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LIC New Tech Term Plan (No. 954) – Should you Purchase this Online Term Plan?

Dev Ashish

LIC has launched (or rather relaunched) its online term plan in 2022 – The name of the new policy is LIC New Tech Term Plan (No. 954). It’s a simple term policy. Technically, it is a Non-Linked, Non-participating, Individual, Pure Risk Premium Life Insurance Plan. This plan is only available online via LIC website.

Note – This new policy, namely LIC Plan 954 (New Tech Term) replaces the older LIC Tech Term Plan (No. 854). So this post will help you understand the differences in LIC 854 vs LIC 954 plans

Term life insurance is the truest and the most basic form of life insurance that I recommend for everyone. Do read the detailed Term Insurance FAQs that I wrote to help people understand why term plans are the best.

Now let’s have a look at the key features of the LIC New Tech Term Plan (2022-2023).

Features of LIC New Tech Term Plan (954)

Before you decide to purchase life insurance, you should need correct answers to the first question – How to calculate the right life insurance amount? and that is because the right insurance coverage varies from one person to other. Rs 1 crore cover may not be large enough for everyone. Do read Is Rs 50 lac to Rs 1 Crore term insurance enough? to know more.

Also, you don’t need to purchase a policy that covers you till the age of 100 (which many insurance companies are pushing for these days). Read what the right tenure for life insurance is in this detailed article titled –How to find the right tenure for the term life insurance policy?

Let’s discuss the sum assured options in a bit more detail.

LIC New Tech Term Level & Increasing Sum Assured Options

1 – Level Sum Assured – In this option, the policy sum assured remains the same throughout the policy term. So if you purchase a Rs 1 Crore cover for 30 years, then the sum assured will remain at Rs 1 crore for the entire period of 30 years.

2 – Increasing Sum Assured – In this option, the chosen Sum Assured will remain constant till the completion of the 5th year. Thereafter, it will increase by 10% each year from the 6th to the 15th policy year when it will become twice the original basic sum assured. This new sum assured will then remain constant (and not increase any further) till the end of the policy term. So here is how your policy sum assured will increase (for let’s say Rs 1 Crore cover for a 25-year policy):

Premiums of LIC New Tech Term Plan

The policy premiums are decided based on factors like age at the time of entry/purchase, gender, policy term, policy premium payment term, smoking status, and Sum Assured Option (constant or increasing).

Here are some sample premium details provided by LIC in its sales brochure via its website – The sample illustrative premiums (excluding GST) for both options (Level Sum Assured and Increasing Sum Assured) for a Basic Sum Assured of Rs. 1 Crore for Non-Smoker, Male, Standard lives under different Premium Payment options are as under –

From what I could make out of it, the premium is the only difference between the LIC NEW Tech Term Plan (No. 954) and the earlier LIC Old Tech Term Plan (No. 854). The new plan premiums are higher than the older ones.

Since this policy is only available online and you cannot buy it through your family or LIC agent, here is how to go about it (as detailed by LIC itself) in its brochure available on its website here.

How to purchase LIC New Tech Term Plan online (2023)?

Step-by-step process to buy LIC’s New Tech-Term Online:

  1. Log on to the LIC website (www.licindia.in) for buying this online product. Click on ‘Buy Policies Online’. Select plan LIC’s New Tech-Term.
  2. Click on ‘Buy Online’. Choose your desired Sum Assured, Sum Assured option (Level/Increasing), Policy Term, Premium Payment option (Regular/Limited/Single) and Premium Payment Mode (Yearly/Half-yearly) for Regular and Limited Premium Payment option, Date of Birth, Gender and Smoking status.
  3. After filling in the details, a premium calculator will calculate the premium or the chosen parameters.
  4. Enter other details such as Name, Address, Occupation, Qualification etc. displayed on the screen and complete the proposal form online.
  5. Pay premium online and fulfil the underwriting requirements, if any.

Should You Buy LIC New Tech Term Plan (954)?

That is the key question obviously after all the discussion. While there is no doubt about LIC being synonymous with trust in India, the fact is that the new policy is similar to the old one but is slightly costlier.

If you have a strong preference for LIC when it comes to purchasing insurance, then you can go for this new term plan by LIC. Else, if you search for similar term plans by other private insurance companies, then you will find cheaper options as well.

F you have doubts about whether private insurers will settle claims without hassle or not then please note that as per Section 45 of the Insurance Act 1938: (1) No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy. So you can rest assured that unless something is really amiss, the claims will be settled by all life insurance companies and not just LIC.

So that was all about LIC’s new term insurance policy that they have in 2022-23 named LIC New Tech Term Plan.

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