. A few benefits of opting for the rise in sum assured option are:

Complete Affordability

The most favourable factor for policyholders on increasing term plans is that the premiums are kept low and affordable. This makes way for the premium to stay constant over the course without any financial burden while the coverage amount keeps rising.

Inflation-Proof

The increasing term plan lends coverage that beats inflation. It safeguards the policyholder against extra expenses that are likely to occur, especially during inflation. This will help you stay financially stable, but it will also provide more returns on investment.

Health Rewards

LIC Tech Term Plan makes it more favourable for policyholders to enjoy health rewards. It pledges to take care of its customers by making room for several health benefits. However, under this plan, health rewards are only available to those who refrain from consuming toxic substances like drugs, cigarettes, tobacco, or alcohol.

Policy seekers, when purchasing online, are asked if they fall under the smoker or non-smoker category followed by a test. Accordingly, health rewards are provided to policyholders. A few benefits are:

Discounts on Premiums

Based on the health status of the policyholder, the LIC Tech Term policy may provide a certain percentage of discounts on premium for those who fall under the non-smoking category. Since the possibility of demise is more inclined toward smokers as a result of bad lifestyle habits, they are excluded from availing benefits.

Bonuses

Policyholders stand a chance to avail bonus amounts in the form of increased sum assured, which adds to the payout when the insurance is claimed.

Flexible ways to Settle Premiums

LIC Tech Term Plan provides an option for policyholders to pay premiums in extremely flexible ways. Policyholders are provided with three premium paying options. They are as follows -

Single-Premium

Under the single premium paying option, the policyholder will have to pay the premium amount they have opted for in one go. Under this method, the need to submit an annual premium does not arise.

Regular Premium

Under this option, the policyholder is required to pay premiums every year till the tenure of the policy ends or until the demise of the policyholder. This option is more feasible for households that prioritize savings.

Limited Premium

Under this rule, the premium is paid for a specific term. The premium paying term is evaluated by deducting 5 or 10 years from the actual policy tenure.

Discount for Women

The LIC Tech Term plan makes special provisions for women. The primary objective behind this move is to empower more females and to encourage as many as possible to get insured. Women in the workforce, with each passing day, are rising. A privilege like this only drives them to get their valuable life insured.

A few benefits of availing a discount for women are:

Reduced Premium Cost

Your mother or your sister, on getting insured, will avail the benefits of paying the reduced premium cost. This usually varies from 5% to 10% to their male counterparts.

Special Bonus

Women choosing to get insured may stand eligible to enjoy special bonuses under the LIC Tech Term plan. The bonus is usually introduced as an increased sum assured or discount in premium payments.

High Coverage Amount Benefit

Under the LIC Tech term plan, the policyholders are provided with an option to choose a higher coverage amount (sum insured) under single or annual premium payment. A maximum discount rate of up to 20% is made available depending on the figure of the sum insured preferred by the policyholder.

For instance, if a policyholder aged 30 opts for a sum insured of 1 Crore, the premium cost that needs to be paid will be reduced by 12%.

LIC Tech Term Plan - FAQs

Written By: Paisawiki - Updated: 19 March 2021