LIC New Jeevan Amar 955
LIC New Jeevan Amar 955 is a term insurance plan that provides financial support to the nominees in case of the policyholder’s death. However, there will be no maturity benefit for the policyholders surviving the policy tenure.
Being a term plan, the premium is quite low for higher coverage on the sum assured value and can be purchased offline and online.
There are two categories of premium rates: Non-smoker rates and Smoker rates. The application of Non-Smoker rates shall be based on the Urinary Cotinine test. There is a special rate for women.
Let’s look at LIC Jeevan Amar chart:
|
Age |
Minimum: 18 years |
|
Policy Term |
10-40 years |
|
Sum Assured |
Min. Sum Assured – Rs. 25,00,000/- Max. Sum Assured – No Limit |
|
Premium Paying Term |
Single-Premium: NA Regular Premium: Same as Policy Term Limited Premium: (Policy Term – 5) years for Policy Term (10 to 40) years (Policy Term – 10) years for Policy Term (15 to 40) years |
|
Maturity Age |
80 years. |
|
Premium Paying Mode |
Monthly, Quarterly, Half-Yearly and Yearly |
|
Riders (Optional) |
Accidental Benefit Rider. |
|
Tax Benefits |
Premium is exempted (80c) and Death Claim is Tax-Free 10(10D) |
|
Maturity Amount |
Only Death Claim |
|
Claim Payment Option |
LUM SUM Or INSTALMENT PAYMENT: Over 5 years (Monthly, Quarterly, Half Yeary, Yearly) any one Lic will pay interest in instalment mode. |
LIC New Jeevan Amar plan details and benefits:
Death Benefit
In case of a valid death claim during the policy period, if the policy is still active, the amount paid out is called the “Sum Assured on Death.”
For policies where you pay premiums regularly or for a limited time, the “Sum Assured on Death” is determined based on the highest of three options:
• Seven times the yearly premium you pay.
• 105% of all the premiums you’ve paid up to the date of your death.
• The guaranteed amount that will be given in case of your death.
For policies with a single premium payment, the “Sum Assured on Death” is calculated based on the higher of:
• 125% of the single premium you paid.
• The guaranteed amount that will be provided upon your death.
The guaranteed amount paid out upon death depends on the Death Benefit Option you chose when you took the policy:
Option I – Level Sum Assured:
The guaranteed amount in case of death remains the same as the Basic Sum Assured, and it doesn’t change throughout the policy term.
Option II – Increasing Sum Assured:
The guaranteed amount upon death remains the same as the Basic Sum Assured for the first five years of the policy. After that, it increases by 10% of the Basic Sum Assured each year from the sixth to the fifteenth year until it reaches double the Basic Sum Assured.
Example:
Basic Sum Assured = 1,00,00,000 Policy Term = 30 Years
1st to 5th Year – S.A = 1,00,00,000
6th Year – S. A= 1,10,00,000
7th Year – S. A= 1,20,00,000
15th Year – S. A= 200,00,000
Note: Once the Death Benefit Option has been selected, it can’t be changed.
Maturity Benefit
If the policyholder is still alive at the end of the policy term, this plan does not pay out any maturity amount.
Tax Benefits
The premiums are not taxed under section 80C of the Income Tax Act. Also, section 10(10D) of the same act says that money received from maturity or death claim is not taxed.
Riders
The insured can get LIC’s Accident Benefit Rider by paying an extra premium during the Premium Paying Term, as long as the remaining Premium Paying Term is at least five years. This is true for both Regular Premium and Limited Premium payment modes.
During accidental death the nominee of the policyholder will get:
Basic Sum Assured + Rider Sum Assured
Rebate
LIC New Jeevan Amar offers rebates based on the premium paying modes we chose:
Option I: Level Sum Assured:
AGE | Less than Rs 500,000 | Rs 50 Lakh to less than Rs 1 Crore | Rs 1 Crore and above |
Up to 30 years | – | 13% | 25 % |
31 to 50 years | – | 11% | 21 % |
51 years and above | – | 6% | 11 % |
Option II: Increasing Sum Assured:
AGE | Less than Rs 1 Crore | Rs 1 Crore to less than Rs 2 Crore | Rs 2 Crore and above |
Up to 30 years | – | 11% | 23 % |
31 to 50 years | – | 9 % | 19 % |
51 years and above | – | 5 % | 10 % |
Loan Facility
Loan facility is not available with New Jeevan Amar term plan.
Grace Period
There will be a grace period of 30 days for yearly, half-yearly, or quarterly payments and 15 days for monthly payments beginning on the date of the first unpaid premium.
The grace period mentioned above also applies to rider premiums, which must be paid in addition to the base insurance premium.
Revival Period
The policy will expire if premiums are not paid within the grace period. If necessary, lapsed insurance may be revived within five years, starting on the first unpaid premium date and before the date of maturity.
Surrender Value
LIC New Jeevan Amar 955 plan does not offer any surrender value. However, if you decide to surrender your policy, you may be eligible for a refund in certain situations:
a) No refund will be available upon surrender for regular premium policies.
b) Single premium policies can be surrendered anytime during the policy term, and you will receive a refund based on the terms.
c) If you have a limited premium payment policy, you may be eligible for a refund if you have paid full premiums for a specific duration:
i) For premium paying terms of less than ten years, you must have paid for at least two consecutive years.
ii) For premium paying terms of 10 years or more, you must have paid for at least three consecutive years.
You can request a refund if your policy has lapsed during the revival period. However, the policy will terminate if the revival period expires, and you will receive a refund.
Free Look Period
If a policyholder is dissatisfied with the terms and conditions of the insurance policy. In that case, they have 30 days from receipt to return it and get a full refund after deducting examination charges, stamp duty, and any other charges, if any.
LIC New Jeevan Amar Premium Calculation
Lets,calculate the premium for LIC New Jeevan Amar
Example
- Sum Assured: ₹30,00,000
- Age of the Insured: 30 years
- Policy Term: 20 years
- Estimated Annual Premium (before GST): ₹20,000
Premium Calculation with GST:
- Base Premium: ₹20,000
- GST (18%): GST=20,000×0.18=₹3,600
- Total Annual Premium: Total Premium=20,000+3,600=₹23,600
Benefits on Death:
- Death Benefit: In case of the insured’s death during the policy term, the nominee will receive:
- Sum Assured: ₹30,00,000
- Plus, any vested bonuses.
Summary:
- Annual Premium (including GST): ₹23,600
- Death Benefit: ₹30,00,000 + bonuses (if any).