LIC is currently offering two Term plans online, namely LIC New Tech term plan Vs LIC Saral Jeevan Bima, 859. But which LIC Term Plan Online is better is the question of hour.
In this post we will try to figure out the difference between both LIC term plan online.
LIC’s Saral Jeevan Bima Vs New Tech term Plan are both a Non-Linked, Non-Participating, Individual, Pure Risk Life Insurance plan which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term.
Table of Contents
LIC Term Plan Online -Eligibility
| Features | LIC New Tech Term ( table no. 954) | LIC Saral Jeevan Bima ( Table no. 859) |
| Mode of Purchase | Online | Online & Offline |
| Minimum Basic Sum Assured | Rs. 50,00,000 | Rs. 5,00,000 |
| Maximum Basic Sum Assured | No limit | Rs. 25,00,000 |
| Premium Paying Term – Regular premium Payment | same as policy term | same as policy term |
| Premium Paying Term-Limited Premium payment | Policy term- 5 year ( for 10-40 year term) Policy term- 10 year ( for 15-40 year term) | Policy term- 5 year /10 year |
| Single Premium | One time payment | One time payment |
| Minimum Policy Term | policy term -10 to 40 yrs | policy term -5 to 40 yrs |
| Minimum Age at entry | 18 years (last birthday) | 18 years (last birthday) |
| Maximum Age at entry | 65 years (last birthday) | 65 years (last birthday) |
| Maximum Maturity Age | 80 years (last birthday) | 70 years (last birthday) |
| Riders | ABDR is available | No riders are available |
| Surrender Value | Some Value is given back in case of single premium & Limited Premium payment | Some Value is given back in case of single premium & Limited Premium payment |
Benefits under LIC New Tech Term Plan
Maturity Benefit
Since it is a pure risk cover plan, no maturity benefit is attached to the plan. So, No maturity benefit.
Death benefit
The amount death benefit is paid, depends on premium payment option
For Regular & Limited Premium payment
On death of the Life Assured (During policy term) the nominee will get higher of the following ( For Regular premium or Limited premium payment policy)
| LIC New Tech Term Plan | LIC Saral Jeevan Bima Plan |
| 105% of all the premiums paid as on the date of death | 105% of all the premiums paid as on the date of death |
| 7 times of annualised premium paid till date of death | 10 times of annualized premium |
| Absolute amount* assured | Absolute amount* assured |
For Single Premium payment
| LIC New Tech Term Plan | LIC Saral Jeevan Bima Plan |
| 125% of Single Premium. | 125% of Single Premium. |
| Absolute amount* assured to be paid on death. | Absolute amount* assured to be paid on death. |
Absolute amount* For Level Sum Assured is the amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.
Absolute amount
Absolute amount* For Increasing Sum Assured equal to Basic Sum Assured till completion of fifth policy year. ( New Tech Term)
NOTE: Increasing Sum Assured option is not available for LIC Saral Jeevan Bima Policy. In Addition the maximum sum assured limit is only 25 lakh.
After 5 year sum assured will be increased by 10% of Basic Sum Assured each year from the sixth policy year till fifteenth policy year till it becomes twice the Basic Sum Assured.
From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.
| Death event occurrence | Sum Assured payment In Increasing Sum Assured Option |
| 1-5 year | Basic Sum Assured |
| 6-15 year | Basic Sum Assured is increased each year by 10% – Death occurred in 6th year – 110% SA Death occurred in 7th year -120% SA Death occurred in 8th year -130% SA . . . Death occurred in 15th year -200% SA |
| 16 year onwards | 2 times of SA ( 200%) |
Option to take Death Benefit in instalments:
One can choose to receive death benefit in instalments over the chosen period of 5 years instead of lump sum amount.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for
Different modes of payments being as under:
LIC New Tech term Plan- Death benefit Payout in instalments
Please note – This option is not available forLIC Saral Jeevan Bima Policy.
Riders
The policyholder has an option of availing following Rider benefit(s):
LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death -Accidental death Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident), an
Rider sum assured cannot exceed the Basic Sum Assured.
Please note – This option is not available forLIC Saral Jeevan Bima Policy.
LIC Saral Jeevan Bima Premium
Basic Sum Assured of Rs 10 lakh and Policy Term 25 years for Standard lives
Rider sum assured cannot exceed the Basic Sum Assured.
Please note – This option is not available forLIC Saral Jeevan Bima Policy.
LIC Saral Jeevan Bima Premium
Basic Sum Assured of Rs 10 lakh and Policy Term 25 years for Standard lives
LIC New Tech Term Premium Chart
Basic Sum Assured of Rs. 1 Crore
What if you do not pay Premium
If the premiums are not paid within the grace period, then the policy will lapse. A lapsed policy can be revived, within a period of 5 consecutive years from the date of First Unpaid Premium.
Surrender Value:
No surrender value will be available under this Plan ( regular plan).
However, In case of Limited premium & single premium – some amount is given back as surrender value
- Single Premium Policies: The applicable refund shall be payable anytime during the Policy Term.
- c) Limited Premium Payment: The applicable refund shall only be payable if full premiums have been paid for at least:
- i) Two consecutive years in case of premium paying term less than 10 years.
- ii) Three consecutive years in case of premium paying term of 10 years or more.
LIC Term Plan Online Benefits
- Online pure risk cover plan
- Low premium amount and high Life cover benefits
- Premium can be paid in monthly or other mode Instalment
- tax benefit under section 80C.
Conclusion
Which LIC Term Plan Online scores better bet?
If we closely observe, LIC Saral Jeevan Bima Policy is suitable for low risk cover amount upto 25 lakh only ( Since it is the maximum coverage under the plan) whereas in case of New tech term Plan, the coverage starts from 50 lakh to no limit,
In my view, looking at todays life scenarios, LIC New Tech term is suitable for high risk coverage.
There are many functionalities such as increasing sum assured, High risk coverage, riders are not available with Saral Jeevan Bima.
So we can say that for low risk coverage LIC Saral Jeevan Bima is suitable and for high risk cover LIC New Tech term is the right choice.
LIC New Tech Term Premium Chart
Basic Sum Assured of Rs. 1 Crore
What if you do not pay Premium
If the premiums are not paid within the grace period, then the policy will lapse. A lapsed policy can be revived, within a period of 5 consecutive years from the date of First Unpaid Premium.
Surrender Value:
No surrender value will be available under this Plan ( regular plan).
However, In case of Limited premium & single premium – some amount is given back as surrender value
- Single Premium Policies: The applicable refund shall be payable anytime during the Policy Term.
- c) Limited Premium Payment: The applicable refund shall only be payable if full premiums have been paid for at least:
- i) Two consecutive years in case of premium paying term less than 10 years.
- ii) Three consecutive years in case of premium paying term of 10 years or more.
LIC Term Plan Online Benefits
- Online pure risk cover plan
- Low premium amount and high Life cover benefits
- Premium can be paid in monthly or other mode Instalment
- tax benefit under section 80C.
Conclusion
Which LIC Term Plan Online scores better bet?
If we closely observe, LIC Saral Jeevan Bima Policy is suitable for low risk cover amount upto 25 lakh only ( Since it is the maximum coverage under the plan) whereas in case of New tech term Plan, the coverage starts from 50 lakh to no limit,
In my view, looking at todays life scenarios, LIC New Tech term is suitable for high risk coverage.
There are many functionalities such as increasing sum assured, High risk coverage, riders are not available with Saral Jeevan Bima.
So we can say that for low risk coverage LIC Saral Jeevan Bima is suitable and for high risk cover LIC New Tech term is the right choice.
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