LIC Jeevan Amar Plan: LIC Offline Term Insurance Plan

Life Insurance Corporation of India (LIC) has launched an offline term insurance plan in the year 2019. It is called LIC’s Jeevan Amar plan. This was a much-awaited cheaper offline term insurance plan. In this post, let us take a look at the features and benefits of the LIC Jeevan Amar plan (Jeevan Amar 855 plan details).

Table of Contents

What is Term Insurance?

You may skip this option if you already know what term insurance is.

Term insurance is the cheapest and simplest form of life insurance that provides financial coverage for a defined period of time.

In this type of insurance, the policyholder will not get any maturity benefits. Only, the nominee gets the death benefit if the policyholder expires during the term of the policy.

Who should buy Term Insurance?

All individuals who have financial dependents should buy term insurance policy. Working individuals who are looking for financial security for their family against uncertainties of life should buy term insurance.

It provides financial security to your family in case of your untimely death during the policy term.

LIC Jeevan Amar Plan – LIC Offline Term Insurance Plan

LIC Jeevan Amar Plan is a non-linked, without profit, pure protection “Offline Term Assurance Plan”. This policy provides financial protection to your family in case of your untimely death during the policy term.

There is no maturity value in this insurance plan. Only death claim is payable to the nominee in the event of unfortunate death of the life assured during the policy term.

LIC term plan Jeevan Amar is available through the offline application process only. This new term plan is much cheaper than the Amulya Jeevan plan (withdrawn).

Features of LIC Jeevan Amar Plan

Let us discuss some key features of the LIC Jeevan Amar 855.

This plan is an offline term insurance policy from LIC.
You can choose from two benefit options. Level Sum Assured and Increasing Sum Assured.
There are three options for you to choose from a single premium, regular premium and limited premium payment option.
Flexibility to choose the policy term and premium paying term.
You can opt for payment of benefits in installments.
This term plan offers special rates for women.
LIC term plan Jeevan Amar offers coverage up to 80 years of age.
The minimum sum assured is 25 lakh under this plan. But no limit for the maximum sum assured.
You will have the benefit of an attractive high sum assured rebate.
There are two different categories of premium rates. Namely (1) Non-Smoker rates and (2) Smoker rates.
You can enhance your coverage. Increase it by opting for an accidental benefit rider on payment of an additional premium for it.

Benefits of LIC Jeevan Amar Plan

Here are the benefits of the LIC Jeevan Amar policy.

Death Benefit

The death benefit payable in the event of the unfortunate death of the policyholder during the policy term shall be “Sum Assured on Death”.

Regular and Limited premium policy – Sum Assured on Death is the highest of:

7 times of annualized premium or
105% of all the premiums paid or
Absolute amount assured to be paid on death.

Single premium policy – Sum Assured on Death is the higher of:

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

Absolute amount assured to be paid on death. It shall depend on Death Benefit Option chosen by you at the time of purchasing this policy and is as under:

Option I: Level Sum Assured

Absolute amount assured shall be equal to the sum assured opted by you while buying the policy. It will remain the same throughout the policy term.

Option II: Increasing Sum Assured

Absolute amount assured shall be equal to basic sum assured till completion of the 5th policy year. Thereafter, it increases at the rate of 10% per year from the 6th policy year till the 15th policy year. Till it becomes double of the basic sum assured. From 16th policy year and onwards, it will be constant. That means it will be twice the basic sum assured.

Death Benefit Payment Option

You have an option to choose death benefits in installments instead of a lump-sum amount. You can choose installments over the chosen period of 5 or 10 or 15 years. This option can be exercised by you either at the time of buying or during the policy period. You can choose the full or part of death benefits payable in installments.

Maturity Benefit

On survival of the policyholder to the end of the policy term, no maturity benefit is payable.

Eligibility criteria for LIC Jeevan Amar Plan

Eligibility criteria for the LIC Jeevan Amar policy given below

Minimum Sum Assured – Rs.25,00,000/-
Maximum Sum Assured – No limit (The Sum Assured shall be in multiples of Rs.1 lakh if Basic Sum Assured for the policy is Rs.25 lakh to Rs.40 lakh. And Rs.10 lakh if Basic Sum Assured for the policy above Rs.40 lakh.)
Minimum age at entry is 18 years (last birthday)
Maximum age at entry is 65 years (completed)
Maximum age at maturity is 80 years (last birthday)
Minimum policy term – 10 years
Maximum policy term – 40 years
Mode of payment – Premiums paid either regular premium, single premium or limited premium payment options. In the case of regular and limited premium payment, the premium paid regularly with modes of premium payment yearly or half-yearly.
Premium Paying Term – (1) Regular Premium: Equal to policy term. (2) Limited Premium: (Policy Term minus 5) yrs for policy term 10 to 40 yrs. (Policy Term minus 10) yrs for policy term 15 to 40 yrs. (3) Single Premium: NA
Minimum Premium – The minimum installment premium will be Rs. 3,000/- for Limited and Regular premium policies. And Rs. 30,000/- for Single premium policies.

Also Read: How to invest in Direct Mutual Funds in India?

Also Read: Best Tax Saving FD Rates: These banks are offering the highest tax saver FD rates

Can a loan be taken under this policy?

The loan is not available under LIC Jeevan Amar term plan.

For more information visit LIC official website here

Final Thoughts – LIC Jeevan Amar Review

LIC Jeevan Amar Plan is a pure term insurance plan by LIC. LIC launched this plan with enough flexibility. It has much wider features. This is an offline term insurance policy. Hence, the premium is higher than LIC online term plan- LIC Tech Term Plan.

If you have not purchased term insurance yet. Then my advice is go for LIC Tech Term Plan rather than LIC Jeevan Amar Plan.

Note: This post was originally published on December 25, 2019 and has been completely updated for accuracy and comprehensiveness.