LIC Tech-Term (Table 854) – Review, Features and Benefits

LIC’s Tech-Term is a Non-Linked, Non-participating Online Pure Risk Premium Plan which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term. This plan will be available through the online application process only and can be purchased anytime, anywhere at your convenience.

Features of this Policy – (Table 854)

a) Flexibility to choose from two benefit options: Level Sum Assured and Increasing Sum Assured.

b) No Loan facility is available under this policy.

c) Flexibility to –

• Choose from Single – Premium, Regular Premium, and Limited Premium Payment
• Choose the Policy Term/Premium Paying Term
• Opt for payment of benefit in installments.

d) Special rates for women

e) The benefit of attractive High Sum Assured Rebate.

f) Two categories of premium rates namely –

• Non-Smoker rates and
•  Smoker rates.

The application of Non-Smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases, the Smoker rates will be applicable.

g) Option to enhance your coverage by opting for Accident Benefit Rider on payment of additional premium for the rider benefit.

Benefits of this Policy –

1) Death Benefit –

The death benefit payable in case of admissible death claim during the policy term, provided the policy is in force shall be “Sum Assured on Death”.

For Regular Premium and Limited Premium payment policy, “Sum Assured on Death” is defined as the highest of –

• 7 times of annualized premium; or
• 105% of all the premiums paid as on the date of death; or
• Absolute amount assured to be paid on death.

For Single premium policy, “Sum Assured on Death” is defined as the higher of –

• 125% of Single Premium.
• Absolute amount assured to be paid on death.

Premiums referred above shall not include any extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.

Absolute amount assured to be paid on death shall depend on Death Benefit Option chosen at the time of taking this policy and is as under –

Option I – Level Sum AssuredAbsolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.

Option II – Increasing Sum AssuredAbsolute amount assured to be paid on death shall remain equal to Basic Sum Assured till completion of the fifth policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the sixth policy year till the fifteenth policy year till it becomes twice the Basic Sum Assured.

This increase will continue under an in-force policy till the end of policy term; or till the Date of Death; or till the fifteenth policy year, whichever is earlier. From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.

For example,

Absolute amount assured to be paid on death under a policy with Basic Sum Assured of Rs. X will be Rs. X till the end of the fifth policy year, Rs. 1.1X during the sixth policy year, 1.2X during the seventh policy year, increasing so on by 10% of Basic Sum Assured each year till it becomes 2X in a fifteenth policy year. From the sixteenth policy year and onwards, the Absolute amount assured to be paid on death will be 2X.

Note – The Death Benefit Option once chosen cannot be changed later.

2) Maturity Benefit –

On survival of the life assured to the end of the policy term, no maturity benefit is payable.

3) Optional Benefit –

a) Rider Benefit –

The policyholder has the option of availing LIC’s Accident Benefit Rider (UIN:512B203V03) under Regular Premium and Limited Premium payment mode by payment of additional premium during the Premium Paying Term provided the outstanding premium paying term is at least five years.

The benefit cover under this rider shall be available during the Premium Payment Term only or up to the policy anniversary on which age nearest birthday of the Life Assured is 70 years, whichever is earlier.

If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. The premium under this rider shall not exceed 100% of the premium under the Base plan. The Accidental Benefit Sum Assured shall not exceed the Basic Sum Assured under the policy.

b) Options to take Death Benefit in Installments –

This is an option to receive death benefits in installments over the chosen period of 5 or 10 or 15 years instead of the lump-sum amount under an in-force policy. This option can be exercised by Life Assured during his/her lifetime; for full or part of Death benefits payable under the policy. The amount opted for by the Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

Eligibility Conditions and Other Restrictions –

Steps to purchase LIC’s Tech-Term Policy Online –

Step #1 –

Log-on to our website (www.licindia.in) for buying this online product. Click on ‘Buy Policies Online’. Select plan LIC’s Tech-Term.

Step #2 –

Click on ‘Buy Online’. Choose your desired Sum Assured, Sum Assured option (Level/Increasing), Policy Term, Premium Payment option (Regular/Limited/Single) and Premium Payment Mode (Yearly/Half-yearly) for Regular and Limited Premium Payment option, Date of Birth, Gender and Smoking status.

Step #3 –

After filling in the details, a premium calculator will calculate the premium for the chosen parameters.

Step #4 –

Enter other details such as Name, Address, Occupation, Qualification, etc. displayed on the screen and complete the proposal form online.

Step #5 –

Pay premium online and fulfill the underwriting requirements, if any.

If I surrender the policy, will I get any surrender value?

No surrender value will be available under this Plan. However, on surrender of policy in the following cases (for both Level Sum Assured (Option I) as well as Increasing Sum Assured (Option II) options), an amount shall be refunded as under –

• Regular Premium policies – Nothing shall be refunded.
• Single-Premium Policies – Applicable refund shall be payable anytime during the Policy Term.
• Limited Premium Payment – Applicable refund shall only be payable if full premiums have been paid for at least –

1. Two consecutive years in case of premium paying term less than 10 years.
2. Three consecutive years in case of premium paying term of 10 years or more. In case of a lapsed policy, the refund shall be payable only during the revival period on request by the policyholder. However, on the expiry of the revival period, the policy shall terminate and refund shall be paid to the policyholder.

Can I return the policy if I didn’t like its terms and conditions?

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 30 days from the date of receipt of the policy bond stating the reasons for objections. This 30 day period is known as the Free Look Period.

On receipt of the same, the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for base plan and rider, if any) for the period of cover, expenses incurred on medical examination, special reports, if any, and stamp duty charges.

Exclusions under the Policy –

Suicide Exclusion –

a) Under Single premium policy –

The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within 12 months from the date of commencement of the risk, the Corporation will not entertain any other claim except for 90% of the Single Premium paid.

b) Regular /Limited Premium Payment policy –

This policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, provided the policy is in force or within 12 months from the date of revival, the Corporation will not entertain any claim except for 80% of the premiums paid till the date of death.

This clause shall not be applicable for a lapsed policy as nothing is payable under such policies.

Note – Single Premium/ Premium referred above shall not include any taxes, extra amount if charged under the policy due to underwriting decision and any rider premium. 

Conclusion –

So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.