Review of LIC New Jeevan Amar Plan

After the unfortunate death of Mrs. Revti Arya’s husband, her family struggled financially. She was facing trouble paying the school fees of the kids, outstanding loans, and other day-to-day expenses. However she was able to use her income to get her family’s financial situation back on track. Now, after two years of her husband’s death, she decided to buy an LIC Term Insurance for herself to prevent the financial hardships she and her family faced after an unfortunate event. After doing her research, she decided to buy LIC New Jeevan Amar Plan. 

LIC Jeevan Amar is a pure risk protection term plan that is designed to provide financial protection to the family in case of the unfortunate death of a policyholder. This term insurance plan is offered by LIC of India and ensures your family’s financial stability even in your absence.

Let us explore the features and benefits of LIC New Jeevan Amar Plan that helped Mrs. Revti to make a decision:

What are the Features of LIC’s New Jeevan Amar Plan?

Here is a list of all the features of LIC New Jeevan Amar that convinced Mrs. Arya to purchase the plan.

• You can choose from two death benefit options as per your suitability

• LIC New Jeevan Amar offers special rates for female customers and non-smokers

• Choose a flexible policy term from 10 to 40 years

• Pay the premiums in a single, limited, or regular premium payment tenure

• Choose to receive the benefit amount in a lump sum or in regular installments paid over a period of 5 years

• You can include LIC’s Accident Benefit Rider to the base plan to enhance its coverage

• Receive tax benefits under sections 80C and 10(10D) of the Income Tax Act

Benefits of LIC New Jeevan Amar Plan

LIC of India offers the following benefits with its Jeevan Amar Plan

1. Death Benefit

   The death benefit will be paid to the nominee in case of the unfortunate death of the policyholder during the policy term. The benefit paid for regular and limited premium payment plans will be the highest of:

   • 7 times the annualized premiums paid or

   • 105% of the premiums paid till death or

   • the absolute sum assured to be paid on death.

   The death benefit for a single premium is defined as:

   • 125% of the single premium paid or

   • Absolute death benefit, whichever is higher.

2. Sum Assured

   There are two sum assured options available and you can select the most suitable option as per your requirements. The benefit option once selected cannot be changed therefore you should make your choice wisely.

   • Option 1: Level Sum Assured

     The sum assured on death once selected will stay the same throughout the policy term.

   • Option 2: Increasing Sum Assured

     The sum assured on death will remain the same for the first 5 policy years. Fifth policy year onwards, the sum assured will increase by 10% till the fifteenth policy year, until the basic sum assured has doubled in amount.

3. Add Riders for Enhanced Protection

   There is only one rider available in the LIC New Jeevan Amar plan and you can include the following rider to the base term plan to increase its coverage.

   • LIC Accident Benefit Rider: The rider can be availed only under the limited and regular premium payment options. Under this rider, in case of your unfortunate death due to an accident, the rider benefit will be paid in lump sum along with the selected death benefit.

4. Surrender Benefit

   The LIC Jeevan Amar Plan offers surrender benefits only for the Limited Pay option. The benefit is paid provided the first two years' premiums are paid (for policies with tenure less than ten years) and the first three years' premiums are paid (for policy tenure above ten years).

5. Tax Benefits

   The premiums paid and the death benefit received under LIC Jeevan Amar Policy are eligible for tax benefits as per the prevalent tax laws.

Eligibility Criteria of LIC Jeevan Amar

Let us see the conditions that made Mrs. Arya eligible to buy the LIC Jeevan Amar Plan

Summing it up

Having a term insurance plan is one of the best ways to ensure your family’s security after your death. Just like Mrs. Revti, many customers are willing to secure the financial future of their loved ones and are buying LIC New Jeevan Amar Plan. The plan’s wide range of benefits and affordable premiums is what makes this plan the number 1 choice for most customers.

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