LIC Jeevan Amar policy is a non-linked, without profit pure protection plan. It offers policyholders the flexibility to choose from two different death benefit options which are: Level Sum Assured and Increasing Sum Assured.
Under LIC Jeevan Amar policy, there are two different sets of premium rates for non-smokers and smokers. Also, the policy offers lower premium rates for female lives. The policyholder has an option to select from single, regular, and limited premium payment term. The policy also offers the flexibility to choose the death benefit either in a lump sum or in instalments.
LIC Jeevan Amar, being a pure protection plan, it offers coverage to the policyholder at very affordable rates and ensures financial support for the family in case of the unfortunate demise of the life insured during the policy term.
Following are the benefits paid under the LIC Jeevan Amar plan.
Death benefit: In case of an unfortunate demise of the policyholder during the policy term, provided the policy is in force, the death benefit shall be “Sum assured on death”.
In case of limited premium and regular premium policy, the sum assured payable on death is the highest of:
Option 1: Level Sum Assured
An absolute amount guaranteed to be paid on death will be an amount equal to the basic sum assured, which will remain the same throughout the policy term.
Option 2: Increasing Sum Assured
An absolute amount guaranteed to be paid on death is equal to the basic sum assured till completion of the fifth policy year. Thereafter, the amount increases by 10% of the basic sum assured each year from the sixth policy year, till it becomes twice of the basic sum assured. This increase will continue when the policy is in force till the end of the policy term, or till the date of the death, or 15th policy year, whichever is earlier. From 16th policy year onwards, the absolute amount assured to be paid, remains constant. It is important to note that once the death benefit option is chosen, it cannot be modified.
Maturity benefit: Since it is pure life insurance, no maturity benefits are paid upon the survival of the life insured until the end of the policy term.
Customers are required to meet the following eligibility criteria in order to avail LIC Jeevan Amar plan.
| Parameter | Eligibility criteria |
|---|---|
| Minimum age at entry | 18 years |
| Maximum age at entry | 65 years |
| Maximum age at maturity | 80 years |
| Minimum basic sum assured | Rs. 25,00,000 |
| Maximum basic sum assured | No limit The basic sum assured should be in multiples of Rs. 1 lakh for sum assured up to Rs. 40 lakhs. It should be in multiples of Rs. 10 lakhs if its above Rs. 40 lakhs. |
| Policy term | 10 years to 40 years |
| Premium paying term | Regular premium: Same as the policy term Limited premium: (policy term minus 5 years) for a policy term of 10 to 40 years And (policy term minus 10 years) for a policy term of 15 to 40 years |
Following is the sample premium rates for both the plan option Level Sum Assured and Increasing Sum Assured. The premium rates are for basic sum assured of Rs. 50 lakhs for male, non-smoker under different premium payment options.
Option 1: level sum assured
| Age | Policy term | Regular annual premium | Annual premium for limited PPT of policy term minus 5 years | Annual premium for limited PPT of policy term minus 10 years | Single premium |
|---|---|---|---|---|---|
| 20 years | 20 years | Rs. 4,356 | Rs. 5,104 | Rs. 6,556 | Rs. 48,928 |
| 30 years | 20 years | Rs. 5,940 | Rs. 6,952 | Rs. 8,932 | Rs. 66,088 |
| 40 years | 20 years | Rs. 11,475 | Rs. 13,545 | Rs. 17,595 | Rs. 1,27,395 |
Option 2: Increasing sum assured
| Age | Policy term | Regular annual premium | Annual premium for limited PPT of policy term minus 5 years | Annual premium for limited PPT of policy term minus 10 years | Single premium |
|---|---|---|---|---|---|
| 20 years | 20 years | Rs. 5,715 | Rs. 6,660 | Rs. 8,595 | Rs. 63,720 |
| 30 years | 20 years | Rs. 8,415 | Rs. 9,900 | Rs. 12,870 | Rs. 94,095 |
| 40 years | 20 years | Rs. 17,664 | Rs. 20,838 | Rs. 27,232 | Rs. 1,95,868 |
Surrender value: No surrender value is applicable under this policy. However, on surrender of the plan in the following cases for both the plan options, an amount shall be refunded as under:
Income tax benefit: Regarding Income tax benefits/implications on premium(s) paid and benefits payable under this plan, please consult your tax advisor for details.
Free-look period: In case the policyholder is not satisfied with the terms of the policy, he/she has an option to return the same to the insurance company, stating the reason for such cancellation. However, cancellation should be made within 15 days from the date of receipt of the policy document. The customer needs to return the original policy document to the insurer, and the company will refund the premium, if paid. It is important to note that once the policy is returned, it cannot be revived, restored, or reinstated again. Moreover, the insurance company will deduct the proportionate risk premium for the period of cover, medical expenses, and stamp duty charges.
Grace period: Policyholders are given additional time to pay the premium after the premium due date when the insurance policy is in force. LIC Jeevan Amar policy offers a grace period of 30 days for policies with yearly and half-yearly premium payment mode. The policy remains in force during the grace period, and the insurance company is liable to honour the policy claim, if it arises. The policy will lapse from the due date of the first unpaid premium.
Policy lapse: If the due premium is not paid within the grace period, the policy is subject to lapse. All the benefits offered under the policy will cease after the expiry of the grace period. Under such policies, no benefits are payable.
Policy revival: In case due premiums are not paid within the grace period, the policy will lapse. A lapsed policy can be restored during the lifetime of the policyholder; however, revival should be made within a period of five years from the date of first unpaid premium or before the date of maturity.
Rebate: The policy offers the following rebates: High sum assured rebate (Applicable under regular, limited, and single premium payment option):
Under option 1: Level sum assured
| Age band | High sum assured rebate as a percentage of the annual premium | ||
|---|---|---|---|
| Less than Rs, 50 lakhs | 50 lakhs to less than Rs. 1 crore | Rs. 1 crore and above | |
| Up to 30 years | Nil | 12% | 20% |
| 31 to 50 years | Nil | 10% | 15% |
| 51 years and above | Nil | 5% | 7% |
Under option 2: Increasing sum assured
| Age band | High sum assured rebate as a percentage of the annual premium | ||
|---|---|---|---|
| Less than Rs, 50 lakhs | 50 lakhs to less than Rs. 1 crore | 50 lakhs to less than Rs. 1 crore | |
| Up to 30 years | Nil | 10% | 18% |
| 31 to 50 years | Nil | 8% | 13% |
| 51 years and above | Nil | 4% | 6% |
Rider: The policyholder has an option to enhance the basic coverage by adding an optional rider to the plan. The plan offers Accident Benefit Rider under regular premium and limited premium payment mode by paying an additional premium, provided the outstanding premium payment term is at least five years. The benefit cover under this rider is available during the premium payment term or up to policy anniversary on which the nearest birthday of the policyholder is 70 years, whichever is earlier. In case of accidental death of the life insured, the Accident Benefit Rider Sum Assured is payable to the nominee in a lump sum along with the death benefit in the base plan.
Option to receive the death benefit in instalments: Nominee can receive the death benefit in instalments over the period of five or ten or fifteen years, instead of opting for a lump sum amount. This option can be availed by the policyholder during his/her lifetime for full or partial death benefit payable under the policy. The instalments shall be paid in advance at monthly, quarterly, half-yearly or yearly intervals, as opted for. The minimum instalment amount for different payment mode is as follows:
| Mode of instalment payment | Minimum instalment amount |
|---|---|
| Monthly | Rs. 5,000 |
| Quarterly | Rs. 15,000 |
| Half-yearly | Rs. 25,000 |
| yearly | Rs. 50,000 |
In order to purchase the LIC Jeevan Amar plan, the customer needs to provide some documents.
Age proof: Birth certificate, driving license, passport, school or college certificate, and PAN card can be submitted as a valid age proof.
Identity proof: Passport, Aadhaar card, PAN card, Voter ID, or driving license can be submitted as a valid identity proof.
Address proof: Utility bill, Aadhaar card, or bank account statement, bank passbook can be submitted as an address proof.
Along with the photocopies of the documents listed above, the customer has to fill up an application form and also provide self-attested photocopies of the mentioned KYC documents.
Suicide exclusion under the single premium policy: The plan shall be void in case the life insured, whether sane of insane, commits suicide at any time within one year from the risk commencement date. The company will not entertain any claim, and the beneficiary is eligible to get 90% of the premiums paid till the date of death, if single premium payment mode is chosen.
Suicide exclusion under regular and limited premium payment policy: The policy shall be considered void, if the policyholder, whether sane or insane commits suicide within one year from the risk commencement date. The company will not entertain any claim, and the beneficiary is eligible to receive 80% of the premiums paid till the date of death on choosing regular and limited premium payment option.
It is important to note that the suicide clause is not applicable for a lapsed policy as nothing is payable under lapsed policies.
LIC Jeevan Amar is a non-linked, non-participating term insurance policy which provides financial protection to the dependents of the life insured in case of his/her unfortunate demise during the policy term.
It provides policyholders with the flexibility to choose from two different death benefit options which are: Level Sum Assured and Increasing Sum Assured. The policyholder has an option to choose from single, regular, and limited premium payment term. The policy also offers the flexibility to choose the death benefit either in a lump sum or in instalments. Since it is a pure term insurance policy, on the survival of the policyholder till the end of the policy term, no maturity benefit is payable.
Under LIC Jeevan Amar policy, there are two different sets of premium rates for non-smokers and smokers. Also, the policy offers lower premium rates for female lives. The policyholders are given a grace period of 30 days to pay the due premiums. Moreover, policyholders are given a grace period of 15 days within which they can review the plan and return it, if not satisfied with the terms and conditions of the policy. In case the life insured dies due to suicide within one year from the risk commencement date, all benefits under the policy cease to exist, and the company returns the premiums paid till date as specified in the policy document. Moreover, the company offers accident benefit death rider to enhance the coverage offered by the base policy.
