The new LIC 'Tech-Term' insurance plan: things you should know

NEW DELHI: Life Insurance Corporation of India (LIC) has announced a new term insurance plan, known as the LIC 'Tech-Term' plan. It is a 'policy of guarantee of online terms' not linked, non-profit, pure protection that provides financial protection to the family of the insured in case of their unfortunate disappearance.

The new term technical plan will be available only through the online application process and will not involve any intermediary.

Resident Indians can purchase the technical term insurance plan and it is not available to foreign citizens of India (OCI) or persons of Indian origin (PIO). However, non-resident Indians (NRIs) can apply for the plan during their stay in India, subject to the condition that the applicant resides in any of the allowed countries.

The minimum term of the policy is 10 years, while the maximum term is 40 years and the maximum age for coverage of the policy is 80 years. The person who opts for the policy must have earned income, sufficient to cover all existing and proposed insurance coverage of all insurers.

Sum insured or minimum life coverage for LIC technical term It is Rs 50 lakh, with no upper limit. The policyholder has the option to pay an annual, semi-annual or single premium. However, premium rates will differ for the category of smokers and non-smokers. The policyholder can also add an additional accidental benefits clause by paying an additional premium.

The LIC technical term plan can be customised as per the needs of the policyholder. Death benefit can be availed as an installment of 5 years, 10 years or 15 years. Installments can be paid in advance at yearly, half-yearly, quarterly or monthly intervals, as opted by the policyholder. Alternatively, death benefit can also be paid in lump sum to the nominee.