Since the Life Insurance Corporation of India is a 100% state-run company, the government has assured to settle claims in case it defaults. Because of this reason people are still gravitating towards LIC despite the presence of other private companies, even if the premiums of its term insurance are more expensive than that of private insurance corporations.
Lately, LIC has pitched a new plan. It is a non-participating, non-linked, pure-risk premium online insurance plan, presenting colossal coverage at affordable premiums, and protecting the insured’s family in case of any tragic event financially. One can purchase this plan anytime with just a click.
Fundamental Attributes of LIC Tech Term Plan:
Some noteworthy features of the LIC Tech Term Plan are cited below:
- The age of policyholder must range from 18 years to 85 years
- The duration of the plan runs between 10 years and 40 years
- It doesn't entail any maximum limit for coverage, while the minimum limit of the sum assured is INR 50 lakhs
- For obtaining death benefits, you can either keep the total sum assured unaltered, or you may raise the value
- Absence of a maturity benefit
- The frequency of premium payout relies on the choice of the policyholder.
Pros of LIC Tech Term Plan:
- Relatively, less registered complaints
- Presents the premier option of raising the claim amount automatically with time
- For policies over 3 years, there is another different and easier claim form
- For rapid payments, one can make the use of rolling limited pay options
Key Advantages of LIC Tech Term Plan:
Some of the chief advantages of the LIC Tech Term Plan are mentioned below:
Payment Benefit Options:
- An insured individual will get to enjoy two types of death benefit options: a fixed level of assured sum and an improved amount of sum assured. According to the circumstances and after assessing your requirements, it is possible to make a well-informed selection.
Steady Promised Amount:
- Till the termination of the fifth year of the policy, the payable assured sum amount on the death of the concerned policyholder stays intact if you select the respective option. From the sixth policy year onwards till the fifteenth year, the basic sum assured rises at a constant rate of 10% per annum till the basic sum assured becomes doubled. From the 16th policy year onwards, the promised revised sum stays consistent. Instead of delivering a lump sum, LIC now offers death benefits distributed in installments of 5, 10 or 15 years. The policyholder is required to choose this option while purchasing this plan.
High Coverage:
- After weighing all the risks that must be confronted in life, it becomes crucial to secure a sum assured amount that will offer a financial cushion to your near and dear ones when you are not around them but will even consider the inflation factor. While buying a LIC Tech Term Plan online, you can evade spending your hard earned money on any brokerage or commission to any broker, therefore vastly decreasing your insurance costs if a fit, non-smoking man purchases this plan of INR 1 cr. At 30 years for a 30-year long tenure, he will only be required to pay INR 9000 yearly, turning it into an incredibly affordable choice.
Compensation Rider:
- In this plan, one of the most upscale features is the presence of the rider of accidental benefit. It denotes that you will get the rider sum assured in the form of a lump sum along with the death benefit if the concerned insured person passes away due to any mishap. By just incorporating an added premium, you can get this clause in your primary plan for better coverage in case of any accidental occurrence.
Tax Benefits:
- If you want to avail tax benefits, you would be glad to know that wIl the payouts and premiums presented by the LIC Tech Term Plan are tax-deferred. All the premiums paid are deductible under Section 80C of the IRC. Additionally tax imposition will not take place on the payment of the promised sum under Section 10(10D).
Free-look Period:
- Every policyholder is eligible to get a free look period of 30 days. In case you are discontented with the enactment of the plan, feel free to request for the refund of your chosen plan and obtain the refund of your money as early as possible.
However, everything is not flowery. Before you reach any concrete decision, you need to consider some of its disadvantages.
Cons of LIC Tech Term Plan:
- It is relatively costlier than other products
- Absence of monthly premium installment option
- Claim settlement procedure demands your full attention
- Availability of critical illness rider is not present
- Lagging online responding system
FINAL VERDICT
A human needs to fulfill an endless number of responsibilities in his entire life. It is necessary to fulfill each one of them to avoid the aftermath. Similarly, if you avoid getting the best insurance plan, you won't be able to save yourself from the repercussions. It is no longer a doubt that the LIC Tech Term Plan surpasses its disadvantages. It is an amazing choice to create a protective financial shield that will continue to serve even after your demise.
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