LIC is a trusted Indian statutory corporation that provides insurance and investment services to citizens of India. LIC brings in many policies that help provide financial support to individuals as well as families. LIC Jeevan Amar Plan is one such protection plan that offers financial support to families in case of unforeseen death of the insured individual. It is a non-linked and non-participating policy that ensures life cover to the insured individual. Being an offline policy, it cannot be purchased online.
LIC Jeevan Amar plan is a term insurance plan that covers an individual up to 80 years of age. There is a minimum basic sum assured of INR 25 lakhs, while there is no upper limit on this sum. The policy also offers long-term coverage that can range from 10 to 40 years. Another great feature of the LIC Jeevan Amar plan is that it offers 2 types of benefit options to choose from: Increasing Sum Insured and Level Sum Insured.
Eligibility criteria of LIC Jeevan Amar Plan
Here are the main eligibility criteria of this term plan:
|Entry Age (Last Birthday)||Minimum: 18 yearsMaximum: 65 years|
|Maximum Maturity Age (Last Birthday)||80 years|
|Basic Sum Assured||Minimum: INR 25 lakhsMaximum: No limit|
|Policy Tenure||10 years to 40 years|
|Premium Paying Term||Single-Premium: NARegular Premium: Same as policy term Limited Premium: When Policy Term is 10 to 40 years, the Premium Paying Term is: Policy Term minus 5 years|
Benefits of LIC Jeevan Amar Plan:
Here are the major benefits of Jeevan Amar LIC:
- The policyholder can choose either of the 2 available death benefit options: Increasing Sum Assured and Level Sum Assured
In the increasing sum assured option, the sum assured increases as the policy moves forward, while in the level sum assured option, the sum assured remains the same
- At the time of purchase, the policyholder can opt for the death benefit to be paid out either as a lump sum or in installments.
- There is flexibility to choose different premiums paying terms for this plan that can be single, regular, and limited
- The policyholder enjoys the flexibility to choose the policy term and the premium paying term as per his coverage needs
- The following tax benefits can be availed:
- Under Section 80C of the Income Tax Act, 1961, the premium amount paid towards the LIC Jeevan Amar Plan is tax-exempted
- The death benefit is also tax-free under Section 10(10D) of the Income Tax Act, 1961
- In terms of rebates and discounts, watch out for the following:
- Jeevan Amar LIC offers special premium rates for females
- It lets the policyholders enjoy a high sum assured rebate
- LIC Jeevan Amar Term Plan brings in premium rates in two categories:
- Non-Smoker rates
- Smoker rates
- The policy brings in a choice to enhance the coverage. This is possible by obtaining an accident benefit rider that is applicable on the payment of additional premium to be paid on rider benefit.
Death benefit and death benefit in installments under LIC Jeevan Amar Plan
- Death Benefit
The death benefit is payable only when the death claim is raised during the policy term. In case of regular and limited premium payment policy, the sum assured on death shall be the highest of the three:
- Seven times the actual annualized premium OR
- 105% of the total premium that is to be paid at the date of death OR
- The absolute amount that is to be paid at the time of death
In the case of a single premium policy, the definition of “sum assured on death” shall be the highest of the following:
- 125% of the single premium that is paid OR
- The absolute amount that is to be paid at the time of death
The premium that is mentioned above for LIC Jeevan Amar Plan does not include any additional amount under this policy such as the rider premium (if any applicable).
The assured absolute amount to be paid at the time of death depends upon the death benefit option that is chosen by the policyholder at the time of obtaining the policy.
- Level Sum Assured
The absolute amount that is assured to be paid at the time of death must be equal to Basic Sum Assured. This amount remains constant during the entire policy term.
- Increasing Sum Assured
The absolute amount that is to be paid at the time of maturity of the policy is equal to the basic sum assured till the fifth year of the policy. This increases by 10% each year after the 6th year of the policy till the 15th year of the policy. After this, it becomes twice as the Basic Sum Assured and then stays the same till the end of the policy term.
Other features of LIC Jeevan Amar Plan:
Given below are other key features of the LIC term plan Jeevan Amar:
- Free Look Period
A policyholder gets the flexibility to return the policy after 15 days of receiving the policy bond if he is not satisfied with any terms or conditions mentioned in the document.
- Grace Period
The policy allows a grace period of 30 days to pay the due premium after the first date of the unpaid premium. This is applicable for both yearly and half-yearly payments.
- Maturity Benefit
There is no maturity benefit in this plan. If the insured individual survives the policy term, the policy is terminated and no benefit is paid to him or the nominee.
Premium details for LIC Jeevan Amar Plan
The premium of LIC Term Plan Jeevan Amarmay be different for policyholders. This depends on various factors such as gender, age, and smoking habits of the policyholder, etc. The table given below entails the premium payment option of a basic LIC Jeevan Amar plan for a non-smoker male who has the policy with a Sum Assured of INR 50 Lakhs.
|Level Sum Assured||Increasing Sum Assured|
|Age||Policy Tenure||Regular Annual Premium||Regular Annual Premium|
|20 years||20 years||INR 4,356||INR 5,715|
|30 years||20 years||INR 5,960||INR 8,415|
|40 years||20 years||INR 11,475||INR 17,664|
*These premiums are indicative only and subject to change at any point of time.
Additional/optional rider benefits for LIC Jeevan Amar Plan
When a policyholder chooses LIC Jeevan Amar Plan, he can also purchase LIC’s accidentbenefit rider. Whether a policyholder chooses a regularpremium payment or limited premium payment, he can avail of this facility just by paying an additional premium during the premium paying term. In such cases, it is compulsory to have at least five years of outstanding premium paying term. It is also necessary that the benefit sum assured does not exceed the basic sum assured.
This rider provides the benefit only during the premium payment term of the policy or in the particular year when the life assured 70th birthday is nearest, whichever comes earlier. If the policyholder chooses this rider for an accidental death case, the total amount of accident benefit rider sum assured is paid in a lump sum along with the total amount of death benefit, paid under the base plan.
Documents required for LIC Jeevan Amar Plan
- When purchasing the policy:
- Proof of Identification – Voter’s ID, PAN
- Proof of Address – Adhaar Card
- Proof of Income/ Salary Statement
- When raising a claim
The nominee or the claimant should keep the following documents with them:
- Original Policy Papers
- Claim Form, signed by the nominee
- Death Certificate from the specified officials
- NEFT details
- For additional PA benefit,
- Copy of the FIR filed
- Post Mortem Report by an authorized Medical Practitioner
- Copy of Panchnama
- Driver’s License if the insured was driving
Any other document that may be asked for by the company
How to buy LIC Jeevan Amar Plan?
This being an offline plan, you would have to purchase the LIC term plan Jeevan Amar through an insurance agent or by visiting a company branch office. You would have to fill in the Application Form and provide the required documents. Once you make the premium payment, you will be issued the policy documents.
Before you BuyLIC Jeevan Amar Plan is an offline policy that has to be purchased through the company office or an agent. However, before you buy the policy, it is recommended that you visit Turtlemint. The website allows you to compare different policies, which allows you in making a well-informed decision.
Exclusions under LIC Jeevan Amar Plan
The exclusions of LIC term plan Jeevan Amar under additional rider are as below:
- For Single premium:
If the life assured commits suicide within 12 months from the date of policy purchase, the policy would be considered invalid. In such cases, LIC will only consider a claim of 90% of the Single Premium. It will not entertain any additional claims.
- Regular or Limited Premium Payment:
If the life assured commits suicide within 12 months from the date of policy purchase, the policy would be considered invalid. When the policy is in force or is within 12 months from the date of revival of the policy LIC will only consider claims of 80% of the premiums that are paid till the date of death.
Exclusions under additional rider of Jeevan Amar
The exclusions under the rider benefit under LIC Jeevan Amar Plan are as below:
- Injuries that are self-inflicted
- Suicide attempts
- Death due to participation in illegal/ criminal activities
- Participation in terrorist activities/ rebels
- Participation in war
Note: It is necessary that the premium under the accident benefit rider does not exceed 100% of the total premium paid under the Base plan.
Being the only earning member of the family, it is important to ensure that your family remains secure even after your death. This is only possible by buying a secured life insurance plan. LIC Jeevan Amar Plan is a reliable plan to ensure financial stability for dependent spouses or children.
LIC Jeevan Amar Plan is a term plan that can offer financial help in case of an unforeseen death. This is a tailored plan that can be availed at an affordable price. It lets policyholders get the flexibility to decide whether the nominee would receive the death benefit amount in a lump sum or in the form of an installment.
There is no surrender value that is available with LIC Term Plan Jeevan Amar. in case you surrender the policy, keep in mind the following:
- Single-Premium Policy: Applicable refund would be payable
- Regular Premium Policy: No amount would be payable
- Limited Premium Policy: Applicable refund would be payable as per the terms of the policy
Yes, the policyholder can avail the accident benefit with LIC accident benefit rider just by the payment of the additional premium. If the accident benefit is availed, the policyholder may get the accident benefit amount right with the death benefit amount.
The premium of the Jeevan Amar plan may be different for a smoker and non-smoker policyholders. If a policyholder opts for the policy in the non-smoker category, it is essential for him to undergo a urinary cotinine test which is an additional medical test to be applicable for non-smoker premium rates.