Life insurance is an important part of financial planning because it helps protect your family financially in the event of an untimely death. The LIC Tech Term Plan 854 was one such pure term insurance product offered by the Life Insurance Corporation of India (LIC), providing substantial life cover at comparatively affordable premiums.
Premium Calculation Result
Life insurance is an important part of financial planning because it helps protect your family financially in the event of an untimely death. The LIC Tech Term Plan 854 was one such pure term insurance product offered by the Life Insurance Corporation of India (LIC), providing substantial life cover at comparatively affordable premiums.
What is LIC Tech Term Plan 854?
LIC Tech Term Plan 854 was an online pure term insurance plan introduced by LIC. It was a non-linked and non-participating policy, meaning that it focused exclusively on providing life insurance protection and did not include any investment or savings component.
Since the policy was offered through online channels, it was structured to provide life cover at competitive premium rates. If the insured person died during the policy period, the nominee was entitled to receive the applicable sum assured, providing financial support to the family.
As a pure term insurance policy, there was no maturity benefit when the policyholder survived the entire policy term.
Launch and Withdrawal Dates
LIC Tech Term Plan 854 was introduced as part of LIC’s online term insurance offerings.
- Launch Date: 1 September 2019
- Withdrawal from New Sales: November 2022
LIC subsequently replaced the plan with a revised tech-term product to update its pricing and benefits in line with changing insurance and reinsurance costs.
Policies that were already issued under Plan 854 continued according to their original terms even after the product was withdrawn from new sales.
Key Features of LIC Tech Term Plan 854
Some of the major features of LIC Tech Term Plan 854 included:
- The plan was primarily available to Indian nationals. NRIs could apply while staying in India, whereas OCI/PIO applicants were not eligible under the stated conditions.
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Maximum maturity age: 80 years
- Policy term: 10 to 40 years
- Minimum sum assured: ₹50 lakh
- Maximum sum assured: No upper limit
- Premium payment options included regular, limited and single premium.
- Separate premium rates were applicable to smokers and non-smokers.
- Female policyholders could receive special premium rates.
- An Accidental Death Benefit Rider could be added for additional protection.
- The death benefit could be received as a lump sum or through instalments spread over 5, 10 or 15 years.
- No maturity amount was payable if the policyholder survived the complete policy term.
Eligibility Criteria
| Parameter | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 65 years |
| Maximum Maturity Age | 80 years |
| Minimum Policy Term | 10 years |
| Maximum Policy Term | 40 years |
| Minimum Sum Assured | ₹50,00,000 |
| Maximum Sum Assured | No limit |
| Premium Payment Options | Regular, Limited and Single Premium |
Limited Premium Payment Options
The limited premium structure allowed the policyholder to finish paying premiums before the insurance coverage ended.
- PT-5: Premiums are payable for five years less than the selected policy term.
- PT-10: For eligible policy terms above 15 years, premiums can be payable for ten years less than the policy term.
This gave policyholders greater flexibility in managing their premium obligations.
Premium Payment Options
LIC Tech Term Plan 854 provided multiple ways to pay the premium according to the policyholder’s financial preferences.
Regular Premium
Under the regular premium option, premiums are paid throughout the selected policy term.
Limited Premium
With limited premium payment, premiums are paid for a shorter duration than the actual policy term. This allows the policyholder to complete premium payments earlier while continuing to receive insurance protection for the remaining period.
Single Premium
Under the single premium option, the entire premium is paid as one lump sum when the policy begins. No further premium payments are required during the remaining policy period.
The stated minimum premium requirements were:
- Regular/Limited Premium: ₹3,000
- Single Premium: ₹30,000
LIC Tech Term Plan 854 Calculator
The LIC Tech Term Plan 854 calculator was designed to help users estimate the premium payable for their selected insurance coverage. A calculator can make it easier to understand how factors such as age, gender, sum assured, smoking status and premium payment term affect the premium.
How to Use the LIC Tech Term Plan 854 Calculator
You can generally calculate the premium by following these steps:
- Enter the applicant’s age.
- Select the gender.
- Enter the desired sum assured.
- Choose the required policy term.
- Select the preferred premium payment option.
- Provide the required smoker or non-smoker information.
- Choose the applicable premium frequency, such as yearly, half-yearly or quarterly, where available.
- The calculator then provides an estimated premium based on the selected details.
- You can modify the sum assured or payment term to compare different premium combinations.
Using a calculator makes it easier to estimate your insurance budget before selecting an appropriate level of coverage.
Benefits of LIC Tech Term Plan 854
Affordable Life Cover
Because the plan was offered online and focused solely on protection, it was structured to provide substantial life cover without adding savings or investment benefits that could increase the premium.
High Sum Assured
The minimum cover started at ₹50 lakh, while there was no specified upper limit, subject to LIC’s underwriting requirements.
Flexible Premium Choices
Policyholders could choose regular, limited or single premium payment options according to their financial situation.
Accidental Death Benefit Rider
The optional accidental death benefit rider provided an opportunity to enhance the protection available under the base policy.
Death Benefit Instalment Option
Instead of receiving the entire death benefit at once, the nominee could choose to receive the payout in instalments over a period of 5, 10 or 15 years. This could help create a regular source of income for the beneficiary.
Special Premium Rates
Premium rates were differentiated according to factors such as smoking status and gender, with non-smokers generally receiving lower rates under the applicable pricing structure.
Online Policy Purchase
The online structure made the application process more convenient and reduced the need for extensive paperwork or intermediary involvement.
No Maturity Benefit
The policy was designed strictly as a protection plan. Therefore, if the insured survived until the end of the policy term, there was no maturity payout.
Sample Premium Illustration
The following figures are approximate examples intended to demonstrate how premiums could vary based on age and gender:
| Age | Sum Assured | Policy Term | Premium Payment | Approx. Annual Premium – Male | Approx. Annual Premium – Female |
|---|---|---|---|---|---|
| 20 years | ₹1 Crore | 10 years | Regular | ₹5,500 | ₹5,200 |
| 30 years | ₹1 Crore | 10 years | Regular | ₹6,300 | ₹5,900 |
| 40 years | ₹1 Crore | 10 years | Regular | ₹10,300 | ₹8,500 |
Note: These figures are only illustrative. Applicable taxes such as GST are additional, and the actual premium may vary depending on factors including smoking status, premium payment mode, sum assured and underwriting requirements.
Things to Consider Before Choosing LIC Tech Term Plan 854
Before selecting a term insurance policy, it is important to evaluate your financial requirements carefully.
Determine the Required Coverage
Consider your family’s financial needs, outstanding loans, future expenses and long-term financial goals before deciding on the sum assured.
Select an Affordable Premium
Choose a premium payment option that fits comfortably within your regular cash flow. While a single premium eliminates future premium payments, it requires a larger upfront amount.
Consider Health and Lifestyle
Factors such as smoking status and other underwriting-related details can influence the premium payable.
Evaluate Additional Protection
If you require additional financial protection against accidental death, you can consider the applicable rider options.
Select an Appropriate Policy Term
A longer policy term can provide protection for a greater period, although it may also result in a higher overall premium commitment.
Keep Nominee Information Updated
Accurate and updated nominee details can help make the claim settlement process smoother for the family.
Why Was LIC Tech Term Plan 854 Popular?
LIC Tech Term Plan 854 attracted attention because of its straightforward approach to life insurance. Some of its notable characteristics were:
- Pure life-risk protection without an investment component.
- Online application and purchase process.
- High sum assured starting from ₹50 lakh.
- Several premium payment structures.
- Flexible policy terms ranging from 10 to 40 years.
- Optional accidental death protection.
- Choice between lump-sum and instalment death benefit payouts.
These features made it suitable for individuals primarily looking for substantial life insurance protection rather than savings or investment returns.
Alternative and Revised LIC Tech Term Plans
LIC Tech Term Plan 854 was later withdrawn from new sales. LIC subsequently introduced a revised tech-term product with updated pricing and features to reflect prevailing market conditions and insurance costs.
People looking for a similar policy should compare the currently available LIC term insurance products, their eligibility requirements, premium rates, coverage options and policy conditions before making a decision.
Frequently Asked Questions
What is LIC Tech Term Plan 854?
LIC Tech Term Plan 854 was an online pure term insurance policy from LIC that provided high life cover without a maturity benefit. Its primary purpose was to provide financial protection to the nominee if the insured died during the policy term.
When was LIC Tech Term Plan 854 launched?
LIC Tech Term Plan 854 was launched on 1 September 2019.
When was LIC Tech Term Plan 854 withdrawn?
The plan was withdrawn from new sales in November 2022. Existing policyholders continued to receive benefits according to the conditions of their policies.
Who could purchase LIC Tech Term Plan 854?
The stated entry age was between 18 and 65 years, with the maximum maturity age being 80 years. NRIs could also apply while staying in India, subject to the plan’s applicable eligibility conditions.
What was the minimum sum assured?
The minimum sum assured under the plan was ₹50 lakh, while no upper limit was specified, subject to LIC’s underwriting rules.
What was the maximum policy term?
The policy term could be selected from 10 years up to 40 years.
Does LIC Tech Term Plan 854 provide a maturity benefit?
No. It was a pure term insurance plan, so there was no maturity benefit if the policyholder survived the entire policy term.
Could an accidental death rider be added?
Yes. The plan provided an option to add an Accidental Death Benefit Rider for enhanced protection, subject to the applicable terms and conditions.
What premium payment options were available?
The plan offered regular premium, limited premium and single premium payment structures.
Conclusion
LIC Tech Term Plan 854 was a pure online term insurance product designed to provide substantial life protection at competitive premiums. With coverage beginning at ₹50 lakh, policy terms of up to 40 years and multiple premium payment options, it offered considerable flexibility to individuals seeking financial security for their families.
Although LIC withdrew Plan 854 from new sales in 2022, existing policyholders continue to remain covered according to their original policy conditions. For people researching this older LIC plan, understanding its eligibility, premium structure, death benefit and calculator methodology can also help when comparing it with newer LIC term insurance products.
A LIC Tech Term Plan 854 calculator can be useful for understanding how factors such as age, sum assured, smoking status, policy term and premium payment mode influence the estimated premium. Since Plan 854 is no longer available for new purchases, current LIC products and their latest official terms should always be checked before making a new insurance decision.
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