LIC e-Term Plan

LIC is the oldest and the most trusted life insurance companies in the insurance market which has been operating ever since the year 1956. The company offers a range of life insurance products, term insurance plans being one of them. Recently, LIC has introduced a new term insurance product in the market which is called LIC Tech Term Plan. Let’s understand what the plan is all about –

Overview of LIC e Term Plan – Tech Term Plan

LIC’s Tech Term Plan is an online term insurance plan which you can only buy online as the policy is not available offline. The plan provides pure protection term insurance cover at affordable premium rates. You can opt for high coverage levels and the sum assured would be paid in case of death of the insured.

Key features of LIC e Term Plan – Tech Term Plan

Here are the highlights of the plan –

1. The plan offers premium flexibility. You can pay regular premiums, limited premiums or single premiums for the policy
2. There is flexibility in choosing the coverage benefit too. You can opt for a level sum assured or increasing sum assured
3. In case you opt for an increasing sum assured coverage option, the sum assured would start increasing from the 6th policy year. The increase would be @10% and would be allowed till the 15th policy year when the sum assured would double
4. The death benefit can be availed in instalments. These instalments can be taken yearly, half-yearly, quarterly or monthly
5. If you choose to avail death benefit in instalments, the pay-out period can be chosen from 5, 10 or 15 years.

Benefits of LIC e Term Plan – Tech Term Plan

The following benefits are available under LIC’s Tech Term policy –

1. Maturity benefit
   The policy is a pure protection plan and, therefore, has no maturity benefit.
   

2. Death benefit
   If the insured dies during the term of the plan, the death benefit payable is called Sum Assured on Death. This value is calculated as follows – 

   If the premiums are paid regularly or for a limited tenure, the Sum Assured on Death is the highest of the following –
   

• • 7 times the annualised premium
  • 105% of the aggregate premiums paid till death
  • Absolute amount assured payable on death which is the sum assured applicable in the year of death (level or increased amount)

For single premium policies, the Sum Assured on Death would be higher of the following –

• • 1.25 times the single premium paid
  • Absolute amount assured payable on death which is the sum assured applicable in the year of death (level or increased amount)

3. Rider benefit
   Tech Term Plan allows you the option to enhance your policy’s coverage through an optional rider. LIC’s Accident Benefit Rider is available under the plan. This rider, if added to the policy, would give you an additional sum assured in case of death due to an accident.
   

4. Premium discounts
   The plan offers different types of premium discounts which are as follows –
   • Women are charged a lower premium than men
   • Non-smokers are charged a lower premium than smokers
   • If you opt for a sum assured of INR 1 crore and above, you get premium discounts.

   These discounts depend on the amount of sum assured and age and are as follows –

   Entry age	Level sum assured		Increasing sum assured
   	INR 1 crore to INR 2 crores	INR 2 crores and above	INR 1 crore to INR 2 crores	INR 2 crores and above
   Up to 30 years	12%	20%	10%	18%
   31 years to 50 years	10%	15%	8%	13%
   51 years onwards	5%	7%	4%	6%

Eligibility criteria of LIC e Term – Tech Term Plan

A premium of LIC E-Term Plan – Tech Term Plan

Here are the sample premium rates which a non-smoking male would have to pay at different combinations of plan parameters if he chooses coverage of INR 1 crore and policy tenure of 20 years–

Option I – If level sum assured option is selected

Option II – if increasing sum assured option is selected

How to buy LIC e Term – Tech Term Plan?

To buy LIC’s Tech Term Plan online from LIC’s website, you can take the following steps –

1. Visit LIC’s website www.licindia.in
2. Choose ‘Buy Policies Online’ and then choose ‘LIC’s Tech Term’
3. Click ‘Buy Online’
4. You would then have to enter in the details like the sum assured coverage option, policy tenure, premium paying tenure, premium paying frequency, etc.
5. When the details are entered, the premium calculator would calculate the premium
6. You would then have to enter your personal information like name, age, address, etc.
7. The premium should, then, be paid online to buy the policy

Alternately, you can buy the plan offline through an LIC Agent or from any branch of LIC.

Documents for applying for LIC e Term – Tech Term Plan

To buy LIC’s Tech Term Plan, submit the following documents –

• Age proof
• Identity proof
• Address proof
• Income proof if you have chosen a high coverage level
• Medical check-up reports if required by LIC
• Any other documents which might be needed by the company

Claim process of LIC e Term – Tech Term Plan

To make a valid death claim under LIC’s Tech Term policy, you should take the following steps –

1. Inform the insurance company immediately about the claim by filling and submitting Claim Form 3783
2. You would also need to submit a death certificate of the insured
3. Police FIR would be needed if death occurs due to an accident
4. Any other document mentioned by LIC should also be submitted to get the settlement of the claim
5. The company would verify the documents submitted and if everything is in order, the claim would be processed and the amount would be credited to the nominee’s bank account

If you have bought the policy through Turtlemint, you can also make a claim through Turtlemint. To do so, you should inform Turtlemint by calling on its toll-free number 1800 266 0101 or by sending an email to the claims team at claims@turtlemint.com. Once the claim team is informed you can sit back and relax. The team would follow the necessary claim settlement steps and would get your claims settled.

Exclusions of LIC e Term – Tech Term Plan

Suicidal deaths are not covered under the Tech Term plan if they happen within a year of buying or reviving the policy. There are two exclusions relating to suicides which are as follows –

1. If a single premium is paid under the policy and the insured dies within 12 months of policy purchase, 90% of the single premium paid would be refunded. The sum assured would not be paid on such death
2. If regular or limited premiums are paid under the policy and the insured dies within 12 months of policy purchase or revival, 80% of the aggregate premium paid would be refunded back. The sum assured would not be paid as a death benefit.