A quick housekeeping note first: the original LIC Tech Term has been withdrawn. Its successor is the LIC New Tech Term (Plan 954), which is what is on sale in 2026. Here is the honest review — the cheapest, simplest, most-trusted term cover from the only PSU life insurer, with the trade-offs that come with that simplicity.
The verdict up front
If you want plain death-cover insurance, backed by India's strongest perceived institutional trust, at the lowest premium in the market, LIC New Tech Term is hard to beat. LIC settles roughly 97.6% of claims and 97% within 30 days — the highest in India. The trade-off is feature minimalism: no critical-illness rider, no waiver of premium, no total permanent disability benefit, no joint-life option. Pure cover, nothing else.
Features that matter
| Feature | LIC New Tech Term (Plan 954) |
|---|---|
| Death benefit | Lump sum (single, regular or limited premium) |
| Increasing cover option | Available — sum assured can grow each year |
| Accidental Death rider | Available — cover up to age 70, max ₹1 crore |
| Critical Illness rider | Not available |
| Waiver of Premium | Not available |
| Total Permanent Disability | Not available |
| Joint-life option | Not available |
| Claim settlement ratio | ~97.6% (highest in India) |
What it costs
For a healthy 30-year-old non-smoker buying ₹1 crore cover for a 30-year term, premiums are around ₹9,300 per year — among the cheapest in the market. Smokers pay materially more; women generally get a small discount. Single-premium and limited-premium variants exist if you want to clear the policy upfront.
Who should buy it — and who shouldn't
Buy it if you value PSU trust, the highest claim-settlement record, and the lowest base premium — and you only want death cover, not riders. Conservative buyers, government employees, and households where the brand of the insurer matters fit here.
Look elsewhere if you want a critical-illness rider, waiver-of-premium protection, or total permanent disability cover. HDFC Life Click 2 Protect Super and ICICI Pru iProtect Smart offer richer rider stacks at higher premiums. Also see LIC vs private term insurance compared and the best term plans roundup.
A practical strategy: combine LIC + a private rider plan
Many advisors recommend buying LIC New Tech Term for the base death cover (institutional trust + low price) and a separate critical illness or accidental-disability plan from a private insurer to fill the rider gaps. You get the best of both worlds — PSU-backed death cover plus the rider depth LIC does not provide.
Before you buy
- Disclose all medical and lifestyle facts honestly — non-disclosure is the #1 cause of contested claims.
- Decide between regular, limited and single premium based on your cash-flow.
- Section 45 of the Insurance Act protects the policy from being questioned for misstatement after three years — see how a nominee files a term claim.
Frequently asked questions
Is LIC Tech Term still available?
No — the original Tech Term has been withdrawn. The current product on sale is LIC New Tech Term (Plan 954), which this review covers.
What is LIC's claim settlement ratio?
Around 97.6% — the highest among Indian life insurers — with roughly 97% of claims settled within 30 days.
Is LIC New Tech Term cheaper than HDFC Life or ICICI Pru?
Generally yes, for plain base cover. The price gap reflects LIC's thinner rider stack — no CI, WoP or TPD benefits. Once you add equivalent riders elsewhere, the gap narrows.
Does it have a critical illness rider?
No. LIC New Tech Term provides death cover and an Accidental Death rider, but no critical illness rider, waiver of premium or TPD benefit. Buy a separate CI plan if you need that protection.
Should I pick LIC over HDFC Life or ICICI Pru?
LIC if institutional trust and the lowest base premium are decisive. HDFC Life if you want rider depth and the cleanest complaint record among private insurers. ICICI Pru if a broad CI illness list is your priority.
Sources: LIC New Tech Term Plan 954 sales brochure; Beshak/Ditto/PolicyX reviews; IRDAI claim-settlement disclosures; accessed May 2026. Premiums and rider availability change — verify on licindia.in before buying. Editorial research, not insurance advice.
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