Are you thinking of an insurance policy for the financial security of your family? LIC has recently launched its new Plan, ‘Jeevan Amar’. It is pure protection term insurance plan. This cheap plan gives a lump sum amount in case the policyholder dies.

Does This policy Give any Maturity Amount?

The first question arises in our mind that is there any maturity amount in this policy. The answer is No.

Jeevan Amar doesn’t give any maturity amount to the policyholder. As I said above, it is purely a protection plan. There is no investment part.

However, if the policyholder dies during the policy, the nominee would get the sum assured.

Benefits of LIC Jeevan Amar

Jeevan Amar is a non-linked, without profit and pure Term plan. LIC has included many features and benefits in this policy considering the requirements of customers. The benefits are-

Coverage For the Older

This plan gives you the death cover till the age of 80 years. Very few term insurance plan gives cover up to such an old age.

Attractive Rebate

The Jeevan Amar Policy gives an attractive rebate on high sum assured. It can go up to 20%. Also low premium rates for female proposers.

Deferred Claim Payment

The nominee can claim the death benefit in 5/10/15 years installments or lump sum.

The option of Increasing Sum Assured

The Jeevan Amar Policy offers the facility of two options on the death benefit, i.e. Level Sum Assured and Increasing Sum Assured.

3 Ways of Premium Payment

The policyholder gets three options of premium payment, viz. Single, Regular and Limited.

 

Affordable Premium

LIC Jeevan Amar is a cheaper and better alternative of the Amulya Jeevan and Anmol Jeevan.

It offers life coverage at an affordable price. Because in Regular and Limited premium options the minimum premium payment installment is only ₹3000.

Surrender Value

However, in Regular premium payment option, there is no surrender value. But, in a single payment and limited payment option, there would be surrender value.

Riders

The LIC Jeevan Amar provides the option of Accident Benefit rider. This rider gives double sum assured in case policyholder dies in an accident. But, you have to pay extra for the rider option.

Tax Benefit

The term insurance plan, Jeevan Amar also gives tax benefit. The amount which you will invest in this plan will be eligible for tax deduction up to ₹1.5 lakh u/s 80C of the Income Tax Act.

Moreover, the death benefit which will be payable to the nominee from the insurer will also be exempted from tax. Therefore, there is a dual tax benefit in this plan.

Recommended – Negatives and Positives of LIC Jeevan Amar

What Are the Limitations of Age and Tenure

Now we discuss the limitations of age and tenure of this policy.

  • In Jeevan Amar plan of LIC, the policy term will be 10 years to 40 years.
  • You have to complete the age of 18 years for joining in this plan.
  • The maximum age to purchase this plan is 65 years.
  • But the maximum age for the death cover is 80 years.
  • However, the maximum age of paying the premium will be 70 years.

Why Should I Buy This Policy?

The Jeevan Amar Policy gives you peace of mind at a very low price. After purchasing this policy you can be assured of the financial well being of your family. The policy would give the promised amount in case the policyholder dies.

In addition, this policy is from LIC, the most trusted brand. It is a government of India organization.

Is there Any better LIC policy Than This?

LIC has withdrawn its earlier term plan Amulya Jeevan. It was a nice plan. But, LIC has closed it and added many new features in a new plan, Jeevan Amar.

However, the online plan LIC e-term is still continuing, which you can buy only online. So, if you want to know whether Jeevan Amar is most suitable for you or not, you have to compare both the plans.

  • The maximum age to enter in E-term plan is 60 years. However, in Jeevan Amar, a person up to the age of 65 years can buy the policy.
  • In E-term maximum maturity, age is 75 years, but in Amar, it is 80 years.
  • The maximum policy term in E-term is 35 years, but in Jeevan Amar, it is 40 years.
  • In E-term the sum assured is always constant. But in Amar, we get an Increasing sum assured option as well.
  • The Rider benefit is not available in E-term.
  • The premium payment mode in E-term is Yearly only. But in Amar, we find three options of premium payment, viz. Regular, Limited and Single (one time).
  • Moreover, in Regular and Limited options we can pay the premiums yearly or half-yearly.
  • The death benefit option in E-term is the only lumpsum. In Amar, we find the option of installments as well.
  • But, LIC e-Term is available online and cheaper than the Jeevan Amar. In fact, the Jeevan Amar is sold through the agents. The LIC has to give Commission to the Agents that is why this plan is costlier than the e-Term.

Recommended: LIC Jeevan Amar Vs LIC e-Term, Which is Better For You?

Level Sum Assured Vs Increasing Sum Assured

As I said above, in this policy there are two options of sum assured to be paid on death, i.e. Level Sum Assured and Increasing Sum Assured. In the earlier policy of LIC, only the level sum assured option was available. But, Jeevan Amar has an extra benefit of Increasing Sum Assured.

Level Sum Assured

If you choose the option of level sum assured, your basic sum assured amount will remain constant throughout the policy term.

Increasing Sum Assured

In this option, the sum assured to be paid on death will remain constant as the basic sum assured up to 5th year of the policy.

Further, starting from the sixth year of the policy, the sum assured will automatically increase by 10% of the sum assured each year. This increment would go on till your sum assured doubles. It would happen in the 15th Year.

16th year onwards there would not be any increment and the sum assured would remain double for the remaining term.

Once Again I would like to remind that there would not be any monetary benefit if the policyholder survives the policy term.

For instance, Suppose your basic sum assured is 10 lakh under the Increasing Sum Assured option. Thus In the 6th year, the sum assured would become ₹11 lakh, 7th year it will become 12 lakh, and so on till 15th policy year. In 15th year, it will become 20 lakh. Now, from 16th year, your sum assured will remain 20 lakh till the policy term.

Note:- You can not change the death benefit sum assured option later.

Sum Assured Payment Rules

As you know the Sum Assured is the lump-sum amount which you choose at the time of taking the policy. And it would be payable on the death of the policyholder during the continuance of policy.

In Jeevan Amar plan the minimum basic sum assured is ₹25 lakh. However, there is no maximum limit of the basic sum assured. In addition, the basic sum assured will be in the multiples of ₹1 lakh, if the basic sum assured is ₹25 lakh to ₹40 lakh. But, the basic sum assured will be in the multiples of ₹10 lakh, if you choose the basic sum assured above ₹40 lakh.

The sum assured on death will be paid depending on two rules-

  1. For the Regular premium and Limited Premium options, the sum assured will be the highest of the three-
  • 7 times of annualised premium, or
  • 105% of all the premiums paid up to the date of death, or
  • The absolute amount which is assured on death.

2. Moreover, for Single premium option, the sum assured will be the higher of two-

  • 125% of single premium, or
  • The absolute amount assured on the death of policyholder.

Note:- The absolute amount assured to be paid on death will depend upon Death Benefit Option which you choose at the time of taking the policy.

Premium Payment Rules

In this policy, there are three options of Premium paying term. You can opt for any of them.

Regular Premium

If you choose this option, you have to pay the premium up to the term of the policy. For example, if your policy term is 30 years, you would have to pay a premium up to 30 years.

You can pay the premium yearly or half-yearly.

Limited Premium

In this premium payment plan, you are not required to pay for the full policy term. There are two options under this plan.

  1. Your premium paying term would be 10 years less than the policy term. But this option is available if you have a policy term of at least 15 years.
  2. In this option, the premium paying term will be five years less than the policy term. For example, if your policy matures in the year 2040, you would have to pay up to 2035.

Also in this option, you can pay the premium yearly or half-yearly.

Single-Premium

In single premium option, you pay a lumpsum premium at the time of taking the policy. So, naturally, you have not to pay any premium thereafter.

Note:- The premium amount depends upon the age, smoking status and gender of the policyholder. It also depends upon the policy term, premium paying term and sum assured option.

What If I Stop Paying Premium in Future

As in all the insurance policies, there is a grace period of 30 days for premium payment in this plan also. This period will start from the date of first unpaid premium. But, if you don’t pay even after the due date, your policy will lapse and all the benefits will cease under such policies. Then nothing will be payable to you.

However, you may revive your policy even after the lapse within the 5 consecutive years from the date of unpaid premium. But during your lifetime. For this, you have to pay the sum of all due premiums with applicable interest.

Unlike Endowment plans, you do not get surrender value in term plans. However, the single premium and limited premium plan of Jeevan Amar gives you the surrender value. It is given as you pay the premium for future coverage.

How Much Would I Pay (Sample Premium Table)

You may be wondering the Premium rate of the LIC Jeevan Amar. You would know the exact amount at the time of buying the policy. However, you can have an idea by going through the sample rates.

Premium Table

  • At the time of taking policy your age is 20/30/40 years.
  • You are non smoker male with standard lives.
  • Your Basic Sum Assured is ₹50 lakh.
  • Your policy term is 20 years.
  • You choose Annual Premium Option with Regular/Limited/Single premium paying term.
  • And you choose the option of Level Sum Assured/Increasing Sum Assured

Option I – Level Sum Assured

Age at CommencementPolicy TermRegular Premium Rs.Premium for Limited Premium Paying Term of (Policy Term minus 5 Years) Rs.Premium for Limited Premium Paying Term of (Policy Term minus 10 Years) Rs.Single Premium Rs.
20204,3565,1046,55648,928
30205,9406,9528,93266,088
402011,47513,54517,5951,27,395

Option II – Increasing Sum Assured

Age at CommencementPolicy TermRegular Premium Rs.Premium for Limited Premium Paying Term of (Policy Term minus 5 Years) Rs.Premium for Limited Premium Paying Term of (Policy Term minus 10 Years) Rs.Single Premium Rs.
20205,7156,6608,59563,720
30208,4159,90012,87094,095
402017,66420,83827,2321,95,868

Note:- The above calculated premium amounts are exclusive of GST.