- About Coverfox
A Term Insurance is essential for everyone, especially those with a family that comprises of dependent children and elderly parents. Unexpected death of the sole bread winner becomes a major setback for the entire family. It enables you to plan for predictable future expenses in your absence like child’s higher education and marriage, medical expenditures of parents, regular income for the family, etc. Therefore, it is wise to secure your family’s financial future well in advance.
LIC, the public sector life insurance company and the oldest in India, offers a wide range of term insurance plans with benefits, each designed to meet the unique financial objectives of individuals and families. These benefits include a reliable source of monthly income, one-time lump sum payout, just to name a few. One such plan is Amulya Jeevan – II Plan, which is a pure insurance plan. It assures your family of a very high sum assured, and that too at a minimal annual premium payment. This substantial sum assured is offered on the disciplined payment of a small annual premium.
This death benefit can be paid as a lump sum amount or in the form of monthly instalments, as per your preference. It will act as a guardian for your family, enabling you to fulfil your child’s ambitions and aspirations even when you are not around. The high sum assured that it guarantees as death benefit on a small annual premium payment ensures that it is a suitable investment for individuals across financial capabilities.
Amulya Jeevan-II term plan, like all other Rs.1 crore Term Plan, is the best suited for individuals between the ages of 30 years and 35 years. There are several life insurance companies that specialize in offering Rs.1 crore term insurance plans in India. However, LIC, being a public sector company and the oldest in India, is renowned for offering reliable services at one of the lowest annual premium amount. Most importantly, LIC boasts of the highest claim settlement ratio among life insurance companies in India. This implies that you will enjoy the highest chances of a claim against LIC’s Rs.1 crore term insurance being settled, in case such a situation arises.
The varied features and benefits of each term plan from LIC make it challenging for us to decide on one of them.
Flexibility – The tenure of Amulya Jeevan-II Plan ranges between 5 and 35 years, making it a suitable term insurance plan for meeting not only long-term financial objectives but short-term goals as well.
Pure insurance plan – This implies that Amulya Jeevan-II Plan offers Death benefit only and nothing is paid on surviving the policy term under Maturity Benefit.
High sum assured – The sum assured that policyholders can opt for starts from a minimum of Rs.25 lakh, offering them the flexibility to increase the cover as per their financial objective.
Flexible premium payment modes – Policyholders can choose to pay their premiums either annually or bi-annually, that is, once a year or every six months.
Grace period – A grace period of one month is offered to policyholders on their failure to make their premium payments on time.
Some of the benefits offered by Amulya Jeevan-II Plan are:
Death Benefit – The Death Benefit that Amulya Jeevan-II Plan equips the policyholder to assure his/her family of financial stability, even when he/she is not around to provide for them. It acts as their guardian during his/her absence, enabling them to maintain their current lifestyle and also fulfil their future ambitions and aspirations. The sum assured on Amulya Jeevan-II Plan is payable to the beneficiary, only in the event of the demise of the policyholder during the policy term.
Tax Benefits – Investments in Amulya Jeevan-II Plan are liable to tax benefits on premium payments under Section 80C of the Income Tax Act, 1961, as well as provides tax free claims, as per Section 10(10D) of the Income Tax Act, 1961.
|Minimum Sum Assured||Rs. 25,00,000|
|Maximum Sum Assured |
(The Sum Assured shall be in multiples of Rs.1, 00,000/-)
|Minimum age limit||18 years (completed)|
|Maximum age limit||60 years (nearest birthday)|
|Maximum cover ceasing age||70 years (nearest birthday)|
|Minimum policy term||5 years|
|Maximum policy term||35 years|
The below illustration is a sample for the annualized premium rates for every Rs.1000 sum assured of Amulya Jeevan-II Plan:
|Age (in years)||5-Y Policy Term (%)||10-Y Policy Term (%)||15-Y Policy Term (%)||20-Y Policy Term (%)||25-Y Policy Term (%)|
Let’s discuss the salient policy details of Amulya Jeevan-II Plan that you should be aware of to be able to make a conscious decision:
Surrender benefits: Surrender value is not applicable on Amulya Jeevan-II plan. This means that this term insurance plan cannot be surrendered in exchange for a cash value. In the event of it being surrendered before the end of the tenure, the policyholder will not be receive any benefit.
Free look period: LIC offers policyholders a period of 15 days as a free look or cooling period on the purchase of Amulya Jeevan-II plan. This period can be utilized by policyholders to read through the policy document thoroughly, ask queries and get clarifications regarding any doubts that they may have about the policy. If they then decide to return the policy, it will stand cancelled. The first premium that has been paid will be returned by LIC, post applicable deductions like the proportionate risk premium for the period on cover, stamp duty charges, expenses for medical examination and special reports, if any.
Backdating interest: The policy can be dated back as long as this date belongs to the same financial year.
Nominations: Amulya Jeevan-II Plan provides assignment and nomination facility.
Exclusions: Death Benefit is not applicable if the policyholder commits suicide within 12 months of the purchase or from the date of commencement of risk or from the date of revival. However, a maximum of 80% of the Death Benefit amount is paid as premiums by the policyholder until his/her death.
You need to meet the following criteria to be eligible to purchase LIC’s Amulya Jeevan-II Plan:
Minimum entry age – An individual should have completed at least 18 years in order to participate in this plan.
Maximum entry age – The maximum entry age for this term insurance plan is 60 years.
Maximum maturity age – The maximum maturity age applicable on this plan life insurance plan is 70 years.
Minimum sum assured – The sum assured starts from a minimum of Rs.25 lakhs.
The essential documents required Amulya Jeevan II Plan as proof of your age, address, identity, address, health and income proofs are:
Certificate of Birth
Electricity and Gas Bills
Blood and urine test reports, and