LIC’s Jeevan Amar (Table No.855) – Offline Term Life Insurance Review
LIC’s Jeevan Amar (No.855) is a Non-Linked, Non-Participating Term Life Insurance Plan. After a long gap, LIC launching a term life insurance. It is mainly because of the competition in this field of product.
LIC’s Jeevan Amar (No.855) – Features
- It is an OFFLINE Term Life Insurance from LIC.
- Minimum Sum Assured is Rs.25 lakh and there is no limit for maximum sum assured.
- You can pay the premium as regular, single or limited.
- You can opt for a level sum assured, where the sum assured you opted will remain the same throughout the policy period.
- You can opt for an increasing sum assured also, where the death benefit will remain the same up to 5 years of the first policy period. After that, it will increases at a rate of 10% for the next 10 years. From the 16th year, it will remain the same.
- Death Benefits can be taken in installments also of 5 years, 10 years or 15 years.
- Coverage up to 80 years of age.
- You can opt for Accidental Rider also.
- Lower rates for Non-Smokers and special rates for women.
LIC’s Jeevan Amar (No.855) – Eligibility
- Minimum age of entry is 18 years.
- Maximum age of entry is 65 years.
- Maximum age of maturity is 80 years
- Minimum basic sum assured – Rs 25 Lakhs.
- Maximum sum assured – No limit
- This policy is available for 10 to 40 years tenure
- You can opt for 5 years or 10 years premium paying term
LIC’s Jeevan Amar (No.855) – Premium
- Sum Assured-Rs.1 Cr
- Term-10 Years.
- Premium Paying Term-10 Years.
- Sum Assured Option-Level Sum Assured
Age-20 Years-Male-Rs.8,080, Age-20 Years-Female-Rs.7,760 (Yearly)
Age-30 Years-Male-Rs.9280, Age-30 Years-Female-Rs.8720 (Yearly).
Age-40 Years-Male-Rs.16065, Age-40 Years-Female-Rs.13260 (Yearly)
(The above rates are exclusive of GST).
Death Benefit Options
Death Benefit Sum Assured
Level Sum Assured – This is a simple plan and in case of unfortunate death of insured, the nominee would get sum assured which is called as level sum assured
Increasing Sum Assured – This is different variant. In case of unfortunate death of insured, the nominee would get sum assured which would depend based on which year the insured died.
- Death happened 0 to 5 years of taking the policy – Sum Assured is payable to the nominee.
- From 6th policy year to 10th year, it will increase at the rate of 10% per year.
- From the 16th year of the policy period, it will remain the same throughout the remaining policy period.
Accordingly, your nominee will receive the death benefit during which period of the policy your death occurs.
Death benefit payment option to the nominee
- Your nominee can receive the death benefit as a lump sum or in installments. If you opted for installments, then LIC will pay the death benefit installments in 5 years, 10 years or 15 years.
- You can choose the full death claim amount be payable in installments or a certain portion of death claim in installments.
- You can choose this installment option either at the time of buying or during the policy period.
Maturity Benefits – Since this is a term insurance plan, there are no maturity benefits.
Surrender Benefits – There are no surrender benefits available for this term insurance plan.
Product Summary :
JEEVAN AMAR plan number 855 is a Non-Linked, Without Profit, pure protection plan. Under this plan there is flexibility to choose from two death benefit options viz. Level Sum Assured and Increasing Sum Assured.
Under this plan, there are two categories of premium rates viz. (1) Non-Smoker rates and (2) Smoker rates.
Premium Payment Mode: Premiums can be paid either under Regular Premium, Limited Premium or Single Premium payment options under this plan. In case of Regular and Limited Premium payment, the premium can be paid regularly during the Premium Paying Term with modes of premium payment yearly or half-yearly.
Term : 10 to 40 Years
Minimum Entry Age : 18 Years (Last Birthday)
Maximum Entry Age : 65 Years (Last Birthday)
Minimum Sum Assured : 25,00,000
Maximum Sum Assured : NO LIMIT
Premium Paying Term :
Policy Benefits :
On Death : On death of the Life Assured during the policy term Sum Assured on Death shall be payable.
For Regular premium and Limited premium payment policy, Sum Assured on Death is defined as the highest of:
- 7 times of annualised premium; or
- 105% of all the premiums paid as on the date of death; or
- Absolute amount assured to be paid on death.
For Single premium policy, Sum Assured on Death is defined as the higher of:
- 125% of Single Premium.
- Absolute amount assured to be paid on death.
Absolute amount assured to be paid on death shall depend on Death Benefit Option chosen at the time of taking this policy and is as under:
Option 1: Level Sum Assured: Absolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.
Option II: Increasing Sum Assured: Absolute amount assured to be paid on death shall remain equal to Basic Sum Assured till completion of fifth policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the sixth policy year till fifteenth policy year till it becomes twice the Basic Sum Assured. This increase will continue under an inforce policy till the end of policy term; or till the Date of Death; or till the fifteenth policy year, whichever is earlier. From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured, till the policy term ends.
The option once chosen cannot be altered subsequently.
On Survival : On survival to the end of the policy term,no benefits shall be payable.
Surrendered Value : No surrender value will be available under this plan. However on surrender of policy in the following cases (for both Level Sum Assured (Option I) as well as Increasing Sum Assured (Option II) options), an amount shall be refunded as per underwriting terms. (For more details contact branch office.)
Loan : No loan will be granted under this plan.
Income Tax Benefit : Premium paid under this plan is eligible for TAX rebate under section 80c.
Proposal Form : 511 and 512 shall be used under this plan.