LIC New Tech-Term (Plan 954, UIN 512N351V02): Cover, Tax Treatment and Claim Points
This article describes the structure of LIC's New Tech-Term, Plan No. 954, and sets out how its premiums and proceeds are treated for Tax Year 2026-27 under the Income-tax Act, 2025 (effective 1 April 2026) and for GST after the 2025 reforms. It is based on the product listing and policy documents available in October 2026.
Clients comparing term plans increasingly ask about the tax angle, and the 2025 Act has re-numbered the provisions they were used to. A short review of what the plan provides and what the tax provisions actually say helps keep the purchase decision on protection and not on the deduction.
The plan in outline
New Tech-Term is an online-only plan sold directly by LIC. It is a non-linked, non-participating, individual pure-risk term plan. There is no maturity benefit on survival.
Eligibility and size of cover
- Entry age: 18 to 65 years (last birthday).
- Maximum maturity age: 80 years.
- Minimum policy term: 10 years. The maximum term is up to 40 years, subject to the option chosen, age, sum assured band, premium mode and maturity age.
- Minimum Basic Sum Assured: Rs.50 lakh. There is no fixed maximum, subject to underwriting.
Premium
- Modes: Single, Regular or Limited. Regular and Limited premiums are payable yearly or half-yearly.
- Minimum premium as per the LIC brochure: Rs.30,000 for Single and Rs.3,000 for Regular or Limited.
- Premium depends on age, smoking status, gender, term, premium-paying term, sum assured and the option chosen. Separate smoker and non-smoker rates apply, and LIC states women's rates and rebates for high sums assured.
- Grace period is 30 days for yearly and half-yearly premiums. Premium unpaid after the grace period leads to lapse.