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LIC’s Jeevan Amar Plan (855): Eligibility, Features, Benefits, Maturity, Sum Assured

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Manish Kothari
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Manish Kothari
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LIC’s Jeevan Amar Plan (Plan No. 855, UIN: 512N332V01)

LIC's Jeevan Amar Plan is a Non-linked & Non-participating life term insurance plan which provides financial protection to the policyholder’s family or nominees in case of his/her unfortunate death during the policy term. It is a pure term protection plan which is only available offline & can be bought through an LIC agent or by visiting a branch.

Key Features of LIC’s Jeevan Amar Plan:

  • The plan provides two death benefit options: Level Sum Assured and Increasing Sum Assured.
  • The policy also provides an option to choose from Single, Regular, and Limited Premium payment options.
  • Flexibility to choose the Policy Term/ Premium Paying Term.
  • It also offers low premium rates for female proposers.
  • This plan has two categories of premium rates as Smoker rates and Non-Smoker Rates.
  • Gives flexibility to choose the death benefit payment as a lump sum amount or in installments.
  • Offers an option to increase coverage by adding the LIC’s Accident Benefit Rider on additional premium payments.

Eligibility criteria and other specifications:

ParametersLIC’s Jeevan Amar Plan (Plan No.855)
Entry Age

Minimum - 18 years 

Maximum - 65 years

Maximum Age at Maturity80 years
Minimum Policy Tenure10 years
Maximum Policy Tenure40 years
Minimum Sum Assured₹ 25,00,000
Maximum Sum Assured
  • No upper limit
  • Sum assured shall be in multiples of ₹ 1 lakh if the sum assured is between ₹ 25 lakhs to ₹ 40 lakhs.
  • Sum assured shall be in multiples of ₹ 10 lakh if the sum assured is above ₹ 40 lakhs.
Premium Payment Term

Regular Premium - Same as policy term.

Limited Premium - 

  • For policy tenure of 10-40 years = Policy Term minus 5 years
  • For policy tenure of 15-40 years = Policy Term minus 10 years

Single-Premium - Not Applicable

Features of LIC Jeevan Amar Plan

1. Death Benefit:

Death Benefit payable in the case of death of the policyholder during the term, provided the policy is active shall be "Sum Assured on Death".

In Regular Premium & Limited Premium payment options, "Sum Assured on Death" is the highest of:

  • 7 times of the annualized premium
  • 105% of all the premium payments made till the date of death
  • Absolute assured amount to be paid upon death.

In Single Premium payment Option, "Sum Assured on Death" is the highest of:

  • 125% of the single premium.
  • Absolute amount assured to be paid upon death.

The absolute sum assured which is payable in case of demise will depend upon the death benefit option chosen at the time of buying the policy. The options are:

  • Level Sum Assured

The absolute sum assured to be paid on death will be equal to the amount of the Basic Sum Assured, which is going to remain the same during the policy term.

  • Increasing Sum Assured

Under this option, the absolute sum assured to be paid on death will be equal to the Basic Sum Assured till the completion of fifth year. After that, the basic sum assured increases by 10% each year from the 6th year till the 15th year, till it gets double of the basic sum assured. The increase in amount assured will continue till the end of the policy year or till the 15th year or till death, whichever is earlier. From the 16th policy year, the absolute sum assured will remain constant till the end of the policy term, i.e. Twice the Basic sum assured.

The Death benefit Option once chosen cannot be changed later.

2. Maturity Benefit

The LIC's Tech Term Plan is a pure protection plan. There is no maturity benefit on the survival of the policyholder at the time of maturity.

3. Rider Benefit

The policyholders have the option to avail LIC's Accident Benefit Rider under regular & limited premium payment options by making additional premium payments during the premium paying period, only when the outstanding premium paying term is at least 5 years. The benefit coverage under this rider benefit option is only available during the premium payment term or up to the policy anniversary on which the policyholder’s nearest birthday age is 70 years, whichever is earlier.

On choosing the LIC's Accident Benefit Rider, the rider amount assured will be paid as a lump sum along with the basic amount assured in case of demise of the policyholder by an accident.

4. Death Benefit Payout Option:

This option provides an option to the nominees to receive death benefits in installments over a chosen period of 5,10 or 15 years rather than a lump sum amount.

This option can be exercised by the insured during his/her lifetime for full or part of the death benefits payable. The installments will be payable  in advance as per the chosen option: Yearly, Half Yearly, Quarterly, or Monthly subject to minimum installment amount in each of these options :

Installment ModeMinimum amount
Monthly₹ 5,000
Quarterly₹ 15,000
Half-Yearly₹ 25,000
Yearly₹ 50,000

5.  Premium Payment Options:

Under this plan, one can opt for Regular, Limited, or Single Premium options for the premium payments. In the case of regular premium & limited premium options, the premium payments can be made during the term with yearly or half-yearly payments.

The policy premium for the life to be assured will depend on factors like age, smoking status, gender, term of policy, premium payment option, sum assured option, etc.

For regular and limited premium options, the minimum premium payable is ₹ 3,000. The minimum premium payable in case of a single premium option is ₹ 30,000.

6. Sample Illustrative Premium:

The premium illustrations for both the options for basic amount assured of ₹ 50 Lakh for a Non-Smoker, Male, under different premium payment options is as follows:

Level Sum Assured

Age Term of PolicyRegular Annual Premium OptionAnnual premium for limited premium payment option with: Policy Term minus 5 years

Annual premium for limited premium payment option with: 

Policy Term minus 10 years

Single Premium Option
2020₹ 4,356₹ 5,104₹ 6,556₹ 48,928
3020₹ 5,940₹ 6,952₹ 8,932₹ 66,088
4020₹ 11,475₹ 13,545₹ 17,595₹ 1,27,395

The above-mentioned premiums are exclusive of GST.

Increasing Sum Assured

Age Term of PolicyRegular Annual Premium OptionAnnual premium for limited premium payment option with: Policy Term minus 5 years

Annual premium for limited premium payment option with: 

Policy Term minus 10 years

Single-Premium Option
2020₹ 5,715₹ 6,660₹ 8,595₹ 63,720
3020₹ 8,415₹ 9,900₹ 12,870₹ 94,095
4020₹ 17,664₹ 20,838₹ 27,232₹ 1,95,868

The above-mentioned premiums are exclusive of GST.

6. Rebates & Loadings

The LIC’s Jeevan Amar Plan offers high sum assured rebates and also has a defined structure for Modal loadings. Let’s have a look:

1. High Sum Assured Rebate (Applicable for Regular, Limited, and Single Premium Payment):

The high sum assured rebates applicable are:

Option 1: Level Sum Assured

AgeSum Assured Rebate as a % of Tabular Annual/Single Premium 
Less than ₹ 50 lakh₹ 50 Lakh to ₹ 1 Crore₹ 1 Crores & above
Up to 30 YearsNIL12%20%
31-50 YearsNIL10%15%
51 Years & aboveNIL5%7%

Option 2: Increasing Sum Assured

AgeSum Assured Rebate as a % of Tabular Annual/Single Premium 
Less than ₹ 50 lakh₹ 50 Lakh to ₹ 1 Crore₹ 1 Crores & above
Up to 30 YearsNIL10%18%
31-50 YearsNIL8%13%
51 Years & aboveNIL4%6%

 

II. Modal Loading (Applicable for Regular & Limited premium payment options)

Mode of PaymentLoading as a %of Tabular Annual Premium
Half Yearly2%
YearlyNIL

 

7. Period of Grace (applicable only for Limited & Regular premium options):

A grace period of 30 days will be allowed for the payment of yearly or half-yearly premium payments from the date of first unpaid premium. During this grace period, the policy will be in consideration and will be active without any interruptions as per the terms & conditions of the policy.

If the premium payment is not made before the expiry of the grace period, then the policy will lapse along with all the benefits and nothing shall be payable.

8. Revival:

Policy will lapse or become inactive along with all the benefits in case the premiums are not paid within the grace period.

Such a policy can be made active during the lifetime of the policyholder but subject to conditions that revival needs to be done within a period of 5 consecutive years from the first unpaid premium date or as per regulations and before the maturity by making all due premiums payments along with the applicable interest which is compounded half-yearly. Also, the policyholder would need to submit proof of continued insurability, if required.

The decision regarding the revival of a lapsed policy will be made by the LIC and it carries the rights to accept/reject the revival request.

If a lapsed policy is not revived within the revival period but revived before the date of maturity, the policy shall be terminated. In the case of the regular premium option, nothing would be payable. But, in the case of Limited Premium payment option policies, the amount payable in case of surrender will be refunded and the policy will terminate.

9. Surrender Value:

No surrender value is there in this plan. But in the following cases, an amount shall be refunded on a surrender of the policy:

  1. Regular Premium Policies: Nothing shall be refunded.
  2. Single-Premium Policies: Applicable refund shall be payable.
  3. Limited Premium Payment: Refund will be payable if full premiums  have been paid for at least:

- Two consecutive years, if the premium paying term is less than 10 years.

- Three consecutive years, if the premium paying term is more than 10 years.

10. Policy Loan:

Under this plan, no loan will be available.

11. Taxes:

Statutory Taxes will be imposed on such insurance plans by the Government of India or any other constitutional tax authority.

12. Free Look Period:

In case the policyholder is not satisfied with the terms & conditions of the policy, the policy could be returned to the LIC within 15 days from the date of receipt of the policy bond document stating the arguments against the policy.

On receipt, the LIC will then cancel the policy and refund the premium amount to the policyholder after deducting proportionate risk premium cover for that period and also after deducting the expenses such as medical tests, special reports, stamp duty charges,

13. Suicide Exclusion:

  • In single premium policy:

If the policyholder commits suicide at any time within 12 months from the commencement of the policy risk, the policy will become void. The LIC will not be liable for any claims except for 90 percent of the single premium paid.

  • In regular & limited premium payment policy:

The policy will become void if the policyholder dies by suicide at any time within a period of 12 months from the commencement of the policy risk, given that the policy is active, or within a period of 12 months from the date of revival. The LIC will not be liable for any claims except for 80% of the premiums paid by the insured till death.

Nothing is payable in case of the lapsed policies and so the above clause will also not be applicable.

How to buy LIC’s Jeevan Amar policy?

You can contact your LIC agent or visit your nearest branch for buying the LIC’s Jeevan Amar Policy.

Also Read: 

Steps to become LIC Agent
LIC’s New Endowment Plan (914)
Unit Linked Insurance Plans (ULIPs)
Importance of Health Insurance
LIC New Jeevan Anand ( Plan 915)
LIC Tech Term Plan
LIC Jeevan Akshay Policy VII
LIC Term Plans

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