LIC New Tech Term 954
LIC New Tech Term 954 gives money to the person chosen by the insured if something bad happens to them. No payout goes to the insured person if they stay alive until the plan ends.
Being a term plan, the premium for extensive coverage on sum assured value is quite low and can only be purchased online.
There are two categories of premium rates: Non-smoker rates and Smoker rates. The application of Non-Smoker rates shall be based on the Urinary Cotinine test. There is a special rate for women.
Let’s look at LIC New Tech Term chart:
Age | Minimum: 18 years |
Policy Term | 10-40 years |
Sum Assured | Min. Sum Assured – Rs. 50,00,000/- Max. Sum Assured – No Limit |
Premium Paying Term |
Single-Premium: NA Regular Premium: Same as Policy Term Limited Premium: (Policy Term – 5) years for Policy Term (10 to 40) years (Policy Term – 10) years for Policy Term (15 to 40) years |
Maturity Age | 80 years. |
Premium Paying Mode | Monthly, Quarterly, Half-Yearly and Yearly |
Riders (Optional) | Accidental Benefit Rider |
Tax Benefits | Premium is exempted (80c) and Death Claim is Tax-Free 10(10D) |
Maturity Amount | Only Death Claim |
LIC New Tech Term plan details and benefits:
Death Benefit
In case of a valid death claim during the policy period, if the policy is still active, the amount paid out is called the “Sum Assured on Death.”
For policies where you pay premiums regularly or for a limited time, the “Sum Assured on Death” is determined based on the highest of three options:
• Seven times the yearly premium you pay.
• 105% of all the premiums you’ve paid up to the date of your death.
• The guaranteed amount that will be given in case of your death.
For policies with a single premium payment, the “Sum Assured on Death” is calculated based on the higher of:
• 125% of the single premium you paid.
• The guaranteed amount that will be provided upon your death.
The guaranteed amount paid out upon death depends on the Death Benefit Option you chose when you took the policy:
Option I – Level Sum Assured:
The guaranteed amount in case of death remains the same as the Basic Sum Assured, and it doesn’t change throughout the policy term.
Option II – Increasing Sum Assured:
The guaranteed amount upon death remains the same as the Basic Sum Assured for the first five years of the policy. After that, it increases by 10% of the Basic Sum Assured each year from the sixth to the fifteenth year until it reaches double the Basic Sum Assured.
Note: Once the Death Benefit Option has been picked, it can’t be changed.
Example:
Calculation for LIC’s New Tech Term Plan (Plan No. 954) with a sum assured of ₹50 lakhs:
Age:30 years
Sum Assured:₹50,00,000 (50 lakhs)
Policy Term:20 years
Premium Payment Term:20 years (Regular Premium)
Death Benefit Option: Level Sum Assured
Premium Calculation:
- Premium Amount:
Based on the provided information, the estimated premium for a 30-year-old male opting for a ₹50 lakh sum assured over a 20-year policy term is approximately ₹5,307 per year (as indicated in the search results). - Total Premium Over Policy Term:
- Total Premium = Annual Premium × Policy Term
Total Premium = ₹5,307 × 20 = ₹1,06,140 - Death Benefit:
In case of the insured’s death during the policy term, the nominee will receive the full sum assured of ₹50 lakhs. - Total Cost Analysis:
If the insured survives the policy term (20 years), there is no maturity benefit since this is a term insurance plan.
Summary
For a 30-year-old male choosing LIC’s New Tech Term Plan with a sum assured of ₹50 lakhs and a policy term of 20 years, he would pay an annual premium of approximately ₹5,307, totaling ₹1,06,140 over the life of the policy. In the event of his death during this period, his family would receive ₹50 lakhs as the death benefit.
This example illustrates how premiums and benefits are structured in this term insurance plan for a lower sum assured of ₹50 lakhs.
Maturity Benefit
If the policyholder is still alive at the end of the policy term, this plan does not pay out any maturity amount.
Rider Option
The insured can get LIC’s Accident Benefit Rider by paying an extra premium during the Premium Paying Term, as long as the remaining Premium Paying Term is at least five years. This is true for both Regular Premium and Limited Premium payment modes.
During accidental death the nominee of the policyholder will get:
Basic Sum Assured + Rider Sum Assured
Tax Benefits
In LIC new tech term 954 plan the premiums are not taxed under section 80C of the Income Tax Act. Also, section 10(10D) of the same act says that money received from maturity or death claim is not taxed.
Rebate
This plan offers huge rebates based on the premium paying modes we chose:
Option I: Level Sum Assured:
AGE | Less than Rs 1 Crore | Rs 1 Crore to less than Rs 2 Crore | Rs 2 Crore and above |
Upto 30 years | – | 13% | 22% |
31 to 50 years | – | 11% | 17% |
51 years and above | – | 6% | 9% |
Option II: Increasing Sum Assured:
AGE | Less than Rs 1 Crore | Rs 1 Crore to less than Rs 2 Crore | Rs 2 Crore and above |
Up to 30 years | – | 11% | 20% |
31 to 50 years | – | 9 % | 15 % |
51 years and above | – | 5 % | 8 % |
Loan Facility
Loan facility is not available with LIC new tech term plan.
Grace Period
There will be a grace period of 30 days for yearly, half-yearly, or quarterly payments and 15 days for monthly payments beginning on the date of the first unpaid premium.
The grace period mentioned above also applies to rider premiums, which must be paid in addition to the base insurance premium.
Revival Period
The policy will expire if premiums are not paid within the grace period. If necessary, lapsed insurance may be revived within five years, starting on the first unpaid premium date and before the date of maturity.
Surrender Value
This insurance plan does not offer any surrender value. However, if you decide to surrender your policy, you may be eligible for a refund in certain situations:
a) No refund will be available upon surrender for regular premium policies.
b) Single premium policies can be surrendered anytime during the policy term, and you will receive a refund based on the terms.
c) If you have a limited premium payment policy, you may be eligible for a refund if you have paid full premiums for a specific duration:
i) For premium paying terms of less than ten years, you must have paid for at least two consecutive years.
ii) For premium paying terms of ten years or more, you must have paid for at least three consecutive years.
You can request a refund if your policy has lapsed during the revival period. However, the policy will terminate if the revival period expires, and you will receive a refund.
Free Look Period
If a policyholder is dissatisfied with the terms and conditions of the insurance policy. In that case, they have 30 days from receipt to return it and get a full refund after deducting examination charges, stamp duty, and any other charges, if any.