LIC finally launched its online term life insurance LIC’s Tech-Term (No.854). It is going to be one of the best plan designed by LIC as far as I know. Let us see the benefits and how it is beneficial for all of us.
LIC’s Tech-Term (No.854) is a Non-Linked, Non-Participating Term Life Insurance Plan. After a long gap, LIC launching a term life insurance. It is mainly because of the competition in this field of product.
LIC’s Tech-Term (No.854) – Features
# It is a pure ONLINE Term Life Insurance from LIC.
# Minimum Sum Assured is Rs.50 lakh and there is no limit for maximum sum assured.
# You can pay the premium as regular, single or limited.
# You can opt for a level sum assured, where the sum assured you opted will remain the same throughout the policy period.
# You can opt for an increasing sum assured also, where the death benefit will remain the same up to 5 years of the first policy period. After that, it will increases at a rate of 10% for the next 10 years. From the 16th year, it will remain the same.
# Death Benefits can be taken in installments also of 5 years, 10 years or 15 years.
# Coverage up to 80 years of age.
# You can opt for Accidental Rider also.
# Lower rates for Non-Smokers and special rates for women.
LIC’s Tech-Term (No.854) – Eligibility
Let me share with you the eligibility criteria of LIC’s Tech-Term (No.854).
LIC’s Tech-Term (No.854) – Premium
I have limited information about this policy. However, I have received this below premium example.
Sum Assured-Rs.1 Cr
Premium Paying Term-10 Years.
Sum Assured Option-Level Sum Assured
Age-20 Years-Male-Rs.5,456, Age-20 Years-Female-Rs.5,192 (Yearly)
Age-30 Years-Male-Rs.6248, Age-30 Years-Female-Rs.5,896 (Yearly).
Age-40 Years-Male-Rs.10,260, Age-40 Years-Female-Rs.8,460 (Yearly)
(The above rates are exclusive of GST).
LIC’s Tech-Term (No.854) – Death Benefit Options
Death Benefit Sum Assured
As I have mentioned in the above post, there are two death options under LIC’s Tech-Term (No.854). They are as below.
# Level Sum Assured
Your nominee will receive the Sum Assured you opted while buying the policy. It will remain the same throughout the policy period.
# Increasing Sum Assured
Under this feature, the death benefit will be the same as that of the initial sum assured you have chosen for the first five years.
From 6th policy year to 10th year, it will increase at the rate of 10% per year.
From the 16th year of the policy period, it will remain the same throughout the remaining policy period.
Accordingly, your nominee will receive the death benefit during which period of the policy your death occurs.
Death benefit payment option to the nominee
Your nominee can receive the death benefit as a lump sum or in installments. If you opted for installments, then LIC will pay the death benefit installments in 5 years, 10 years or 15 years.
You can choose the full death claim amount be payable in installments or a certain portion of death claim in installments.
You can choose this installment option either at the time of buying or during the policy period.
LIC’s Tech-Term (No.854) Premium Comparison
Let us now compare the premium of LIC’s Term Term (No.854) with other private players.
You notice that the premium of LIC’s Term Term (No.854) is cheap compared to the existing LIC’s online term plan (LICs’ e-Term). However, if you check the premium with private players, it is still costlier.
LIC’s Tech-Term (No.854) – Review
Considering the market competition in online term life insurance plans, LIC launched this plan with the utmost care and including the many features which are already available in the market.
# It is an online term life insurance. Hence, the premium will be cheap. Also, it looks upfront that LIC’s Term-Term (No.854) premium is much cheaper than it’s earlier online term life insurance (e-Term). Hence, it is a big benefit for those who are desperate to buy the term life insurance from trusted LIC.
# Coverage of the policy is up to 80 years of age. Even though Life Insurance is not required up to 80 years of your age, but LIC added this feature to compete with private players. Hence, this is an attractive move.
# This plan comes with an accidental rider. It’s an earlier version of term life insurance was without any rider. Hence, this time LIC added accidental rider benefit. This is one more positive.
# Special discounts for a female is unique and attractive to all-female who are looking for online term life insurance from LIC.
# Premium paying option is too flexible with options like Single, Limited Period and Regular Period. This gives us flexibility.
# Increasing Sum Assured option is first time added by LIC. Where for the first 5 years it will not increase. However, after 5th year to 15th year it will increase at the rate of 10%. From 16th years onward, it will remain the same throughout the policy period. This is the big relief for those who have to review their life insurance coverage and avoid having multiple life insurance products.
# If you already holding LIC’s e-Term, then don’t discontinue just because of this plan offers you a lesser premium. Instead, while enhancing, you can buy this product.
# For those who trust LIC and looking for a term plan newly, they can opt for this policy. But do remember that buying term life insurance not completely depends on PREMIUM. Hence, take your conscious decision.
Overall, this product seems to the BEST product I may have reviewed with no such big negatives in this product to look for. Go ahead and buy it!!