LIC Jeevan Amar
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 :
- The plan offers the flexibility to choose between two benefits options that are Level Sum Assured and Increasing Sum Assured.
- Comes out with flexibility in Premium paying options such as Single Premium, Regular Premium, and Limited Premium Payment.
- Available at special rates for women
- Advantage of High Sum Assured Rebate.
- Two categories of premium rates namely (1) Non-Smoker rates and (2) Smoker rates.
- Option to add riders to enhance the cover
Eligibility Criteria of LIC Jeevan Amar
| 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 Plan Features
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.
5 Reasons to Buy LIC Jeevan Amar Policy
Higher Sum Assured Discount: The assured person can enjoy lower rates of premium under LIC Jeevan Amar plan if he/she opts for a higher sum assured, for example, Rs 50 lakhs to 1 crore or above. The discount ratio also depends upon the age of the life assured.
- How discounts are offered on choosing a higher sum assured?
- Less than 50 lakhs: Zero discounts
- Between 50 lakh to 1 crore: 12% discount (maximum)
- Above 1 crore: 20% discount (maximum)
Death Benefit: This new LIC term policy guarantees complete payment of coverage amount on the death of the life assured. The policy gives two options for death benefit payment- lumpsum and installment. If the assured wanted to support his family after his death, then the installment option is better. If assured has taken any loans or liabilities, then lumpsum payment is perfect.
Flexible Premium Payment: The premium can be paid in three forms i.e. Single Premium, Regular Premium, and Limited Premium. It is up to the choice of assured which type is suitable to him/her.
- Single Premium: Refer to the one-time premium payment.
- Regular Premium: Refers to annual/yearly premium payment.
- Limited Premium: This type is based on the policy term chosen. The premium term is decided by either deducting 5 years or 10 years from the Policy Term.
Discounts for Women: If a woman is purchasing LIC Jeevan Amar than the rate of premium are generally lower as compared to male counterparts and other term plans of LIC. A maximum of 10% to 20% discount can be given to female policyholders.
Health Benefits: A person who has maintained a healthy lifestyle by keeping him/her away from smoking tobacco which is pernicious to health, then a discount is awarded on the premium under Jeevan Amar plan.
Comparison Between LIC Jeevan Amar & LIC Jeevan Amulya
| 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 |
Rebate on Choosing High Sum Assured
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% |
How Death Benefit is Payable?
- Lumpsum Payment: In LIC Jeevan Amar policy, the death benefit is payable in lumpsum if the life assured has chosen lumpsum payment option at the time of buying the policy. On the death of the assured, the family will receive full payment of the sum assured to meet the urgent expenses or liabilities developed.
- Installment Payment: The family has another option to receive the death benefit through the regular installment of 5 years/ 10 years/15 years. This will supply regular income to the family even after the death of the assured to meet the daily expenses.
Types of Sum Assured Available
- Level Sum Assured: The sum assured under this option will remain intact throughout the policy tenure.
- Increasing Sum Assured: If someone chooses this type of sum assured, the amount will remain constant for the starting 5 years of the term policy and then increases @10% in the sixth year. The amount will keep on elevating until the 15th policy year. After completion of the 15th year, the sum assured will again become constant for the rest of the policy term.
LIC Jeevan Amar Premium Illustration
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 |
Accident Benefits Rider
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 :
- Lumpsum payment of rider sum assured on death of assured in addition to base sum assured.
- Maximum sum available is Rs 1 crore
- Sum assured is payable only on death due to accidents resulting within 180 days from the date of the accident.
