LIC New Tech Term Plan

When it comes to life insurance in India, few names command as much trust as LIC, and the numbers prove why. With a claim settlement ratio of 98.35%, over ₹2.27 lakh crores in annual business, and a rock-solid 2.0 solvency ratio, LIC doesn’t just promise; it delivers. Even more telling? Only 4.57 complaints per 10,000 claims on average over the past three years.

Enter LIC’s New Tech-Term Plan 954: a no-frills, online-only term insurance policy that aims to combine LIC’s legendary reliability with digital convenience. 

But does it live up to the hype? Let’s break down the features, benefits, and how it stacks up in a crowded market.

Not sure which plan to choose? Don’t worry, we’ve got you covered. Book a free consultation call with us and we’ll help you find the perfect plan for your requirements. 

What are the Eligibility Criteria for the LIC Tech Term Plan?

First things first, this plan is available for sale only through an online application process (through LIC’s website Buy Online page), and no intermediaries will be involved. 

To qualify for this policy, applicants must meet specific criteria:

1) Age: 

The applicant must be between 18 and 65 years (nearest birthday) at the time of policy purchase.

• The life-proposed should be a Resident Indian residing in India. 

2) Location:

• He should not be an Overseas Citizen of India(OCI)or a Person of Indian Origin(PIO).
• Non-Resident Indians (NRIs) can also apply while they are in India, subject to the condition that the applicant is residing in one of the permissible countries (a List of permissible countries is provided in the 'Know Your Premium' section on the website).

3) Income Eligibility

To be eligible for this plan, you need to have a minimum income of ₹3 LPA. 

Note: Pension, Income from Rent, Interest, Shares/Trading, Dividends, Short/Long-term gains, etc., will not be considered as “Earned Income” to decide the Financial eligibility under this plan.

4) Educational Qualifications

The policyholder must have passed a minimum of 12th grade.

What Are the Key Features of the LIC Tech Term Plan?

1) Policy Term: 

The maximum term is up to 40 years, depending on the age, chosen sum assured, and plan option.

2) Premium Payment Term (PPT): 

You can choose from the Regular Pay or the Limited Pay options

3) Sum Assured: 

The minimum sum assured is ₹50 lakh. There is no stated upper limit; it depends on underwriting.

4) Medical Tests: 

A medical test is mandatory if proposed for the Non-smoker rate and if it is not covered under the Non-medical scheme.

What Are the Inclusions and Exclusions of the LIC Tech Term Plan?

The LIC New Tech-Term plan is simple, but it’s essential to know what it covers and what it doesn’t.

1) Inclusions 

• Death Benefit: 

If the policyholder dies within the policy term, the nominee will receive the death benefit (sum assured or enhanced cover, depending on the variant) in a lump sum.

• Death Benefit in Instalments:

Policyholders can opt for their nominee to receive the death benefit in monthly, quarterly, half-yearly, or yearly instalments over 5, 10, or 15 years instead of a lump sum. This can help the nominee manage long-term financial needs.

2) Exclusions

Term insurance policies exclude coverage for death due to suicide within the first 12 months of policy commencement or revival, with the nominee receiving 80% of premiums paid if the policy is in force. 

Note: These exclusions apply to all term plans. If you’d like to read about this in detail, you can check our comprehensive guide on Deaths Not Covered in Term Insurance.

What Are the Benefits of LIC Tech Term Plan?

Here’s a breakdown of the benefits this plan offers:

1) Death Benefit Options

• Level Cover: The death benefit remains constant throughout the policy term.
• Increasing Cover: The death benefit increases by 10% each year starting from the 6th year until it reaches double (200%) of the original sum assured by the 15th year.

2) Accidental Death Benefit Rider

This optional rider adds extra coverage for accidental death. You can read more about it in our detailed blog on Accidental Death Benefit in Term Insurance. 

How to Buy a LIC Tech Term Plan?

To purchase the LIC New Tech‑Term Plan 954, follow these steps:

1) Visit LIC’s Official Website and Select Your Plan

Go to the LIC website and navigate to the Tech‑Term Plan section. Choose the Sum Assured, policy term, and payment frequency.

2) Fill in Your Details: 

Provide personal details, such as age, contact information, and health status.

3) Review the Terms and Make the Payment

Carefully review the terms, conditions, and exclusions before confirming your policy. Once confirmed, pay for your policy using available payment options.

4) Undergo Medical Tests: 

Depending on your age and the sum assured, you may be required to undergo a medical examination.

5) Policy Issuance: 

After verification and approval, your policy will be issued.

What Are the Documents Required for Buying the LIC Tech Term Plan?

To complete your application, you'll need the following documents: Identity proof (Aadhar card, passport, voter ID), Age proof (birth certificate, passport, or school leaving certificate), Address proof (utility bill, Aadhar card, or passport), Income proof (salary slips, ITR returns, or bank statements), and possibly a Medical history (some plans may require medical tests or access to health records).

Should You Buy LIC Tech Term Plan?

One of the most substantial advantages of the LIC Tech‑Term Plan is the trust and credibility that comes with LIC’s name. With a claim settlement ratio of 98.35% (avg. of 2022-25), policyholders can be confident their families will be protected when it matters most. The plan is also affordable.

However, despite its reliability, the plan has notable limitations. It offers only one optional rider: the Accidental Death Benefit. This is unlike other modern plans like HDFC Life Click2Protect Supreme and Axis Max Life Smart Term Plan Plus that include a wider range of riders, such as critical illness coverage, waiver of premiums, or disability coverage. 

The tech term policy also lacks life stage benefits, meaning you cannot increase your coverage as your responsibilities change (e.g., after marriage, having children, or taking out a home loan), and other modern features, such as instant payout on claim intimation, auto cover continuance benefit & terminal illness cover.

Many individuals prefer LIC for its government ownership, associating it with safety and reliability. However, all insurance companies in India are regulated by the Insurance Regulatory and Development Authority of India (IRDAI), which enforces strict solvency and liquidity requirements, ensuring insurers maintain a minimum solvency ratio of 150%. 

Most Indian insurers exceed this, maintaining ratios between 180% and 220%. In rare cases of financial difficulty, the IRDAI has mechanisms in place, such as facilitating mergers, to protect policyholders. 

Bottom Line: Despite LIC's efforts to improve its online platforms, it still lags behind private insurers in terms of operational efficiency, post-sales support, and claims processing.

How Does LIC Tech Term Plan Compare to Ditto’s Standard Recommendations? 

1) Metric Comparison

Let’s compare the metrics of LIC with HDFC Life, Axis Max Life, and ICICI Prudential to get a better understanding of its standing in the insurance space.

2) Premium Comparison

Let’s calculate the premiums for a cover of ₹1 crore till 65 years.

Note: LIC Premiums are the same from 1st year itself, but * symbol denotes premiums from the second year.

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Conclusion

The LIC New Tech-Term Plan is ideal for those seeking a straightforward, low-cost, and government-backed term policy. However, if you prefer broader protection, premium waivers, or critical illness coverage, private insurers such as HDFC, ICICI, or Axis offer more feature-rich alternatives, albeit at a slightly higher premium.

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