Insurance Plans 717 views February 28, 2020

LIC Jeevan Amar

Life Insurance Corporation of India or better known as LIC is a one-stop solution for all the insurance needs of every individual and is the biggest insurance company in India.

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LIC provides an array of insurance products with affordable premiums and caters to the numerous insurance needs of the people in India. One such product that is offered by LIC is LIC Jeevan Amar. You always remain worried as to what will happen to our family when the main bread earner will not be there, how will they sustain all the financial burden, etc. and hence you would like to have a robust insurance plan which can take care of your family in your absence. So here comes the importance of the Term Insurance Plans. And when we talk about Term Insurance plans, LIC Jeevan Amar term plan comes first into our mind. Let us understand shortly what is a Term Plan.

What is a Term Plan?

Term Insurance Plans are the most inexpensive and pure form of insurance plans which provide all-inclusive financial protection to your near and dear ones when you are not there. Term Plans not only give monetary shield but also helps to fulfill various crucial needs of the family like children’s education, marriage, etc. The plan gives the nominee a lumpsum amount as a death benefit when there is an unfortunate death of the life assured.

Now, we will take you through the details of the LIC Jeevan Amar plan in the below article.

LIC Jeevan Amar plan is a Term Insurance plan, non-linked and non- participating plan. LIC Jeevan Amar, a clean protection plan, gives life coverage to its policyholders at a much reasonable price and guarantees a strong financial backing for the family in case of the unfortunate demise of its policyholder during the policy period.

Key features and benefits of the LIC Jeevan Amar plan.

Availability of Two Benefits: Choice of two benefit options which are Level Sum Insured and Increasing Sum Insured. In Level Sum Insured, the amount of coverage remains constant throughout the policy term, whereas in Increasing Sum Insured, the coverage amount increases over the period

Flexibility : Great flexibility to select the mode of premium like a regular premium, single premium or limited premium payment

Death Benefit: LIC Jeevan Amar provides a death benefit in case of permissible death claim during the term of the policy for all running policies. Sum Insured paid under regular premium and limited premium payment will be the maximum of:

  1. Multiple of 7of the annualized premium OR
  2. 105% of the entire premiums paid on the date of death OR
  3. The absolute amount insured to be compensated on death

Sum Insured paid under single premium payment will be the maximum of the below two options:

  1. 125% of the Single Premium
  2. The absolute amount insured to be compensated on death

The absolute amount insured to be compensated on death is dependent on the death benefit option chosen at the time of availing of the LIC Jeevan Amar plan. These are stated as below

  1. Option I – Level Sum Insured: Absolute amount insured to be compensated on death will be equivalent to the Basic Sum Insured and will remain constant during the entire term of the policy
  2. Option II- Increasing Sum Insured- Absolute amount insured to be compensated on death will be equivalent to the Basic Sum Insured until the 5th year of the policy. After which it increases by 10% of the Basic Sum Insured from the 6th year until the 15th year till it becomes double of the Basic Sum Insured. The rise will remain under a running policy and will be till the term of the policy finishes or until the date of death or until the 15th year, whichever falls early. And from the 16th year onwards, the absolute amount insured is payable on death and will be constant which means that the benefit of double of the Basic Sum Insured till the policy term is over.

Maturity Benefit : LIC Jeevan Amar plan do not provide any maturity benefit

Riders: Enhancement of LIC Jeevan Amar by availing two riders as below:

  1. Accidental Death Benefit Rider of LIC which is available upon selection of a regular premium or a limited premium payment. The coverage benefit will be obtainable during the term of Premium Payment or till the anniversary of the policy where the age of the Life Insured is 70 years, whichever falls earlier.
  2. Availing the death benefit in four modes of payment like monthly, quarterly, half-yearly or annually, instead of a lump sum amount over 5 years, 10 years or 15 years

Discounts : Advantage of availing a High Sum Insured discounts

Level Sum Insured Option:

Age as on Last Birthday< INR 50 lakhs>INR 50 lakhs < INR 1 Crore>=1 Crore & above
Till 30 years
31 years to 50 years
>= 51 years

Increasing Sum Insured Option:

Age as on Last Birthday< INR 50 lakhs>INR 50 lakhs < INR 1 Crore>=1 Crore & above
Till 30 years
31 years to 50 years
>= 51 years
  1. Special Rates : Availability of different rates for the women category under LIC Jeevan Amar
  2. Special Premium rates : For Non- Smokers, the premium rates are low than the smokers
  3. Online Facility : LIC Jeevan Amar plan can be applied easily online
    Tax Benefit: You can get a tax benefit for taking LIC Jeevan Amar plan under the Income Tax Act in consultation with your tax advisor

Eligibility under LIC Jeevan Amar plan

Entry Age Minimum- 18 years as of the last birthday
Maximum- 65 years as of the last birthday
Maturity Age80 years as of the last birthday
Policy period Minimum -10 years
Maximum- 40 years
Sum Insured Minimum -INR 25 Lakhs
Maximum - Zero Limit
When Basic Sum Insured is between INR 25 lakhs to INR 40 lakhs, the basic sum insured will be in multiples of INR 1 lakh AND

When Basic Sum Insured is above INR 40 lakhs, the basic sum insured will be in multiples of INR 10 lakhs
Term of Premium Payment For Regular Premium- Equal to the term of the policy
For Limited Premium- For a Term of 10 years to 40 years, it’s the term of the policy minus 5 years. And for a Term of 15 years to 40 years, it is term of the policy minus 10 years

For Single Premium- NA

With LIC Jeevan Amar Table no 855 or a LIC Jeevan Amar term plan, you can rest assured that your family will be well taken care of financially in your absence. Hence, leave aside your worries and take this plan immediately, if you have not taken till now and lead a stress-free life.

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