Life Insurance Corporation (LIC) of India recently relaunched its Jeevan Amar plan, a pure-risk, life assurance plan, and withdrew its old term insurance plan. This new plan offers special discounted rates for females and premium prices vary for non-smokers and smokers. Let’s discuss the relaunched LIC Term plan in detail:Read more
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LIC New Jeevan Amar, offered by Life Insurance Corporation of India (LIC) is a comprehensive term plan that offers financial protection to the family of the assured in case of the policyholder’s unfortunate death during the policy term. The nominee of the assured will receive the death benefit as per the sum assured on death selected by the policyholder. The term plan can be purchased offline only and offers two sum assured options, from which the policyholders can choose the one most suitable for them.
The plan offers several premium payment options like a single premium, regular premium, or a limited premium paying term.
The plan can only be purchased offline through agents, brokers, and Insurance marketing firms.
Choose a policy term of anywhere between 10 years to 40 years.
The policy offers special rates for women and provides two categories of premium rates for smokers and non-smokers.
The plan’s coverage can be enhanced by including Accident Benefit Rider in the base plan for an additional premium.
Policyholders can choose to receive the benefit payout in installments, over a period of 5 years, instead of a lump sum amount.
Receive a benefit of a High Sum Assured Rebate.
In order to purchase the LIC New Jeevan Amar, you need to make sure you satisfy the following requirements.
|Entry Age||18 years||65 years|
|Age at Maturity||-||80 years|
|Basic Sum Assured||Rs. 25,00,000||No limit|
|Policy Term||10 years||40 years|
|Premium Paying Term||Single Premium
Death Benefits: In case the policyholder suffers an unfortunate death within the policy term, the nominee will receive the Sum assured on Death. This Sum Assured on Death depends on the premium payment option selected by the policyholder:
For Regular and Limited Premium Payment Options, the ‘Sum Assured on Death’ will be the highest of the following
7 times the Annualised premiums
105 percent of the ‘Total premiums amount paid’ until the demise of the assured
Absolute assured amount to be paid on death
For Single Premium Payment, the ‘Sum Assured on Death’ will be the higher of the following
125% of Single Premium
Absolute assured amount to be paid on death
Here is a list of sum assured options available under the plan
Option 1: Level Sum Assured
In this option, the Absolute sum assured payable on death will be the basic sum assured amount which will remain the same all over the policy term.
Option 2: Increasing Sum Assured
In this, the Absolute sum assured payable on death becomes twice the basic sum assured amount by the end of the policy tenure.
Maturity Benefits: The policyholder shall receive no maturity value in case they outlive the policy term since this is a pure-risk LIC term insurance plan.
Tax Benefits: The assured will be eligible to receive tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.
Here is an example to help you understand the plan better.
Suppose a 30-year-old male is planning on purchasing the LIC Jeevan Amar plan Rs. 25 Lacs. If the policy term is 30 years and the premium payment mode is regular, then the premiums for the level and increasing sum assured will be as follows
|Sum Assured on Death||Level Sum Assured||Increasing Sum Assured|
|Yearly||Rs. 7,139||Rs. 11,151|
|Half-yearly||Rs. 3,640||Rs. 5,687|
You can also use the term insurance calculator to make these calculations easily in just a few clicks.
LIC Accident Benefit Rider
Under this rider, if the assured passes away due to accidental death, the nominee will receive the Accident Benefit Sum Assured in lump sum amount along with the death benefit under the base plan. The benefit cover will only be applicable until the end of the premium paying period or when the assured turns 70 years of age, whichever is earlier.
Free Look Period: LIC Jeevan Amar offers a 30-day free look period during which the policyholder can return the policy if unsatisfied with the policy T&Cs without any extra charges. This period starts from the day of policy purchase.
Surrender Benefits: The policy does not offer any surrender value but for both sum assured options (Option 1 and 2) the amount refunded will be as follows
For regular premium policies, no amount shall be refunded.
For single premium policies, the relevant refund shall be payable at any time during the policy term.
For limited premium policies, the refund shall be payable only if the premiums have been paid for at least
Two years for premium paying terms less than 10 years.
Three years for premium paying terms 10 or more than 10 years.
Grace Period: The policy offers a term insurance grace period of 30 days for regular and limited premium payment options. This period will begin from the first day of the unpaid premium for yearly and half-yearly premiums and in case the policyholder fails to pay the premiums within this period, the policy lapses.
Suicide: In case the policyholder commits suicide within the first 12 months of the policy purchase,
The nominee will receive 90% of the single premium paid in case of a single premium policy
The nominee will receive 80% of the premiums paid until the death of the policyholder. No other claims can be made by the beneficiary under the policy.