LIC tech term plan was launched on 1st September 2019 and is considered to be one of the best insurance plans available in the Indian market at present. Ever since the term insurance plan was launched, it has attracted many policyholders. However, if you are going to put your money in the term insurance plans for the first time and you are interested in the LIC tech term plan, you must know all the features along with the positives and negatives of this plan. So, let us discuss the plan in length.
Features As Well As Benefits Of LIC Tech Term Insurance Plan:
- It is a non-linked plan that comes with no profit
- It is available online only and you cannot purchase this plan offline
- Since this is a pure term insurance plan, you cannot expect any maturity or surrender benefit
- The plan enables you to pay a lower premium and is for individuals who do not smoke
- You can take this term insurance plan only for yourself and not for others, and also you need to have a specific income
- The plan is eligible for individuals who fall in the age range of 18 to 65 years
- The term plan can be renewed up to the age of 80 years of the insured
- The minimum sum assured under this plan is INR 50 lakhs
- The plan does not come with any maximum sum assured
- The plan can be considered for 10 to 40 years of tenure.
Pros of LIC Tech Term Insurance Plan
Pure Term Plan
This is a pure term online insurance plan that comes with lower premium rates as compared to the money-back insurance plans.
Online Term Insurance Plan
Since it is online, there is no need of depending on any LIC agent and also you will not have to pay a commission. You can purchase the plan online and even renew it online.
The tenure of the plan is 10 to 40 years and is flexible for all age groups. Even if you are in your 20s, you can very easily consider the term plan of 40 years. And if you are in your 40s, you can consider the 20 years term insurance plans; although it totally depends upon your requirements.
Most of the term plans come with the options for premium payments, which are monthly, half-yearly, and annually. However, when you buy a LIC tech term plan, you can pay a single premium. This means you are paying the entire premium amount only once. This will give you the option of not renewing the plan each year.
Sum Assured Options
The LIC tech term plan comes with options as Level Sum Assured and increasing sum assured.
Flexible Sum Assured Payments
With the LIC tech term insurance plan, the beneficiary will get two types of sum assured payments. The first option is regular, which is a lump sum payment on the demise of the policyholder. The second is the one in which you can go for installments of the sum assured.
The term insurance plan offers an accidental death benefit rider, which is totally optional.
Active Even When The Policyholder Is Outside India
The term plan remains active even if you are out of the country for the short-term or long-term.
High Claim Settlement Ratio
This is one of the most important points that everybody should focus on while deciding on a term insurance plan. The claim settlement ratio of LIC is 98%, according to the IRDA Claim Settlement Ratio in 2019. Therefore, you can go ahead with the term insurance plan without any worry.
Cons of LIC tech Term Insurance Plan
The premium to be paid for this plan by the insured is slightly higher than the rest of the plan. Therefore, it can be a little challenging for the policyholders sometimes.
High Credit Card Charges For Premiums Paid
You can pay the premiums for the term plan through your credit card; however, the credit card charges range between INR 2.9 to INR 5,500 per transaction. The charges also depend on the premium you are paying.
Elimination Of Suicide In Less Than 1 Year
If the insured commits suicide within 1 year of taking this term insurance plan, the beneficiary will not get any sum assured from the company.
In case, you want more information on the LIC tech term plan, you can visit IIFL’s website and explore. you can also check out various other term insurance plans on the website.