The Life Insurance Corporation of India (LIC) recently launched a new affordable term insurance plan called the ‘LIC Jeevan Amar Plan'. It is a non-linked, nonparticipating, life term assurance plan.
The new plan comes offers greater flexibility for policyholders compared to any other plan and it is not a market-linked plan.
The new plan comes offers greater flexibility for policyholders compared to any other plan and it is not a market-linked plan.
The plan allows policyholders to choose from two death benefit options like level sum assured and increasing sum assured. The plan is available for people above 18 years of age and can be claimed till the age of 65 years, with the maximum age at maturity being 80 years (last birthday) offering policy terms from 10 years to a maximum of 40 years. The policyholder cannot claim the amount on maturity. The nominee will receive the death claim in case of demise of the assured during the term of the policy.
The plan is available for sale offline. In level sum assured option, the death benefit remains the same throughout the term of the policy. However, in case of increasing sum assured, the death benefit remains at the same level in the first five years of the policy and increases by 10 per cent of basic sum assured every year for the next 15 years or end of the policy term, whichever is earlier.
It may be noted that since this is a term plan, it is a without profit and non-linked plan. This means that the plan is not market-linked and you cannot claim the amount on maturity. The amount can only be claimed by the nominee in case of an unfortunate demise of the policyholder during the term.
The minimum Basic Sum Assured (BSA) under this plan is Rs 25 lakh with no maximum limit. The insurance premium can either be paid only once, for a limited premium paying term or regularly or regularly throughout the policy term. The life to be assured has an option to choose between non-smoker and smoker category. A person who chooses the non-smoker category will have to undergo an extra urine cotinine test. Interestingly, the premium for smokers will be more than that of non-smokers.
