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LIC Tech Term – Premium calculator, details and review

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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 entry18 years (Last Birthday)65 years (Last Birthday)
Maturity Age28 years (Last Birthday)80 years (Last Birthday)
Policy Term10 Years40 Years
Premium Payment Options
Regular premiumSame as policy term
Limited PremiumPolicy Term – 5 (For policy term 10 to 40 years)
Policy Term – 10 (For policy term 15 to 40 years)
Single PremiumSingle payment
Minimum Premium
Regular premium
Rs 3000
Single PremiumRs 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 single premium.
  • 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.

LIC Tech-Term plan 854 - Level Sum assured vs increasing Sum Assured

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

LIC Tech Term plan 854 Infogram

You can download this info-gram and share it freely by clicking here. Click here to download the brochure of LIC’s Tech-Term Plan.

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)
Age (LBD)MaleFemale
20Rs. 6,334Rs. 5,919
30Rs. 7,061Rs. 6,438
40Rs. 8,515Rs. 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 sum assured is opted.

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 Crore2 Crore and above
Up to 30 YearsNil12 %20 %
31 to 50 YearsNil10 %15 %
51 Years and aboveNil5 %7 %
Option 2 : Increasing Sum Assured
Up to 30 YearsNil10 %18 %
31 to 50 YearsNil8 %13 %
51 Years and aboveNil4 %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.

  1. Log on to LIC’s Web site.
  2. Open ‘Tech-Term Banner‘ or ‘Buy Policy Online‘ link
  3. Click buy online on the next page
  4. Select Tech-Term plan from online plans
  5. Provide contact details (as shown in the image below) and click calculate premium button.
  6. Enter the OTP obtained as SMS/email in the next screen and proceed.
LIC Tech Term - pan 854 - how to purchase /buy online

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 medical examination can also decided. Designated person from LIC will contact you and guide you in this process.

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Anish L J

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.