LIC TECH-TERM PLAN logo

LIC TECH-TERM PLAN

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3.6/ 5

Introduction to LIC TECH-TERM PLAN

LIC Tech Term is a term insurance policy offered by Life Insurance Corporation of India (LIC), the country’s oldest Life insurance company founded in ​​1956. Term insurance is one of the most cost-effective ways to ensure your family will have a secure financial future. With this plan, your family will be paid a sum of money as a death benefit, in case your death happens during the term of the policy. This money can help them meet their monetary needs, while not compromising on their current lifestyle - as well as pay off any pending loans or liabilities you might leave behind.

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INDIA’S FIRST UNBIASED, CONFLICT-FREE INSURANCE RATING
Verdict: LIC TECH-TERM PLAN

This product is slightly cheap compared to other products in the market. A key feature of this plan is that it offers Rolling Limited Pay, which allows you to select the exact number of years for which you wish to pay premiums (as specified by the insurer). It also provides features such as increasing cover and allows you to customize how your family will receive the claim amount. However, it doesn’t allow you to choose some important benefits such as critical illness riders, early exit option and it doesn’t allow you to pay the premiums in monthly installments. Further, as per our research, the insurer received fewer policy purchase and claim settlement complaints but has a poor track record of settling claims faster.

Pros & Cons: LIC TECH-TERM PLAN

  • arrow Slightly cheaper than other products in the market
  • arrow Several options to customize claim payouts
  • arrow Offers the option to automatically increase your claim amount, with time
  • arrow Rolling Limited Pay available, to speed up payments
  • arrow Received fewer complaints on claim settlement compared to other insurers
  • arrow Received fewer complaints during policy purchase compared to other insurers
  • arrow Critical illness cover is not available
  • arrow No option to pay the premium in monthly instalments
  • arrow Doesn't offer early exit option, you can't get back the premiums if you opt out of the plan while it is active
  • arrow Poor track record of settling claims faster than other insurers
  • arrow Our study observed their responses on Twitter to be relatively slower than other insurers

About Life Insurance Corporation of India

Life Insurance Corporation of India logo

LIC also known as Life Insurance Corporation of India is an Indian Life Insurance Company. It offers Term Life Insurance Plans, Traditional Savings Plans and Unit Linked Insurance Plans. Founded in the Year 1956, it is owned by the Government of India. The company is headquartered in Mumbai and functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satallite offices and the Corporate office. The chairman of the company is Mr. M R Kumar.

Founded in
1956
JV Partners
Ministry of Finance, Government of India.
Turnover (GWP)
4,28,024.97 Crores
Number of Policies
2,17,54,965
Number of Claims
3,37,17,207

Detailed Product Specs & Rating: LIC TECH-TERM PLAN

Claims Experience 4/5 star green
Customer Service 3.6/5 star green
Product Benefits 2.9/5 star green
% of claims settled in less than 30 days
Reflects on the speed of settling valid claims
94.88%
% of Complaints received on overall claims
% customers unhappy with claims experience
0.14%
How complex is the Claim Form?
The longer, the more hassles during claims
Short
Claim Settlement Ratio (No. of claims)
What % of the claims received were paid?
96.69%
Claim Settlement Ratio (Value of claims)
What % of the claim amount received was paid?
93.45%
Solvency Ratio
Reflects an insurance company’s ability to pay claims. Insurers are required to maintain a minimum 150% Solvency Ratio as per IRDAI regulation
176%
Personal relationship manager for claims
Not Available
Can you track claims online?
Not Available
Dedicated toll-free for claims service
Not Available
Separate Claim Form for above 3 Years Claim
Available
Home pickup of Claims
Not Available

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What’s the Review of LIC Tech Term by Life Insurance Company?

LIC Tech Term is a term insurance policy offered by Life Insurance Company (LIC). 

Finding the perfect term insurance based on your family’s needs is very important. The LIC Tech Term plan is one such plan that allows you to customize your policy with options such as claim payout, increasing cover, and rolling limited pay. This product is also slightly cheap compared to other products in the market. However, it does not give you the option to pay the premiums in monthly installments or buy the critical illness rider along with it. Further, as per our research, the insurer received fewer policy purchase and claim settlement complaints but has a poor track record of settling claims faster.

Here’s the LIC Tech Term plan review.  

What are the benefits and features of the LIC Tech Term Plan? 

  • Life cover benefit: This term insurance plan pays an assured sum of money to your family if your death happens during the term of the policy. There is no maturity benefit in this policy - meaning, you don’t get anything back in case you survive the term of the policy. You can claim tax benefits under Section 80C of the Income Tax Act with this term insurance policy. 
  • Entry age for the policy: The LIC Tech Term plan allows you to apply for the policy, when your age is at least 18 years and until you’re 65 years old. 
  • Cover duration: The LIC Tech Term plan gives you the chance to choose a cover till the age of 80 years, which means you can enjoy the benefits of your term insurance post-retirement as well. 
  • Increasing cover: After you choose a suitable sum assured based on your family’s needs, the LIC Tech Term plan provides you with the increasing cover option to automatically grow your term cover by 10%. It allows you to increase your cover up to two times your base cover. 
  • Limited pay option: A key feature of the product is that it offers the Rolling Limited Pay option, where you can choose the exact number of years for which you wish to pay your premiums (as specified by the insurance company). 
  • Claim payout option: This product provides various claim payout options out of which you can select the best option which would suit your family. The options include- 
    • Lump-sum option, where your family/ nominee will receive the claim amount in one, large installment.
    • Lump-Sum with monthly income option, where your family will get the partial claim as a lump sum, and the other half of the claim will be given to your family in monthly installments.
    • Monthly income option, where your nominee will get the claim amount in monthly installments. This is a good option if you think your nominee won’t be able to manage a huge amount of money at once. 

LIC Tech Term Review: Which riders are available with this plan?

The LIC Tech Term plan only provides you with the  Accidental Death Benefit Rider. If you purchase the accidental death benefit rider along with your term insurance plan, your family will receive an additional sum of money in case your death happens due to an accident. There’s usually an income-related limit on the amount of term insurance cover you can buy. So if you’re not eligible to buy the desirable term insurance cover as per your family’s needs, you can consider buying this rider.  

However, like other products, the LIC Tech Term does not provide you with the benefits of a critical illness rider and a waiver of premium rider. 

Why should you buy a term insurance policy from LIC? 

Here are some reasons why LIC might be a good choice for you -  

  • Claims complaints: According to our research, we found that LIC has received fewer complaints compared to other insurers. 
  • Speed of claim settlement: LIC holds a good track record in settling the claims. They have settled around 94.88% of their claims in less than 30 days. This indicates your family’s claim might be settled quickly. 
  • Length of the claim form: During the time of the claim settlement, your nominee or family will have to fill out a claim form to receive the claim settlement amount. Compared to most insurers, LIC provides a short and simpler claims form - and a separate claims form if the policy has been in force for more than three years. This means your nominee or family is less likely to face the hassle during the claim process, and the claim will likely be settled quicker too.  No other insurer in the market has this offering, and we strongly believe that they should take a leaf out of LIC’s book, and replicate this feature. Note: This facility is in line with Section 45 of the Insurance Act, which states that once a life insurance policy completes 3 years, a claim cannot be rejected by the insurer for any reason whatsoever. In essence, this means that the insurer is forced to pay this out to your family. The shorter form by LIC will cause little hassle at the time of claim settlement. 
  • Claim Settlement Ratio: The claim settlement ratio of LIC is 96.69% and their claim amount settlement ratio is 93.45%.

LIC Tech Term Policy Review: What are the disadvantages of buying term insurance from LIC?

  • Online tracking of claims: The insurer does not provide an option to track claims online. So, your family will have to contact the insurance company via the provided toll-free number for details about the claim. 
  • Home pick-up for claims: LIC does not provide the benefit of picking up the required documents for the claim settlement from your home. Your family or nominee will have to visit LIC’s branch to submit the documents themselves.

How is the customer service provided by LIC?

  • Response on Toll-free Based on our in-house team’s research, we found that LIC’s toll-free service is quicker compared to other insurers. Your family or nominee could contact this service for any issues related to the claim process. 
  • Response on Twitter: As per our research, we found that the response rate of the insurer over Twitter is slow compared to other insurers. 

Make sure you discuss all these important details with your nominee or family while finalizing the term insurance purchase. Hope this review of the LIC tech term plan was helpful for you to make your decision.

About the Insurer - Life Insurance Company

LIC also known as Life Insurance Corporation of India is an Indian Life Insurance Company. It offers Term Life Insurance Plans, Traditional Savings Plans, and Unit Linked Insurance Plans. Founded in 1956, it is owned by the Government of India. The company is headquartered in Mumbai and functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and corporate offices. The chairman of the company is Mr. M R Kumar.

Final review of LIC Tech Term

Considering all the product benefits, customer service, and claims experience and based on the 100+ parameters analyzed by our in-house research team, LIC Tech Term gets a Beshak⭐Rating of 3.6/5.

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