Term Plans

LIC Jeevan Amar Plan Features

This plan comes with various features and options for the policyholders. The features of the Jeevan Amar LIC Plan are as follows:

• Death Benefit options available to the policyholders are the increasing sum assured and the level sum assured.

• Multiple premium payment options are offered: Single/lump sum, regular, or limited.

• The death benefit can also be availed in either a lump sum amount or installments for 5, 10, or 15 years.

• The policyholders have the option to add accidental rider benefits by paying an additional premium.

• A death benefit is applicable only if the policyholder dies before the term expires. If the policy matures and the policyholder is still alive, then the death benefit stands nil and the insurance company does not have to pay anything to the policyholder.

• Special premium rates are offered to female policyholders.

• The policy offers unique and attractive rebates on high sum assured.

• The policy comes with two categories of premium rates: Smokers and Non-smokers. Here, non-smokers enjoy the benefit of lower premium rates.

LIC Jeevan Amar Term Plan: Eligibility

The following are the eligibility criteria that one needs to meet to invest in the Jeevan Amar plan:

• Minimum age of entry: 18 years

• Maximum age of entry: 65 years

• Maximum age at maturity: 80 years

• Minimum sum assured: Rs.25,00,000

• Maximum sum assured: No limit

• Minimum policy tenure: 10 years

• Maximum policy tenure: 40 years

• Premium paying term for regular premium: same as policy term

• Premium paying term for single premium: not applicable

• Premium paying term of limited premium of 10-40 years: policy term minus 5 years.

• Premium paying term of limited premium of 15-40 years: policy term minus 10 years

• Liquidity: no liquidity option

• Grace period: 30 days

LIC Jeevan Amar Plan Benefits

The LIC Amar Jeevan Plan offers the following benefits to the policyholders:

• Death Benefit: The policyholder’s family receives a guaranteed death benefit amount if the policyholder dies before the term ends and the policy matures.

Here, the sum assured on the death of a policyholder for a regular and limited premium will be the highest of:

- 105% of total premiums paid till the death; or

- The amount assured to be paid on demise; or

- 7 times of annualized premium.

The sum assured on the death of a policyholder for a single premium will be the highest of:

- 125% of single premium; or

- The amount assured to be paid on demise.

The policyholders also have the option to opt for death benefits to be paid in installments instead of a lump sum amount.

• Rider benefit: The policy offers the policyholders to add LIC’s accidental benefit rider by paying the additional payment. This is offered to limited and regular payment options and with a remaining premium paying term of a minimum of 5 years.

• Tax Benefits: The amount received as the death benefit is eligible for tax benefits as per the Income Tax Act of India.

• Free look period: The policy comes with an offer to cancel the policy within 15 days of the day of buying the policy if the policyholder is not satisfied with the terms and conditions.

• Surrender Value: The regular pay types of policy do not offer a surrender value, but the single pay and limited option plans offer the policyholder to surrender the policy, i.e., you can withdraw your policy at a lower cost in times of emergency/needs.