6 Reasons Why You Should Buy LIC Tech Term Plan?

LIC has recently launched this new plan, which is a non-participating, non-linked, pure-risk premium online insurance plan, offering significant coverage at affordable premiums, and financially protecting the insured’s family under any unfortunate circumstance. You can always purchase this plan anytime exclusively through online mode.

Basic Features Of LIC Tech Term Plan:

Some of the most significant features of the LIC Tech Term Plan include:

• The age of policyholder must be between 18 years and 85 years
• The duration of the plan ranges between 10 years and 40 years
• There is no maximum limit for coverage, while the minimum limit of the sum assured is INR 50 lakhs
• For receiving death benefits, you can either keep the total sum assured unaltered, or you may increase the value
• There is no maturity benefit
• The premium payout frequency depends on the choice of the policyholder.

Pros Of LIC Tech Term Plan:

• Comparatively, very few registered complaints
• Offers the exclusive option of increasing the claim amount automatically with time
• For policies over 3 years, the claim form is different and easier
• For rapid payments, a rolling limited pay option is available.

Basic Advantages of LIC Tech Term Plan:

Some of the major advantages of the LIC Tech Term Plan include the following:

• Payment Benefit Options:

  You enjoy two types of death benefit options: a fixed level of assured sum and an enhanced amount of sum assured. Depending on the circumstances and considering your requirements, you can make your preferred choice.

• Constant Promised Amount:

  Till the end of the fifth year of the policy, the payable assured sum amount on the death of the concerned policyholder remains unaltered if you choose the respective option. From the sixth policy year onwards till the fifteenth year, the basic sum assured grows at a constant rate of 10% per annum till the basic sum assured gets doubled. From the 16th policy year onwards, the pledged revised sum remains constant. Rather than offering a lump sum, LIC now offers death benefits distributed in instalments of 5, 10 or 15 years. The policyholder must choose this option while purchasing this plan.

• High Coverage:

  Considering all the risks that need to be undertaken in life, it is vital to ensure a sum assured amount that will not only financially support your family in your absence but will even consider the inflation factor. While purchasing an online LIC Tech Term Plan, you can avoid paying any brokerage or commission to any broker, thus considerably lowering your insurance costs if a healthy, non-smoking man buys this plan of INR 1 cr. At 30 years for a 30-year long tenure, he will only need to pay INR 9000 annually, making it an affordable option.

• Compensation Rider:

  In this plan, one of the most exclusive features is the availability of the rider of accidental benefit. This implies that you will be paid the rider sum assured in a lump sum along with the death benefit in case the concerned policyholder’s death occurs due to any unfortunate accident. With an added premium, you can incorporate this clause in your base plan for enhanced coverage in case of any accidental circumstance.

• Tax Benefits:

  All the payouts and premiums offered by the LIC Tech Term Plan are tax-deferred. All the premiums paid are deductible under Section 80C of the IRC, while the payment of the promised sum also remains tax-free under Section 10(10D).

• Free-look Period:

  Every policyholder receives a free look period of 30 days. In case you are dissatisfied with the performance of the plan, you can easily refund the plan and receive the refund of your money as early as possible.

However, all is not good here. There are certain disadvantages too that you need to consider before purchasing.

Cons of LIC Tech Term Plan:

• Comparatively pricier than other products
• No monthly premium instalment option is available
• Claim settlement procedure needs attention
• No availability of critical illness rider
• Slow online responding system.

Conclusion

From the above discussion, it is evident that the benefits of the LIC Tech Term Plan far supersede its disadvantages, making it a perfect choice to act as a protective financial shield even after you are gone.

Also Read: Single Premium Term Life Insurance Plans in India