As we have a job and start earning money, we look for different ways to save some of our hard-earned income. It is natural to try to save the money we earn after working so hard the entire month. However, if you want to get a good return, only saving will not make that happen. You must invest the money that you have so that you can gain higher returns. However, what about the people who are the sole-breadwinner and have a family to take care of? Although several money investment plans are available in the market at present; but for the uncertain events of life, you must also put some money into term insurance. Some argue that this investment plan does not come with a good return during the survival period of the insured. Well, this is something we do completely for our family, for a situation when we are not there anymore to support them financially. We may not get the return on this investment when we are alive but our family will surely get a good amount once we pass away within the tenure of the policy. This may not support them emotionally but they will at least not have to come face to face against any sudden financial constraint.
One of the term insurance plans that have been quite popular and opted by the people is the LIC tech term plan. Let us discuss this in length to learn more about this plan.
LIC tech term plan
LIC tech term plan is one of the term insurance policies that offers financial protection to the beneficiaries of the insured in the event of death of the policyholder during the tenure of the plan.
Features of the LIC tech term plan
The key features of the LIC tech term plan are mentioned herein below:
- The minimum age of the policyholder must be 18 years and the age is 65 years
- The tenure of the policy ranges from 10 to 40 years
- There is absolutely no maximum coverage limit that can be chosen; however, the minimum sum assured is INR 50 lacs
- There are two options under one can receive the death benefits, which include the Level sum assured and Increasing sum assured
- The plan does not come with any maturity benefit
- The policyholder will be able to select between limited premium, regular premium, or single premium options, and the payment mode will be annual or half-yearly
- The LIC tech term plan offers a free look period of 30 days, which allows the policyholders to return the policy and get a refund of the premium that they have paid. This is especially for a situation if they are not satisfied with the term and conditions that are applicable to the policy.
Benefits of LIC Tech Term Plan
- Reliable: Life Insurance Corporation of India is the only public sector insurance company in the country, which was formed in the year 1956. Since the majority stake is of the government, you can totally rely on the company. In the year 2019-20, the Claim Settlement Ratio has been 96.69%.
- Better coverage at a lower premium: As you choose the LIC tech term plan online, you do not need to pay the broker commission. This helps a lot to lessen the policy premium.
- Payout benefits options: Under this plan, the death benefit will either be received as increased sum assured or level sum assured. In Level sum assured, the amount remains fixed all through the policy. In Increased sum assured, the sum assured remains the same for the five initial years. From the 6th year to the 15th year, the basic sum assured increases by 10% each year. After the 16th year of the policy, the basic sum assured remains constant again.
- Rider: With the plan, you can get an accidental benefit rider. If you take this rider, you have to pay an additional premium. In the event, if the policyholder meets with an accident and passes away, the beneficiary will get a lump sum along with the death benefit.
- Income tax deduction: This plan offers income tax benefits on the premiums as well as payouts. Under Section 80C of the Income Tax Act, 1961, you can claim deductions for the premiums you pay.
If you want more information about this plan or more plans, you can visit the IIFL website. You can even compare some more similar plans and make your choice between the various comprehensive LIC term insurance plans.