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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


11 Jan 2023 - Contact 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?

A review of the LIC Tech Term plan in 2023

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

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%

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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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This post titled A review of the LIC Tech Term plan in 2023 first appeared on 11 Jan 2023 at https://arthgyaan.com


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