Irrespective of popular opinion, it seems as if LIC has succumbed to the pressure from its agents. Having no better options than other private insurers, LIC has failed to meet the increased demand for term insurance plans. To re-establish its image as the most-trusted insurance brand in the country, LIC is launching 2 new term insurance plans.
- LIC Tech Term Plan -Online Term Plan (You can check out the review here).
- LIC Jeevan Amar (Offline Term plan which would be sold by LIC agents).
The premiums in LIC’s old plans, be it E-term or Anmol and Amulaya Jeevan, were extremely high. In fact, these plans were so uncompetitive that they couldn’t even be compared with similar products in the market. That is precisely the reason why LIC has decided to come up with these new term plans.
Speaking of the online Tech-Term Plan, I have already reviewed it in the previous post. Now, let us review the offline term plan which is popularly known as LIC Jeevan Amar.
LIC Term Plan – Jeevan Amar (Offline Plan)
LIC Jeevan Amar – Details
- Entry Age – 18-65 Years (Age Last Birthday)
- Maximum Maturity Age – 80 Years (Age Last Birthday)
- Minimum Sum Assured – 25 Lakhs
- Maximum Sum Assured – No Limit
- Minimum Policy Term – 10 Years
- Maximum Policy Term – 40 Years
- Premium Payment Options – Single Payment/Limited Premium Payment/ Regular Premium Payment
Minimum Premium for Regular Premium payment – Rs. 3,000/-
Minimum Premium for Single Premium payment – Rs. 30,000/-
LIC Jeevan Amar Features
Here are the features of LIC Jeevan Amar
- It is an offline term plan with no maturity benefits. Your family will get the money only in case of the unfortunate event of your death.
- The option of choosing either level sum assured or increasing sum assured.
- 10% increase in sum assured from the 5th to 16th year in case you go for the option of increasing sum assured.
- Choice of receiving the sum assured in lump sum or installments of 5/10/15 years.
- Option to add an accidental rider.
- Discount for women and non-smokers.
LIC Jeevan Amar- Discount For High Sum Assured
You’ll receive an additional discount on premium provided that the sum assured is more than 50 lakhs. Moreover, you’ll get the discount for both the options of level and increased sum assured.
Here is the discount table for your reference
Premium Comparison – Jeevan Amar Vs Tech Term
Premiums in LIC Jeevan Amar are much higher than the new online Tech-Term Plan. The reason being the extra commission which is paid to the agents. Despite the additional discount being offered, the plan would still be costlier than the online plan.
Take a look at this sample illustration of Jeevan Amar Plan.
If you compare it with the online Tech-Term Plan, you would see that the premiums are much cheaper in Tech-Term Plan.
If you take 1 Crore term insurance at age 30, there would be a difference of 10,000.
Whereas the difference in premium would be 6,000 if the same 1 crore term insurance is taken at age 40.
I’m not completely sure but both these premiums seem to be like this after considering the additional discount mentioned above. Also, the premiums are exclusive of GST, 18% GST would be added to the premium at the time of purchase.
For more details you can visit LIC Website
LIC Jeevan Amar Review– Should I Buy it?
You should definitely buy a term plan for the financial security of your family. But my question is – Why purchase it through offline mode and pay an extra premium of 3000-6000 per annum?
As an economy, we are moving towards digitization. Now that everyone knows how to operate a smartphone, then why purchase an insurance policy through an agent. You can probably argue that an agent can help in claim settlement the case of an unfortunate event.
Trust me, no agent can help you in claim settlement if you haven’t provided material information to the company. This is valid only for the first 3 years. After this period of 3 years, no insurance company can reject your claim on any grounds, this is IRDA’s rule.
Secondly, when you fill the form by yourself and that too online, you know what you are filling in. Similarly, the agent may hide some information and that is what happens in most of the cases. You just sign the proposal form whereas the rest of the information is filled in by the agent.
But if you don’t want to buy it through online mode, you can go for Jeevan Amar Offline Term Plan. Again, I’m repeating and making it very clear that you should definitely buy the term insurance plan.
Take the following precautions while buying it.
- Only go for regular premium option – No single premium and no limited premium payment.
- When you have to choose the sum assured option – the level sum assured is definitely better. You can calculate the total sum assured required with our Life Insurance Need Calculator.
- While selecting a payout option – only opt for lump sum choice. Under no circumstances, you should go for regular payout options as this so-called regular income is not inflation adjusted.
- If you want to go for an accidental rider, it’s better to take it from a general insurance company.
Last but not the least, compare the premium with similar products in the market before you actually purchase the plan.
Kindly share your valuable views and help us improve.