LIC Jeevan Amar Plan : New Offline Term Life Insurance Plan | Details & Review

LIC Jeevan Amar Plan

As per the latest news, LIC is proposing to launch its new offline Term Life Insurance plan called as ‘LIC Tech- Term Plan’ (Plan no 855).

Latest update : LIC launches Jeevan Amar Plan w.e.f 06-August-2019

LIC already has been offering different types of Term insurance plans in its term plan product catalogue;

  • LIC e-Term.
  • Amulya Jeevan – II.
  • LIC Anmol Jeevan – II.
  • Bhagya Lakshmi.
  • LIC New Jeevan Mangal.

Besides these term insurance plans, LIC is also going to launch a new ONLINE term insurance plan as well, called LIC Tech-Term plan.

It’s surprising to me that they are launching two Term Life Insurance plans at almost the same time. LIC Tech Term plan is the new online version and LIC Jeevan Amar is their new offline version of Term insurance.

It is something like a mutual fund scheme having a regular and a direct plan 🙂

Related article : ‘LIC Tech-Term Plan : New Online Term Life Insurance Plan | Details & Review’

Before discussing about the features of LIC’s new term plan – Jeevan Amar, let’s understand what is a Term life insurance plan?

What is Term Life Insurance Plan? – Term insurance is the simplest and most fundamental insurance product. These insurance plans are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured (the cover amount). Term plan provides risk coverage for a certain period of time (policy term/duration). If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. It is the cheapest form of Life insurance in terms of premium.

LIC Tech-Term

Features of LIC Jeevan Amar Plan

Below are the key features of LIC’s new Term insurance plan – Jeevan Amar;

  • Minimum Age at entry : 18 years
  • Maximum age at entry : 65 years
  • Coverage available till : 80 years
  • Minimum basic sum assured (BSA) : Rs 25 lakhs
  • Maximum basic sum assured (BSA) : No Limit
  • Policy term : 10 to 40 years
  • Premium Payment Term : Single, Regular or Limited
  • Limited Premium Payment Term : 5 years or 10 years
  • Minimum Premium Installment : Rs 3,000 for Regular/Limited options and Rs 30,000 for Single premium payment option.
  • It will be available through ONLINE mode only.
  • Sum Assured options : i) Level Sum Assured & ii) Increasing Sum Assured. You can choose this installment option either at the time of buying or during the policy period. Accordingly, your nominee will receive the death benefit (if any).
  • Increasing Sum Assured Option : The death benefit under this option will remain same for up to the first 5 policy years. After that, it increases at a rate of 10% for the next 10 years. From the 16th year, it remains the same.
  • Death Benefit Payment : The death benefit can be taken as lump sum or in installments payable in 5 years, 10 years or 15 years.
  • Special Discount on Premium : Discounted premium rate is available on the proposals made by women applicants.
  • Optional Rider : Accidental Death Benefit rider is available.

The main features of LIC Jeevan Amar and LIC Tech-Term plan are almost one and the same. The only differences are ; LIC Tech Term plan is available through online mode and the minimum Sum Assured that can be taken is Rs 50 lakhs.

Whereas, LIC’s Jeevan Amar term insurance plan is available through offline i.e, Agents / branches only. The minimum Sum assured that can be bought is Rs 25 lakhs.

LIC’s New Offline Term Life Insurance Plan – LIC Jeevan Amar – Illustration

As of now, there is no confirmed data on premium quotes. Below is the limited available information;

The premium quotations for a Sum Assured of Rs.1 Cr, with tenure & premium paying term (yearly mode) of 10 years are;

  • Age-20 Years-Male-Rs.8,080 | Age-20 Years-Female-Rs.7,760
  • Age-30 Years-Male-Rs.9,280 | Age-30 Years-Female-Rs.8,720
  • Age-40 Years-Male-Rs.16,065 | Age-40 Years-Female-Rs.13,260
LIC Jeevan Amar plan Latest offline term life insurance plan illustration details example
LIC Jeevan Amar plan – Latest offline term life insurance plan – Illustration

Let’s consider an example – A 40 year old male individual buys LIC’s Jeevan Amar Term insurance plan for Rs 1 cr level Sum Assured, with 10 year term, premium payable @ Rs 16,065 p.a., opts for regular premium payment for 10 years and selects ‘lump sum’ death benefit option.

In case, the policy holder expires anytime during the policy tenure (10 years), his/her nominee will receive the death benefit of Rs 1cr as a lump sum amount and the policy gets closed.

In case, the policy holder survives the term then the insurance cover ceases and nothing is payable to him/her.

My opinion on LIC Jeevan Amar Term Insurance plan

Kindly go through the below points before you make a decision to buy a Term insurance plan;

  • The premium rates for LIC’s new online term plan (Tech-Term plan) are much cheaper when compared to Jeevan Amar’s premium rates.
    • The premium quotations for a Sum Assured of Rs.1 Cr, with tenure & premium paying term (yearly mode) of 10 years are;
      • Age-20 Years-Male-Rs.5,456 | Age-20 Years-Female-Rs.5,192
      • Age-30 Years-Male-Rs.6,248 | Age-30 Years-Female-Rs.5,896
      • Age-40 Years-Male-Rs.10,260 | Age-40 Years-Female-Rs.8,460
  • Do make a comparison of the Premium rates for Basic Term Life cover offered by other Life Insurers, offline as well as online plans. But, the cheapest Term plan, does not necessarily mean its the best.
  • Kindly go through the Claim Settlement Data. Though this is no more a primary selection criteria, it is good to go through the claims data provided by the IRDA.
  • Though Claim Settlement record is one of the important factors while choosing your life insurance plan, it is advisable to go for only Term Insurance. You can opt for a Term plan based on the claim settlement record. The other deciding factors can be cost of premium, features, optional riders, quality of service and your comfort level with the Brand. (You may like reading : Best Term Insurance Plans).
Top-10-Best-Life-Insurance-companies-2020-based-on-IRDA-Death-claim-settlement-ratio-2019
Top & Best Life Insurance Companies based on Claim Settlement Ratios
  • Do note that as per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.
  • So, you can buy a Life Insurance plan from any Insurer of your choice. But, do not hide any facts while filling the proposal form. This will ensure that your claim (in any unfortunate event happens) is settled.
  • Kindly use the below online Term insurance calculator to know how much life cover you require. You may also download this calculator from here..
  • You may be better off buying a basic life cover without any riders through online mode. LIC’s Tech Term plan can be a better choice when compared to LIC Jeevan Amar plan.
  • You can also consider buying a stand-alone Personal Accident Insurance plan and/or Health insurance plan for self/family.

(Please note that this article is based on the limited available information and will be edited/updated, if required)

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(Post published on : 10-July-2019)

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