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For people seeking pure insurance product, LIC has introduced the pure insurance plan called Amulya Jeevan II. Since Amulya Jeevan II is a pure insurance plan, the plan only offers death cover or death benefits which means that if the policyholder meets with death at any time during which the policy is in force then LIC will give to the nominee(s) of the policy holder’s Amulya Jeevan II policy the sum assured on death amount.
If the policyholder survives the policy tenure, then no maturity or survival benefit is payable at any time during the policy tenure or after the culmination of the policy.
The Amulya Jeevan II pure term plan is a non-participating plan and non-linked plan which means the policy does not participate in the profits of the corporation and is not linked with units of any financial instruments. It is a pure life cover plan for those who seek to ensure the wellbeing of their family members and dependents even in their absence due to death.
The Amulya Jeevan II plan is an offline plan which subscribers need to purchase through any of the agents or outlets.
If a policyholder of the Amulya Jeevan II Plan meets with death during the tenure of the policy, then it may apply to the beneficiaries or nominees of the policyholder the sum assured by the policyholder. The minimum sum which the policyholder needs to assure is INR 25 lakhs. The plan has not put any restrictions on the maximum sum assured and policyholder may opt to assure any sum above the minimum stipulation depending upon the amount of cover which he/she feels would be adequate.
Policyholders of the Amulya Jeevan II plan need to pay premiums half yearly or yearly. The half yearly premium works out to be 2 % dearer than annual premium. Premiums for this policy cannot be paid on the monthly or quarterly basis.
Service taxes are levied on the premiums to the tune of 12 %. Once a subscriber accepts the policy, he becomes a policyholder and the premiums mentioned in his/her policy document remains the same throughout the tenure of the policy, though due to changes in service taxes premium amounts may seem to change. If service taxes increase on the premiums, the net payable premium amount also increases and if service taxes decrease then the net payable premium amount decreases.
Policy term or term of a policy implies the time till which a policy is in force. Policy term for the Amulya Jeevan II plan is minimum five years and maximum 35 years. If the policy of the policyholder happens to expire while he/she is still alive, then the policy can be renewed for another term provided the policyholder fulfills eligibility with respect to age. For taking up Amulya Jeevan II plan, the policyholder must have completed 18 years of age, and his/her age cannot be more than 60 years for subscribing this policy. The age at which cover ceases for Amulya Jeevan II policy is 70 years that is after 70 years the plan does not provide life cover under this policy.
Suppose a person has regular income then it is advisable for him/her to take up Amulya Jeevan II plan at the minimum possible age, say 20, for a maximum possible policy term of 35 years. That way by paying a nominal premium, life cover till 55 years can be availed, after which policy can be renewed till cover ceasing age of 70 years that is for a term of another 15 years.
The amount of premiums payable by a policyholder of would depend on the sum assured amount opted, age of the policyholder and the policy term.Sum assured and premium:
Greater the sum assured greater the premium amount. How much life cover should a person opt for? Going by the rule of thumb it should be what can be availed for at least 1 % yearly payment of a person’s annual income. So if a person earns an income of Rs 3, 60, 000 yearly, then he can opt for a minimum life cover of Rs 25, 00,000 at an annual premium of around Rs 3600.Age and premium:
Greater the policy holder’s age more the premium amount. Hence LIS advises people to get insured as early as possible so as to avail benefits of maximum life cover at minimum premiums.Policy term and premium:
Premium amount increases with increase in policy term for people with greater age at entry, for lesser entry age, premiums are more or less stable with an increase in policy term.
|Policy term(years)||Age of Policy Holder(years)|
|Premium payable annually on Rs 1000 sum assured (Rs.)|
Subscriber’s age needs to be at least 18 years
Subscriber should not be over 60 years
Policy tenure should be at least five years maximum can be 35 years
Policy cover ceases at 70 years.
Sum assured should be at least Rs 25 lakh and maximum any amount above this.
Policyholders of the Amulya Jeevan II plan are eligible for income tax benefits under sections 80 C and 10D of Income Tax Act. Insurance premiums paid up to Rs 1,50,000 are considered for deducting the taxable income amount, whereby taxable income is reduced. Also, death benefits are not taxed under the act.
The Amulya Jeevan II Plan does not acquire any paid-up value after any number of years that is even if premiums are paid for a certain number of years, say three years, they need to be continued throughout the policy tenure as failure to do so results in policy lapse.
The Amulya Jeevan II plan does not have any surrender value that is policy cannot be surrendered before the end of policy tenure as doing so will not fetch any benefit under this plan.
The Amulya Jeevan II Policy lapses if premiums are not paid on time and after that within the grace period. A lapsed policy can be revived within two years of a lapse by paying all the due premiums as interests as applicable.
The company does not pay death benefits if the policyholder commits suicide within 12 months of purchasing or renewing Amulya Jeevan II policy. However, up to 80% of the amount is paid as premiums by policyholder until the time of death and if the policy is in force.
The company provides subscribers of Amulya Jeevan II plan a free look or cooling period of 15 days. During this time subscriber is free to review the policy document thoroughly and clear all queries. If the subscriber is not satisfied with the terms and conditions mentioned in the policy, then he/she may return the policy and the policy shall stand cancelled and the first premium paid will be returned by the company after making the applicable deductions. Requests for subscription of a cancelled policy by the same subscriber shall not be again entertained.
The Proofs required for the Amulya Jeevan II Plan include age, identity, address and income proofs as well as basic medical proofs like blood and urine test reports if applicable. Documents in support of such proofs would include Aadhaar card, Pan card, Ration card, birth certificate, matriculation certificate, passport, voter id, income documents, bank statement, photograph, electricity and gas bill.
To conclude Features and Benefits of the Amulya Jeevan II Plan in a nutshell are:
Pure term insurance plan
Non-participative, non-linked plan
Can only be purchased offline
Life cover at nominal premiums
No maturity or survival benefit
Policy does not acquire paid up and surrender value
Loans cannot be taken against the policy
Policy can be assigned
Minimum cover (sum assured) should be Rs 25,00,000
Income tax benefits are applicable
Policy does not have any riders
Cooling period is offered under the policy
Provisions for grace period
Provisions for policy revival