LIC Policy: Non-participating insurance means that the policyholder is not entitled to participate in the profits or bonuses of the insurer
Life Insurance Corporation of India’s LIC New Tech-Term is a non-linked, non-participating, individual, pure risk premium life insurance plan. Non-linked, non-participating insurance is a type of insurance policy that does not provide any investment component or participation in profits or bonuses of the insurer.
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Non-linked insurance means that the policyholder’s premiums are not invested in any fund, and the returns or benefits are not linked to any investment performance. This type of insurance is also known as term insurance or pure insurance.
Non-participating insurance means that the policyholder is not entitled to participate in the profits or bonuses of the insurer. The premiums paid by the policyholder are used solely for providing the insurance coverage and not for any investment purpose.
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This plan is available through an online application process only and no intermediaries are involved. This plan provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term.
LIC New Tech Term Plan: Features
LIC’s New Tech-Term policy is a pure life cover policy. Under this insurance policy, against payment of regular premium, the insurer agrees to pay your beneficiaries the sum assured in event of your premature death during policy term. However, if you survive till the end of the policy term, nothing is payable to you.
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Who should buy term Insurance?
Term insurance policies are best suited for working individuals who have dependents (Children, parents) and are looking for a considerable sum of protection against uncertainties of life (death) at fairly low prices.
Term insurance plans fulfill the basic purpose of any life insurance policy by providing financial security for the applicant and his family.
What is the minimum and maximum policy term?
Minimum Policy Term: 10 years
Maximum Policy Term: 40 years
What kinds of death are covered under New Tech-Term ?
All kinds of death including accidental deaths are covered under this plan except suicide during first year.
If I am travelling abroad for business/vacation will I be covered?
Once the policy is issued you are covered across the globe. Even in case you get an opportunity to work abroad the coverage shall be applicable.
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Policy benefits on death:
In case of unfortunate death of the life assured during the policy term sum assured shall be payable.
In case of death by way of an accident, the accident-benefit rider sum-assured (if/as opted) shall be payable subject to the restrictive clause of overall limit of Rs.100 Lakhs (for all LIC’s policies put together).
Maturity Benefit:
On survival to the end of the policy term, nothing shall be payable and the contract will terminate automatically.
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Other Details
- Minimum Basic Sum Assured- Rs. 50,00,000
- Maximum Sum Assured- No limit (subject to sum-assured multiple restrictions)
- Minimum policy term- 10 years
- Maximum policy term- 40 years
- Premium Paying Term- Regular Premium : Same as policy term
- Limited Premium : [Policy Term minus 5] years for Policy Term 10 to 40 years.
- Limited Premium : [Policy Term minus 10] years for Policy Term 15 to 40 years.
- Single Premium : One Time payment at inception.
- Minimum Premium- The minimum installment premium will be Rs. 3,000/- for Regular/ Limited premium policies and Rs. 30,000/- for Single premium policies.
- Mode of installment premium payment Yearly/Half-Yearly OR as Single premium
Eligible life– The individual life-proposed must have own ‘earned income’.
One cannot propose/register a proposal for anyone other than self.
The life-proposed should be resident Indian residing in India.
Non-Resident Indian (NRI) also can apply while their stay in India subject to the condition that the applicant is residing in any one of the permissible countries
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The list of permissible countries is provided in the section “know your premium” on website at www.licindia.in).
Individuals must note that the above information is not comprehensive. For detailed product information and terms and conditions, you may check https://licindia.in/. It is advisable to consult a financial/insurance expert before opting for any policy.
