Top 6 Reasons Why You Should Buy LIC Tech Term Plan in 2023

The best thing about this plan is that it is available at a significantly reasonable premium and it protects the family of the insured in case of any ill-fated incidents. Let’s check the reasons for buying the LIC tech term plan online.

Highlights of LIC Tech Term Plan

Features	Description
Policy Name	LIC Tech Term Plan
Policy Tenure	10 to 40 years
Mode of Premium Payment	Regular and Limited (semi-annually and annually)
Age of Entry	Minimum Entry Age – 18, Maximum Entry Age – 65
Age of Maturity	80 years
Maturity Benefit	Not Applicable
Grace Period	1 month (30 days)
Sum Assured	Min- INR 50,00,000, Max- No Limit
Liquidity Facility	Not Applicable

Benefits of LIC Tech Term Plan

Below are some key benefits of LIC Tech Term Policy:

1. Death Benefit – The payment option in case of death benefit offered to the nominee of the insured under LIC tech term plans is available in two types –

• Level sum assured
• Increased sum assured

As per the need and the situation, the preferred choice can be made by the nominee.

2. Constant Growth – As per the policy option, for the first 5 years of the tech term plan, the death benefit payable remains the same. It grows at a rate of 10% per year from 6th to 15th year of the policy term. And the amount remains unaltered from 16th year onwards.

Further, LIC offers the facility of offering death benefit in instalments as compared to giving it away as a lump sum amount. The instalments are dispersed in a duration of 5, 10 or 15 years as per the choice of the policyholder.

3. No Brokerage – Since the LIC tech term plan restricts the involvement of brokers or intermediaries, it helps save a large chunk of the money paid to them while buying the policy. Hence, it allows the policyholder to use that money to get better coverage on the policy considering the fact that you want to make your family financially stable in your absence as well as keeping in mind the growing rate of inflation.

4. Accidental Rider Benefit – The plan offers the facility of accidental rider benefit, which can be incorporated by paying an extra amount. This rider allows the family of the insured the facility to receive a lump sum amount as accidental benefit in case of accidental death of the policyholder.

5. Tax Benefits – The tech term plan allows policyholders to avail standard tax exemptions on the benefits of the plan.

6. Free-look Period – Like all other insurance policies, the tech term plan allows the policyholder a 30 days free look period to leave the plan if they are not satisfied with the plan performance.

Advantages and Disadvantages of LIC Tech Term Plan

Like all other insurance products, the LIC tech term plan also has its share of pros and cons.

Pros of LIC Tech Term Plan

• The number of registered complaints lodged are few so far
• The LIC tech term plan review has been good
• There is option of automatic increase in claim amount with time
• Rolling limited payment facility is available for rapid payments
• By using the LIC tech term plan premium calculator, you can calculate the premiums to be paid and benefits to be received.

Cons of LIC Tech Term Plan

• Not just pros, the tech term plan has certain cons or limitations as well as mentioned below:
• The price is comparatively high as compared to other LIC products
• he plan doesn’t offer any monthly premium payment option
• Attention should also be paid to claim settlement procedure
• Critical illness rider is not available
• Responding system on the online platform is slow