LIC New Jeevan Amar Plan

LIC New Jeevan Amar Plan is a non-linked, non-participating, individual, pure-risk premium life insurance plan. The plan provides financial protection to your family members in case of your unfortunate demise within the policy term. The plan is an updated version of the previous LIC Jeevan Amar Plan and offers special rates for women. You can only purchase the plan offline through agents, brokers, and insurance marketing firms.

Below mentioned are the key highlights of the New Jeevan Amar from LIC of India

• Policy Type

  Term Insurance Plan

• Policy Term

  10 to 40 years

• Benefit Options

  Level and Increasing Sum Assured

• Attractive Rebates

  For High Sum Assured

• Premium Payment Options

  Regular/ Limited/ Single Premium

• Premium Rates Category

  Non-Smoker & Smoker Rates

The following are the eligibility criteria and restrictions of the New Jeevan Amar by Life Insurance Corporation of India.

• Entry Age

  18 years - 65 years

• Maximum Age at Maturity

  80 years

• Basic Sum Assured

  Rs. 25 Lakh - No limit

• Premium Paying Term

  Regular Premium: Same as policy term
  Limited Premium: (Policy term minus 5) years for policy term 10 to 40 years (Policy term minus 10) years for policy term 15 to 40 years
  Single Premium: Not Applicable

The previous LIC Jeevan Amar plan has been withdrawn, and Life Insurance Corporation of India has launched New Jeevan Amar Plan with the following benefits.

Death Benefit

The ideal death benefit offered by the plan makes it preferable among policy buyers. If the policyholder dies within the policy term, after the commencement of risk but before the date of maturity, a Sum Assured on Death is paid to the beneficiaries. The death benefit is payable as

For regular and limited premium policy, whichever is higher payable

• 7 times the annualized premium, or
• 105% of the total premium paid upto the death, or
• Absolute assured amount

For single premium policy, whichever is higher payable

• 125% of the single premium, or
• Absolute assured amount

The policyholder can receive the absolute assured amount on death in the following two types: Level Sum Assured and Increasing Sum Assured. Once you select an option at the time of inception of the policy, no changes are allowed later.

Below is the premium chart for the LIC’s New Jeevan Amar Plan for a Basic Sum Assured of Rs. 50 Lakhs (non-smoker, male, standard lives).

Option I (Level Sum Assured) Premium Chart

Option II (Increasing Sum Assured) Premium Chart

* All the above premiums are exclusive of taxes. You can sit with an agent or visit the LIC branch to calculate the LIC New Jeevan Amar premium for your individual plan needs. No online New Jeevan Amar 955 premium calculator is available on the Life Insurance Corporation of India’s official website.

** All the data mentioned above are provided from official LIC sources.

The following two options are available under LIC New Jeevan Amar Plan 955 to receive the absolute amount assured on death. The LIC of India allows no alterations once you choose a death benefit option at the time of the policy inception.

Option I: Level Sum Assured

The absolute amount assured paid on death is an amount payable equal to the basic sum assured. The Basic Sum Assured will remain the same throughout the policy term.

Option II: Increasing Sum Assured

The Absolute Amount Assured paid on death is an amount payable equal to the Basic Sum Assured and will remain the same till the 5th policy year completion. Thereafter the increase will be as under.

The policyholder is eligible to take the following optional benefits available under LIC New Jeevan Amar Plan.

Optional Riders

LIC of India offers the policyholder to opt for LIC’s Accidental Death Benefit Rider under New Jeevan Amar Plan. The rider can be availed under the regular and limited premium payment modes by paying an additional premium during the policy paying term. If the policyholder opts for the rider and in case of accidental death, an Accidental Benefit Rider Sum Assured is payable with the death benefit of the base plan.

Receive Death Benefit in Instalments

The policy allows receiving the death benefit in instalments over 5 years instead of receiving the amount in a lump sum. The minimum amount of instalments is paid in advance as opted for different modes of payment.

New Jeevan Amar Plan of LIC of India offers additional features to make the plan a suitable purchase and let your family receive the maximum financial benefits when you are not around.

Payment of Premiums

Different premium payment options are available under the plan to make the payment as per the legitimacy, i.e., Regular Premium, Limited Premium, or Single Premium. The premium amount depends on various factors, including entry age, smoking status, gender, policy term, policy paying term, and sum assured amount.

Grace Period

For regular and limited premium payment options, a grace period of 30 days is provided to make the due payment from the date of the first unpaid premium. The grace period is also applicable for the payment of riders. If the premium is not paid within this period, the policy lapses.

Revival

The revival of a lapsed policy is allowed under LIC’s New Jeevan Amar within 5 consecutive years from the date of the first unpaid premium. The policyholder should pay all the outstanding premiums, including the interest. If the policy is not revived within the revival period, the policy automatically terminates. The revival of riders is allowed with the base policy only.

Rebates

Rebates are applicable under the LIC New Jeevan Amar plan for the following circumstances.

(i) High Sum Assured Rebate

The following rebates are eligible for regular, limited, and single premium payments.

Under Option I: Level Sum Assured

Under Option II: Increasing Sum Assured

(ii) Modal Loading

The rebates are eligible for regular and limited premium payment

Surrender of the Policy

Specifically, the plan provides no surrender value. However, the LIC New Jeevan Amar Plan refunds an amount in the case of Level Sum Assured and Increasing Sum Assured.

For Regular Premium Policies: No amount is refundable.

For Single Premium Policies: An applicable refund shall be payable anytime during the policy term.

For Limited Premium Policies: An applicable refund shall only be payable if the full premium is paid for at least

• Two consecutive years (for less than 10 years premium paying term policy)
• Three consecutive years (for 10 years or above premium paying term policy)

Tax Benefit

The policyholder can save taxes as per the standard Income Tax benefits. We advise contacting a financial advisor to learn more about taxes and savings.

Free Look Period

Suppose the policyholder is not satisfied with the policy’s terms and conditions. In that case, they can return the policy within 30 days from the date of receipt of the policy document. The policyholder needs to state the reasons for objections to receiving the policy. The Life Insurance Corporation of India shall cancel the policy and return the amount of the premium deposited after deducting applicable charges.

Suicide is excluded under the LIC’s New Jeevan Amar Plan under the following conditions.

Under Single Premium Payment Policy

If the life assured commits suicide within 12 months from the commencement of the risk, the beneficiary shall receive 90% of the Single Premium paid.

Under Regular/ Limited Premium Payment Policy

If the life assured commits suicide within 12 months from the commencement of the risk or within 12 months from the date of revival, the beneficiary shall receive 80% of the premium paid till the date of death.

* Nothing is payable under a lapsed policy.

LIC of India’s New Jeevan Amar 955 is the suitable plan for the head earner of the family having dependencies on a spouse and children. With the features and options available, the plan provides the maximum flexibility to enhance the benefits received. As mentioned above, you can receive the death benefit in instalments. Hence, the amount received can work as the regular income source after the demise of the policyholder. The affordable term plan brings financial stability to the family in tough times and helps manage their expenses.

Want to extend the benefits of the plan to make it suitable for your family's financial requirements in your absence, or do you have any questions regarding LIC’s New Jeevan Amar that are not covered above? Connect with us at RenewBuy, your trusted insurance partner with Smart Tech, Right Advice.