LIC of India has recently incorporated a new plan under its term insurance category which is Jeevan Amar Plan (Table No. 855). LIC Jeevan Amar term plan is just synonymous to Amulya Jeevan plan but carry more benefits and is much affordable in terms of cost. A person buying this plan has the freedom of choosing the sum assured, premium payment term and policy year. Another thing, the person cannot claim the sum assured on maturity as it is non-linked term assurance plan.
A lumpsum amount will be paid to the nominee on death circumstances only. The policy is currently available offline and can also be found on the social media channel of LIC.
Highlights :
Age of the Policyholder | 18 years to 65 years |
Age of Maturity | 80 years |
Policy Term | 10 years to 40 years |
Sum Assured | Rs 25 lakhs to unlimited |
Death Cover Options | Level Sum Assured & Increasing Sum Assured |
Where To Buy? | Offline |
Premium Paying Term | Single-Premium OR Yearly OR Half-Yearly |
Grace Period | 30 days |
Jeevan Amar by LIC comes out with multiple features to serve better to customers. All features are designed in a way that can offer several benefits. A few fine features are mentioned below for your perusal.
Death Benefit
In case of a sudden demise during the policy tenure, your family/nominee will be entitled to receive the entire sum assured amount. The death benefit would be defined as 7 times of annualized premiums, 105% of the paid premiums and the absolute amount.
Surrender Value
There will be no surrender value under this Plan. However on surrender of policy in the following cases (for both Level Sum Assured (Option I) as well as Increasing Sum Assured (Option II) options), an amount will be refunded as per the regulations.
Riders
The plan also comes out with additional riders which will be really helpful when it comes to enhancing the basic cover. There are multiple riders that you can avail such as accident benefit rider that you can add to the base policy by paying a small additional premium.
Premium Payments
This plan is designed in a way to offer multiple premium payment options. You can go for Regular Premium, Limited Premium or Single Premium payment options under this plan.
Grace Period
It is an important feature that you must be aware of. A grace period of around 30 days is there for payment of yearly or half-yearly premiums from the date of first unpaid premium.
Taxes
Statutory Taxes, on such insurance plans by Govt. of India or any other constitutional Tax Authority of India shall be applicable according to laws.
Free Look Period
If you are not happy with the insurer or the plan then you can cancel the same within the free look period that is under 15 days from the purchase date.
Death Benefit in instalments
Instead of lump sum, this plan offers the option to take death benefit in installments over a chosen period of 5, 10, or 15 years.
Rebate/Loadings
The plan offers High Sum Assured Rebate which is applicable for Regular, Limited & Single Premium payment options.
Revival
A lapsed policy can easily be revived during the whole lie of the insured. But, it should be within a period of 5 consecutive years from the date of first unpaid premium or as allowed by product’s regulations
Maturity Benefit
In case of survival of the life assured to the end of the policy term, no maturity benefit is payable.
Policy Loan
There will be no loan facility with this term insurance policy.
Factors | Jeevan Amulya Plan (old LIC withdrawn plan) | Jeevan Amar Plan (new LIC plan) |
Age of Entry | 18 years to 60 years | 18 years to 65 years |
Policy Term | 35 years | 40 years |
Maturity Age | 70 years | 80 years |
Coverage Type Options | Level Sum Insured | Level Sum Insured & Increasing Sum assured |
Premim Paying Term | Annually/Half-Yearly | Single-Premium/ Annually/ Half-Yearly |
Surrender Value Payable | Not payable | Payable under single premium |
Grace Period | 15 days | 30 Days |
Death Benefit | Lumpsum payment | Lumpsum or Installment Payment |
Premium Discounts to Women | Not available | Available |
High Sum Assured Rebate is applicable for Regular, Limited & Single Premium payment options. The high sum assured rebates are give below:
a) Option I: Level Sum Assured
High SA rebate as a % of Tabular Annual/ Single Premium
Age Band (Years) | Less than Rs 50 Lakh | Rs 50 Lakh to less than Rs 1 Cr | Rs 1 Cr and above |
Up to 30 | NIL | 12% | 20% |
31 to 50 | NIL | 10% | 15% |
51 and above | NIL | 5% | 7% |
b) Option II: Increasing Sum Assured
(i) High SA rebate as a % of Tabular Annual/ Single Premium
Age Band (Years) | Less than Rs 50 Lakh | Rs 50 Lakh to less than Rs 1 Cr | Rs 1 Cr and above |
Up to 30 | NIL | 10% | 18% |
31 to 50 | NIL | 8% | 13% |
51 and above | NIL | 4% | 6% |
(ii) Modal Loading (For Regular and Limited Premium Payment)
Mode | Loading as a % of tabular annual premium |
Yearly | Nil |
Half-Yearly | 2% |
Sum Assured is Rs 50 lakhs, Premium Paying Term is 20 years and Premium Paid regularly i.e. for 1 year. The premium for a non-smoker male and female has been illustrated below.
Age | Male | Female | Sum assured Opted |
30 years | 7009 | 6127 | Level Sum assured |
35 years | 9,558 | 7965 | Level Sum assured |
40 years | 13541 | 10939 | Level Sum assured |
Who can buy Accident Benefits Rider?
The assured who have chosen limited premium or regular premium while buying LIC Jeevan Amar term plan can attach this rider with their base policy.
Features :
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Last updated on 13-11-2019