The Life Insurance Corporation of India, LIC, has just introduced a new policy Jeevan Amar. The public sector insurer had earlier withdrawn another product, Amulya Jeevan Term Plan. The new plan seems to be offering more than the one that has been withdrawn.
When you are considering taking a new insurance policy, the aspects you look for, include lower premiums and better features. A certain amount of flexibility too is what you would want to enjoy.
The broad contours of the Jeevan Amar term plan are that it doesnâ€™t offer any maturity value except in the case of the insured person losing his or her life during the term. The policy is not linked to any market instruments etc.
Any individual between 18 and 65 years of age can avail the Jeevan Amar term plan. The term is between 10 to 40 years depending on the age at which you enter the plan. An age ceiling of 80 years has been fixed as far as the cover availability is concerned.
In terms of the benefit the nominee will receive in the event of the death of the insured, there are two options; one is the fixed sum assured and the other is increasing sum assured. As can be expected, the increasing sum assured offers more benefits.
When it comes to disbursing the benefit under this plan to the person eligible to draw the sum, LIC has built in options where the beneficiary can choose to take a lump sum settlement or take it over different terms of 5, 10 or 15 years.
The basic sum assured or BSA has to be a minimum of Rs 25 lakh. There is as such no upper limit to which you can fix the BSA but factors like age and the ability to service the term plan will come into play.
The policy holder is also allowed a range of options to choose as far as the payment of premium is concerned. You should study the policyâ€™s highlights before you make the choices in each case.