A life insurance term policy is the purest or the most basic form of life insurance. The term plan is easiest to understand. In simple language a term plan is the policy which pays the nominees a maturity claim in case the policy holder dies during the term of the policy. If the policy holder survives the term, no maturity claim is paid to him or his nominees.
Term Policy Eligibility
Every person is eligible for a term plan provided they have some income and are mentally stable. The sum assured varies a per the income of the policy applicant. Other things that matter while purchasing the policy are salary, the company size where the person is working and their educational qualification.
Housewives can be given sum assured equal to the husband.
LIC term plan Amar Jeevan has the maximum term is 40 years or till the person is 70 years old.
The premium of the term plan depends on various things like the age of the policy holder his smoking habits and medical condition. The premium is low for a young person and high for a older person. Premium is low for women and non smokers. Till the policy holder is 40 years old no medical tests are required. After 40 years of age the premium of the policy depends on the medical condition of the life assured and the policy can also be rejected of serious problems are seen in the medical tests.
LIC Amar Jeevan can be bought as a single premium plan. Which means you can pay just one premium for the entire term. For example the premium for an 1 Crore Term Policy for a 25 years old person would be INR xxxxxx paid once.
For a person of 25 years of age the term pan for 1 crore would be INR , 2 crore plan s for INR and for 10 crore the policy holder would be required to pay INR
To get a term plan worth 1 crore you need to be earning and have no serious health condition. You need to apply for term plan through an LIC agent and form no. 501 is to be filled in while applying for the plan.
Along with the application you need to provide address proof, id proof, age proof, bank details, self declared health form, COVID form and premium cheque.
Requirement of life insurance is a very personal thing and there is no one size fits all when it comes to life insurance. Generally speaking people should buy insurance worth their annual income multiplied by 15. If there are any loans that amount should also be added on to sum assured.
The commission on term plan are 25% for first year, 7.5% for second and third year and then 5% for the rest of the term. There are other benefits also given to the LIC agent for selling term plan.