LIC Jeevan Amrit Plan

Some of the distinguishing features which set LIC Jeevan Amrit apart from other plans are mentioned below.

Benefits of LIC Jeevan Amrit

Some of the key benefits of LIC policies are mentioned below.

1. Loan - Policyholders can avail a loan under their policy, subject to them meeting certain basic criteria.
2. Surrender benefit - Policyholders are entitled to a surrender benefit if they choose to surrender their policy after a period of 1 year.
3. Flexible - Policyholders can choose a policy term and premium payment term which suits their needs.
4. 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.
5. Death benefit - In the event of demise of a policyholder, his/her nominee will be entitled to the sum assured and the bonuses accrued.
6. 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.

Riders

There are no additional riders provided with this policy.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017