How is the new LIC Tech Term?
How is the new LIC tech term policy for a 27 year old in comparison to other term insurance plans. Will the convenience be the same since there is no agent in between?
- It's cheaper than the earlier Term Life Insurance from LIC. Pricing is now comparable to brands with similar recall
- It's still 23% expensive than the median average premium.
- Very few customization options. Doesn't have Monthly payment mode. No limited pay options.
This plan is plain vanilla term insurance, with no bells and whistles. It just comes with a few customizations like the Increasing cover, an Accidental Death Rider, and a Claim Payout option. Hence there is nothing more to talk about the product than the premium. Where we have good news as well as bad news. While the premium is 23% higher than the general median premium for a 30-year-old, the pricing is now competitive with big brands like ICICI Pru, HDFC Life, SBI Life.
If you have a very strong preference for LIC, are okay with the plain vanilla benefits, then you can go for this plan.
When it comes to term plan it always boils down to plain vanilla form that is pure risk cover (if you die your family gets sum assured).
I'd like to understand if there are other things that I should keep in mind before buying a term insurance because I always thought term insurance should be a simple plain vanilla policy
You are right - you need not buy a term life insurance with bells and whistles. We are talking about customization with respect to premium payments, claim payout options etc. For instance, AFAIK LIC Tech term does not have a monthly premium payment option, which is opted by more than 75% of the people buying online term life insurance. It does not have many limited pay options which again is opted by a large number of customers. Their increasing cover option (which we recommend) could have been better - closer to what other leading companies/plans are offering.
I have purchase TECH TERM plan of LIC. I paid the first premium amount in July and its been now end of September 2021, I still have not received my TECH TERM policy.
Want to buy TECH TERM, try once to contact LIC TECH TERM support contacts (Note: for tech term they have different support numbers). I am reaching those 5-6 numbers since last 1 and half month and those are busy all the time.
God only know now when will they contact me and give me policy or at least respond to me.
I tried to mail them and I do it twice a day too. No response at all.
Note: My medical is done and the third party (Alankit) has collected samples and all. No response from Alakit too on my policy.
So, I would suggest DO NOT GO AHEAD WITH TECH TERM.