Top 6 Reasons Why You Should Buy LIC Tech Term Plan in 2023
Since its inception, LIC has been launching several attractive plans to suit the pockets and needs of its customers. Most LIC plans are reasonably priced and protect the family of the policyholder in the event of an unfortunate death of the insured. The LIC tech Plan is one such policy that is exclusively offered to its online customers to help them avoid the hassle of buying the policy from agents.
The best thing about this plan is that it is available at a significantly reasonable premium and it protects the family of the insured in case of any ill-fated incidents. Let’s check the reasons for buying the LIC tech term plan online.
Highlights of LIC Tech Term Plan
| Features | Description |
| Policy Name | LIC Tech Term Plan |
| Policy Tenure | 10 to 40 years |
| Mode of Premium Payment | Regular and Limited (semi-annually and annually) |
| Age of Entry | Minimum Entry Age – 18, Maximum Entry Age – 65 |
| Age of Maturity | 80 years |
| Maturity Benefit | Not Applicable |
| Grace Period | 1 month (30 days) |
| Sum Assured | Min- INR 50,00,000, Max- No Limit |
| Liquidity Facility | Not Applicable |
Benefits of LIC Tech Term Plan
Below are some key benefits of LIC Tech Term Policy:
1. Death Benefit – The payment option in case of death benefit offered to the nominee of the insured under LIC tech term plans is available in two types –
- Level sum assured
- Increased sum assured
As per the need and the situation, the preferred choice can be made by the nominee.
2. Constant Growth – As per the policy option, for the first 5 years of the tech term plan, the death benefit payable remains the same. It grows at a rate of 10% per year from 6th to 15th year of the policy term. And the amount remains unaltered from 16th year onwards.
Further, LIC offers the facility of offering death benefit in instalments as compared to giving it away as a lump sum amount. The instalments are dispersed in a duration of 5, 10 or 15 years as per the choice of the policyholder.
3. No Brokerage – Since the LIC tech term plan restricts the involvement of brokers or intermediaries, it helps save a large chunk of the money paid to them while buying the policy. Hence, it allows the policyholder to use that money to get better coverage on the policy considering the fact that you want to make your family financially stable in your absence as well as keeping in mind the growing rate of inflation.
4. Accidental Rider Benefit – The plan offers the facility of accidental rider benefit, which can be incorporated by paying an extra amount. This rider allows the family of the insured the facility to receive a lump sum amount as accidental benefit in case of accidental death of the policyholder.
5. Tax Benefits – The tech term plan allows policyholders to avail standard tax exemptions on the benefits of the plan.
6. Free-look Period – Like all other insurance policies, the tech term plan allows the policyholder a 30 days free look period to leave the plan if they are not satisfied with the plan performance.
Advantages and Disadvantages of LIC Tech Term Plan
Like all other insurance products, the LIC tech term plan also has its share of pros and cons.
Pros of LIC Tech Term Plan
- The number of registered complaints lodged are few so far
- The LIC tech term plan review has been good
- There is option of automatic increase in claim amount with time
- Rolling limited payment facility is available for rapid payments
- By using the LIC tech term plan premium calculator, you can calculate the premiums to be paid and benefits to be received.
Cons of LIC Tech Term Plan
- Not just pros, the tech term plan has certain cons or limitations as well as mentioned below:
- The price is comparatively high as compared to other LIC products
- he plan doesn’t offer any monthly premium payment option
- Attention should also be paid to claim settlement procedure
- Critical illness rider is not available
- Responding system on the online platform is slow
FAQs: Top Reasons Why You Should Buy LIC Tech Term Plan
Yes, LIC tech term plan is definitely a good policy that allows the policyholder to get higher coverage at a lower premium. The policy allows the insured to avail the option of payout benefit. Further, you can also avail riders like accidental benefit as well as save on tax.
The key advantage of availing LIC Tech-Term plan is that it allows monetary security to the family of the insured in case of his/her unfortunate demise. The plan can be bought only through an online process and hence it avoids the involvement of intermediaries.
The best time to buy a term plan is when you are in your 20s. This is because during this age you are young, energetic and just at the start of your career. Also, you are away from any illnesses. Thus, you will be charged a minimum premium for your term plan if you buy in your 20s. Further, a term plan will help in securing your family, parents as well as inculcate the habit of saving.
LIC tech term plan can be bought by people within the age group of 18 and 35 years if their annual income is more than INR 3 lakh. The sum assured under this plan can go up to INR 75 lakh.
The grace period offered for LIC tech term plan is 30 days which is allowed to make payment of premium to keep the plan active.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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