LIC's 'Jeevan Amar' insurance plan
Life Insurance Corporation of India (LIC) has launched a new term insurance plan called 'Jeevan Amar'. It is a non-linked, non-participating, life term assurance plan and offers greater flexibility to policyholders in comparison to other insurance plans.
Non-linked plan
LIC's much awaited term insurance plan is not a market-linked plan. The policyholder cannot claim the amount on maturity. The nominee will receive the death claim in case of demise of the life assured during the term of the policy.
Death cover, sum assured and more
The 'Jeevan Amar' plan, available for sale offline, offers flexibility to choose from two death cover options like level sum assured and increasing sum assured, LIC said in a release. In level sum assured, death benefit remains the same throughout the term of the policy. While in case of increasing sum assured, 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 policy term, whichever is earlier. It then maintains a constant level for the remaining term of the policy.
Insurance coverage up to 80 years of age
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.
Policy term of the plan
The minimum policy term of the 'Jeevan Amar' plan is 10 years while, the maximum term is 40 years.
What is the insurance cover
The minimum basic sum assured (BSA) under 'Jeevan Amar' plan is Rs 25 lakh with no maximum limit.
Payment of insurance premium
The insurance premium can either be paid only once, for a limited premium paying term or regularly or regularly throughout the policy term.
Flexibility of receiving the amount of death claim
A policyholder has the flexibility of choosing mode of receiving the amount of death claim. He or she can either choose to get the full money in lump sum or in installments over a period of 5, 10 or 15 years.
Benefits offered by the policy
The policyholder also has the option to choose between smoker and non-smoker category. A person who opts for the non-smoker category will have to undergo an extra urine cotinine test. Premium for smokers will be more than that of non-smokers.
Other benefits of the term plan
The 'Jeevan Amar' plan also offers lower premium rates for women. It also offers optional additional cover through accident benefit rider.