With increasing financial costs, most of us look for products which are economical and pocket friendly. LIC Jeevan Amrit is one such product which offers enhanced protection at economical rates. Flexibility and ease of implementation make it the perfect choice for members from the younger generation who aim to get the best value for their hard earned money.
Eligibility Criteria for LIC Jeevan Amrit
Individuals who are keen on purchasing this policy need to keep the following basic criteria in mind.
|Minimum entry age||12 years|
|Maximum entry age||60 years|
|Maximum age at maturity||70 years|
Key Features of LIC Jeevan Amrit
Some of the distinguishing features which set LIC Jeevan Amrit apart from other plans are mentioned below.
|Plan type||Endowment Scheme|
|Premium paying terms||3, 4 or 5 years|
|Policy term||10 to 30 years|
|Maturity benefits||On maturity, sum of all premiums invested and bonus accrued will be paid|
|Premium payment frequency||Half-yearly and yearly|
|Loan||Loan can be availed, subject to certain conditions|
|Grace period||30 days grace period is available|
|Free look period||15 day cooling-off period is provided, under which a policyholder can return the policy if he/she is unhappy with the terms and conditions|
|Revival||Lapsed policies can be revived by paying all dues within 5 years of first unpaid premium|
|Nomination||Nomination facility available|
|Sum assured||Minimum - Rs 1 lakh Maximum - no upper limit|
|Policy coverage||Maturity benefit, Death benefit|
Benefits of LIC Jeevan Amrit
Some of the key benefits of LIC policies are mentioned below.
- Loan - Policyholders can avail a loan under their policy, subject to them meeting certain basic criteria.
- Surrender benefit - Policyholders are entitled to a surrender benefit if they choose to surrender their policy after a period of 1 year.
- Flexible - Policyholders can choose a policy term and premium payment term which suits their needs.
- Maturity benefit - Policyholders are entitled to a maturity benefit equivalent to the sum of the premiums paid and the bonuses accrued during the policy term.
- Death benefit - In the event of demise of a policyholder, his/her nominee will be entitled to the sum assured and the bonuses accrued.
- Rebates - Individuals who opt for a high sum assured are eligible for rebates on their premium amount.
Working of LIC Jeevan Amrit
The working of LIC Jeevan Amrit can be explained through the example of Miss Seema, a designer by profession. After having established herself both professionally and personally, Seema decides that it is time to invest in a good plan, opting for Jeevan Amrit. At age 35 years, she decides to take a policy with the sum assured being Rs 10 lakhs and the policy term being 25 years. Her premium works out to around Rs 70,000 per year for the first year, which she decides to pay annually. She also opts for a premium payment term of 3 years in the plan. The premium for the other years works out to be around Rs 36,000, which is paid every year.
Her total premiums paid for the period of three years amounts to Rs 1.42 lakhs. Now in the event of Miss Seema passing away while the policy is in place, i.e., within the next 25 years, her nominee will receive a death benefit equivalent to the sum assured, which in this case is Rs 10 lakhs. Apart from this death benefit, any bonus accrued during the period either in the form of Simple Reversionary Bonus or Final bonus will be paid to the nominee. This entire amount is paid as a lump sum in one payment.
The second scenario could see Miss Seema living a long and fruitful live, with the policy maturing after a term of 25 years. In this case, she will be eligible for a maturity benefit which is equal to the premiums paid and the bonuses accrued during this period. This means that she does not suffer any financial loss, making a decent profit on her investment thanks to the Reversionary bonus and final bonus.
Premium Payment for LIC Jeevan Amrit
Individuals who choose LIC's Jeevan Amrit have flexible options when it comes to paying premiums. One can choose to pay the premium either annually or semi-annually for a term of either 3, 4 or 5 years. The premium one pays depends on the sum assured and the policy term, with people who opt for a high sum assured eligible for rebates on their premium.
There are no additional riders provided with this policy.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017