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Verified against official .gov.in portals · Last checked June 2026 · How we verify
Last Updated: June 2026

LIC Tech Term Plan 854 — ₹1 Crore Cover from ₹700/Month (Is It Worth It?)

LIC Tech Term (Plan No. 854) is LIC's online-only pure term insurance plan — the cheapest life insurance available from LIC. It provides a large death benefit at a low premium with no maturity payout. This guide covers who should buy it, premium rates, exclusions, and how to buy online.

Verified by NagrikIQ Research Team
Sources: Official .gov.in portals only · Updated June 2026
LIC Tech Term — Buy Online — Official Portal →

Most people I've spoken to have no idea LIC even has an online-only term plan — they've been paying their agent a commission for a policy that costs 30–40% more. Tech Term exists specifically because LIC couldn't compete on price with private insurers using the old agent model, so they built a direct channel and passed the savings on. The one thing I'd tell anyone sitting on the fence: buy it now, at your current age and health — every year you wait, the premium creeps up and any new diagnosis you get could be used to load the premium.

— Sibin O, Founder, NagrikIQ · Last verified June 2026

Overview

LIC Tech Term (Plan 854) is a non-participating, non-linked, pure protection term plan sold exclusively online at licindia.in. It is the most affordable life insurance option from LIC — ₹1 crore cover for a 30-year-old non-smoker costs approximately ₹700–850 per month. Key features: (1) Death Benefit — Sum Assured (up to ₹5 crore or more) paid to nominee if policyholder dies during the term. No payout if policyholder survives. (2) No maturity value — unlike endowment plans, you receive nothing if you outlive the policy term. (3) Online only — available exclusively at licindia.in, which is why premiums are 30–40% lower than LIC's offline term plans. LIC Tech Term vs private term insurers: LIC charges slightly higher premium than private insurers (HDFC Life, ICICI Prudential) for the same cover, but LIC has a 98.6% claim settlement ratio and government backing — making it the most trusted option. Who should buy: anyone with financial dependants (spouse, children, parents) who needs a large life cover at minimum cost. If you already have an endowment plan for savings, add Tech Term for protection.

Eligibility

  • Minimum entry age: 18 years
  • Maximum entry age: 65 years
  • Policy term: 10 to 40 years
  • Maximum maturity age: 80 years
  • Minimum Sum Assured: ₹50 lakh (₹50,00,000)
  • No maximum SA limit — based on income (typically 10–20× annual income)
  • Available to non-resident Indians (NRIs) — special form required
  • Online only — must be purchased at licindia.in (not through agents)

Documents Required

Aadhaar card
PAN card
Income proof — salary slip / ITR / Form 16 (for high SA)
Medical reports — if required based on age or SA (LIC may call you for a medical test)
Passport-size photograph
Bank account details for premium payment setup

Fees & Processing Time

Fee
Sample annual premiums for ₹1 crore Sum Assured, non-smoker male: • Age 25, 30-year term: ~₹8,500/year (₹708/month) • Age 30, 30-year term: ~₹10,200/year (₹850/month) • Age 35, 30-year term: ~₹13,800/year (₹1,150/month) • Age 40, 30-year term: ~₹20,500/year (₹1,708/month) • Age 45, 25-year term: ~₹32,000/year (₹2,667/month) Smokers pay ~30–40% higher premium. Female policyholders pay 10–15% less. Add 18% GST on premium.
Processing Time
Online application: instant if no medical test required. If medical test is required, LIC calls you within 7–10 working days. Policy issuance: 1–3 working days after medical clearance.

How to Apply Online

  1. 1Go to licindia.in → Products → Term Plans → Tech Term (Plan 854).
  2. 2Click 'Calculate Premium' — enter age, Sum Assured (minimum ₹50 lakh), policy term, and smoker status. Note the annual premium.
  3. 3Click 'Buy Online' → Create an account or login to licindia.in.
  4. 4Fill the online proposal form — personal details, nominee details, income, health history (answer honestly — false declaration voids claims).
  5. 5Complete medical questionnaire. LIC may schedule a medical test at an empanelled diagnostic centre near you.
  6. 6Set up premium payment — annual or monthly via NACH auto-debit, UPI, or net banking.
  7. 7Pay first premium. Policy is issued and sent to your email as a PDF within 1–3 working days.
  8. 8Register nominee and keep policy document safe. Inform nominee about the policy.

How to Apply Offline

  1. 1Tech Term is exclusively online — it cannot be purchased through agents or at branches.
  2. 2If you need help applying, visit an LIC branch and ask a staff member to assist you with the online application.
  3. 3After issuance, policy services (nominee change, address update) can be done at any branch.

Common Problems & Solutions

LIC Tech Term vs private term insurance — which is better?
Private term plans (HDFC Click 2 Protect, ICICI iProtect Smart, Max Life Smart Secure Plus) are 15–25% cheaper for the same cover. However, LIC's 98.6% claim settlement ratio is highest in the industry, and government ownership provides ultimate security. If you are healthy and want the absolute lowest premium, private insurers win. If you want trust + claim reliability, LIC Tech Term is the best choice.
How to make a death claim on Tech Term?
Nominee must: (1) Inform LIC branch of policyholder's death. (2) Fill Death Claim Form 3784. (3) Submit: death certificate (original), policy bond, nominee's ID proof + bank details. LIC processes death claims within 30 days of receiving all documents. LIC's claim settlement ratio is 98.6% — most straightforward claims are settled without issues.
I disclosed a health condition — will LIC increase my premium or reject?
LIC may: (a) Accept at standard premium, (b) Accept with extra premium (loading) for medical conditions like diabetes or hypertension, or (c) Decline for serious conditions. Never hide a medical condition — if you hide it and die, LIC can reject the claim. If LIC loads the premium and you don't want to pay, you can decline and get a refund of first premium.

Frequently Asked Questions

What happens if I miss a Tech Term premium payment?

LIC provides a 30-day grace period. If you pay within 30 days, the policy remains in-force. If you miss the grace period, the policy lapses — no cover. For a term plan, there is no surrender value. You can revive within 5 years by paying outstanding premiums + interest. For term plans, staying in-force is critical — a lapsed term policy means you are uninsured.

Can I increase Sum Assured in Tech Term later?

No — the Sum Assured is fixed at purchase. To increase cover, buy a new term plan. Rates will be based on your current age, which will be higher. This is why it is important to buy a large enough Sum Assured when you are young and healthy.

Is LIC Tech Term premium tax-deductible?

Yes — under Section 80C, up to ₹1.5 lakh of premium per year is deductible from taxable income. For a ₹1 crore cover costing ₹10,000/year, the full premium is deductible. Death benefit received by nominee is completely tax-free under Section 10(10D).

Helpline & Support

  • LIC Helpline: 022-68276827 (8AM–8PM, Mon–Sat)
  • Online purchase: licindia.in → Term Plans → Tech Term
  • Claim process: licindia.in → Customer Portal → Death Claim

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Disclaimer: NagrikIQ is an informational platform and is not affiliated with any government department. Information provided is for guidance only. Always verify details on the official government portal before taking action.