Benefits and Disadvantage of LIC Jeevan Amar.
As you know, LIC has launched its most beneficial term plan Jeevan Amar. This plan has so many extra benefits for customers compared to old plans. But, apart from the benefits, it has also some disadvantages.
Benefits of LIC Jeevan Amar
There are many benefits of LIC Jeevan Amar. you must know about that.
1. Cheaper than Amulya Jeevan and Anmol Jeevan
LIC Jeevan Amar is a cheaper plan option than the old plans of LIC, like Amulya Jeevan and Anmol Jeevan. I explain it with an example-
A male person having the age of 30 years at the time of taking policy. His policy term is 10 years. And he wants to fix his sum assured as ₹1 crore. Then,
- In Amulya Jeevan, his premium will be ₹15,222
- In Jeevan Amar, his premium will be ₹9280
So, you can see, how much is the difference between both the plans in the same conditions. Hence, Jeevan Amar provides you with life coverage at a very low price. As in Regular and Limited Premium payment options, the minimum premium installment is only ₹3000.
2. Low Premium for Non-smokers and Females
Jeevan Amar gives a special benefit of low premium to non-smokers and females. So, if you fall in either category of both or in both categories, your premium amount may be attractive.
For example, if a non-smoker male aged 30 years purchasing term insurance of ₹1 crore sum assured for 20 years policy term, his premium will be ₹10,800. However, in the same category for female premium will be ₹9440.
Note, you are a smoker or not, it would be decided by Urinary Cotinine Test.
3. The Flexibility of Premium Payment and Sum Assured
Jeevan Amar plan gives you the facility of premium payment into 3 modes, viz. Regular, Limited and Single. You may opt for any one of them. If you choose Regular or Limited payment option, you may pay the premium yearly or half-yearly.
There is a grace period of 30 days also for premium payment. Thus, if you face any financial crisis, you may delay premium payment for some extra days.
Apart from this, LIC is giving two options of sum assured to be paid as a death benefit. First, Level Sum Assured, in which the sum assured chosen by you will remain constant throughout the policy term.
And Second, Increasing Sum Assured, in which the sum assured increases automatically as per rules. Without any extra effort from your side. But, you have to pay the higher premium for this option.
4. Attractive High Sum Assured Rebate
If you choose a high sum assured, you will get the attractive rebate on premium.
The rebate starts from 4% and goes up to 20% as the sum assured increases. Hence, if you choose the high sum assured, you will get more rebate.
5. Coverage for Older Age
This policy gives you the Life Coverage up to 80 years of age. It means you may be insured up to the age of 80 years. This is a very big benefit.
Because if a person dies during the policy term, the LIC will give the full death benefit. As you know, in India the Average Age is 69 years. But this plan gives you the life cover for extra years above the average age.
Hence, if a person aged 65 years (the maximum age for taking the policy) buys this policy, he can continue it for 15 years. This benefit was not available in earlier policies.