Majority of the population of India thinks insurance as a tax saving instrument.Hence, a big part of their savings goes towards this investment instrument, especially during the initial three months of the year or in the first quarter. Consecutively, the earnings of agents and insurance providers rise to a great extent during these three months long stretch.Read more
However, this thinking should be removed as with tax savings the term insurance plans provide life cover and give financial security to the family of the insured. To give it more clarity let us discuss two of the most term insurance offered by LIC of India.
Term plans are mostly preferred over other insurance types because their sole purpose is life risk coverage. In the case of term insurance, the benefits are received once the insured person dies. These policies are comparatively more affordable, and they cannot be compared with investment based plans. Term insurance plans are quintessential for the welfare of the entire family, including children and elderly parents. This saving helps an individual to meet his/her child’s education and marriage expenses, his/her parent’s medical costs, and provide a regular source of income for the entire family of the policyholder.
LIC, the oldest government-owned life insurance organization in India, offers a broad array of term insurance policies with several benefits. Each of its plans catered to match the unique financial goals of families and individuals.
LIC is a renowned public sector unit in India, known for providing reliable services at a minimum yearly premium rate. is the company is known for reaching a record claim settlement ratio compared to its fellow competitors in the life insurance sector. This indicates that an insured has higher chances of settling a claim against any of LIC’s INR 1 crore term plans, in case of an emergency. LIC Amulya Jeevan II term plan is most appropriate for those falling in the age group of 18 - 60 years.
Flexibility - Amulya Jeevan-II by LIC has policy tenure between 5-35 years. Hence it is not only an ideal term plan for achieving long term goals but short-term financial objectives.
Increased Sum Assured - The sum assured amount that the insurer can opt for begins from the lowest minimum of INR25 lakh, which can be further increased depending on the policyholder’s financial goals. Hence this term policy is flexible for any modification.
Pure Term Insurance Plan - Amulya Jeevan-II term plan by LIC offers an only death benefit, and there are no other monetary benefits for surviving the policy tenure.
Grace Period - A one month grace period is offered to an insured person in case he/she fails to pay the premium on the due date.
Flexibility In Payment Modes - Individuals who buy this policy will have the flexibility to pay the premium amount either annually (once every year) or bi-annually (in every six months).
Additional Benefits of Amulya Jeevan-II Plan are:
Death Benefit - The death benefit associated with Amulya Jeevan-II by LIC aids the insured person in providing complete financial stability to his/her dependent family members in case of his/her unfortunate demise during the policy tenure. In this way, the plan facilitates the family of the insured to maintain their present lifestyle without compromising on their future ambition and career.
Tax Benefits - Any investment made in Amulya Jeevan-II plan by LIC are accountable for tax deductions under Section 80C of the Indian IT Act, 1961. This term insurance also provides tax-free benefits on the death benefit, under Section 10(10D) of the IT Act, 1961.
Surrender Benefit - Amulya Jeevan-II plan does not involve surrender value. This implies that the policyholder cannot surrender this term plan in substitute for any cash value. In case there is an event of this policy is surrendered before the termination of the policy, the insured person will not derive any benefits.
Free Look Period - LIC term insurance offers its policyholders a cooling or free look period of a fortnight (15 days) on purchasing Amulya Jeevan II. Policyholders can utilize this time period for thoroughly reading the policy document. They can solve their queries and clarify any doubts regarding their terms of the policy. If after evaluating the pros and cons, they want to return back this insurance policy, it is considered canceled. The initial premium paid will be returned by LIC, post relevant deductions, such as stamp duty fees, the proportionate risk premium for a coverage period, medical examination, etc.
Backdating Interest - The policy can be backdated until the date falls in the identical financial year.
Nomination - This term plan comes with nomination and assignment facility.
In case the insured commits suicide during the first year (12 months) from the date of purchase or risk commencement or revival date then death benefit won’t be applicable. However, the maximum 80 percent of the death benefit amount can be paid as a premium by the insured until death.
Minimum Age of Entry - An individual needs to complete maturity (at least 18 years) if he/she wants to take part in this plan.
Maximum Age of Entry - Any person until the age of 60 years can apply for this Amulya Jeevan II term insurance plan is.
Maximum Maturity Age - The maximum age of maturity valid for this term insurance plan is 70 years.
Minimum Sum Assured - The amount of sum assured starts from a minimum of INR25 lakhs.
Certificate of Birth
Electricity and Gas Bills
Medical examination reports and
Anmol Jeevan II by LIC is a pure term plan with no bonus benefits. Therefore, if the policyholder dies during the policy term, the beneficiary will avail the death benefit, but nothing will be payable at the time of the policy’s maturity. This term policy has a maximum sum assured ceiling of INR24 lakhs.
No Maturity benefit
Only death benefit
Non-participating traditional policy
Sum assured amount is payable to the nominee in the event of unfortunate death of the policyholder during the policy tenure
Competitive premium rate
Long Policy term of 25 years can be availed
Income tax deduction as per section 80C on the premium paid and Section 10D on claims received
A grace period of only 30 days is allowed for making a premium payment. If the buyer fails to pay the premium during the grace period, then the policy will lapse.
If you are not satisfied with the policy’s terms and conditions, and coverage you have the freedom to cancel your policy within a fortnight of receiving the policy documents, subject to the condition that there are no claims
In case the insured person commits suicide within 1 year of policy inception only 80 percent of the premium amount is given back to the nominee/beneficiary.
The policy buyer has to fill a proposal or application form
Provide accurate medical documents
Valid address proof
Other KYC documents
Certain cases may require medical examination depending on the person’s age and sum assured
Minimum entry age for the Anmol Jeevan II plan is 18 years, and minimum policy term is 5 years. Maximum entry age is 55 years while the maximum policy term is 25 years. Maximum cover ceasing age for a buyer is 65 years. The minimum amount of sum assured for this term plan is INR 6 Lakhs while the maximum value of sum assured is INR24 Lakhs.
Death Benefit - In case of the policyholder’s untimely demise during the term of the policy, the pre-determined assured sum will be given to the nominee/beneficiary.
Maturity Benefit- If the policyholder survives until the end of the policy term, he/she won’t receive any benefit.
An insured can renew a lapsed policy in a time period of two years from the date of the first missed premium payment but before the expiry of the plan term.
This process can be carried out by making payment for all the premium arrears together with interest at a particular rate fixed by the insurance company. The Anmol Jeevan II term plan won’t acquire any paid-up value. This policy will not be liable to pay any surrender value.
Consumers can utilize the online calculator for determining the exact premium value that they need to pay.
LIC Insurance is well-known for its prompt customer support. One can clarify any doubts or raise any queries to the customer service team either by mail or phone. Your grievances will be duly heard and addressed within no time and in a hassle-free manner.
LIC utilizes modern, state-of-the-art technology to make insurance services available easily through online application. For existing buyers, the company provides the option of paying premium through online mode.
There is a special NRI center for Indian citizens who have settled abroad and want to avail LIC services and products.
With the launch of Anmol Jeevan II and Amulya Jeevan II, LIC discontinued the older versions.
The amount of sum assured for LIC’s Anmol Jeevan II falls in the range of INR 6-24 lakhs, with increments of 1 lakh
Both Amulya Jeevan II and Anmol Jeevan II are protection plans that offer only death cover during the tenure of the policy.
Amulya Jeevan II made an entry when the amount of sum assured was either equals or exceeds INR 25 lakhs
Both the plans do not cover any other benefits, such as surrender values, survival benefit, or loans.
The major difference is the amount of sum assured, but the amount one pays as premium for LIC Anmol Jeevan is roughly double the premium for Amulya II. Hence a common man who invests less than INR 25 lakhs has to incur a higher burden on his shoulder compared to any HNI (high net worth individual).
The policyholder can claim Income Tax benefit available as per Section 80 C for premiums paid. He/she can also make death claims under Section10D.
Compared to their previous versions, the latest LIC term insurance plans charge a low premium for investments over INR 25 lakhs.
After an in-depth overview of both the LIC term insurance plans, one can be at a better position to judge his/her financial condition and future requirements. So, choose any of the two plans for gifting yourself a bright future. In order to sustain the phase of economic uncertainty without much difficulty, one needs to take good care of his/her family’s financial protection. Both plans are good from the point of availing tax benefits. Further, the LIC stamp is always an added advantage for every Indian. Consult a financial advisor for a clear viewpoint and make the best of your savings.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ