A review of the LIC Tech Term plan in 2023
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?
A review of the LIC Tech Term plan in 2023
Posted on 11 Jan 2023
Author: Sayan Sircar
5 mins read
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.
📚 Topics covered:
- Introduction: old wine in a new bottle?
- Premium vs. private insurers
- 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
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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.
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