LIC of India has two term plans as of today i.e. May 2021 and they are LIC Amar Jeevan and Saral Jeevan Plan. Both the plans work similarly but the only difference being that Saral Jeevan is for people who are looking to take life cover of upto 25 lakhs and Amar jeevan is for those who want a life cover greated than 25 lakhs. As per my research based on data from LIC website/advisors and speaking to some life insurance advisors, LIC Amar Jeevan is the most bought plan.
What is LIC Jeevan Amar (855) plan?
I have meeting life insurance prospect for almost 4 years now and the first requirement any person has regarding the life insurance is term plan. Which is in fact the right approach. All the discussion that I have with these people is around the death benefits of the plan.
The first investment that a person need to do in life in to get a life insurance plan. A pure life insurance or term insurance is the best option to start. Often people mix insurance and returns which is a very wrong approach. Though life insurance products give you a return which can easily match your bank FD, or any other investment but buying a life insurance for just returns is not a good investment decision.
One has to bear in mind a life insurance product can give you a 1000x return in certain cases. Way beyond any other investment in the world. Life insurance must be looking at as a tool to create your legacy / will of a huge money before you actually earn that amount.
Jeevan Amar plan number 855 is a non linked, without profit, pure protection plan. Under this plan there is flexibility to chose from two death benefits options viz. Level Sum Assured and Increasing Sum Assured. The plan has two categories of premium rates for smokers and second for non smokers.
The premiums for the policy can be paid as
- Regular premium
- Limited period premium
- Single premium
For options regular and limited period the premiums can be paid either annually or half-yearly.
Surrender Value: No surrender value is available under this plan
Loan: No loan is granted in this plan
Income Tax Benefit: Premium paid under the policy are eligible for tax rebate under section 80 C.
Proposal Forms: Form number 511 and 512 to be used for the policy.
What is the premium, claim settlement ratio and age limit of Amar Jeevan?
The premium depends on many conditions like
- Smoker / non-smoker
- Medical history
For example a 18 years old boy who is a non-smoker with good health condition can buy a life insurance cover of 50 lakhs for INR 5456 for a period of 40 years.
The biggest life insurance company, LIC of India has a claim settlement ratio of 96.69% for the year 2019-20: Economic Times
LIC Amar Jeevan plan can be taken by anyone in the age group of 18 to 60.
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What is LIC Saral Jeevan plan?
It is the latest addition to the LIC’s term insurance plans. It is a standard life insurance plan designed specifically keeping in mind people who want a very simple plan irrespective of their status and condition.
What is the maturity benefit for Amar Jeevan
There is no maturity benefit in Amar Jeevan plan. A term insurance plan is the purest form of life insurance wherein the policy pays the nominees a good amount known as sum assured in case the life insured is dead. The only benefit term insurance plan has is death benefit to the nominees. This is the reason the term plans are very cheap as compared to any other life insurance product.
Can we buy LIC term plan with return of premium
No term plan in the world can return premiums. If you are getting your premiums back, you are paying a part of your premium as investment and nothing else. This is just a marketing gimmick used by life insurers to fool policy holders. This is something that a policyholder should avoid.
Buy LIC term policy online
We at InsuringGurgaon are offering complete online process for buying the Amar Jeevan policy with absolutely no physical interaction with policy buyer. The policy submitting is done online and in real time through LIC’s latest online service called ANANDA.