LIC Jeevan Amar (Table 855) – Review, Features and Benefits

LIC’s Jeevan Amar plan is a Non-Linked, Without Profit, pure protection plan which offers life cover to the policyholder at a very affordable price. This policy ensures financial support for the family in case of unfortunate death of the policyholder during the policy term. The policyholder also has an option to choose death benefit payment either as lump-sum payments or in installments.

The policyholder also has an option to choose from a single, regular and limited premium payment option. LIC’s Jeevan Amar Plan also offer lower premium rates for female proposers. The policy offers the flexibility to choose from two death benefit options –

• Level Sum Assured and
• increasing Sum Assured.

Under LIC’s Jeevan Amar Plan, there are two categories of premium rates

• Non-Smoker rates and
• Smoker rates

Features of this policy – (Table 855)

1. This is a pure protection policy.
2. Policy Term is 10 to 40 yrs.
3. This policy offers 2 categories of premium rates.
4. This policy also offers flexibility to choose from 2 death benefit options.
5. The low premium rate for female policyholders.
6. The policyholder can choose from 3 premium payment options.
7. For extra protection, rider benefit is available on payment of additional premium.
8. The policyholder also has an option to choose death benefit payment either as a lump sum or in installments.

Benefits of this policy –

A) Death Benefit – Death benefit shall be payable as Sum Assured on Death provided the policy is active. Death Benefit option once chosen cannot be changed later.

For Regular Premium and Limited premium payment policy, “Sum Assured on Death” is defined as the highest of the following –

• 7 times of annualized premium;
• 105% of all the premiums paid as on the death of death;
• Absolute amount assured to be paid on death.

For Single premium policy, “Sum Assured on Death” is defined as the higher of the following –

• 125% of Single Premium.
• Absolute amount assured to be paid on death.

Note – Premiums referred above shall not include any extra amount chargeable under the policy due to underwriting decision and rider premium(s) if any.

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 I – 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 the 5th policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the 6th policy year till the 15th policy year till it becomes twice the Basic Sum Assured. This increase will continue under an active policy

• till the end of policy term;
• or till the Date of Death;
• or till the 15th policy year, whichever is earlier.

From 16th policy year and on wards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.

B) Maturity Benefit – No maturity benefit will be payable if the policyholder survives until the end of the policy term.

C) Rider Benefits –

Under this benefit, LIC’s Accident Benefit Rider is available under Regular Premium and Limited Premium payment policies only. This rider can be opted at inception or at any time during the Premium Payment Term, provided the outstanding Premium Paying Term is at least five years.

The cover under this rider shall be available during the premium paying term only or up to the policy anniversary on which the age nearer birthday of the life assured is 70 years, whichever is earlier. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lump sum along with the death benefit under the base plan.

Eligibility Conditions of the policy –

Like other LIC’s policies, this policy also has some eligibility conditions. Let have a look at them –

Can I take a loan against this policy?

No, loan under this policy is not allowed.

Can lapsed policies be revived?

Yes, a lapsed policy can be revived during the lifetime of the policyholder within a period of 5 consecutive years from the date of the first unpaid premium on payment of all the due premium with interest.

Am I eligible for surrender value against my policy?

No surrender value will be available under a regular premium policy. 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 under –

1. Regular Premium policies: Nothing shall be refunded.
2. Single-Premium Policies: Applicable refund shall be payable anytime during the Policy Term.
3. Limited Premium Payment: Applicable refund shall only be payable if full premiums have been paid for at least:
   i) Two consecutive years in case of premium paying term less than 10 years.
   ii) Three consecutive years in case of premium paying term of 10 years or more.
4. In case of a lapsed policy, a refund shall be payable only during the revival period on request by the policyholder.

Can I return the policy if I didn’t like its terms and conditions?

Yes, the policyholder can return the policy if the policyholder is not satisfied with its terms and conditions. The policy can be returned within 15 days from the date of receipt of the Policy Document stating the reason for objection to the corporation.

On receipt of the same, the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for Base Policy and Rider, if opted for) for the period of cover and charges for medical examination, special reports, if any, and stamp duty.

Exclusions in the policy –

Suicide Exclusion –

• Under Regular/Limited Premium Policy – This policy shall be void if the policyholder (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, provided the policy is active
• Under Single Premium Policy – This policy shall be void if the policyholder (whether sane or insane at the time) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim except 90 % of the Single Premium paid excluding any extra amount if charged under the policy due to underwriting decisions and rider premiums, if any.

Video Review of the policy –

Conclusions –

So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.