Life Insurance Corporation of India (LIC) is one of the most trusted insurance providers in India, with a wide range of insurance products that cater to the diverse needs of individuals. One such insurance product is the LIC New Jeevan Amar plan, which is a non-linked, offline term insurance plan that provides comprehensive coverage to policyholders. Let’s take a review of LIC New Jeevan Amar Plan.
Features Of LIC New Jeevan Amar Plan
The LIC New Jeevan Amar plan offers a host of features that make it a preferred choice for individuals looking for a comprehensive term insurance plan.
- Flexible Benefit Options: The plan offers the flexibility to choose from two types of benefits – Increasing Sum Assured and Level Sum Assured.
The Increasing Sum Assured option allows the policyholder to increase the sum assured by a certain percentage each year, while the Level Sum Assured option provides a fixed sum assured throughout the policy term.
- Special Premium Rates for Women: Women policyholders are offered special premium rates. This makes it an affordable option for them to secure their family’s financial future.
- Attractive Rebates on High Sum Assured: The plan provides attractive and unique rebates on high sum assured. This encourages policyholders to opt for higher coverage.
- Accidental Rider Benefits: Policyholders can enhance their base coverage by opting for the Accidental Rider Benefit. So, it pays an additional premium amount.
- Installment Payment Option: The plan provides policyholders with the option to receive the benefit amount in installments. So, this can be helpful in managing the finances of the family in case of the policyholder’s untimely demise.
Eligibility For LIC Jeevan Amar Plan
LIC Jeevan Amar Plan is a life insurance policy that provides financial protection to the policyholder’s family in case of unfortunate events such as death, disability, or critical illness. However, to be eligible for this plan, certain parameters need to be fulfilled by the applicant.
The policy tenure for LIC Jeevan Amar Plan ranges from 10 to 40 years, and the premium paying term is dependent on the policy term.
For Regular Premium, it is the same as the policy term, while for Limited Premium, it varies based on the policy term. The premium can be paid quarterly, monthly, half-yearly, or yearly.
The minimum entry age for this plan is 18 years (last birthday), and the maximum age limit is 65 years (last birthday). The maturity age for LIC Jeevan Amar Plan is 80 years (last birthday). The policy provides a grace period of 30 days for premium payments.
The Sum Assured for this plan has a minimum limit of no bound and a maximum limit of Rs. 25,00,000. There are no liquidity options available with this plan, which means the policyholder cannot withdraw the policy before its maturity.
Benefits Of LIC New Jeevan Amar Plan
The key benefit of the LIC Jeevan Amar Plan is the death benefit, which is paid to the nominee in case of the policyholder’s untimely death during the policy tenure.
- Death Benefit
The death benefit is paid as a lump sum and is calculated as the highest of 7 times the annualized premiums paid, 105% of the premiums paid till death, or the absolute sum assured to be paid on death.
For a single premium, the death benefit is defined as 125% of the single premium paid or the absolute death benefit, whichever is higher.
- Maturity Benefit
The LIC Jeevan Amar Plan does not offer any maturity benefit upon the policyholder’s survival till the end of the policy tenure.
- Surrender Benefit
The plan offers a surrender benefit, which is limited in nature. Refunds are granted only after completion of the policy tenure of two years. In the case of a single premium payment, refunds are subject to certain conditions.
However, there is no refund policy for the regular payment plan. As for the limited pay plan, refunds are applicable only if the timely payment of the first two years’ premiums is made for policy terms below ten years, and the timely payment of the first three years’ premiums is made for policy terms above ten years.
- Tax Benefits
The LIC Jeevan Amar Plan offers tax benefits as per the prevalent tax laws. The death benefit received under the plan is eligible for tax benefits. However, tax benefits are subject to changes in tax laws.
Premiums For LIC Jeevan Amar Plan
The LIC Jeevan Amar Plan provides policyholders with the flexibility to choose from three different premium payment modes. These include a single premium payment, regular payment mode, and limited payment mode. The plan can be activated by making a single premium payment of a minimum of Rs. 30,000.
Alternatively, policyholders can choose to activate the plan through regular or limited payment modes, with a minimum premium amount of Rs. 3000. This flexibility in premium payment options allows policyholders to choose the mode that best suits their financial needs and preferences.
Documents Required To Buy LIC Jeevan Amar Plan
Firstly, one has to provide identity proof, which can be any one of the following documents: Aadhar card, voter’s card, or passport. These documents are accepted as valid identity proof by LIC and are used to verify the identity of the policyholder.
Secondly, address proof is also required to buy the LIC Jeevan Amar Plan policy. The address proof can be any one of the following documents: Aadhar card, driving license, electricity bill, ration card, voter’s card, or passport. These documents are used to verify the residential address of the policyholder.
Thirdly, income proof is a must for buying this policy. This can be in the form of income tax returns or salary slips. The income proof is required to ascertain the income of the policyholder and to determine the premium amount.
Finally, health records of the life assured are necessary to buy this policy. This is important to determine the health status of the policyholder and to assess the risk involved in insuring them. The health records may include medical reports, doctor’s certificates, or any other relevant documents.