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LIC's New Tech-Term (Plan 954) is an online-only, non-linked, non-participating, individual pure risk term insurance plan from Life Insurance Corporation of India. If the life assured dies during the policy term, the nominee receives the sum assured on death, and nothing is paid if the policyholder survives the term. You can choose between two death benefit options: Level Sum Assured, where cover stays fixed, and Increasing Sum Assured, where cover stays level for the first five years and then rises by 10% of the basic sum assured every year until it doubles. Premium can be paid as a single premium, regular premium or limited premium. Entry age is 18 to 65 years, policy terms run from 10 to 40 years with a maximum maturity age of 80, and the minimum basic sum assured is ₹50 lakh with no stated upper limit, subject to LIC underwriting. The plan offers special rates for women, high sum assured rebates, the option to take the death benefit in instalments, and an optional LIC Accident Benefit Rider on regular and limited premium policies.
Online-only pure term plan with a Level or Increasing Sum Assured option, entry up to age 65 and a minimum cover of ₹50 lakh.
New Tech-Term is a plain, low-frills term plan from India's largest life insurer, and that simplicity is its strength: the whole premium goes into cover, and the Increasing Sum Assured option adds built-in protection against inflation that many term plans do not offer. LIC's own sample shows a ₹1 crore Level cover for a 30-year-old non-smoking male costing ₹9,135 a year for 20 years, before taxes, and rebates apply on covers of ₹1 crore and above. Entry is open up to age 65, and the death benefit can be paid in instalments. The trade-offs are clear. Cover ends by age 80, earlier than the age-100 cover offered by several private insurers, the plan is sold only online, and the brochure lists just one optional rider, the Accident Benefit Rider, so you may need a separate health or critical illness policy. The Increasing Sum Assured option costs 33% to 56% more than Level in LIC's sample, depending on age, so check whether the extra cover is worth the price for your age and term. Get a quote for the same cover and term from two or three insurers before buying, and consider LIC's New Jeevan Amar if you prefer buying through an LIC agent.
LIC
Key Insights
Founded
1956
LIC was established 70 years ago and has built strong credibility over time, backed by its long-standing presence in the market.
Claims Experience
95.8% CSR, calculated as a 3-year average
LIC settles 95.8% of all claims it receives, demonstrating strong credibility.
Contact Details
022-6827 6827
Headquarters: Jeevan Bima Marg, Nariman Point, P.O. Box No. 19953, Mumbai, Maharashtra 400021, India
Cover stays level for the first five years and then rises by 10% of the basic sum assured every year until it reaches twice the original amount in the fifteenth year.
Costs more than Level, and the maximum policy term depends on your age and sum assured.
The amount paid on death stays equal to the basic sum assured for the whole policy term.
The basic sum assured starts at ₹50 lakh, and there is no stated upper limit, subject to LIC underwriting.
Sum assured goes up in steps of ₹5 lakh until ₹75 lakh, and in steps of ₹25 lakh above that.
The amount paid on death is the highest of 7 times the annualised premium, 105% of the total premiums paid, or the absolute amount assured.
For single premium policies, it is the higher of 125% of the single premium or the absolute amount assured.
The life assured can choose to have the death benefit paid to the nominee in instalments over 5, 10 or 15 years instead of a lump sum.
Minimum instalment is ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly; the choice must be made by the life assured during their lifetime.
If death is caused by an accident, the rider sum assured is paid as a lump sum in addition to the death benefit under the base plan.
Available on regular and limited premium policies with at least five years of premium paying term left; the rider sum assured can be up to 3 times the basic sum assured, rider premium is capped at 30% of the base premium, and cover runs only during the premium paying term or up to age 70, whichever is earlier.
Conditions or treatments that the policy clearly says it will not cover.
Insurer
LIC plans and claim process
It is an online-only pure risk term insurance plan from LIC (Plan 954). If the life assured dies during the policy term, the nominee receives the sum assured on death. You can pay the premium as single pay, regular pay or limited pay.
Under Level Sum Assured, cover stays fixed for the whole term. Under Increasing Sum Assured, cover stays level for the first five years and then rises by 10% of the basic sum assured every year until it doubles in the fifteenth year. The option you choose cannot be changed later, and Increasing costs more.
Entry age is 18 to 65 years (last birthday), and the maximum maturity age is 80 years. The policy term runs from 10 to 40 years under Level Sum Assured. Under Increasing Sum Assured, the maximum term depends on your age and sum assured band.
Disclaimer: Premium amounts are indicative and may vary based on age, health, and plan selected. Claim settlement ratios are from IRDAI Annual Reports. Finzony is not an insurance broker or agent. Verify all details on the official LIC website before purchasing.
Official Website
licindia.in
Visit the official LIC website for plan brochures, premium quotes and policy services.
The aforementioned ratios have been averaged over three years (FY24-FY26)
The minimum basic sum assured is ₹50 lakh, in steps of ₹5 lakh up to ₹75 lakh and ₹25 lakh above that. There is no stated upper limit, but the final cover depends on LIC underwriting based on your age, income and health.
LIC's sample for a ₹1 crore cover, non-smoking male, 20-year term and regular annual premium, before taxes, shows ₹7,047 at age 20, ₹9,135 at age 30 and ₹17,889 at age 40 under Level Sum Assured. Under Increasing Sum Assured, the same cases cost ₹9,345, ₹13,083 and ₹27,846. Your actual premium depends on age, smoking status, gender, term and cover.
No, it is sold online only on LIC's website. If you prefer buying through an agent, LIC's New Jeevan Amar is the offline term plan to look at.
For regular and limited premium policies, the nominee receives the highest of 7 times the annualised premium, 105% of the total premiums paid, or the absolute amount assured under your chosen option. For single premium policies, it is the higher of 125% of the single premium or the absolute amount assured.
Yes. The life assured can choose, during their lifetime, to have all or part of the death benefit paid to the nominee in instalments over 5, 10 or 15 years. Minimum instalments are ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly and ₹50,000 yearly; if the claim amount is smaller, it is paid as a lump sum.
No. New Tech-Term is a pure term plan with no maturity benefit and no return of premium option.
If death by suicide happens within 12 months of the policy start or revival, the sum assured is not paid. The nominee gets 80% of the premiums paid, or 80% of the single premium for single pay policies, excluding taxes, extra premiums and rider premiums.
You can add LIC's Accident Benefit Rider on regular and limited premium policies for an extra premium, if at least five years of premium paying term remain. It pays the rider sum assured, up to 3 times the basic sum assured, in addition to the death benefit if death is caused by an accident, and its premium cannot exceed 30% of the base plan premium.