LIC TECH-TERM logo

LIC TECH-TERM

Introduction to LIC TECH-TERM

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 your loved ones meet their monetary needs, while not compromising on their current lifestyle - as well as pay off any pending loans or liabilities you might leave back. However, like any pure term plan, this plan doesn’t offer any maturity benefit - meaning, you don’t get anything back in case you survive the term of the policy.

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

This product allows you to customize your plan with features such as increasing covers and a rolling Limited Pay option with which you can choose how quickly you pay off your premiums. However, this plan doesn’t allow you to choose some important customizations such as critical illness riders. Further, slightly expensive compared to other products in the market and doesn’t allow you to pay the premiums in monthly installments. Coming to the customer's experience,  this insurer was found to offer a good experience during the policy purchase phase. On the flip side, however, the insurer has a poor track record with respect to their claims service experience.

Pros & Cons: LIC TECH-TERM

  • arrow Received fewer complaints on claim settlement compared to other insurers
  • arrow Offers the option to automatically increase your claim amount, with time
  • arrow Simpler, separate claim form for policies older than 3 years
  • arrow Rolling Limited Pay available, to speed up payments
  • arrow Slightly costlier than other products in the market
  • arrow No option to pay the premium in monthly instalments
  • arrow Received higher number of complaints on claim settlement compared to other insurers
  • arrow Critical illness rider is not available
  • 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)
4,03,286.5 Crores
Number of Policies
21,007,234
Number of Claims
29,012,422

Detailed Product Specs & Rating: LIC TECH-TERM

Claims Experience 4.3/5 star green
Customer Service 4/5 star green
Product Benefits 2.8/5 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

Compare LIC TECH-TERM with top term life plans

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Beshak Rating
4.4
Max Life Smart Secure Plus logo
Max Life Smart Secure Plus
Beshak Rating
4.4
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What’s the Review of LIC Tech Term by Life Insurance Company?
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LIC Tech Term is a term insurance policy proposed by Life Insurance Company (LIC). 

Finding the perfect term insurance based on your family’s needs is very important. The LIC Tech Term allows you to customize your policy with options such as claim payout, increasing cover and rolling limited pay. However, this product is slightly expensive compared to other plans in the market and does not give you an option to buy the critical illness rider along with it. Further, the insurer does not have a good track record with the purchase and claims service experience. 

Life Insurance Company holds a tremendous track record in both purchase and claims settlement. This indicates your family is less likely to face issues related to the claim settlement process. On the flipside however, the LIC Tech Term plan does not allow you to pay premiums based on monthly installments. It is comparatively more expensive than other products in the market. And, under this plan, you cannot choose some of the important customizations such as increasing cover and critical illness rider.

Below we have listed some of the key benefits and features which come with the LIC Tech Term.  

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

  • 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 Sec. 80C of the Income Tax Act with this term insurance policy. 
  • Entry age for the policy: This plan allows you to apply for the policy, when your age is at least 18 years and until you’re 65 years old. 
  • 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. 
  • Cover Duration: The 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. 
  • Limited Pay Option: This product also allows you to customize how frequently you want to pay your premiums. If you want to finish paying off the premiums quickly, you can choose the limited pay feature. The LIC Term Tech plan offers the rolling limited pay option.  
  • 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, where your family/ nominee will receive the claim amount in one, large installment.
    • Lump-Sum with monthly income, 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 model - With this, 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. 

Which Riders are available with the LIC Tech Term?

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 critical illness rider and waiver of premium rider. 

Why should you choose Life Insurance Company as your insurer? 

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

  • 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: Compared to other insurance companies, LIC has a relatively short claim form indicating that your family will have an easy and seamless claims process. 
  • Claim Settlement Ratio: The claim settlement ratio of LIC is 96.69% and their claim amount settlement ratio is 93.45%.

Disadvantages of buying this policy from Life Insurance Company

  • Claims Complaints: According to our research, we found that LIC has a higher number of complaints compared to other insurers. This could result in an uneven claim settlement process and your family could experience some hassle during the process. 
  • Personal Relationship Manager: A lot of insurance companies provide a personal relationship manager to help your nominee at the time of claim. LIC, however, does not provide any personal relationship manager. 
  • 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 of 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.
  • Toll-Free Services: 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 over Twitter: As per our research, we found that the response rate of the insurer over Twitter is slow compared to other insurers. Hence, toll-free would be an ideal choice for your nominee to connect with the insurer in case they face any difficulties at the time of claim. 

Ensure to discuss all these important details with your nominee or family while finalizing the term insurance purchase. 

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 the Corporate office. The chairman of the company is Mr. M R Kumar.

An Overall 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 3.9/5

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