Features And Benefits of LIC Tech Term Policy

The LIC tech term plan is a pure protection term insurance policy that is designed to financially cover the policyholder's family in the event of the policyholder's untimely death during the policy term. The new tech-term plan from LIC is a non-linked, non-participating online pure risk premium plan that offers substantial coverage at low premiums, as well as financial stability for the insured's family in the event of the policyholder's untimely death during the policy term. This plan will only be available through an online application process, and you can buy it whenever and wherever you choose.

Benefits of the LIC Tech Term Plan

The following are some of the plan's most important features:

• There is no upper limit to the coverage you can choose, however the minimum sum assured is Rs 50 lakhs.
• The insured must be over the age of 18 and under the age of 65.
• The policy's lifespan ranges from ten to forty years.
• On an annual or half-yearly basis, the insured can pay a regular premium, a limited premium, or a single premium.
• When it comes to death benefits, you have two choices: Option 1: Maintain the same amount of insurance; Option 2: Increase the amount of insurance.
• If a policyholder is dissatisfied with the policy's terms and conditions, LIC gives a 30-day free look period during which they can return the policy and obtain a fast refund of their money.

1. Options For Payment Benefits

The death benefit of this plan comes in two flavours: a level sum assured and an increased amount assured.

2. The Amount Promised Remains Consistent 

Increasing the level is certain: Until the end of the fifth policy year, the amount of the sum assured to be paid on the policyholder's death remains the same in this option. From the sixth to the fifteenth policy year, the basic sum assured grows at a 10% annual rate until it reaches double the basic sum assured. After the 16th policy year, the new sum pledged remains unchanged.

Instead of getting a lump sum, LIC now gives death benefits in five, 10, or fifteen-year instalments. When purchasing the coverage, the policyholder must choose this option.

3. High Coverage

With all of life's risks, it's vital to select a sum assured that not only covers your family while you're gone, but also allows them to keep up with escalating living costs. When you buy LIC technical terms online, you avoid paying broker commissions, lowering your insurance costs significantly. For example, a 30-year-old non-smoking guy who obtains this policy with a total assured of Rs 1 crore and a policy period of 30 years will pay only Rs 9,000 in premiums per year.

4. Rider For Compensation

The ability to enhance your coverage by paying a higher premium for an Accidental benefit rider is the most important feature of the LIC tech term plan. As a result, the rider sum assured will be paid as a lump sum in addition to the death benefit if the policyholder dies in an accident.

For a fee, you can include the Accidental Death Benefit Rider in your policy. You will receive the Rider benefit in addition to the Sum Assured if you die in an accident.

5. Benefits from the Tax System

Premiums and payouts on the LIC tech term plan are tax-deferred. While premiums paid are deductible under Section 80C of the Internal Revenue Code, the payment of the promised money is also tax-free under Section 10(10D).

Bottomline

The advantages and features of a Tech term plan are numerous, making it a perfect choice for you to protect your family and dependents' financial commitments while you are gone.

Also read - How Can I Check LIC Policy Status Easily?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.