LIC Tech Term Plan Overview
If you’ve been researching term insurance plans, you may have come across the LIC Tech Term Plan, one of the insurer’s earlier online term offerings. Since the plan has now been withdrawn and replaced by newer versions, many buyers are confused about its features, availability, and alternatives. In this guide, we break down how the LIC Tech Term Plan worked, why it was discontinued, and what options you should consider today if you’re looking for term insurance.
How Does the LIC Tech Term Plan Work?
Suppose a policyholder, age 30, buys the LIC Tech Term with a ₹1 crore sum assured for 30 years by paying an annual premium.
- If they pass away during the policy term, their nominee receives ₹1 crore (or higher, if they chose the increasing cover option).
- If they survive the full term, no maturity benefit is paid, since it is a pure protection plan.
Features and Benefits Offered by LIC Tech Term Plan
Choice of Cover Options
The plan offered two cover structures: level sum assured, where coverage remained constant throughout the policy term, and increasing sum assured, where coverage gradually increased to match rising financial responsibilities.
Flexible Premium Payment Options
Policyholders could choose between single, regular, or limited premium payment options, with premiums payable in yearly or half-yearly modes, providing flexibility in managing payments.
Lump Sum or Instalment Payout Option
The death benefit could be received either as a lump sum payout or in instalments over a chosen period, helping families manage long-term expenses.
Optional Accident Benefit Rider
An Accident Benefit Rider could be added for an additional payout in case death occurred due to an accident.
Eligibility and Coverage Range
The plan allowed entry between ages 18 and 65, with coverage extending up to age 80, offering a sum assured starting from ₹50 lakh, and policy terms ranging between 10 and 40 years.
Pure Protection Plan
The plan did not offer any maturity benefit, as it was designed purely to provide life protection during the policy term.
However, since this plan is no longer available, we think it’d be beneficial for you to check out the features of its replacement, the New Tech Term Plan. The following list will give you an idea of what you can expect from it:
Features of the LIC New Tech Term Plan (Plan No. 954)
- Online Direct Purchase Only: The plan is available exclusively through direct online purchase, allowing customers to buy life cover without involving intermediaries or agents.
- Entry Age and Coverage Duration: Individuals aged 18 to 65 years can purchase the plan, with coverage available for up to 40 years or until age 80, whichever occurs earlier.
- Flexible Premium Payment Options: Policyholders can choose between Regular Pay or Limited Pay options, with premiums payable in yearly or half-yearly modes.
- High Coverage Availability: The plan offers a minimum sum assured of ₹50 lakh, with no upper coverage limit, subject to underwriting approval.
- Choice Between Level and Increasing Cover: Customers can choose Level Cover, where the sum assured stays constant, or Increasing Cover, where coverage gradually rises from the 6th year and reaches up to double the original sum assured by the 15th year.
- Instalment Payout Option: Nominees can receive the death benefit in instalments over 5, 10, or 15 years, instead of taking a lump sum payout.
- Optional Accident Benefit Rider: An Accident Benefit Rider can be added, providing an extra payout if death occurs due to an accident during the premium-paying period or until age 70, whichever is earlier.
- Pure Protection Structure: The plan is designed purely for protection and does not provide maturity benefits if the policyholder survives the policy term.
- Limited Rider Availability: The plan does not include riders such as critical illness, waiver of premium, or disability benefits, limiting customization options.
- No Advanced Exit or Upgrade Features: Features like early exit (zero-cost), life stage upgrades, or terminal illness benefits are not available under the plan.
- No Special Purchase Discounts: The plan does not offer premium discounts for salaried individuals, digital buyers, first-time customers, or existing LIC policyholders.
Eligibility Criteria for LIC Tech Term Plan
Metrics of LIC Life Insurance
Insights: LIC shows strong claims performance and very low complaint volumes compared to the industry, indicating high claims reliability, though its 30-day settlement speed is slightly below industry averages.
What Are the Inclusions and Exclusions of the LIC Tech Term Plan?
Like all term insurance plans, the LIC Tech Term plan also covers death due to natural causes, illnesses, and accidents during the policy term.
The plan included standard exclusions, such as suicide during the initial 12-month period, and certain claim-related limitations as defined in the policy wording. These exclusions are in line with industry norms and regulatory guidelines.
To understand these in detail, read this guide on the types of deaths not covered under a term insurance plan.
Since the LIC Tech Term Plan is no longer available, illustrating its premiums will be futile. Therefore, we have calculated the premiums of the currently available LIC New Tech Term Plan. Take a look:
Premium Rates Under LIC Tech Term Plan
Profile Considered: Premiums are based on a ₹2 crore sum assured, with coverage up to age 70, for a non-smoking male, with no added riders or 1st year discounts.
The premiums indicate that the LIC New Tech Term Plan is priced higher than many private insurers, and this pricing appears difficult to justify given the plan’s limited feature set and absence of modern benefits offered by competitors.
Disclaimer: These recommendations are based on Ditto’s six-point product evaluation framework (product quality, claims experience, underwriting transparency, flexibility, affordability, and operational reliability) and our three-point insurer assessment (financial strength, claims track record, and service reliability). These criteria help ensure that the plans recommended here strike the right balance between protection, claims confidence, and long-term service quality.
Riders Offered by LIC Tech Term Plan
The LIC Accident Benefit Rider provides an additional payout equal to the chosen rider sum assured if the policyholder dies due to an accident within 180 days of the incident, provided the rider and base policy are active. The cover remains valid during the premium-paying term or up to age 70, whichever is earlier, and offers no maturity or surrender value. This is the only rider that was available with the LIC Tech Term Plan and now the LIC New Tech-Term Plan. However, Ditto does not recommend opting for it, since accidental deaths are already covered under the base term insurance sum assured.
What are the Documents Required to Buy the LIC Tech Term Plan?
You cannot buy the LIC Tech Term Plan because it has been withdrawn. However, you can purchase its newer replacement. The documents required for the LIC New Tech Term Plan are the same as the documents required for purchasing any term insurance plan. You can read more about it in the linked guide.
How to Buy the LIC Tech Term Plan?
- You can purchase the newer replacement of the Tech Term Plan, the LIC New Tech Term Plan, through LIC’s official website.
- Go to this LIC website link.
- Select ‘Term Insurance Plans.’
- Then choose ‘LIC New Tech Term Plan.’
- Click on ‘Know More’, and follow the instructions given on the screen.
- After you put your details and requirements, you will see the premium on the screen.
- That’s your final price. You can thereafter purchase the plan.
Why Choose Ditto for Term Insurance?
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Confused about the right term insurance? Speak to Ditto’s certified advisors for free, unbiased guidance. Book your call or WhatsApp us now, slots fill up fast!
Why Choose LIC Tech Term Plan?
If you prefer LIC’s reliability, you can consider the New Tech Term Plan or Digi Term Plan. LIC remains financially strong, with solid claim settlement performance and strict underwriting that supports genuine claims. However, its term offerings focus on basic protection and lack modern features such as critical illness riders, waiver of premium, early exit options, terminal illness benefits, life stage upgrades, or buyer discounts.
Although LIC has excellent processes for ULIPs and endowment plans, the claim process for term insurance can, at times, be slower compared to private insurers. So, LIC suits buyers prioritizing institutional trust over feature-rich, customizable protection plans. However, if you want comprehensive protection, this best term insurance plans in India guide is worth taking a look at.
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