LIC New Tech-Term Plan 954 (UIN 512N351V02): Features, Tax Treatment, GST Status and Claim Essentials
Understanding LIC's New Tech-Term at a Glance
Life Insurance Corporation of India offers the New Tech-Term plan as an exclusively online, non-linked, non-participating pure-risk life coverage product. It is catalogued under Plan No. 954 with UIN 512N351V02. Being non-linked, the plan has no exposure to capital markets, and being non-participating, the policyholder does not share in LIC's surplus or profits.
The fundamental purpose of this plan is straightforward: to pay the contracted death benefit if an eligible claim arises during the policy term while the policy remains in force. There is no survival benefit — an assessee who outlives the policy term receives nothing from the base plan. This core characteristic distinguishes it sharply from endowment or money-back products, and it is the primary reason why pure-term premiums are significantly lower for an equivalent sum assured.
Key Note: New Tech-Term should be evaluated first and foremost as a financial protection instrument, not as a tax-saving or investment vehicle.
Eligibility Parameters and Core Product Conditions
The plan comes with a defined eligibility framework. Entry is open from age 18 years (last birthday) up to 65 years (last birthday), and the policy may run until a maximum maturity age of 80 years (last birthday). The minimum Basic Sum Assured is ₹50 lakh, while the upper limit is subject to LIC's underwriting assessment and carries no fixed product-level ceiling.
| Product Parameter | Current Condition |
|---|---|
| Plan Name | LIC's New Tech-Term, Plan No. 954 |
| UIN | 512N351V02 |
| Nature | Non-linked, non-participating, individual pure-risk life insurance |
| Purchase Channel | Online, directly through LIC |
| Minimum Entry Age | 18 years, last birthday |
| Maximum Entry Age | 65 years, last birthday |
| Maximum Maturity Age | 80 years, last birthday |
| Minimum Basic Sum Assured | ₹50 lakh |
| Maximum Basic Sum Assured | No fixed ceiling; subject to underwriting |
| Minimum Policy Term | 10 years |
| Maximum Policy Term | Up to 40 years, subject to benefit option, age, sum-assured band, premium mode and maximum maturity age |
| Premium Payment Structures | Single, Regular or Limited Premium |
| Regular/Limited Premium Frequency | Yearly or half-yearly |
| Minimum Premium | ₹30,000 for Single Premium; ₹3,000 for Regular/Limited Premium |
| Maturity Benefit | Nil on survival to end of policy term |
The actual premium chargeable to any assessee depends on several underwriting variables — entry age, gender, tobacco/smoking status, chosen policy term, premium-paying term, Basic Sum Assured and the death-benefit option selected. LIC maintains separate rate categories for smokers and non-smokers; qualification for non-smoker rates is conditional on satisfying LIC's prescribed testing and underwriting requirements. Special rates for women applicants and rebates for high sum-assured levels are also stated features, though the precise quotation should always be confirmed at the point of purchase.
Two Death-Benefit Options: Choosing the Right Structure
At inception, the assessee must select one of two death-benefit design options. This selection is permanent and cannot be altered subsequently.
Option I: Level Sum Assured
Under this option, the absolute amount assured on death remains constant throughout the entire policy term, equal to the Basic Sum Assured. The benefit quantum does not change regardless of how many years the policy has been in force.
Option II: Increasing Sum Assured
This option provides a stepped-up benefit structure designed to account for growing financial obligations over time:
- Policy Years 1–5: The absolute amount assured equals the Basic Sum Assured — no increase yet.
- Policy Years 6–15: The amount increases by 10% of the Basic Sum Assured in each successive policy year.
- From Policy Year 16 onwards: The amount stabilises at twice the Basic Sum Assured for the remainder of the term, subject to the policy being in force and the detailed contractual conditions.
**Illustrative structure (for explanation only)😗* If Mr. Sharma selects a Basic Sum Assured of ₹75 lakh under the Increasing option, the death benefit remains ₹75 lakh through year five, rises to ₹82.50 lakh in year six, and continues increasing annually until it reaches ₹1.50 crore in year fifteen — where it then stays fixed.
This is a structural illustration only. The actual "Sum Assured on Death" in every case is governed by the policy formula described in the following section.
How the Death Benefit Quantum Is Calculated
The contractual "Sum Assured on Death" is not simply the chosen Basic Sum Assured — it is determined by applying a regulatory-minimum formula.
For Regular Premium and Limited Premium Policies
The Sum Assured on Death equals the highest of the following three values:
- 7 times the Annualised Premium
- 105% of Total Premiums Paid up to the date of death
- The applicable absolute amount assured under the Level or Increasing option chosen
For Single Premium Policies
The death benefit is the higher of:
- 125% of the Single Premium paid
- The applicable absolute amount assured under the chosen option