LIC Jeevan Amar Plan
Posted: Apr 27, 2020
LIC Jeevan Amar policy is a pure term plan which provides coverage at very low and affordable premiums forming the best form of insurance protection. This plan is newly launched by LIC and is available to be purchased offline. This plan is more affordable and flexible as compared to Amulya Jeevan II. LIC Jeevan Amar policy is a Non-Linked insurance policy with no participation benefits. The insurance policy offers the policyholder the flexibility to choose the option of the death benefit.
Features of LIC Jeevan Amar Plan
This plan is a term insurance plan. The key features of the plan are as follows:
- This plan is a protection-oriented insurance plan which offers affordable premium price and provides financial security to the family of the policyholder on his/her unfortunate demise during the term of the plan.
- The policy offers the policyholder to choose the death benefit to be received under the plan from two options which include the fixed sum assured and increasing sum assured.
- The plan offers two categories of rates of premiums which include smoker premium rates and non-smoker premium rates. The plan also offers a lower rate of premium for female individuals.
- The holder of the policy has the benefit to the premium payment option from single payment, limited payment and regular payment of premium.
- The payment of death benefit under the plan can also be selected by the policyholder. The policyholder can receive the death benefit either in instalment or in lumpsum amount.
- Tax Benefits - LIC Jeevan Amar plan also offers to claim an exemption for a premium paid for the policy under Section 80C of the Income Tax Act and the death benefit received under the plan is tax-free under Section 10 (10D) of the Income Tax Act.
- Surrender Value - No surrender value of the plan is available for limited and regular payment option. However, for single pay option, surrender value is available under the plan.
- The plan provides life coverage till 80 years of age of the insured individual
The benefit of receiving the death benefit in instalment is useful if the insured want a regular and steady cash inflow for his/her family in their absence.
The benefits of LIC Jeevan Amar plan are stated below:
- Death Benefit- Death benefit is paid to the nominee of the policy on the death of the policyholder during the term of the plan. The policyholder has the option to choose to receive the death benefit by the nominee of the policy either in lump-sum or in instalments. The sum assured will be paid in a single amount under lump-sum option or over a period of 5years, 10 years, 15 years under instalment option.
- Maturity benefit- The plan do not have maturity benefit as it is a pure term plan.
- Rider benefit- The plan offers to choose to purchase the add-on rider of Accidental Death by paying the extra premium amount. In case of the unfortunate demise of the insured due to an accident during the term of the plan, rider benefit will be also paid in addition to the basic sum assured in the plan thereby providing higher coverage.
- Freelook Period -In case the holder of the policy is not satisfied with the insurance policy and its terms and conditions then he/she has the option to cancel the insurance plan within a period of 15 days from date of receiving the documents of the policy.
The eligibility criteria for LIC Jeevan Amar Plan are as follows:
- Age at Entry-Minimum is18 years (completed) and the maximum is 65 years (completed)
- Maturity Age- Minimum age is 28 years (completed) and the maximum age is 80 years (completed)
- Policy Term- Minimum is10 years and maximum is 40 years
- Minimum Sum Assured is Rs. 25 Lakhs and there is no maximum limit
- Options of Premium Payment- For a regular premium option, it is as same as the term of the policy. For a limited premium option, it is 5/10 years and for the single premium option, it is a one-time payment.
- Minimum Premium amount for regular premium is Rs. 3,000 and for single premium - Rs. 30,000
LIC Jeevan Amar plan is a newly introduced plan by LIC. The plan offers various benefits and is more flexible than LIC Amulya Jeevan plan. This plan is suitable for those who want the flexibility to choose the sum assured option, the modes of premium payment of the policy and, the method of receiving death benefit under the plan. Before buying a plan you should ensure that the plan fulfil your needs and requirement and you are eligible to buy the plan or not. The plan is only available offline and is slightly expensive than the online LIC e-Term plan.
I am Tanuja Koshy working with one of the leading online insurance aggregators as a General Manager. I manage and drive online investments, short term and long term insurance like home insurance, travel insurance, health insurance, term insurance.