LIC Tech Term Plan: A Technologically Advanced Solution for Comprehensive Life Insurance

LIC Tech Term Plan: A Technologically Advanced Solution for Comprehensive Life Insurance

Life Insurance Corporation of India (LIC), being one of the largest and most trusted insurance providers in the country, continuously strives to offer innovative and customer-centric insurance solutions. In line with this commitment, LIC introduced the "LIC Tech Term Plan," a technologically advanced term insurance policy designed to provide comprehensive life coverage to policyholders. This article explores the key features of the LIC Tech Term Plan, its benefits, and a mathematical calculation example to illustrate its significance.

Key Features of LIC Tech Term Plan:

  1. Pure Term Insurance: The LIC Tech Term Plan is a pure term insurance policy, also known as a "protection-only" plan. It provides a high sum assured at an affordable premium cost, ensuring that the policyholder's family is financially protected in the event of the policyholder's untimely demise.
  2. Flexible Policy Term: Policyholders have the flexibility to choose the policy term based on their specific needs and requirements. The policy term can range from a minimum of 10 years to a maximum of 40 years.
  3. Choice of Premium Payment Modes: The plan offers multiple premium payment modes, including regular premium, limited premium, and single premium. This flexibility allows policyholders to align their premium payments with their financial capabilities and preferences.
  4. Enhanced Coverage with Riders: The LIC Tech Term Plan provides the option to enhance the insurance coverage by adding riders or additional benefits to the base plan. Riders such as accidental death benefit, critical illness cover, and disability benefit can be included to offer a more comprehensive protection package.
  5. Online Application and Underwriting: As the name suggests, the LIC Tech Term Plan is driven by technology, offering an entirely online application and underwriting process. Policyholders can apply for the plan, submit documents, and complete all necessary formalities through LIC's online portal, making the entire experience seamless and convenient.
  6. Grace Period and Revival Option: The policy includes a grace period that allows a brief extension for premium payment beyond the due date. Additionally, if the policy lapses due to non-payment of premiums, policyholders have the option to revive the policy within a specified period by paying the outstanding premiums.

Mathematical Calculation - Illustrative Example:

To understand the benefits of the LIC Tech Term Plan, let's consider an example. Mr. Verma, aged 35 years, decides to opt for the LIC Tech Term Plan with a policy term of 25 years. He chooses a Sum Assured of Rs. 1,00,00,000 and opts for the regular premium payment mode.

Premium Calculation: The premium for the LIC Tech Term Plan is determined based on various factors, including the policyholder's age, policy term, Sum Assured, and premium payment mode. For this example, let's assume Mr. Verma's annual premium is Rs. 10,000.

Total Premium Paid: The total premium paid over the policy term of 25 years would be: Total Premium Paid = Annual Premium * Policy Term Total Premium Paid = Rs. 10,000 * 25 = Rs. 2,50,000

Death Benefit: In the unfortunate event of Mr. Verma's demise during the policy term, the Death Benefit payable to his nominee will be the Sum Assured chosen at the inception of the policy, i.e., Rs. 1,00,00,000.

No Maturity Benefit: The LIC Tech Term Plan is a pure protection plan, and hence, it does not provide any maturity benefit if the policyholder survives the policy term. This ensures that the premiums remain affordable, focusing solely on providing a significant death benefit to the nominee.

Overall Benefit: In this example, if Mr. Verma unfortunately passes away during the policy term, his nominee will receive the Death Benefit of Rs. 1,00,00,000. However, if he survives the policy term, there will be no maturity benefit payable.

Importance of LIC Tech Term Plan:

The LIC Tech Term Plan is a crucial component of a robust financial plan, primarily due to its simplicity, affordability, and extensive coverage. As a pure term insurance policy, it offers the maximum protection to the policyholder's family at an economical premium cost. The plan's online application and underwriting process save time and effort for policyholders, making it a convenient option for the tech-savvy generation.

Moreover, the flexibility to choose the policy term and premium payment mode allows policyholders to tailor the plan to their specific life stage and financial responsibilities. Additionally, the option to enhance coverage with riders ensures that policyholders can address specific risk areas and create a more personalized insurance solution.


The LIC Tech Term Plan is an ideal choice for individuals seeking a comprehensive and technologically advanced life insurance solution. With its pure term insurance structure, online application process, and flexibility in policy terms, it addresses the evolving needs of policyholders in today's fast-paced digital world. By providing substantial financial protection to the policyholder's family, the LIC Tech Term Plan offers peace of mind, knowing that loved ones are financially secure in case of unforeseen events. As with any insurance policy, it is essential to carefully assess one's requirements, understand the terms and conditions, and consult with licensed insurance professionals to make an informed decision that aligns with long-term financial goals.

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