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
📢Join 3500+ readers on WhatsApp and get new post notifications!
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
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.
Related Articles
- My experience with the LIC Tech Term life insurance policy
- Term life insurance: what, why, how much to get and from where?
- Do not make these common mistakes while buying a term insurance policy
What's next? You can 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.For resident Indians 🇮🇳:
For NRIs 🇺🇸🇬🇧🇪🇺🇦🇺🇦🇪🇸🇬:
Share on WhatsApp: To understand how this article can help you:
If you have a comment or question about this article
The following button will open a form with the link of this page populated for context:If you liked this article, please leave us a rating
The following button will take you to Trustpilot:Discover an article from the archives
Previous and next articles:
Latest articles:
Topics you will like:
Next steps:
1. Email me with any questions.
2. Use our goal-based investing template to prepare a financial plan for yourself.Don'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
We are currently at 503 posts and growing fast. Search this site: Copyright © 2021-2024 Arthgyaan.com. All rights reserved.