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Why should We Buy LIC’s Jeevan Amar Term Plan?

Why should We Buy LIC’s Jeevan Amar Term Plan?

LIC Jeevan Amar Plan

LIC Jeevan Amar Plan No. 855 is a non-participating, non-linked, pure protection plan that offers the flexibility to choose between two death benefit options, such as Lump Sum Insured and Increasing Sum Insured. LIC has launched this new term insurance plan with many new and attractive features keeping in mind the changing times and the needs of the customer. For example, under this term insurance policy, different premium rates have been maintained for non-smokers and women. You can take this plan to get coverage up to the age of 80. Not only this, but the family with the death benefit has also been given the option of receiving installments or a lump sum. Most importantly, you cannot claim the sum assured at maturity since it is a non-linked term insurance plan. This policy is currently available offline. Here is everything you want to know.

Plan No. 855
Launch Dated 5 Aug 2019

Why we should buy this Jeevan Amar Plan?

We are always concerned about what will happen to our family when the main breadwinner is not there, how they will bear the entire financial burden, etc. and that is why we would like to have a solid insurance plan that can take care of our family in our absence. So here comes the importance of the Term Insurance Plan. As a term insurance plan, you get great coverage at a very affordable premium, and therefore the best form of protection.

  • LIC Jeevan Amar Term PlanAdvantage of High Sum Assured Rebate.
  • Available at special rates for women.
  • Option to add riders to enhance coverage.
  • Life insurance available till the age of 80
  • Two premium rate categories, namely non-smoking rates and smoking rates.
  • The plan offers the flexibility to choose between two benefit options, such as Sum Insured and Increasing Sum Insured.
  • Offers flexibility in premium payment options such as one-time premium, regular premium, and limited premium payment.

What are the Death Benefits available in this Jeevan Amar Plan?

LIC’s Jeevan Amar Plan presents multiple features to better serve customers. All features are designed in a way that they can offer various benefits. In the event of sudden death during the term of the policy, your family/nominee will be entitled to receive the full sum insured.

What is the Surrender Value available in this Jeevan Amar Plan?

There will be no surrender value under the regular premium. However, you will get it in the case of a Single Payment and Limited Payment Option according to regulations.

What are the Riders available in this Jeevan Amar Plan?

The plan also includes additional riders that will greatly help improve basic coverage. You can choose to take an accidental death benefit rider by paying an additional amount. In the event of death due to an accident, you will get the benefit of the rider in addition to the sum assured in the plan.

What are the Premium Payments available in this Jeevan Amar Plan?

This plan is designed to offer multiple premium payment options. You can choose the regular premium, limited premium, or one-time premium payment options.

  • Regular Premium -In this option, you must pay every year, during the term of the policy. So if you have chosen a term up to 80 years, you will have to make payments until then.
  • Limited Premiums -This option has become popular with the start of longer policy terms. Best for those who want to stop paying their premiums during or immediately after their working years and continue to enjoy coverage for the entire period. You can select a premium payment term:
    • Policy term minus 5 years
    • Policy term minus 10 years
  • Single-Premium -Pay just once and enjoy coverage for the entire term of the policy without worrying about future payments. Best for those who don’t have a regular predictable income stream and now have cash on hand.

What is the Grace Period available in this Jeevan Amar Plan?

It is an important feature that you should know about. There is a grace period of around 30 days for the payment of annual or semi-annual premiums from the date of the first unpaid premium.

What are the Taxes benefits available in this Jeevan Amar Plan?

Statutory taxes on said insurance plans by the Government of India or any other constitutional tax authority of India will be applied in accordance with the laws.

What is the Free Look Period available in this Jeevan Amar Plan?

If you are not satisfied with the insurer or the plan, you can cancel it within the free trial period which is less than 15 days from the purchase date.

What are the Death Benefits in Installments available in this Jeevan Amar Plan?

Instead of a lump sum, this plan offers the option of receiving the death benefit in installments for a chosen period of 5, 10, or 15 years.

Is there any Rebate / Loading available in this Jeevan Amar Plan?

The plan offers a High Sum Assured Rebate that applies to regular, limited, and Single Premium payment options.

What is Revival?

An expired policy can be easily reactivated during the entire life of the insured. However, it must be within a period of 5 consecutive years from the date of the first unpaid premium or according to the regulations allowed for products.

What are the Maturity Benefits available in this Jeevan Amar Plan?

In the case of survival of the insured life until the end of the policy term, no benefit is paid.

Is there any Policy Loan available in this Jeevan Amar Plan?

There will be no loan facility with this insurance policy.

What are the Exclusions?

  • By the way, if the insured (whether sane or insane) commits suicide within 12 months from the date of commencement of risk. As a result, the corporation will not accept any claim on the policy. Only 80% of the total premium paid would be returned provided the policy is in force.
  • Similarly, if the insured (whether sane or insane) commits suicide within 12 months from the date of revival then an amount that is higher of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death shall be payable. The corporation will not entertain any other claim on this.

This clause will not be applicable for a lapsed policy without acquiring paid-up value and nothing will be paid under said policy.

Read to know more about this:

Also, read this – Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

Plan Illustration (7)

Plan Illustration

 LIC Jeevan Amar Plan Presentation (1) LIC Jeevan Amar Plan Presentation (2) LIC Jeevan Amar Plan Presentation (3) 

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s Jeevan Amar Plan

Is it possible to date back the policy?
Yes, it can be dated back within the same financial year with additional charges.
Are riders available under the plan?
Yes, the plan offers an optional rider like Accidental Death rider.
LIC

LIC's Market Share 75.9%, Growth in NB Premium 39.46%, Growth in 1st Year Premium 25.17%, Growth in Total Premium 12.42%, Growth in Gross Total Income 9.83%, Growth in Total Asset Value 2.71%, Growth in Digital Transaction 36% in FY 2019-20.

It also has a Claim Settlement ratio of 98.33%.

It is the most trusted Life Insurance Company in the country. It has a Sovereign Guarantee which other Companies don't have.

coolWHY GO SOMEWHERE ELSE?

Why is LIC’s New Children’s Money Back Plan Boon for Children?

Why is LIC’s New Children’s Money Back Plan Boon for Children?

LIC New Children’s Money Back Plan

LIC New Children’s Money Back Plan is an individual, participating, non-linked, life insurance savings plan. Especially, parents and grandparents take this New Children’s Money Back Plan for their growing children due to two characteristics such as security provided until the age of 25 and then offering maturity with a lump sum to meet important objectives. In this New Children’s Money Back Plan, children’s lives are insured since life insurance coverage can be used for education and marriage. New Children’s Money Back Plan provides three cash backs at 18, 20, and 25 years of age and maturity of the child policyholder at 25 years of age of the child policyholder. The Premium Waiver Benefit (PWB) clause makes this New Children’s Money Back Plan more attractive. Here is everything you want to know.

Plan No.

932

Launch Dated

1 Feb 2020

Why should we buy this New Children’s Money Back Plan?

Children Money Back PlanNowadays when the costs of products and services are increasing day by day, children’s future must not suffer due to financial problems. Many children cannot fulfill their passions or dreams and some even cannot get higher studies due to financial problems.
To eliminate these problems and to give financial assurance to them, LIC has come up with a lucrative affordable insurance policy i.e. LIC’s New Children’s Money Back Plan.

Features Highlight:

  • This is a participating, non-linked, money back plan, therefore, earns simple reversionary bonuses.
  • It is designed to cater to the needs of a child at the age when he/she needs it the most such as higher studies, marriage, etc.
  • The minimum annual premium is as low as Rs.24000.
  • The policyholder can take a loan from this plan.
  • Various optional riders are there to choose which can create some additional coverage with the maturity value.
  • The policy can be availed of during the age of 0-12 of the child.
  • The insured gets 20% of the Basic Sum Assured at each anniversary of 18,20 and 22 age.

Does this plan provide Risk Cover?

It provides the risk coverage on the life of the child during the policy term and the number of survival benefits when surviving until the end of the specified term.

Who can buy this Child Money Back Plan?

It can be purchased by either parent or grandparent for a child from 0 to 12 years old.

What are the benefits of this New Children’s Money Back Plan?

  • Maturity Benefit

When the policyholder survives and attains 25 years of age, the policy’s period comes to an end. The insured gets 40% of the Basic Sum assured with vested Simple Reversionary Bonuses and Final Additional bonus (if any). If any rider is opted for, it will be paid likewise.
The policy participates in profits, hence earns Simple Reversionary Bonuses based on the experience of the corporation. The Final Additional Bonus will not be entertained by a paid-up policy.

  • Survival Benefit

In case of the survival of the insured person, he/she receives 60% of the total sum assured by splitting it into three equal amounts before the maturity date.

  1. Attaining 18 years of age, the insured gets 20% of the Basic Sum Assured.
  2. Attaining 20 years of age, the insured gets 20% of the Basic Sum Assured.
  3. Attaining 22 years of age, the insured gets 20% of the Basic Sum Assured.

There is also an option to defer the survival benefit. The policyholder may take the benefit at any time on or after its due date but during the currency of the policy.

  • Death Benefit

Unfortunately, if the death of the life assured happens during the term of the policy, benefits will be provided to the nominee are as follows:-

  1. Death before the date of commencement of risk: Total premiums paid till death excluding taxes, is to be paid.
  2. Death after the date of commencement of risk: Total amount i.e. the sum of Sum Assured on Death with Simple Reversionary Bonus and Additional bonus (if any) is to be paid.

Sum Assured on Death is higher of:

  • Absolute Basic Sum Assured
  • 10 times of the annual premium
  • 105% of the total premium paid till the death of the policyholder.

What are the Eligibility Conditions and Other Restrictions?

Minimum Basic Sum Assured

Rs. 100,000

Maximum Basic Sum Assured

In multiples of Rs. 10,000

Minimum Age at entry for Life Assured

0 years (last birthday)

Maximum Age at entry for Life Assured

12 years (last birthday)

Minimum/ Maximum Maturity Age for

25 years (last birthday)

Policy Term/Premium Paying Term

[25 – Age at entry] years

What would be the date of commencement of risk if I buy this plan?

In the event that the entry age of the Life Insured is less than 8 years (last birthday), the risk under this plan will begin either one day before the end of 2 years from the date of commencement of the policy or one day before the policy anniversary coincides. with or immediately after reaching 8 years of age, whichever occurs first. For those over 8 years old, the risk will begin immediately from the date of issue of the policy.

What would be the date of vesting under the Plan?

The policy will be automatically awarded to the Life Insured on the policy anniversary coinciding with or immediately after the end of the age of 18 and, in such case, it will be considered to be a contract between the Corporation and the Life Insured.

What are the options available for this New Children’s Money Back Plan?

Child Money Back Plan

Option to defer the Survival Benefit(s):

The policyholder can avail of this option to take the Survival Benefit(s) at any time on or after its due date. The corporation will pay increased Survival Benefit (s) equal to:
Survival Benefits % * Sum Assured * Applicable Factor
The policyholder will be required to disclose this option in writing six months prior to the maturity date of the Survival Benefit to the policy branch of service.

Rider Benefits:

LIC’s Premium Waiver Benefit Rider can be opted for on the life of Proposer of the policy subject to the life assured under this policy is a minor while opting for the rider, LIC’s Premium Waiver Benefit Rider can be opted for on the life of Proposer of the policy.
The premium of this rider will not exceed the base premium. The term of this rider will be calculated from the age while opting for this rider up to 25 years of age of the policyholder.
Death Benefit can be taken by installments over a period of 5 or 10 or 15 years, provided the policy is in force as well as a paid-up policy. It can be of yearly, half-yearly, quarterly or monthly installment (through NACH or Salary Deduction only).

Mode of Installment Payment

Minimum Installment Amount

Monthly

Rs. 5,000/-

Quarterly

Rs. 15,000/-

Half-Yearly

Rs. 25,000/-

Yearly

Rs. 50,000/-

The interest rates will be fixed by the corporation.

Maturity Benefit in installment:

There is a Settlement Option under this policy which allows the policyholder to take the Maturity Benefit in installments. The installments will be paid yearly or half-yearly or quarterly or monthly basis provided the policy is in force and must be a paid-up policy.

Mode of Installment Payment

Minimum Installment Amount

Monthly

Rs. 5,000/-

Quarterly

Rs. 15,000/-

Half-Yearly

Rs. 25,000/-

Yearly

Rs. 50,000/-

The interest rates will be fixed by the corporation.
If the death of the life-assured, who has exercised Settlement Option, occurs after the maturity date, in such case the nominee will get the outstanding installments.

What is the various Payment of Premiums mode is available?

You can pay premiums regularly at yearly, half-yearly, quarterly or monthly mode (through NACH or through salary deduction (SSS) only).

What is the Grace Period and How many days are provided?

Here when the policyholder cannot pay the premium on time, a grace period of 30 days for every yearly, half-yearly and quarterly premium and a 15 days grace period for every monthly premium is there within which the policyholder has to pay the premium. If he/she cannot pay within the grace period, then the policy will lapse.

How can I avail Rebates under the policy?

Policyholders can avail of various rebates in the premium payment under this policy.

Mode Rebate:

Yearly Mode

2% of Tabular Premium

Half-yearly mode

1% of Tabular premium

Quarterly, Monthly (NACH or SSS) mode

NIL

High Sum Assured Rebate (on Premium):

1,00,000 to 1,90,000

Nil

2,00,000 to 4,90,000

2 per thousand S.A.

5,00,000 and above

3 per thousand S.A.

What is Revival and How can I revive my policy if lapsed?

In case the policyholder cannot pay the premium before the expiry of the grace period, the policy lapses. Here comes the Revival Period of 5 consecutive years from the date of the first unpaid premium within which the lapsed policy can be revived. The revival will come into effect after all the arrears are paid with an interest rate as fixed by the corporation.

What is Paid-up Policy?

If premiums have been paid for less than two years and any subsequent premiums are not duly paid, all the benefits will be ceased after the grace period, wherefore nothing will be payable to the policyholder.

After at least two full years of premiums have been paid, if any subsequent premiums are not duly paid, the policy will not be fully ceased. Hence, the policy will continue as a paid-up policy until the end of the policy term.

Here the sum assured on death under the paid-up policy will be reduced to a sum namely “Death Paid-Up Sum Assured”. In addition to it, vested Simple Reversionary Bonus will also be payable. Survival benefit is unavailable in case of a paid-up policy.

Can I surrender my Child Money Back policy?

The policy can be surrendered any time only after two full year’s premiums have been paid. The surrender value will be equal to the higher of the Guaranteed Surrender Value or Special Surrender Value.

The guaranteed surrender value depends on the policy term and the policy year in which the policy is surrendered. It is equal to the total premiums paid (excluding any extra premium, taxes, and premiums for a rider, if opted for), multiplied by the guaranteed surrender value factor applicable to total premiums paid and then reduced to any survival benefits already paid (including survival benefits already deferred) under the policy.

Furthermore, the surrender value of any Simple Reversionary Bonuses, if any, is also payable.

How can I avail Policy Loans under this plan?

A loan can be availed under the policy, provided at least two full years of premiums have been paid and subject to the terms and conditions as the corporation may specify time to time.

The maximum loan allowed under the policy, as a percentage of surrender value, will be as under:

  • For in-force policy – up to 90%
  • For paid-up policy – up to 80%

The interest rates to be charged for the policy loan and as applicable for the entire term of the loan will be determined at periodic intervals. The applicable interest rates will be as declared by the corporation based on the method approved by IRDAI.

Any loan outstanding along with interest will be recovered from the claim proceeds at the time of exit.

What are the implications of Taxes?

Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any other constitutional Tax Authority of India will be as per the prevailing rates will be payable by the policyholder on the premiums for Base Plan and Rider, if any, including extra premiums if any which will be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid will not be considered for the calculation of benefits payable under the plan.

How many days are provided in the Free Look Period?

If the Policy Term and Conditions cannot satisfy the policyholder, he/she may return it to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons for the objection. The corporation will then cancel the policy and return the amount of the deposited premium after deducting the proportional risk premium (for the basic plan rider, if applicable) for the coverage period, the expenses incurred in the special reports of medical examinations, if applicable, and charges for stamp duty.

What is Suicide Exclusion?

The policy will be declared as void, if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk. The nominee will be paid only 80% of the total premiums paid provided the policy is in force. This clause will not be applicable in case of age at entry of the Life Assured is below 8 years.

In case the Life Assured (whether sane or insane) commits suicide within 12 months from the date of revival, an amount that is higher of

  • 80% of the total premiums paid till the date of death or
  • The surrender value available on the date of death will be payable.

The Corporation will not entertain any other claim under the policy.

Read to know more about this:

LIC न्यू चिल्ड्रन मनी बैक प्लान में प्रतिदिन 148 रुपये का निवेश, आपको मिलेंगे 19 लाख, और भी कई फायदें।

Also, read this – Why should We Buy LIC’s Jeevan Lakshya Plan?

Plan Illustration (8)

Plan Illustration

New Children's Money Back Plan Illustration (1) New Children's Money Back Plan Illustration (2) New Children's Money Back Plan Illustration (3) New Children's Money Back Plan Illustration (4)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs

Dummy
Invisible
Which is the best policy for girl child in LIC?
No doubt, New Children’s Money Back policy with Premium Waiver Benefit (PWB) is the best.
What is LIC new children's Money Back Plan?
LIC’s new children’s money back plan/policy is an insurance cum investment plan which is used for securing the financial future needs of a child as they turn 25 years old. It is a participating plan and hence it is eligible for a bonus depending on the performance of the LIC plan.
What is the difference between cash value and surrender value?
The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. … In most cases, the difference between your policy’s cash value and surrender value are the charges associated with early termination.
Can we withdraw LIC amount?
After 3 years you can surrender your policy provided the policy is in force for a period of at least. The surrender value provided by LIC is normally 30% of the premiums you have been paid.
Is the money back from LIC taxable?
Any sum received from a life insurance policy whether it is a money-back amount or matured LIC receipt is 100% tax-free under section 10 (10D) but you have to disclose it in your income tax return under exempt income.
What is the maturity amount in LIC?
The maturity amount is normally calculated with the basic sum assured and the accrued bonus added every year. In money back type of policies, the Survival Benefit is paid every 4th or 5th year. Survival Benefit is a prefixed percentage of the Sum Assured.
Which is better Sukanya Samriddhi or LIC?
In the case of mishappening, LIC compensates with immediate death claim amount and pays 10% of sum assured every year till maturity. At maturity, the sum assured + bonus.  You can be benefited from Sukanya Samriddhi only if the deposit is paid till maturity. There is no life cover under Sukanya Samruddhi.
Is LIC better than FD?
If we compare both with respect to financial return, it is clear that a fixed deposit is more valuable than LIC policies because money doubles in approximately 8 years for an FD, while LIC does not have any plan below 10 years but covers the risk.
Why is LIC’s New Endowment Plan the Best Choice for Young People?

Why is LIC’s New Endowment Plan the Best Choice for Young People?

LIC New Endowment Plan

LIC New Endowment Plan is a non-linked, participating plan that offers an attractive combination of security and savings features. Offers guaranteed returns and bonuses. This is a traditional life insurance plan. You can take this endowment plan with the many benefits in mind. With its expert customer service, the LIC of India helps you get the best insurance policy according to your needs and suitability. You can choose the policy term from 12 to 35 years. Anyone between the ages of 8 and 55 can take this policy and it can continue for up to 75 years. You pay a premium for the entire term of the policy. This plan is included in the basic LIC plans that provide death and maturity benefits. The maturity benefit is equal to the Sum Assured plus the Simple Reversionary Bonus acquired + the Final Addition Bonus. Here you have everything you want to know.

Plan No. 932
Launch Dated 1 Feb 2020

Why we should buy this New Endowment Plan?

The New Endowment Plan is one of the best plans of LIC that offers both protection and saving features. The following are the key features that make it a perfect plan for young people.

LIC New Endowment Plan

  • It assures you good returns and bonuses.
  • It is one of the traditional plans of LIC.
  • If the insured person dies before the maturity period, the nominee will get the death benefit and the policy will be terminated.
  • It pays a good lump sum amount to the surviving policyholder at the end of the maturity period and then the policy terminates.
  • It allows a flexible entry age from a minimum of 8 years to a maximum of 55 years.
  • The policy premium can be paid through annually, half-yearly, quarterly or monthly installments.
  • It provides to the policyholder through its loan facility in case of liquidity needs.

What are the benefits available for this New Endowment Plan?

  • Death Benefit

This plan offers the death benefit (sum assured) too, in terms of Simple Reversionary Bonus acquired and the Final Additional Bonus to the family of the insured in the event of the death of the insured during the term of the policy. Thereafter, the policy ends.

Provided that the policy includes “Sum insured in case of death”, where the given term is defined as greater than the basic sum insured or 10 times the annual premium with a minimum of 105% of the total premium paid.

  • Maturity Benefit

On survival of insured person till the maturity date, he/she will get the Basic Sum Assured with vested Simple Reversionary Bonus and Final Additional Bonus( if any) and the policy will then terminate.

  • Income Tax Benefit

The policyholder of this plan entertains a tax exemption up to Rs 1,50,000 under Section 80(C) of  Income Tax act on the annual insurance premium to be paid and also the maturity amount is exempted from tax, terms, and conditions are there.

  • Participation in Profit

This New Endowment Plan of LIC also includes a share of the profit of the company. It gives Simple Reversionary Bonuses with Final Additional bonus, calculated on the basis of experience of the company, terms and conditions are there.

What are the Provisions and restrictions of this New Endowment Plan?

  • Entry Age

Minimum 8 years
Maximum 55 years
  • Basic Sum Assured (in Rs.)

Minimum 1,00,000
Maximum No Limit (multiple of 5000)
  • Policy Term

Minimum 12 years
Maximum 35 years
  • Maturity Age

Maximum 75 years
  • Monthly Premium (in Rs.)

Minimum 250
Maximum 10000

What will be the date of commencement of risk under the New Endowment Plan?

The risk will commence immediately on acceptance of the risk

What are the options available for this New Endowment Plan?

This plan has five optional riders when you pay an additional premium. A maximum of four riders one can avail of whereas the policyholder has to choose either LIC’s Accidental Death and Disability Benefit Rider or LIC’s accidental benefit rider.

The five riders are:

  • Accidental Death and Disability Rider
  • Accidental Benefit Rider
  • New Critical Illness Benefit Rider
  • New Term Assurance Rider
  • Premium Waiver Benefit Rider

Sum assured under each rider cannot exceed the Basic Sum Assured under the policy.

For more details, please refer to the Rider Brochure on the LIC’s official website or contact the nearest branch of LIC.

What is the option to take Death Benefit in installments?

Yes, instead of taking the lump sum amount you can split it into a number of installments over a period of 5 or 10 or 15 years. The insured person will be paid the installments in advance at monthly or quarterly or half-yearly or yearly intervals.

The minimum installment amount for different intervals are:

Mode of installment payment Minimum Instalment Amount (in Rs.)
Yearly 50000
Half-yearly 25000
Quarterly 15000
Monthly 5000

What is the Payment of Premiums mode available for this New Endowment Plan?

Premiums are to be paid at regular intervals such as monthly, quarterly, half-yearly, or yearly (through NACH only) or through salary deductions.

What is Grace Period for this New Endowment Plan?

In case the policyholder cannot pay the premium on time, a grace period of 30 days is available for yearly, half-yearly and quarterly payments whereas a 15 days grace period for monthly payments is available. If the premium is not paid before the expiry date of the grace period, the policy lapses.

Such grace period also covers the rider’s premiums along with the base policy premium.

What are the Rebates available for this plan?

  • Mode Rebate

Yearly mode 2% of Tabular Premium
Half-yearly mode 1% of Tabular Premium
Quarterly, monthly and Salary Deduction NIL
  • Basic Sum Assured (B.S.A.) Rebate (in Rs.)

100000-195000 NIL
200000-495000 2% of B.S.A.
500000 and above 3% of B.S.A.

What is Revival?

If the policyholder fails to pay the premium within the grace period and the policy lapses, then a revival period is also there. The revival period is of 5 consecutive years from the due date of first unpaid premium but before the date of maturity, as the case may be.

The revival of policy will come into effect only after the submission of all the due premiums with its interests compounding half-yearly at the rate fixed by the corporation from time to time and on the satisfaction of Continued Insurability of the life assured and/or proposer (if Premium Waiver Benefit Rider is opted for).

What is Paid-up Value?

If the premiums are paid regularly on time for at least two full policy years, and after that, any subsequent premium is not paid within the grace period, then the policy will not become wholly void but will subsist as a paid-up policy till the end of the policy term.

Such paid-up policy cannot participate in future profits but bonus remains attached to the reduced paid-up policy.

What is the Surrender Value?

After the payment of premiums without any lapse for at least two years, the policy can be surrendered with the interest of the policyholder and the corporation will pay the surrender value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

If there is any bonus or rider opted for, it will be calculated on the basis of the ratio of Surrender Value.

What is Policy Loan?

After at least two full years premium have been paid, the loan can be granted under the policy subject to the terms and conditions of the corporation.

What is the Free Look Period?

In case the Policyholder has some personal problems or he is not satisfied with the terms and conditions of the policy, there is a Free Look Period of 15 days from the date of accepting the bond within which he/she has to return the policy to the corporation by citing the reason. Then the policy will be canceled and after deducting the processing charges, the premium will be returned.

What are the Exclusions?

  • By the way, if the insured (whether sane or insane) commits suicide within 12 months from the date of commencement of risk. As a result, the corporation will not accept any claim on the policy. Only 80% of the total premium paid would be returned provided the policy is in force.
  • Similarly, if the insured (whether sane or insane) commits suicide within 12 months from the date of revival then an amount that is higher of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death shall be payable. The corporation will not entertain any other claim on this.

This clause will not be applicable for a lapsed policy without acquiring paid-up value and nothing will be paid under said policy.

Read to know more about this:

LIC की बहुत ही जबरदस्त स्कीम, 27 रुपये रोजाना करें निवेश, मिलेगा एकमुश्त 10.62 लाख।

Also, read this – Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

Plan Illustration (7)

Plan Illustration

New Endowment Plan Illustration (1) New Endowment Plan Illustration (2) New Endowment Plan Illustration (3) New Endowment Plan Illustration (4)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s New Endowment Plan

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How much bonus is declared under the plan?
It is not fixed. It depends upon the performance of the corporation and is paid only if the corporation makes a profit.
Is it possible to date back the policy?
Yes, it can be dated back within the same financial year with additional charges.
What type of bonus is declared under the policy?
The plan pays simple reversionary bonuses for every year till the policy is in force. In case of death during the policy term or on maturity, a Final Bonus might also be paid in addition to the vested bonuses.
Does the plan provide a loan facility?
Yes, after 3 years, policyholders can avail loan facility as per the Surrender Value.
Are there any rebates on the premium?
Yes, there are two types of premium rebates available.

The first on the high Sum Assured like 1.50% to 3%.

The second on premium paying Mode like 2% on Yearly or 1% on half-yearly mode.

Are riders available under the plan?
Yes, the plan offers an optional rider like Accidental Death and Disability Benefit Rider.
LIC

LIC's Market Share 75.9%, Growth in NB Premium 39.46%, Growth in 1st Year Premium 25.17%, Growth in Total Premium 12.42%, Growth in Gross Total Income 9.83%, Growth in Total Asset Value 2.71%, Growth in Digital Transaction 36% in FY 2019-20.

It also has a Claim Settlement ratio of 98.33%.

It is the most trusted Life Insurance Company in the country. It has a Sovereign Guarantee which other Companies don't have.

coolWHY GO SOMEWHERE ELSE?

Why should We Buy LIC’s Single-Premium Endowment Plan?

Why should We Buy LIC’s Single-Premium Endowment Plan?

LIC’s Single Premium Endowment Plan

LIC Single Premium Endowment Plan No. 917 – is a participating, non linked endowment plan. In this plan, the premium is paid at the beginning, which is paid in a Lumpsum. It serves the investment purpose and even ensures it if one faces premature disappearance. There is a sure short return on this plan, this means that these plans are safe and provide financial benefits to you. The Single Premium Endowment Plan offers twin benefits of life protection and savings. Single Premium Endowment plans to provide coverage against risks and offer guaranteed returns. You can select the amount of coverage you want, depending on the details of the policy and the term that suits you best. Also, plans like the LIC Single Premium policy offer considerable premium discounts if you decide on a higher sum insured. This dual combination of protection and savings ensures that the family is always in a good financial position at all times. If the policyholder dies, it pays the Sum Insured plus the bonuses that can be declared every year (called the reversionary bonus) and at the end of the policy (called the terminal bonus). If the policyholder survives the term, this plan grants a Lumpsum payment based on the maturity benefit. These plans, therefore, allow you to create a secure corpus for your future. Single Premium Endowment plans are suitable for people who are looking for guaranteed returns on their investments and also want to have insurance coverage. These policies are basically for a long period of time since it helps to increase the overall returns that a person obtains at the end of the policy tenure. Even rebates exist on a Single Premium Endowment Plan if the highest sum is quoted. You can even avail of loans on this plan after 1 year. Here is everything you want to know.

Plan No. 917
Launch Dated 1 Feb 2020

Why we should buy this Single Premium Endowment Plan?

LIC’s Single Premium Endowment Plan is a Non- Linked, Participating, Individual, Life Assurance saving plan which offers an attractive combination of savings and protection features. The premium is paid in lump-sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

What are the Benefits available for this Single Premium Endowment Plan?

Death Benefit:

  • On death during the policy term before the date of commencement of risk: Return of single premium (excluding taxes extra premium and rider premiums if any), without interest.
  • On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus if any.

Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium and rider premiums, if any).

Maturity Benefit:

On Life Assured surviving the policy term, Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any, shall be payable.

Participation in Profits:

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.

What are the eligibility conditions and other restrictions?

  1. Minimum entry age: 90 days (completed)
  2. Maximum entry age:  65 years (nearest birthday)
  3. Maximum maturity age: 75 years (nearest birthday)
  4. Minimum policy term: 10 years
  5. Minimum age at maturity: 18 years (completed)
  6. Maximum policy term: 25 years
  7. Minimum Sum Assured: Rs.50,000
  8. Maximum Sum assured: No limit

Sum Assured will be in multiples of Rs.5,000 /- only.

  1. Premium payment mode: Single premium only

Date of Commencement of Risk: In case the age of Life Assured at entry is less than 8 years, f risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

What are the options available for this Single Premium Endowment Plan?:

Rider Benefits:

The following two optional riders are available under this plan by payment of additional premium.

LIC’s Accidental Death and Disability Benefit Rider

This rider is available at the inception of the policy only. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years.

LIC’s New Term Assurance Rider

This rider is available at the inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the Life Assured during the policy term.

The premium for LIC’s Accidental Death and Disability Benefit Rider shall  not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base plan

Each of the above Rider Sum Assured cannot exceed the Basic Sum Assured under the Basic plan.

For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.

What is the option to take Death Benefit in installments?

This is an option to receive a death benefit in installments over the chosen period of 5 or 10 or 15 years instead of a lump-sum amount. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her lifetime; for full or part of Death benefits payable under the policy. The amount opted for by the Policyholder/Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Edit Table

 

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall be paid in lump sum only.

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising an option to take Death Benefit in installments, the Policyholder during the minority of the Life Assured or the Life Assured, if major, can exercise this option during his/her life while in the currency of the policy, specifying the period of Instalment payment and net claim amount for which the option is to be exercised. The death claim amount shall then be paid to the nominee as per the option exercised by the Policyholder/Life Assured and no alteration, whatsoever, shall be allowed to be made by the nominee.

How can I understand through a sample illustrative premium?

The sample Illustrative Single premium (exclusive of taxes) for Basic Sum Assured of Rs 1 lakh for Standard lives are as under:

 

How much rebate can I avail for High Sum Assured?

High Sum Assured Rebates:

 

How can I avail policy loans in this plan?

A loan can be availed under this plan any time after completion of the first policy year and subject to terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for the entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

How and when can I surrender my policy?

The policy can be surrendered at any time during the policy year. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI

The Guaranteed Surrender Value allowable shall be as under:

  • First-year: 75% of the Single premium
  • Thereafter: 90% of the Single premium.

Single premium referred above shall not include taxes, extra premium & rider premium(s) if any.

In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the Guaranteed Surrender Value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which the policy is surrendered.

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.

What are the taxes implication?

Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of applicable taxes, as per the prevailing rates, shall be payable by the policyholder on the single premium including extra premium & rider premium(s), if any, which shall be collected over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Regarding Income tax benefits/implications on the premium paid and benefits payable under this plan, please consult your tax advisor for details.

How many days I would get for a free look period for this Single Premium Endowment Plan?

If the policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy stating the reason for objections. On receipt of the same, the Corporation shall cancel the policy and return the amount of single premium deposited after deducting the proportionate risk.

premium (for the base plan & rider(s) if any) for the period of cover, an expense incurred on medical examination, special reports, if any, and stamp duty charge.

What are the exclusions for this Single Premium Endowment Plan?

Suicide:

The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and under such case an amount which is higher of 90% of the Single Premium for Base Policy (excluding any taxes extra premium and rider premiums other than term assurance rider premium if any) or Surrender Value available as on the date of death shall be payable. The Corporation will not entertain any other claim under this policy. 

Read to know more about this:

LIC के Single Premium Endowment Plan में रहता है ड्यूल बेनेफिट, पॉलिसी के 1 साल बाद लोन का भी विकल्प; जानें डिटेल्स।

Also, read this – Why is LIC’s New Endowment Plan the Best Choice for Young People?

Plan Illustration (4)

Plan Illustration

Single Premium Endowment Plan (1) Single Premium Endowment Plan (2) Single Premium Endowment Plan (3) Single Premium Endowment Plan (4)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s Single Premium Endowment Plan

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What are the modes of premium payment?
Yearly/Half-yearly
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