Is LIC's new tech term plan better than other term plans of private insurers?

Mohammed
Jul 11, 2019
LIC is going to launch new tech term plan. Is it better than other term plans of private insurers?
2 Answers
Jul 14, 2019

Mohammed - the simple answer is, Yes, this 'tech term plan' does look attractive and would be a serious challengers to the online term plans from private insurers. However, we need to wait till the plan is launched and then look at all the information.  basunivesh.com has a good article on this plan. Please read it up for more analysis.

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Jul 15, 2019

Here is the article by Basavraj Tongatti that SR Srinivasan is referring to - LIC’s Tech-Term (No.854) – Online Term Life Insurance Review.

Here are the concluding thoughts by the author in the above article:

Considering the market competition in online term life insurance plans, LIC launched this plan with the utmost care and including the many features which are already available in the market:

  • It is an online term life insurance. Hence, the premium will be cheap. Also, it looks upfront that LIC’s Term-Term (No.854) premium is much cheaper than it’s earlier online term life insurance (e-Term). Hence, it is a big benefit for those who are desperate to buy the term life insurance from trusted LIC.
  • Coverage of the policy is up to 80 years of age. Even though Life Insurance is not required up to 80 years of your age, but LIC added this feature to compete with private players. Hence, this is an attractive move.
  • This plan comes with an accidental rider. It’s an earlier version of term life insurance was without any rider. Hence, this time LIC added accidental rider benefit. This is one more positive.
  • Special discounts for a female is unique and attractive to all-female who are looking for online term life insurance from LIC.
  • Premium paying option is too flexible with options like Single, Limited Period and Regular Period. This gives us flexibility.
  • Increasing Sum Assured option is first time added by LIC. Where for the first 5 years it will not increase. However, after 5th year to 15th year it will increase at the rate of 10%. From 16th years onward, it will remain the same throughout the policy period. This is the big relief for those who have to review their life insurance coverage and avoid having multiple life insurance products.

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