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?
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.
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
Join the Arthgyaan WhatsApp community: You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.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.
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% |
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% |
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.
This article shows how a double-income couple with a 2-year old reach their FIRE dream at the age of 50.
This article shows how a double-income couple with a newborn child can invest for their future goals of FIRE and real-estate investment.
This article shows how a young just-married couple can invest for future goals using the Arthgyaan goal-based investing tool.
Did you welcome a bundle of joy in your 40s? This article will discuss ways of planning the child’s (and your’s financial future)
This article shows how a very typical salaried couple with one child can invest for future goals using the Arthgyaan goal-based investing tool.
This article compiles an exhaustive list of FAQs on the concept of Tax Deducted at Source (TDS).
Published: 8 January 2023
12 MIN READ
This article shows you the current and historical values of the RBI repo and reverse repo rates.
Published: 15 January 2023
2 MIN READ
This article shows the historical performance of this fund as an example of a long-running gilt fund to demonstrate the risk and return in a gilt fund.
Published: 7 June 2023
3 MIN READ
This article explains if Indian investors should consider investing in gilt or government securities mutual funds for their goals.
Published: 4 June 2023
4 MIN READ
1. Email me with any questions.
2. Use our goal-based investing template to prepare a financial plan for yourselfDon't forget to share this article on WhatsApp or Twitter or post this to Facebook.
Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.
More posts...Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.
This post titled A review of the LIC Tech Term plan in 2023 first appeared on 11 Jan 2023 at https://arthgyaan.com