LIC on the occasion of LIC day has launched an online term plan coined as LIC's Tech-Term plan. It is a pure term plan that provides financial protection to the assured's nominee in case of some unfortunate event. It covers death even accidental death except the case of suicide from the first year of policy.
Resident citizen or some of the NRIs who reside in only some of the permissible nations can purchase this online term plan.
Minimum life coverage offered in online Tech term plan is Rs. 50 lakh with no upper ceiling
Minimum and maximum policy term: 10 and 40 years, respectively
Coverage is extended up to 80 years of age.
Premium for a non-smoker aged 30 years buying this plan comes to be Rs. 9912 for a sum assured value of Rs. 50 lakh this includes the GST amount on the premium amount.
It is to be noted that premium payment including renewal attracts some convenience fee when the payment mode is via credit card.
Also, there remains an option to customize the death benefit payment mode i.e. payable to nominee which can be exercised by the policyholder who might take a better decision in the interest of his or her family members.
How is the death benefit paid to the nominee?
In it there is an option wherein the sum assured value may remain the same through the end of the policy term.
Also, there is another option in the case of which, policy pay out or sum assured remains the same for the first 5 policy years and thereafter may increase for the next 10 years and later may remain the same through the policy term. And so after the policy term of say 16 years, the payable amount or sum assured value almost doubles.
LIC tech cover: It is a must buy
The plus point of this term plan is for individuals who avoid going through the usual medical procedure as this plan extends high coverage of even Rs. 75,00,000 for individuals aged between 18-35 years and making earnings over Rs. 3 lakh and in case of person aged between 36-45 years and earning over Rs. 5 lakh a term plan of up to Rs. 50 lakh can be bought under non-medical scheme.
Also, if you have a limited coverage, you can extend your sum assured value by buying this plan and without the need to go medical procedure that is otherwise mandatory when you fall in some age criteria and buy a high coverage for your family.
Furthermore, while it is significantly cheaper than the earlier e-Term plan of LIC, holding on to the previous plan makes far more sense, as it is seen to be more valuable and govt. cannot deny claim on it.
But if you dont mind taking a risk and can bet on the private insurer's term plan than go ahead as it is priced lower in comparison to the newly launched Tech term plan.