LIC Launches Tech Term Insurance Plan

LIC India had launched the new online tech term plan on September 1^st 2019. It is a pure term plan which safeguards the financial future of the dependents of the insured. The plan covers all types of deaths including death in an accident; but excludes suicide during the first year of the policy.

Non-smokers and female applicants can avail the term plan at lower premiums. The tech term plan is a promising product by LIC, and would offer tough competition to the online term plans of private insurers as it has a high claim settlement ratio.

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LIC Launches Tech Term Insurance Plan

Who Can Apply?

The tech term insurance policies are best suited for professionals and sole earning members of the family, who have dependent family members like parents or children.

The term plan pays the sum assured (death benefit) to your nominee in the event of death of the insured within the term.

The policy is a non-linked, without profit, pure protection online term assurance policy and has tenure ranging from 10 to 40 years. You can name your spouse, parents or your children as the nominees. The nominee can be a minor as well but in that case, an appointee (major) has to be named.

The plan is equipped with some other benefits as well. You can choose the increasing sum assured feature where death benefit increases at 10% each year from the 6^th to the 10^th year. You can also choose the death benefit payout in installments. However, the loan facility is not available for this plan.

See Also: Benefits of Buying Term Insurance Online

Eligibility of the Tech Term Plan:

• The applicant must be an Indian resident. The scheme is not available for overseas citizens of India (OCIs) or persons of Indian origin. NRIs can apply for the term plan during their stay in India, but this is subject to certain terms and conditions.
• The age of entry is from 18 to 60 years.
• The maximum age up to which coverage can be availed is 80 years.
• The minimum sum assured is Rs 50 Lakh and there is no upper limit.
• The policy offers flexibility to the customer vis-a-vis premiums and provides the option of regular, single and limited payment options.

See Also: Why You Need A Term Insurance Plan?

Features of the Tech Term Insurance Plan:

• The plan is available through an online application only. These pure term insurance plans are offered at a lower premium rate vis-a-vis money back or an endowment plan.
• The LIC tech term plan is a non-linked policy and a ‘without profit’ plan.
• The plan comes with no maturity or surrender value. The death benefit will be given only in the event of the death of the insured; within policy tenure.
• The term plan comes with tenure ranging from 10 to 40 years. The tenure allows a person of any age group to avail the plan as per requirements.
• The term plan offers the option to pay premiums monthly, half-year and annually. You can pay the premiums online through online banking.
• The new tech term insurance plan gives the option of level sum assured as well as increasing sum assured. Most of the private insurers in the market are offering this choice.
• The tech term insurance plan comes with accidental benefit rider that can be availed by paying a nominal premium amount.
• The most important benefit of the policy is that it provides insurance cover which remains valid on foreign trips as well.
• LIC is known for its high claim settlement ratio which was estimated to be about 98% in the year 2017-18. Purchasing this plan means your nominee will be able to receive the death benefit without any hassles.
• The pre-policy medical test is not mandatory. The medical test will be administered depending on the underwriting requirements and health disclosures. The expenses for the medical test will be borne by LIC. The test is generally mandatory if the person applies for a non-smoker rate.

See Also: What is a Term Life Insurance Policy?

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