If you’re looking for a pure, no-nonsense life cover from India’s most trusted insurance brand, you’ve likely heard about LIC’s New Tech Term Plan 954. But in a market flooded with options, does this online-only plan from LIC truly stand out? Is it the right choice to protect your family’s future?
To make your life easier, we at Algates Insurance, have done the work of analysing this plan, so you don’t have to. We’ve read the fine print, checked the numbers, and laid it all out in this transparent, no-fluff review.
Let’s get started.
What is the LIC New Tech-Term Plan 954?
In a nutshell, the LIC New Tech Term (UIN: 512N351V01) is a pure term insurance plan that you can buy exclusively online. It’s designed for the current digital age; quick, simple, and paperless.
Pure Protection: It’s a no-frills plan. You pay a premium, and in return, LIC promises to pay a large sum to your family if something unfortunate happens to you during the policy term. There is no maturity benefit; this is purely a safety net.
Non-Participating: This is a technical way of saying the plan does not pay any bonuses or dividends. What you see is what you get: a guaranteed death benefit.
Still unsure about the basics of term insurance? Let us guide you to find the perfect term insurance plan for you. Book a call now to talk to our expert insurance advisor.
The Standout Features
LIC has packed some interesting features into this digital offering. Here are the key highlights:
Two Death Benefit Options
- Option I (Level Cover): Your life cover remains the constant throughout the policy term. Simple and predictable.
- Option II (Increasing Cover): This option is a brilliant hedge against inflation. The cover starts increasing by 10% each year from the 6th to the 15th policy year, eventually doubling. Perfect for young earners whose responsibilities grow over time.
Flexible Premium Payments
Choose what suits your pocket.
- Single Premium: Pay one lump sum and be covered for the entire term.
- Limited Premium: Pay for a shorter period (e.g., for a 20 year term, pay for only 10 or 15 years).
- Regular Premium: Pay every year until the term ends.
Payout Options for Your Family
This is a game-changer. You can choose to have the death benefit paid out to your family in monthly, quarterly, or yearly instalments over 5 years. This prevents a large lump sum from being mismanaged and ensures a steady income for your loved ones.
High Sum Assured Rebates
The higher your cover amount, the less you pay per lakh. For a sum assured of ₹1 Crore and above, you get a significant discount on your premium.
The Good vs. The Not-So-Good
Let’s break down the pros and cons with absolute honesty.
The Pros (What We Like)
The LIC Brand Trust: This is its biggest strength. The comfort of being backed by the state-owned insurance behemoth is unmatched for many Indians.
Digital-First & Convenient: The entire process of LIC New Tech Term Plan 954 is streamlined for online purchase and servicing.
Fights Inflation: The ‘Increasing Sum Assured’ option is a fantastic, built-in feature that many competitors lack.
Financial Safety for Nominees: The instalment payout option provides long-term financial stability to your family.
Special Pricing for Women: Women get lower premiums, reflecting better life expectancy.
The Cons (What You Should Know)
No Surrender Value (For Regular Premium): If you stop paying your regular premiums and the policy lapses, you get nothing back. This is standard for pure term plans, but it can be a hard pill to swallow.
Surrender Value is Complex: For single and limited premium policies, the surrender value calculation is highly complex, and the payout may be low in initial years.
No Loan Facility: You cannot take a loan against this policy.
Slightly Expensive: While competitive, several private insurers often offer the same cover for a lower premium, especially for non-smokers and healthy individuals.
Confused about the fine print? Don’t make a decision in the dark. Our term insurance advisor will help you compare the LIC New Tech Term with other top term plans side-by-side. Book a call to talk to our insurance advisor.
Alternatively, you can check out our top term insurance plan recommendations to understand which one suits you better.
A Quick Review of LIC, the Insurer
When you buy a term plan, you’re entering a promise that may be fulfilled decades from now. So, the credibility of the company making that promise is paramount. Let’s talk about LIC.
The Unmatched Pillar of Trust
Sovereign Guarantee: This is LIC’s single biggest advantage. Being a state-owned corporation, it carries the implicit sovereign guarantee of the Government of India. For many policyholders, this translates to an unshakable sense of security that their claim will be honoured, no matter what. No private insurer can offer this sense of security.
The Financial Giant: LIC is not just an insurance company; it’s a financial institution deeply intertwined with the Indian economy. Its vast asset base and massive policyholder count make it one of the most stable and resilient life insurers in the world.
Grassroot Presence: With a network of thousands of branches and lakhs of agents across the length and breadth of India, LIC’s physical presence is unparalleled. This can be a significant advantage for servicing needs, documentation, or for those who prefer face-to-face interactions.
Impressive Insurer Metrics: LIC’s overall CSR is consistently high. Its CSR for FY 2024-25 stands at an impressive 98.13%. Moreover, it handles its claim processes efficiently with a low claim complaint volume of 4.16 per 10000 claims for FY25. At the end of FY25, its solvency ratio stood at 2.11 against the required 1.50, which is reassuring. Going by these numbers, LIC is definitely a financially reliable and dependable insurer.
Things to Watch For
No Riders or Add-ons: LIC New Tech Term Plan is fairly simple. It does not offer add-ons such as critical illness, terminal illness or return of premium. If you want these add-ons with your term cover, this plan is not for you.
The Claim Settlement Ratio (CSR) Story: LIC has maintained a high CSR over the year. Its CSR for FY 2024-25 stands at 98.13%, which is reassuring. However, it’s important to dig deeper. A high volume of claims also means a high absolute number of claims repudiated (rejected) and pending. While the percentage is low, the actual number of affected families is not insignificant. Private insurers often tout higher CSRs, but they also have a much lower volume of claims to process.
The Digital Divide: While the New Tech Term Plan is a fully online product, LIC’s core identity is still rooted in traditional, offline processes. The experience on their website and customer portal can sometimes feel less seamless and intuitive compared to agile, born-digital private insurers. You are buying a digital product from a traditional giant.
Pace of Innovation: LIC is often perceived as slower to adapt to market trends compared to private players. The New Tech Term Plan 954 itself is a response to this, but the underlying processes, like underwriting and revival, can still be more procedural.
Premiums for LIC New Tech Term
Let’s look at some real numbers.
| Age | Option | Regular Annual Premium | Limited Premium (Pay for 10 years) | Single Premium |
| 30 | Level | ₹9,135 | ₹13,572 | ₹1,00,833 |
| 30 | Increasing | ₹13,083 | ₹19,669 | ₹1,47,562 |
| 40 | Level | ₹17,889 | ₹26,878 | ₹2,03,187 |
Note: Prices are for a ₹1 Crore cover for a non-smoker healthy male with a policy term of 20 years.
Notice how the ‘Increasing’ option costs more? You’re paying for the future higher cover today.
How to Buy LIC’s New Tech-Term Plan: A Step-by-Step Guide
Since this is an online-exclusive plan, the purchase process is designed to be straightforward. Here’s how you can secure your policy from the comfort of your home.
Step 1: Visit the Official Portal
Go to LIC’s official website. This is crucial; beware of third-party websites posing as LIC.
Step 2: Navigate to ‘Buy Policies Online
Look for this section on the homepage and select ‘LIC’s New Tech Term’ from the list of plans.
Step 3: Use the Premium Calculator
This is where you tailor your plan. Provide your Date of Birth, Gender, and Smoking Status. These are critical for your premium calculation. Choose your cover amount (Min. ₹50 Lakh). Pick your death benefit option (Level or Increasing), policy term (10-40 years), and premium payment option (Single, Limited, or Regular).
Step 4: Fill the Proposal Form
You’ll need to provide personal, contact, and occupational details. Have your PAN Card and Aadhaar Card handy for KYC. Also, be ready for the risk assessment phase. You will have to answer detailed health and lifestyle-related questions in the proposal form.
Step 5: Make the Payment
Pay the premium securely online via net banking, UPI, or debit/credit card.
Step 6: Get Medical Examinations Done
Depending on your age, the sum assured, and your declared health details, LIC might require you to undergo medical tests at their empanelled centres. This is common for:
- Older applicants (typically above 45 years)
- High sum assured (e.g., ₹1 Crore or above)
- Any declared health condition
Step 7: The Insurer’s Decision
Based on all the collected information, the insurer will:
- Accept your policy at standard rates.
- Apply a premium loading: Charge an extra premium for specific health risks.
- Apply exclusions: Exclude specific conditions from the cover (rare for term plans).
- Decline the proposal: In cases of very high risk.
Step 8: Receive Your Policy
Once approved, you will receive the policy document electronically via email. Don’t forget to review it during the 30-day free look period.
Are you ready to make a decision? Talk to an Algates Insurance expert advisor for free, unbiased term insurance advice tailored to your income, age, and goals. Book a call now.
What Algates Insurance Recommends
Who Is This Plan BEST Suited For?
The LIC New Tech Term Plan 954 is an excellent fit for you if:
- You are a first-time buyer who values the trust and legacy of LIC.
- You prefer a hassle-free, online buying process.
- You are looking for high coverage (Min. ₹50 Lakhs) with an inflation-beating option.
- You want to ensure your family gets a steady income (via instalments) and not just a lump sum.
Should You Buy It?
LIC’s New Tech Term Plan is a powerful, modern entry from the insurance giant that gets a lot of things right. The increasing cover and instalment payout features are genuinely valuable.
However, the final choice depends on your priority:
- Choose this plan if: The unparalleled trust of the LIC brand and the specific instalment payout feature are your top priorities.
- Think twice and compare if: Your main goal is to secure the highest possible cover at the absolute lowest premium. In this case, you might find better value elsewhere.
Disclaimer: This review is for informational purposes only. It is recommended to read the official policy document from LIC before purchasing. Policy terms and conditions apply. Algates Insurance is an IRDAI-approved insurance intermediary and does not claim to be associated with LIC. Premiums are subject to change.
Frequently Asked Questions
If you miss a premium payment, you get a 30 day grace period to pay it. If you still don't pay, your policy will lapse, and your risk cover will stop. However, you can revive a lapsed policy within 5 years by paying all the due premiums with interest, subject to fresh underwriting.
No, it does not. This is a pure term insurance plan. Its only goal is to provide a life cover. If you survive the policy term, no maturity benefit or payout is made.
Think of it as an automatic cover booster to fight inflation. For the first 5 years, your cover stays the same. Then, from the 6th to the 15th year, it increases by 10% of the original sum assured each year. So, if your initial cover was ₹1 Crore, it will become ₹1.1 Crore in the 6th year, ₹1.2 Crore in the 7th, and so on, until it doubles to ₹2 Crores at the 15th year, where it remains for the rest of the policy term.
Yes, LIC is one of the most reliable life insurers in India. It is a state-owned company with a sovereign guarantee, meaning it has the backing of the Government of India. It has a massive network and a very high claim settlement ratio, which makes it a trusted choice for a long-term commitment like a term plan.
Yes, you have two options:
Free Look Cancellation: You have 30 days from receiving the policy document to cancel it if you don't like the terms. You will get a refund of your premium after deducting some charges.
Surrender: You can surrender the policy later. However, for regular premium policies, you get nothing back. For single premium and limited premium policies (after paying for a few years), a small surrender value may be payable, but it's usually not recommended.
The policy has a suicide clause. If the life assured commits suicide within 12 months of starting or reviving the policy, the nominee will not receive the sum assured. Instead, they will get 80% of all premiums paid (for regular/limited premium) or 90% of the single premium paid, excluding taxes. This clause does not apply after 12 months of commencement or revival.
Very helpful article, I hadn’t realised that the instalment payout option existed. Makes a big difference in how the benefit can help a family over time.
Glad it helped!
Most people actually miss the instalment payout option — and it’s one of the most powerful features in any term plan. A steady monthly or yearly income often supports a family much better than a one-time lump sum, especially during stressful times.
It’s great that you noticed it — choosing the right payout structure can genuinely change how effectively the claim amount protects your family in the long run.
If you ever want to understand which payout option fits your profile best, feel free to reach out.