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Friday, September 18, 2020

LIC Jeevan Amar – Features, Benefits, Eligibility & Review – 2020

LIC Jeevan Amar is a newly launched non-participating and non-linked pure term insurance plan. As you know pure term plans do not come with any maturity benefit, that’s why this pure term insurance plan doesn’t give you any maturity benefit.

An amount will be paid to the nominee on death circumstances only. The policy is currently available offline. 

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LIC is the oldest player in the insurance sector and, active since 1956. Being the only player till 2002, LIC grabbed the maximum market share and is still the tallest player in the market. With as many as 250 million customers, its reach is humungous and for most customers, life insurance still means LIC.

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CompanyLIC India
Policy / Plan NameLIC Jeevan Amar
Launch Date6th August 2019
Table Number855
UIN Number512N332V01

Key Features of LIC Jeevan Amar

This policy comes with a lot of great features and flexibility options. One of the best benefits of LIC Jeevan Amar that it offers flexibility to choose the sum assured option. All the LIC Term Insurance plans have great features & benefits.

1. There are two options available to choose the sum assured. One is the ‘level sum assured’ and the second one is ‘increasing sum assured’. You can choose one of the options at the time of purchasing the policy. What is it, I have explained it below in detailed.

  • Level Sum Assured: Here in Level Sum Assured, the coverage sum assured will the same throughout the policy term that you selected. It means, if your sum assured amount is 50 Lac for a policy term of 40 years then it will remain the same throughout 40 years.
  • Increasing Sum Assured: This is the best thing about the policy. Here in this option, the sum assured amount will increase with the policy term after the first 5 years. It means for the first 5 years there will be no change in sum assured, is called BSA (Basic Sum Assured). But after 5 years the sum assured will increase by 10% of the BSA every year for the coming next 10 years. After the 15th policy year, the sum assured will not increase. The sum assured amount becomes twice of the BSA in the 15th policy year. This increase will continue under an enforce policy till the end of policy term; or till the Date of Death; or till the fifteenth policy year, whichever is earlier.

2. Flexibility to choose premium payment options, Choose according to your comfort. There are 3 payment options available to choose, have a look to them below:

  • Single-Premium: Here in this option you just need to pay a single premium at once and, get worry-free for future payment. According to my opinion, this option is good for those who have good cash in hand and don’t have a regular source of income.
  • Regular Premium: Herein this option you have to make a payment every year until the policy term. It means if you buy the policy term 30 years, you have to pay premium till to that term. This option is very good for those who have a regular income and able to make yearly payments.
  • Limited Premium Payment: There are two options available in limited premium payment. 1) Policy Term minus 5 years for Policy Term [10 to 40] years. 2) Policy Term minus 10 years for Policy Term [15 to 40] years.

3. Special rates for women. It means LIC is offering great rates to the women.

4. Very attractive high sum assured rebate.

5. There are two types of premium rates in the LIC Jeevan Amar policy. For smoker and non-smoker. If you are a non-smoker then premium rates for you will depend on findings of the Urinary Cotinine test. Smoker premium rates will be applicable for all the rest.

Note: Once you choose death benefits options, it can not be changed later.

Eligibility and Restrictions of LIC Jeevan Amar

Every plan has eligibility criteria. So LIC Jeevan Amar also has some eligibility to buy it. We have listed all of them below, see them.

ParticularsMinimumMaximum
Entry Age18 years (Last Birthday)65 years (Last Birthday)
Maturity Age28 years (Last Birthday)80 years (Last Birthday)
Policy Term10 years40 years
Basic Sum Assured (BSA)Rs. 25 LakhsNo Limit
Premium Payment OptionsRegular Premium: Same as the policy term
Limited Premium: Policy Term – 5 (For policy term 10 to 4 years)
Limited Premium: Policy Term – 10 (For policy term 15 to 40 years)
Single-Premium: Single Payment
Minimum PremiumRegular Premium – Rs. 3,000/-
Single-Premium – Rs. 30,000/-

Benefits & Riders of LIC Jeevan Amar

The plan has some good benefits and insurance riders available to opt for. We have listed below, look at them below.

Death Benefit: If the policyholder dies during the policy term then the sum assured amount will be paid to the nominee.

For the regular premium payment and limited premium payment policy, “Sum Assured on Death” is defined as the highest of:

  • 7 times of annual premium; or
  • 105% of all the premiums paid as on the date of death;

If you opted single premium payment, then “Sum Assured on Death” is defined as the higher of:

  • 125% of Single Premium.
  • Absolute amount assured to be paid on death

Flexibility to Getting Death Benefit in Installment: You can get death benefits in installments for a period of 5 or 10 or 15 years instead of the lump-sum amount. You will get paid all the installments in advance at yearly or half-yearly or quarterly or monthly intervals, as the option you opted for.

Minimum Installment Payments As Follows:

Monthly₹ 5,000
Quarterly₹ 15,000
Half-Yearly₹ 25,000
Yearly₹ 50,000

Maturity Benefit: Since it is a pure life term insurance, there is no maturity benefit for the policyholder.

Riders Available in LIC Jeevan Amar

You can opt for LIC’s accident rider benefit under regular and limited premium payment mode by paying an additional premium amount.

If you opted for this accidental rider benefit, and If the death happened due to an accident, then the accidental rider benefit sum assured along with the death benefits of the base plan of LIC Jeevan Amar will be paid to the nominee.

Premium Illustration Sample

The premium illustrative sample for both options, for option 1 (Level Sum Assured) and option 2 (Increasing Sum Assured) for a BSA of Rs 50 Lacs, Non-smoker, under different premium payment terms.

Grace Period – 30 Days

If due to any reason you aren’t able to pay the premium then you will get a 30 days grace period to pay the premium, from the day your first unpaid premium. This is applicable for the payment mode of yearly and half-yearly.

Note: If you don’t pay the premium during these 30 days grace period, the policy will lapses.

FAQ (Frequently Asked Questions)

🎯 What is LIC Jeevan Amar and how can I buy it?

LIC Jeevan Amar is a non-linked and non-participating pure term insurance plan that provides financial security to in the case of death. Because it is an offline plan so you can buy it from any authorized LIC agent.

🎯 What are the minimum and maximum sum assured for LIC Jeevan Amar?

25 Lakh is the minimum sum assured, and there is no limit for the maximum sum assured in LIC Jeevan Amar.

🎯 What are the minimum and maximum entry age to buy the Jeevan Amar plan?

To buy the Jeevan Amar plan, you must be minimum 18 and maximum entry age is 65 years.

🎯 Can I add any additional rider to the policy?

Yes, you can add accidental death benefit rider with your policy.

🎯 Can I get a death benefit in installments?

Yes, LIC Jeevan Amar gives you the flexibility to get the death benefit in installments.

🎯 Can I buy LIC Jeevan Amar online?

No, Since it is an offline plan, you can buy it from an authorized LIC agent.

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