Advantages of LIC Tech Term Plan
Published On Nov 29, 2021 10:00 AM By InsuranceDekho
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The LIC tech term plan is a pure protection term insurance policy that intends to protect the policyholder's family financially in the event of his or her untimely death during the policy term. The newly introduced tech-term plan from LIC is a non-linked, non-participating online pure risk premium plan that offers significant coverage at low premiums, as well as financial security for the insured's family in the event of the policyholder's untimely death during the policy term. This plan will only be accessible through an online application process and can be purchased at your leisure, anytime and anywhere.
Benefits of the LIC Tech Term Plan
Here are some of the plan's key features:
- The insured must be at least 18 years old and no more than 65 years old.
- The policy's duration varies between 10 and 40 years.
- The coverage you can choose has no upper limit, however the minimum sum assured is Rs 50 lakhs.
- You have two options for receiving death benefits: Option 1: Maintaining the same sum assured; Option 2: Increasing the sum assured.
- This plan does not offer any maturity advantages.
- The insured has the choice of paying a regular premium, a limited premium, or a single premium on an annual or half-yearly basis.
- If a policyholder is not pleased with the terms and conditions of the policy, LIC offers a 30-day free look period during which they can return the policy and receive a prompt refund of the premium paid.
- High Coverage At A Low Premium
With the hazards that come with life, it's critical to choose a sum assured that not only protects your family while you're gone, but also helps them keep up with the rising cost of living. Broker commissions are avoided when you buy LIC tech terms online, which lowers the insurance price significantly. For example, a 30-year-old non-smoking man who purchases this policy with a total assured of Rs 1 crore and a policy period of 30 years will only have to pay Rs 9,000 per year in premiums.
- Payout Benefit Options
This plan's death benefit is available in two forms: level sum assured and augmented amount assured.
Level sum assured: Throughout the insurance period, the sum promised remains constant.
Increasing the level is certain: The amount of the sum assured to be paid on the policyholder's death remains the same in this choice until the conclusion of the fifth policy year. The basic sum assured increases by 10% per year from the sixth to the fifteenth policy year, until it reaches double the basic sum assured. This new sum promised remains constant after the 16th policy year.
LIC now offers the option of receiving death benefits in five, ten, or fifteen-year instalments rather than a flat sum. This is an option that the policyholder must select when purchasing the policy.
- Accidental Benefit Rider
The possibility to increase your coverage by paying an additional premium for an Accidental benefit rider is the most crucial of all the LIC tech term plan perks. As a result, if the policyholder dies in an accident, the rider sum assured will be paid as a lump sum in addition to the death benefit.
The Accidental Death Benefit Rider can be added to your policy for a cost. If you die in an accident, you will receive the Rider benefit in addition to the Sum Assured under the plan.
- Tax Benefits
The LIC tech term plan provides tax advantages on premiums and payouts. While you can deduct premiums paid under Section 80C of the Internal Revenue Code, the payout of the sum promised is likewise tax-free under Section 10(10D) of the tax code.
The benefits and features of a Tech term plan are numerous, making it an excellent solution for you to ensure the financial obligations of your family and dependents while you are away.
Do read - Everything You Need To Know About Income Tax Returns Filling In India
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.