LIC has launched another offline term insurance plan now on 5th August, 2019. LIC Jeevan Amar Life Insurance Plan is an offline term plan that is being launched now along with LIC Tech Term No 854 which is an online term insurance plan. LIC Jeevan Amar Insurance Plan offers unique features compared to its current offline term plans. What are the features of LIC Jeevan Amar Insurance Plan? Are there any negative points in this term insurance plan? Should you opt for LIC Jeevan Amar Insurance Plan or avoid?
What is Term Insurance Plan?
If you are already aware, skip this section.
The term insurance plan is one where in case of unfortunate death of the policy holder, their family (its nominee) would get sum assured. This is the only risk coverage plan and does not have the maturity benefit or survival benefit. Hence such term plans come with lower premiums compared to other life insurance plans.
Are there any existing Term plans from LIC?
Currently LIC already offers term insurance plans both online and offline.
1) LIC e-Term – Pure Online term plan
2) LIC Amulya Jeevan – II – This is the offline term plan
3) LIC Anmol Jeevan – II – This is the offline term plan
4) LIC Bhagya Lakshmi – This is the offline term plan
5) LIC New Jeevan Mangal – This is the offline term plan
Currently it has launched LIC Jeevan Amar Term insurance plan which is also offline plan.
Features of LIC Jeevan Amar Insurance Plan No. 855
Here are some of its key features.
1) The LIC Jeevan Amar Plan is non linked and non participating term life insurance plan.
2) This is one more offline Term Insurance Plan from LIC. Currently LIC already has several offline term plans.
3) Minimum Sum Assured is Rs 25 Lakhs.
4) Maximum sum assured – No limit
5) You can opt for this term plan for Single Premium, Regular Premiums or limited period premium payout options.
6) This term plan offers a level sum assured and increasing sum assured.
7) You have an option to get death benefit in a lump sum or in installments.
8) This plan offers Life insurance coverage up to 80 years of age.
9) Optional accidental death benefit rider available in this insurance plan.
10) Lesser premiums for Women individuals.
11) Low premiums for non smoking individuals.
12) This LIC Jeevan Amar Insurance plan no. is 855.
What is the eligibility to take LIC Jeevan Amar Insurance Plan No. 855?
Here are the eligibility criteria to take this plan.
1) Minimum age of entry is 18 years.
2) Maximum age of entry is 65 years.
3) Maximum age of maturity is 80 years
4) Minimum basic sum assured – Rs 25 Lakhs.
5) Maximum sum assured – No limit
6) This policy is available for 10 to 40 years tenure
7) You can opt for 5 years or 10 years premium paying term
What is the approximate premiums payable under LIC Jeevan Amar Insurance Plan?
a) Here are the sample premium rates for regular premium payment option. The amounts are exclusive of GST.
i) If a 20 year individual opts for Rs 50 Lakhs sum assured for 20 years and premium payment also 20 years, premium works out to be Rs 4,356 for male individual.
ii) If a 30 year individual opts for Rs 50 Lakhs sum assured for 20 years and premium payment also 20 years, premium works out to be Rs 5,940 for male individual.
iii) If a 40 year individual opts for Rs 50 Lakhs sum assured for 20 years and premium payment also 20 years, premium works out to be Rs 11,475 for male individual.
b) Here are the sample premium rates for limited premium payment option (Tenure minus 5 years period). The amounts are exclusive of GST.
i) If a 20 year individual opts for Rs 50 Lakhs sum assured for 20 years and premium payment is 15 years, premium works out to be Rs 5,104 for male individual.
ii) If a 30 year individual opts for Rs 50 Lakhs sum assured for 20 years and premium payment is 15 years, premium works out to be Rs 6,952 for male individual.
iii) If a 40 year individual opts for Rs 50 Lakhs sum assured for 20 years and premium payment is 15 years, premium works out to be Rs 13,545 for male individual.
c) Here are the sample premium rates for Single Premium Plan. The amounts are exclusive of GST.
i) If a 20 year individual opts for Rs 50 Lakhs sum assured for 20 years, single premium works out to be Rs 48,928 for male individual.
ii) If a 20 year individual opts for Rs 50 Lakhs sum assured for 20 years, single premium works out to be Rs 66,088 for male individual.
iii) If a 20 year individual opts for Rs 50 Lakhs sum assured for 20 years, single premium works out to be Rs 127,395 for male individual.
What are various benefits available in this LIC Jeevan Amar Insurance Plan?
#1 – Death Benefit
(a) Level Sum Assured – This is a simple plan and in case of unfortunate death of insured, the nominee would get sum assured which is called as level sum assured.
(b) Increasing Sum Assured – This is different variant. In case of unfortunate death of insured, the nominee would get sum assured which would depend based on which year the insured died.
(i) Death happened 0 to 5 years of taking the policy – Sum Assured is payable to the nominee.
(ii) Death happened between 6 to 15 years – Sum Assured payable would increase by 10% year on year.
(iii) Death happened after 15 years – Sum assured would remain same, year on year. This means, whatever sum assured it would have become till 15 years, it would remain after 15 years.
#2 – Maturity Benefits – Since this is a term insurance plan, there are no maturity benefits.
#3 – Surrender Benefits – There are no surrender benefits available for this term insurance plan.
How does Death Benefit in installment works?
This plan comes with the unique feature of getting death benefit in installments (optional). Generally death benefit is payable in a lump sum. This is like any other life insurance plan. However, one can also get such death benefit in installments as indicated below
1) One can opt for death benefit payable in 5 years or in 10 years or in 15 years.
2) One can opt for the partial amount as a lump sum and the balance amount to get in installments in 5 years, in 10 years or in 15 years.
Are there any high sum assured Rebate in this LIC Term insurance plan?
Why you should opt for LIC Jeevan Amar Life Insurance Plan No 855?
Here are some of the pros of considering this plan. You can check whether these are beneficial for you.
1) This plan comes with Life insurance coverage up to 80 years. You can opt it if you think you may need it.
2) Optional Accidental Death Benefit rider available in this plan
3) There are flexible payment options i.e. single premium, regular premiums and limited period premium payout options.
4) Lower / discounted premium rates for women and non smoker individuals.
5) The increasing sum assured is good as the sum assured would not remain same throughout the policy period. As an example, if you have taken plan 10 years back, you might have regretted with low sum assured.
6) LIC has 2nd high claim settlement ratio of 98% for FY2017-2018 latest one published by IRDA in Jan-2019. CSR should be one of the criteria in considering a good term insurance plan.
7) This plan offers high sum assured rebate upto 20% on premium.
Why you should NOT opt for LIC Jeevan Amar Insurance Plan?
Here are some negative points.
1) This is an offline term insurance plan where you need to opt this through LIC agent or directly visiting LIC branch. You cannot buy it directly online.
2) Offline term plans come with higher premiums. If you observe above sample premium rates, it is almost 80% to 100% higher premium rates compared to its existing LIC e-Term plan.
3) LIC is trusted brand in India. It has a high claim settlement ratio (CSR). Considered this, LIC charges higher premiums compared to other offline term plans.
Some of the FAQs LIC Jeevan Amar Insurance Plan
1) Can we switch from existing LIC offline term insurance plan to this new plan?
This plan has unique features. Hence, you may want to switch to its new plan. However, it is not possible. You may need to take this new plan and close old term plan if you wish to opt new plan.
2) How this plan is compared to term insurance plans from private insurance companies?
There are several offline term insurance plans in India. The existing LIC offline term insurance plans has limited features. Private insurance companies have floated several term plans with unique features. This new plan comes with several good features which can be comparable inline with private insurance plans, except in terms of premium and offline mode.
3) Are there any High Sum Assured Rebate on this plan?
Yes, the table provided above indicates that one would get 4% to 20% high sum assured rebate on premiums of LIC Jeevan Amar.
Should you opt for LIC Jeevan Amar Insurance Plan No.855?
This new offline term insurance plan from LIC that has good features. It has several unique features compared to its existing LIC offline term plans or its LIC e-Term Online Term plan. However, premiums for this offline term plan are very higher compared to its online term plan. I would recommend considering online term insurance plan instead of this offline term insurance plan. Not sure why LIC has launched such offline policies where only LIC agents would get benefited with commissions. Sorry LIC agents, kindly excuse me to make this statement. These are facts.
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LIC Jeevan Amar Insurance Plan No. 855 – Should you opt
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