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LIC New Tech-Term · Plan 954

Online term plan with single/regular/limited-pay options.

Last updated · 4.3/5 · LIC's most versatile term plan. The limited-pay and increasing SA options are genuinely useful for specific buyer profiles.

Pure protection — pays on death during the term only. There is no maturity payout, no surrender value (regular pay), and no investment component. Your family receives the sum assured — nothing more, nothing less — if you die while the policy is in force.

LIC New Tech-Term (Plan 954) is LIC's most flexible online pure-term plan. It allows single premium, regular premium, and limited premium paying options (5, 10, or 15 years), and offers both level and increasing sum assured variants (increasing SA grows at 10% simple per year). Entry ages are 18–65, minimum SA is ₹50 lakh, and policy terms run 10–40 years. The flexibility in pay modes makes this the only LIC term plan where a buyer can pay off the entire cover in 5 or 10 years and remain covered without further outgo.

Entry age
18–65 years
Min SA
₹50L
Policy term
10–40 years
Pay mode
single / regular / limited
SA type
level / increasing
ROP option
No
Channel
online

Limited pay: 5, 10, or 15 years. Increasing SA: 10% simple per year.

What it covers

Death of the life assured for any cause during the policy term. Level SA variant: full SA paid as lump sum to nominee. Increasing SA variant: the SA grows at 10% simple per year from policy commencement — the nominee receives whatever the SA has grown to at the time of death. Example: ₹1 crore SA, death in year 18 → nominee receives ₹2.7 crore. After the SA has doubled (year 10 for an original SA of ₹1Cr), it is capped and does not grow further — confirm the cap from the brochure at quote time.

What it does not cover

Suicide within the first 12 months. Death during lapse (regular/limited pay — premiums must be current). For single-pay policies there is no lapse risk after the single premium is paid. Non-disclosure of material health or lifestyle facts at inception. The increasing SA variant does not protect against death before any meaningful growth has occurred — in year 1, the SA is still the original base amount.

LIC vs private term plans

New Tech-Term's limited-pay option is unusual — most private online term plans (HDFC Click 2 Protect, ICICI iProtect Smart) also offer limited pay, but their pricing for comparable SA and limited-pay periods is worth comparing. For the regular-pay level SA scenario, private plans remain 10–20% cheaper. For limited-pay and single-pay, the gap narrows because the actuarial pricing is complex and LIC's scale gives it an advantage in certain premium-pay configurations. Always run a three-provider comparison before buying any term plan.

Who should choose this plan

New Tech-Term is best for three specific profiles. First: business owners and high-income earners with irregular cash flows who want to pay off their protection in one lump or over 5–10 years and not think about it again — single-pay or limited-pay modes serve this. Second: anyone buying long-term cover (25–35 years) who wants inflation protection built in — the increasing SA option is one of the cleaner hedges available. Third: self-employed or freelance earners who have good income now but uncertain future income — limited pay eliminates the risk of a lapse in a lean year. If you are a salaried earner who can commit to regular annual payments and only want level cover, Digi Term or Yuva Term will likely be cheaper.

Tax treatment

Regular-pay and limited-pay premiums deductible under §80C, subject to 10× SA condition. Single-pay premiums also qualify for §80C in the year of payment. Nominee death benefit tax-free under §10(10D). Increasing SA policies: the incremental SA does not change the tax treatment — the entire death benefit, however large, is tax-free. CI rider premiums deductible under §80D separately.

Asymmetrica isn't an insurance advisor. The analysis above is editorial, sourced from published LIC brochures. Verify eligibility, current rates, and plan-specific conditions with LIC or a licensed advisor before purchasing.

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