LIC has relaunched its popular online-only term insurance plan as “New Tech Term” in Nov-2022. If you are looking for a new term insurance policy should you consider this?

Disclaimer: This article is not a recommendation to purchase or not purchase the LIC New Tech Term life insurance policy. Readers should consult with their financial advisor if this plan is suitable for them or not.

📚 Table of Contents

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• Introduction: old wine in a new bottle?
• Premium vs. private insurers
  • Premiums for male policyholders
  • Premiums for female policyholders
• Should you still consider LIC Tech Term in 2023?

Introduction: old wine in a new bottle?

This article is a continuation of our coverage of the online-only LIC term insurance plan “Tech Term”: My experience with the LIC Tech Term life insurance policy.

This product was relaunched by LIC in November 2022 and this article covers the changes in the premium after relaunch as well as a comparison with private insurers

Premium vs. private insurers

Here are the premiums for some selected combinations of age and coverage. The premiums are from the respective company websites, for both male and female policyholders in salaried jobs. There is no constraint on income or qualification. The premium snapshots are taken on 09-Jan-2023.

The private insurers are randomly chosen and are Kotak, HDFC Life and Max.

Premiums for male policyholders

Age	Coverage	Sex	Coverage period (y)	Yearly premium w GST
30	1 crore	M	30	14,578
30	2 crore	M	30	26,139
35	2 crore	M	25	32,516
35	3 crore	M	25	48,774
40	3 crore	M	20	59,058
40	4 crore	M	20	78,744

Age	Coverage	Premium / crore	% Incr from 2022	Average private	LIC premium is more by
30	1 crore	14,578	32%	12,708	15%
30	2 crore	13,070	31%	11,387	15%
35	2 crore	16,258	29%	14,126	15%
35	3 crore	16,258	29%	13,499	20%
40	3 crore	19,686	28%	18,273	8%
40	4 crore	19,686	28%	18,117	9%

Premiums for female policyholders

Age	Coverage	Sex	Coverage period (y)	Yearly premium w GST
30	1 crore	F	30	12,319
30	2 crore	F	30	22,090
35	2 crore	F	25	26,836
35	3 crore	F	25	40,253
40	3 crore	F	20	47,305
40	4 crore	F	20	63,073

Age	Coverage	Premium / crore	% Incr from 2022	Average private	LIC premium is more by
30	1 crore	12,319	32%	11,236	10%
30	2 crore	11,045	30%	9,882	12%
35	2 crore	13,418	29%	11,829	13%
35	3 crore	13,418	29%	11,227	20%
40	3 crore	15,768	27%	14,773	7%
40	4 crore	15,768	27%	14,634	8%

Should you still consider LIC Tech Term in 2023?

We can see that there has been a 27-32% hike in LIC Tech Term premiums across the combinations chosen above. We also see that the premium is now 7-15% more expensive than the average of the three private insurers.

LIC Tech Term was an excellent option for taking a term insurance plan due to lower premiums. Now that the premiums have been revised upwards, policyholders should do a proper comparative study vs. private insurers while choosing a term insurance policy.