The Jeevan Adhar plan from Life Insurance Corporation of India is a life insurance plan specially tailored for the policyholder’s handicapped dependants. The plan, which is a limited payment whole life policy, is available to be used in the form of a long term annuity policy even after the Life Assured’s death. The premium payments under this plan can be made for 35 years at most. However, life cover will be provided until the handicapped dependent’s demise.
In case of death of the Life Assured prior to the death of the handicapped dependent, the nominee will receive death benefit partly in instalments and partly in lump sum. The lump sum part of the payment will contain 20% of the Sum Assured, and 80% of the Sum Assured (the remaining sum) will be used to buy a 15-year annuity that will continue throughout the life of the handicapped dependent. But in case the handicapped dependent dies prior to the death of the Life Assured but during the tenure of the plan, the policy will be terminated and the Life Assured will be provided with a choice of recouping the premiums paid or continuing with the plan for a lower paid-up Sum Assured. No maturity benefits will be provided under this plan as it is a whole life plan. Therefore, this is a limited payment whole life as well as LIC annuity plan that provides guaranteed additions that help in meeting the needs of handicapped dependents.
Eligibility Criteria for LIC Jeevan Adhar
|Minimum Entry Age||22 years|
|Maximum Entry Age||65 years|
|Maximum Age at Maturity||75 years|
Key Features of LIC Jeevan Adhar
|Plan Type||Limited Payment Whole Life Insurance and Annuity Plan|
Maximum: No Limit
|Premium Payment Modes||Monthly, Quarterly, Semi-annual, Annual, Salary Saving Scheme|
Minimum: 10 years
Maximum: 35 years
|Surrender of Policy||Not Available|
|Loan against Policy||Not Available|
|Revival of Policy||Available|
|Term Rider||Not Available|
Benefits and Added Features of LIC Jeevan Adhar
- Death Benefit: In case of death of the Life Assured after he / she has made premium payments for a minimum of 10 years, the Sum Assured along with the Guaranteed Additions and terminal bonus, if any, will be paid out to the nominee. The amount with the aforementioned heads is called the Assumed Sum Assured, and 20% of this amount will be granted to the nominee while the remaining 80% will be used to make payments towards 15-year guaranteed annuities. In case of death of the handicapped dependent prior to the death of the Life Assured, the policy will be terminated and the Life Assured can claim the premium payments made towards the policy. The policyholder will also be offered a choice to continue the policy for a lower paid up sum assured with terminal bonus and guaranteed additions.
- Tax Benefits: The premium payments made towards this policy can be claimed as deductions under Section 80D of the Income Tax Act of India.
- Premium payments can be made on a monthly / quarterly / semi-annual / annual basis, and the premiums can either be paid every five years or as a single lump sum amount at the start of the policy. Also, premium payments for each individual will depend upon the disabled dependent’s age.
- Terminal Additions: If the policyholder has made premium payments for a minimum of 10 years, he / she will be eligible for Terminal Additions, which means that the customer can share profits of the Corporation. The future experience of the company will determine the Terminal Additions applicable to each customer.
- Guaranteed Additions: Guaranteed Additions under this LIC term policy are offered at the rate of Rs.100 per Rs.1000 Sum Assured. Guaranteed Additions will accumulate on an annual basis until the policyholder attains 65 years of age, or until their death, whichever is earlier.
- Additional cover can be purchased through the Accident Benefit Rider.
How does this Plan Work?
The Jeevan Adhar policy from the Life Insurance Corporation of India is specially tailored for individuals who have handicapped dependents. The plan can continue as a long term annuity plan even after the death of the Life Assured. The maximum premium payment term for this policy is 35 years, but life cover can be obtained by the policyholder until the death of the disabled dependent. Premiums can either be paid periodically or as a lump sum at the start of the policy tenure depending upon the preferences of the policyholder. If the Life Assured passes away prior to the demise of his / her handicapped dependent, the death benefit will be paid out to the nominee either in instalment or as a single lump sum. However, should the handicapped dependent pass away before the demise of the Life Assured, the plan will be terminated and the policyholder will be offered a choice of claiming back the premiums paid towards the policy or continuing with the policy for a lower paid up Sum Assured.