Product Summary
LIC’s Tech-Term plan is a Non-Linked, Non-Participating, Pure Risk Premium plan which shall be sold online only and hence no intermediaries will be involved. Under this plan there is flexibility to choose from two death benefit options i.e. Level Sum Assured and Increasing Sum Assured.
Features
- Under this plan, there are two categories of premium rates viz. (1) Non-Smoker rates and (2) Smoker rates.
- In order to choose Non-Smoker category (for which the premium rates are lower than Smoker category), Life to be assured will have to undergo an additional medical test- Urinary Cotinine test.
- Based on the findings of the Urinary Cotinine test, Non-Smoker/Smoker premium rates shall be applicable. In case Life to be assured does not undergo Urinary Cotinine test, Smoker rates shall be applicable.
- Absolute amount assured to be paid on death shall depend on Death Benefit Option chosen at the time of taking this policy and is as under:
- Option I: Level Sum Assured: “Absolute amount assured to be paid on death” shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.
- Option II: Increasing Sum Assured: “Absolute amount assured to be paid on death” shall remain equal to Basic Sum Assured till completion of fifth policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the sixth policy year till fifteenth policy year till it becomes twice the Basic Sum Assured. From sixteenth policy year and onwards, the “Absolute amount assured to be paid on death” remains constant i.e. twice the Basic Sum Assured, till the policy term ends.
Premium Payment Mode
Single Premium , Regular or Limited Premium – Yearly, Half yearly.
Mode and High S.A. Rebates:
| Mode Rebate/Loading | Mode Loading under this plan |
| Yearly mode | NIL |
| Half-yearly mode | 2% additional of Tabular annual Premium |
High Sum Assured Rebate :
Under Option 1 : Level Sum Assured
| Age Band (LBD) | High SA rebate as % of Annual/Single Premium | ||
| Less than Rs 1 Crore | Rs. 1 Crore to less than Rs. 2 Crore | Rs. 2 Crore and above | |
| Upto 30 years | Nil | 12% | 20% |
| 31 to 50 years | Nil | 10% | 15% |
| 51 years and above | Nil | 5% | 7% |
Under Option 2 : Increasing Sum Assured
| Age Band (LBD) | High SA rebate as % of Annual/Single Premium | ||
| Less than Rs 1 Crore | Rs. 1 Crore to less than Rs. 2 Crore | Rs. 2 Crore and above | |
| Upto 30 years | Nil | 10% | 18% |
| 31 to 50 years | Nil | 8% | 13% |
| 51 years and above | Nil | 4% | 6% |
| Policy Term | 10 to 40 Years |
| Premium Paying Term | |
| Regular | 10 to 40 Years |
| Limited Premium | [Policy Term minus 5] for Policy Term 10 to 40 Years [Policy Term minus 10] for Policy Term 15 to 40 Years |
| Single Premium | NA |
| Minimum Entry Age | 18 Years (Last birthday) |
| Maximum Entry Age | 65 Years (Last birthday) |
| Maximum Age at Maturity | 80 Years (Last birthday) |
| Minimum Basic Sum Assured | 50,00,000 |
| Maximum Basic Sum Assured | No Limit |
Sum Assured in multiples of :
| Sum Assured range | Sum Assured Multiple |
| Rs. 50,00,000 to Rs. 75,00,000 | Rs. 5,00,000/- |
| Above Rs. 75,00,000 | Rs. 25,00,000/- |
Minimum Premium : The minimum instalment premium will be Rs. 3,000/- for Regular/ Limited premium policies and Rs. 30,000/- for Single premium policies.
Death Benefit
Death benefit, payable in case of admissible death claim, before the stipulated Date of Maturity, provided the policy is inforce, shall be “Sum Assured on Death”.
For Regular premium and Limited premium payment policy, “Sum Assured on Death” is defined as the highest of:
- 7 times of annualized premium; or
- 105% of all the premiums paid as on the date of death; or
- Absolute amount assured to be paid on death.
For Single premium policy, “Sum Assured on Death” is defined as the higher of:
- 125% of Single Premium.
- Absolute amount assured to be paid on death.
Maturity Benefit
On survival of the life assured to the end of the policy term, no maturity benefit is payable.
Optional rider benefits
LIC’s Accident Benefit Rider UIN (512B203V03):
LIC’s Accident Benefit Rider shall be available under Regular and Limited Premium Payment policies as an optional rider by payment of additional premium. This rider shall not be available under Single Premium policies.
Policy Loan
No loan facility
Taxes
The amount of applicable taxes payable as per the prevailing rates shall be payable by the policyholder on premiums payable under the policy, which shall be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for calculation of benefits payable under the policy.