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My experience with the LIC Tech Term life insurance policy

This post chronicles my recent experience of applying for a LIC Tech Term life policy and why it will change your belief that LIC plans are more expensive than private insurers.

My experience with the LIC Tech Term life insurance policy


01 May 2022 - Contact Sayan Sircar
9 mins read

This post chronicles my recent experience of applying for a LIC Tech Term life policy and why it will change your belief that LIC plans are more expensive than private insurers.

My experience with LIC Tech Term life insurance policy

Disclaimer: This article is not a recommendation to purchase the LIC Tech Term life insurance policy. It describes my personal experience with the LIC Tech term online plan application process in Feb-Mar 2022 so that the readers of this article get to know. I am not the policyholder for this policy. Readers should consult with their financial advisor if this plan is suitable for them or not.

Table of Contents

What is the LIC Tech Term policy

LIC’s Tech Term (Plan No. 854, UIN - 512N333V01) is a Non-Linked, Without Profit, Pure Protection “Online Term Assurance Policy” which provides financial protection to the insured’s family in case of his/her unfortunate demise. This plan will be available through online application process only and no intermediaries will be involved - LIC Website.

This post assumes that you are aware about the concept of a term insurance ppolicy. If not i.e. if you wish to understand who should purchase a term insurance policy and why along with FAQs, please refer to this post: Term life insurance: what, why, how much to get and from where?.

This plan is a term insurance plan with the following features:

  • coverage paid only upon death. There is no money back or return of premium option
  • the application process is done in self-service mode via the LIC website. There is no role of agent or customer service. If you call their helpline regarding any query on this policy, they will not be able to help
  • coverage is offered from today up to the next 40 years. You should choose up to your retirement age which is 60 for most people
  • no riders are offered. This lack of riders is a welcome move by LIC since it keeps the policy simple and the claim process (no need to prove cause of death). If you need coverage for critical illness or personal accident coverage, take separate policies from a general insurance company
  • there is no return of premium option. We have provided illustrations before that such policies offer poor returns and are a waste of money

Here are the premiums for some selected combinations of age and coverage:

Age Coverage Sex Coverage period (y) Yearly premium incl GST Premium per crore
30 1 crore M 30 11,007 11,007
30 2 crore M 30 20,013 10,007
35 2 crore M 25 25,276 12,638
35 3 crore M 25 37,913 12,638
40 3 crore M 20 46,038 15,346
40 4 crore M 20 61,384 15,346
Age Coverage Sex Coverage period (y) Yearly premium incl GST Premium per crore
30 1 crore F 30 9,346 9,346
30 2 crore F 30 16,992 8,496
35 2 crore F 25 20,862 10,431
35 3 crore F 25 31,294 10,431
40 3 crore F 20 37,312 12,437
40 4 crore F 20 49,749 12,437
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How to purchase this policy

Step 1: Land on their website

A Google search for “LIC Tech term policy” is the recommended route since the link to the page may change.

This is the current link to the policy page: https://licindia.in/Products/Insurance-Plan/LICsTECH-TERM

You will get the policy document and sales brochure here which you should read.

Step 2: Calculate premium

There is an online premium calculator on the right side of the page that will calculate the premium for your need.

Step 3: Start application

LIC Tech Term calculator

You can start the online application process once the premium is calculated. This is the direct link: https://digisales.licindia.in/eSales/liconline

If this link does not work, Google “LIC Tech Term online purchase”.

LIC Tech Term calculator 2

Step 4: Information and documents needed for filling the form

The form that was filled required the following information:

  • personal, communication and family details
  • employment and income details
  • medical history
  • existing life insurance coverage history
  • nominee details

There is nothing out of the ordinary here. The applicant should fill the form honestly with all information provided to the best of their knowledge.

The following documents were uploaded while filling out the application form

  • PAN, Aadhaar copy
  • specimen signature on white paper
  • photograph
  • ITR / Salary slips / Form 16
  • address proof (this address was used to dispatch the physical policy document later)
  • cancelled cheque and bank account details
  • COVID vaccination certificate
  • policy number and details of all life insurance policies held by proposer and spouse

Step 5: Medical tests conducted

The email for medical tests came two days after the application date. The following tests were mentioned in the email:

  • Video MER
  • Rest ECG
  • SBT- 13
  • RUA
  • Haemogram
  • Hba1c
  • CTMT
  • Urine Cotinine Test
  • Treadmill Test (this was not in the email but performed nevertheless)

Timeline of events

The following is the complete timeline of events:

  • 13 Feb: application done, premium paid, fully online process
  • 15 Feb: Email arrived for medical test scheduling
  • 17 Feb: Medical test done
  • 22 Feb: Email arrived asking for further documentation: Self-attested copies of last three years ITR with computation sheet OR last three years Form 16 OR Latest 3 months salary slip with a bank statement showing salary credit and Employment appointment letter. We uploaded ITR and salary slips again.
  • 24 Feb: Got a call for documentation again: re-uploaded PAN, Aadhaar, ITR again and emailed policy numbers of existing policies
  • 12 Mar: COVID vaccine certificate upload request. We uploaded the documents again
  • 17 Mar: Reminder for ITR by email. We uploaded the documents again
  • 8 Apr: Policy is issued and has been active since 28-March. Premium to be paid on 28-Mar going forward every year
  • 15 Apr: Policy document arrived by registered post

The amusing part here is the endless emails asking for the same documents repeatedly. Unfortunately, their website, where you upload the documents, works only after 9.30 am IST. Maybe someone comes to the office and switches on the webserver!


Goal-based-investing plan

Why is the premium cheap?

There are multiple theories as to why the premium, unlike previous term insurance plans offered by LIC, is so competitive. Here is some speculation I have come across:

  • LIC is aggressively trying to grow its market share
  • other insurers have increased their premiums as a response to the COVID-19 pandemic
  • LIC can price this cheaply since this is a fully online policy without agent involvement

Whatever be the reason, there is no apparent downside to having a low-premium policy. But, of course, consumers have the right to complain in both cases where the premium of LIC policies is either high or low.

Who should purchase this policy?

Why I chose this policy

I chose this policy due to the following reasons:

  • the premium was cheapest for the age, coverage period and amount amongst all the insurers I researched
  • I trust the LIC brand
  • the policy is a straightforward product without any riders and offers a level policy where coverage stays constant for this period

Should you purchase this policy?

You choose to purchase this policy if and only if

  • you need a term insurance policy
  • you are acting as per your own understanding of the policy documentation or are acting on the advice of your financial advisor
  • you are eligible to take this plan as per the terms and conditions of this policy
  • you understand that this article is not a recommendation to buy this policy and is not the right place to look for LIC customer service
  • you can follow the instructions while filling out the online form by yourself and respond to the requests for documentation by yourself. There is no agent to help you.

Caveats in choosing this policy

  • The period between application to policy issuance is very long (7-8 weeks) compared to private insurers. This was not a hindrance in my case
  • There will be three premium options: Single Premium, Regular Premium, Limited Premium - you should choose Regular
  • LIC branch/office might call you for physical document submission. You can ask them for an official email id (from licindia.com domain) and email them. A physical visit is not needed.
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This post titled My experience with the LIC Tech Term life insurance policy first appeared on 01 May 2022 at https://arthgyaan.com


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