LIC Tech Term – (Plan 854) – Premium calculator, all details and review. LIC’s Tech-Term plan is a term assurance (Pure Risk) plan to be sold in ‘online’ mode only. As no intermediaries are involved the premium is lower compared to its offline counterpart Jeevan Amar (Plan 855).
Salient features of LIC’s Tech-Term – Plan 854
- Lower premium rates for non-smokers (Urinary Cotinine test is compulsory for non-smoker category).
- Premium payment is allowed in Single, Limited and Regular premium modes.
- Level Sum Assured or increasing sum assured can be chosen as per the need.
- Option to receive the death benefit in a lump sum or in 5, 10 or 15-year installments.
- Minimum sum assured of 25 lakhs (in multiples of 1 lakh up to 40 lakhs and 10 lakhs thereafter).
- No upper limit for the sum assured.
- Special premium rates for women.
- Attractive high sum assured rebates.
Read more: How much insurance coverage do you need (HLV)?
Tech-Term – Eligibility conditions and restrictions
|LIC’s Tech-Term (854) – Eligibility Conditions and Restrictions|
|Age at entry||18 years (Last Birthday)||65 years (Last Birthday)|
|Maturity Age||28 years (Last Birthday)||80 years (Last Birthday)|
|Policy Term||10 Years||40 Years|
|Premium Payment Options|
|Regular premium||Same as policy term|
|Limited Premium||Policy Term – 5 (For policy term 10 to 40 years)|
|Policy Term – 10 (For policy term 15 to 40 years)|
|Single Premium||Single payment|
|Regular premium||Rs 3000|
|Single Premium||Rs 30,000|
LIC’s Tech-Term (Plan 854) – Death Benefit
The death benefit is the ‘Sum Assured on Death’ which becomes payable in case of death claims, provided, the death occurs before the maturity date and the policy is in force at the time of death.
For Regular premium and limited premium policies
Sum Assured on death shall be the highest of
- 7 times of annualized premium; or
- 105% of all premiums paid as on date of death; or
- Absolute amount assured to be paid on death.
For Single premium policy,
Sum assured on death shall be the higher of
- 125% of the
- Absolute amount assured to be paid on death.
(All rider premiums and extra premiums will be excluded for arriving at the premium paid)
Level Sum Assured vs Increasing Sum Assured
Two options are available under this plan to chose ‘Sum Assured at Death.’
Option 1: Level Sum Assured
Absolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured which remains the same throughout the policy term.
Option 2: Increasing sum assured
In case of Increasing Sum Assured, the absolute amount assured to be paid shall remain equal to Basic Sum Assured, till the completion of the fifth policy year. Thereafter it increases by ‘10% of basic sum assured’ each year from the sixth policy year till the fifteenth policy year. From sixteenth policy year on-wards the ‘absolute amount assured to be paid on death’ shall remain fixed at twice the basic sum assured.
Lets us consider an example of a one crore sum assured policy with a 20-year term. The risk coverage will be as shown below.
Accident Benefit Rider
Accident Benefit Rider shall be available under Regular and Limited Premium Payment policies only. You can opt this rider at the time of inception or any time later within the premium paying period.
If this benefit is opted for and if the life assured is involved in an accident, leading to death and such incident occurs within 180 days from the date of the accident, then an additional amount equal to the Accident Benefit Sum Assured shall become payable. Maximum accident benefit sum assured shall be One Crore inclusive of all existing policies (excluding Jeevan Shiromani plan where additional one crore benefit shall be available).
Option to take Death Benefit in Instalments.
The death benefit can be received in installments over the chosen period of 5 or 10 or 15 years, instead of the lump-sum amount if required. This option can be exercised by the life assured during his lifetime also. The amount opted by the life assured can be either in absolute value or as a percentage of the total claim proceeds payable.
The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the corporation from time to time.
Premium Calculator – LIC’s Tech-Term (Plan 855)
Minimum installment premium for regular/increasing sum assured shall be Rs. 3000. If the installment premium is below 3000 make modifications to bring it above 3000 either by increasing sum assured or term.
Tech-Term – Infogram Download
Sample premium – LIC’s Tech-Term Plan 855
|LIC’s Tech-Term- Sample Premium|
|Policy Term / Premium Paying Term = 20/20 Years|
(Regular Premium – Yearly Mode – Non-Smoker)
(Sum Assured 1,00,00,000; Option 1 – Level Sum Assured)
|20||Rs. 6,334||Rs. 5,919|
|30||Rs. 7,061||Rs. 6,438|
|40||Rs. 8,515||Rs. 7,580|
|* Illustration is exclusive of GST|
Rebates on high Sum Assured
High sum assured rebates available for Tech-Term plan makes it even more attractive as the premium per Sum Assured gets reduced when higher
|Option 1 : Level Sum Assured|
|Age Band (LBD)||High Sum Assured rebate as a % of Tabular Annual/Single premium|
|Less than Rs. 1 Crore Lakh||1 Crore to 2 Crore||2 Crore and above|
|Up to 30 Years||Nil||12 %||20 %|
|31 to 50 Years||Nil||10 %||15 %|
|51 Years and above||Nil||5 %||7 %|
|Option 2 : Increasing Sum Assured|
|Up to 30 Years||Nil||10 %||18 %|
|31 to 50 Years||Nil||8 %||13 %|
|51 Years and above||Nil||4 %||6 %|
LIC’s Tech Term Plan (854) – How to purchase?
If you have experience in purchasing online products and are good in using computers you can purchase this online plan from LIC web site without much difficulty.
- Log on to LIC’s Web site.
- Open ‘Tech-Term Banner‘ or ‘Buy Policy Online‘ link
- Click buy online on the next page
- Select Tech-Term plan from online plans
- Provide contact details (as shown in the image below) and click calculate premium button.
- Enter the OTP obtained as SMS/email in the next screen and proceed.
You will have to provide your family history details and health information in the next screens and pay the premium. You will have to undergo medical examination and the center for
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.