LIC’s new term plans 2014-Anmol Jeevan-II and Amulya Jeevan-II

Today  LIC launched new versions of it’s existing Term Insurance policies. Let see how they are beneficial to you and what changes are done to the prior plans. From initial findings it looks that they are cheaper. But I need to validate with the data which may take some time.

LIC's New Term Plans-2014

Latest News (17th May 2014) !!!

LIC launched it’s first online term plan. Review will be available here “LIC’s online Term Plan e-Term-Review and Benefit

1) Anmol Jeevan-II

  • Minimum Sum Assured raised from Rs.5,00,000 to Rs.6,00,000.
  • Maximum Sum Assured Rs.24,00,000.
  • Minimum Age at entry is 18 years and maximum age is 55 years.
  • Maximum cover ceasing age is 65 years.
  • Minimum Policy Term- 5 Years and Maximum Policy Term-25 years.
  • Premium paying term-Yearly and Half Yearly only.
  • Revival-A lapsed policy can be revived within 2 years from the first unpaid premium but before the expiry of policy term. Medical report cost should be borne by Life Assured.
  • Death Benefit-Policy Sum Assured will be payable to nominee.
  • Maturity Benefit-Nothing will be payable on survival of life assured till the end of policy term.
  • If the death of Life Assured occurs within the grace period but before the payment of premium due then, policy will still be considered as valid and benefit will be payable to nominee (but after deducting the due premium+unpaid premiums due before the next policy anniversary).
  • 2% of tabular annual premium will be add for half yearly premium.
  • Agents Commission-
  1. For term of 5-9 years-1st Year 10%, 2nd and 3rd Years-5% and subsequent years-5%.
  2. For term of 10 to 14 years-1st Year 15%, 2nd and 3rd Years-7.5% and subsequent years-5%.
  3. For term of 15 years and above-1st Year 25%, 2nd and 3rd Years-7.5% and subsequent years-5%

Bonus commission will be 40% of 1st year commission.

  • No loan, paid up value or surrender value.
  • Policy will be considered as void if life assured commits suicide within 12 months from the date of commencement of risk or from the date of revival. An amount equal to 80% of premiums paid till date of death (excluding taxes and extra premiums) will be payable if policy is in force.

2) Amulya Jeevan-II

  • Minimum Sum Assured Rs.25,00,000.
  • Maximum Sum Assured-No limit.
  • Minimum Age at entry-18 years and maximum age 60 years.
  • Maximum maturity age-70 Years.
  • Minimum policy term-5 years and maximum term-35 years.
  • Premium paying term-Yearly and Half Yearly only.
  • Revival-A lapsed policy can be revived within 2 years from the first unpaid premium but before the expiry of policy term. Medical report cost should be borne by Life Assured.
  • Death Benefit-Policy Sum Assured will be payable to nominee.
  • Maturity Benefit-Nothing will be payable on survival of life assured till the end of policy term.
  • If the death of Life Assured occurs within the grace period but before the payment of premium due then, policy will still be considered as valid and benefit will be payable to nominee (but after deducting the due premium+unpaid premiums due before the next policy anniversary).
  • 2% of tabular annual premium will be add for half yearly premium.
  • Agents Commission-
  1. For term of 5-9 years-1st Year 10%, 2nd and 3rd Years-5% and subsequent years-5%.
  2. For term of 10 to 14 years-1st Year 20%, 2nd and 3rd Years-7.5% and subsequent years-5%.
  3. For term of 15 years and above-1st Year 25%, 2nd and 3rd Years-7.5% and subsequent years-5%

Bonus commission will be 40% of 1st year commission.

  • No loan, paid up value or surrender value.
  • Policy will be considered as void if life assured commits suicide within 12 months from the date of commencement of risk or from the date of revival. An amount equal to 80% of premiums paid till date of death (excluding taxes and extra premiums) will be payable if policy is in force.

Normal Requirements for claim-Claim form as prescribed by LIC with original policy bond, NEFT mandate form to directly transfer the amount to nominee bank, proof of title, proof of death, medical treatment prior to death and if age is not submitted during the time of policy buying then age of life assured should be furnished.

Whether to buy LIC’s term plans or not?

Major drawback why lot of people stayed away from LIC term plans are their pricing. They are costly when you compare with online or offline term plans available with other insurers in India. But few still tried to buy term plans with LIC because of their faith in it and to diversify their risk among insurers. Currently I don’t have valid table to compare. But when I considered the available resources I found that these new plans are cheaper than the older (this is my assumption and will update on it shortly).

For example for the aged 30 years and SA Rs.1,00,00,000 and term 25 years was previously cost us Rs.29,200 yearly. But now it is costing us Rs.22,028 (claiming to be inclusive of tax).

Image courtesy of [Stuart Miles] /

261 thoughts on “LIC’s new term plans 2014-Anmol Jeevan-II and Amulya Jeevan-II”

  1. Hi,
    Thanks for giving the information in a lucid way. When I was filling the online form, at the end I came across with financial and occupational questionnaires. I am not in a job from last 6 months, so what should I fill in occupational questionnaire – Employer, Nature of duties, designation. Also in the two columns of financial questionnaires, latest and prior financial details are required, but is it for calendar year or financial year.
    Thanks in advance.

  2. Sir,

    I am a chain smoker and lit bit alcoholic .I have not seen any option in the form of LIC. I am going tho take Amulya Jeevan 823 policy . Medically fit that I am certified by doctor .. Will the habit of smoking and drinking hindrance or obstacles at time of my natural or accidental death ?? For accidental death , any kinds of alcoholic influences will be a problem in time of my natural or accidental death ?? . Please suggest

    Is there any hidden clauses ?

    1. Shrinath-It is available in proposal form. Check properly (never allow to fill by agents). Your doctor’s certification is not required to LIC. LIC conduct the test with it’s recognized doctors. You habits are hurdles or not. But such habits increase the premium rates. Hard to say the reasons of death claims rejection.

  3. i have one doubt one man purchased a policy SA: 50,000,00/- after 12 months he attended suicide.
    because he got loss from business or any one reason. this time how to settle (claim) to nominee to LIC.
    full amount ? or partial amount ? or noting to pay claim?
    policy bond noted: within 12 months policy holder attended suicide lic will not pay like this. after 12 months what will happen ?

  4. Hi Basavaraj; I am 35 Years old; currently i am having, lic jeevan anand;old_2lakh SA&icici prudential 10Lakh covered; now I want to take 1 cr cover policy for normal or accidental for now I want to know any polices are there without refund to cover this amount. How much could be the premium.? Thanks;srinivas

      1. Hi Basavaraj; I don’t have any policies without I want to take term policy..pls suggest which one could be better.

          1. Hi Basavaraj,

            Thanks for information, could please suggest me on below queries

            1. Better to take 1 Policy of 1 crore ;
            2. Two polices of 50Lakhs each with same company?
            3. Two polices of 50Lakhs each with different company?

            Thanks in advance;

      2. I am S saha from Durgapur West Bengal.i have already taken amulya jevan 25000000 last year for my wife now I want to purchase sbi e shield for my mom and dad. but within few month will go to abroad for job for 3 years.if I died out of my country then is my family will get the money or not. Please suggest and what will be the procedure? 9083263241

        1. Saha-The insured person is your wife or your parents, then how come your death will affect their insurance? If you mean to say that policy is in your name but nominees are different, then also the first rights over your money will be of your WIFE not your parents. For safety purpose, you have to inform insurer about your abroad stay before leaving the country.

  5. 33 years old iam….have two children 9 and 12 years old ,which is best returns insurance policy for short term ,I think jeevan sarla best or not for me please reply me

  6. Hello,

    I am 33 years old recently bought a term plan Amulya Jeevan-II from LIC(month back) with cover of 1 cr with premium inclusive of tax of Rs. 38000. Now I accidentally stepped into the e-term policy from LIC. And I figured out it would have cost me 21,000 for the same cover. I was misguided. I am thinking of buying e-term now and allowing the Amulya Jeevan-II lapse after a year.What is your opinion?

        1. 1.Because cancelling the existing and getting a new policy is uncertain process. I want to secure the e-term first and then cancel the Amulya Jeevan. My current annual salary will allow me to ask for additional term insurance. Is it the best way to go about it?

          2. And if option is ok to execute. Should I be disclose my current Amulaya Jeevan policy while I am seeking additional e-term?


          1. Shri-YES. 2) If your intention is to cancel the existing cover once they issue the new one, then I don’t think it is required to disclose. However, if you continue the old even after issue of new policy, then you may be in trouble.

            1. Thank You. Appreciate your time. But one last question in this regard:
              Will there be a problem if I disclose in new proposal about the older term insurance and later decide to discontinue the expensive one?

                1. Basu- May be I did not understand your response clearly and may be I did not put my question in a clear way. What I was wanting to know was, in the proposal of the second term insurance if I DISCLOSE about my FIRST term insurance even if I want to discontinue (say a year or two later). Would it cause any issues?

  7. Basavaraj Tonagatti, suggest which is better safety wise and Claim settlement wise?
    1. LIC- Jeevan Amulya
    2. LIC E-Term plan (online plan)

  8. i m vinod age of 35 as smoker (per day taking 4cig) and want to know what will be premium if i m taking SA amount is around 2500000 and 4000000.please suggest.(LIC e termplan)

  9. arbin kumar shasrma

    hi sir,
    i am planing to buy LIC term plan,sum assured arround 25 lack pls tell me how much i have to pay for ,i am 32 years old i have 2 LIC policy ,jivan saral ,paying monthly,

  10. what is the tym period in anmol jeevan policy. after which period LIC will not consider the claim as early death claim or early claim whatever you say i

    1. dear sir,

      it is the right choice to buy the anmol jeevan or amulya jeevan-ii policy, if my wife age is 48 years old. these policy have return of premium (R.O.P.)

      Kindly suggest.

      thank & regards,


      1. DEAR SIR,


        THANK & REGARDS,


          1. DEAR SIR,


            THANK & REGARDS,


  11. DEAR SIR,




      1. DEAR SIR,


        THANK & REGARDS,


  12. HI,

    i was looking for some insurance/investment plan, where i can pay premium only for 3 or 5 years,

    Are there any good options for this year?

    As i ask some of the agents say now 3 or 5 years not available, only 8 years available.

    Can u please help me out?

    1. Hi sir. Table 823 Amulya Jeevan & Table 822 Anmol Jeevan are two best Term Insurance Plan from LIC

      I will give flat 15 % discount on the first premium. Please contact for best deal.Contact for Best Life insurance like JEEVAN ANAND, CHILDREN NEW MONEY BACK PLAN,JEEVAN TARUN .BEST CHILDREN PLAN EVER LAUNCHED BY LIC



      1. Amit-In what sense these two are the best and why not online term plan? Also, do you know sharing your commission to garner the business is against IRDA rule and they may cancel your agency also. Beware before posting such silly things.

  13. Hi Basavaraj,

    I plan to apply for a LIC insurance. I have a Son aged 10 years, i want to pay premiums for 5 years and then get sum assured after 5 years, which helps to my son’s education. So please let me know which policy I can opt ( it should for only for 5 years). Also let me know how much amount I can pay for each premium. Your suggestion is very needful to me… Thanks.

      1. Hi , actually I am completely not aware of insurance policies. I want bulk amount after 5 years with good sum assured, so let me know which policy I can opt for. I can say that i need a insurance policy only and for 5 to 6 years… can pay premiums(quarterly/halfyearly/annually). Please don’t get annoyed with my questions… as i said I am not much aware of policies and all.

        1. Abhirami-Buy a term plan online for a period of 5-6 years and your waiting period is too short. Hence, suggest either use Bank FDs or short-term debt funds (even arbitrage fund also fine). But no LIC plans which combines insurance with investment.

  14. Hi,

    Would be helpful if you answer only about these in yes or no for Amulya II policy

    Accident death is covered
    1.) BUS/Train/Car/Bike or any vehicle accident
    2) Death by falling from building (at construction site while working or from stairs in home or office)
    3.) AirPlane Crash

    4.) Natural disaster , earthquake flood etc
    5.) Terrorist attack
    6) Drunken driving
    7.) death by cancer,heart attack

    Thanks a lot for your help.

    1. Bibib-LIC not listed the causes of death for which they settle the claim. Reason is, there are thousand ways for one’s death. Hence, it is hard to say so. I know a case where the insured death occurred in train accident but the claim is still pending (that too it is not term insurance but a traditional plan of less than Rs.5 lakh sum assured).

  15. ujala bajpayee

    I want to know what are the hidden conditions for lic amulya jeevan term plan like if a person is involve in criminal activity or if he dies in drunken drive will accept the claim or claim ll b rejected..


    I have jeevan suraksha (T -122) & contributing since Feb 2001 Rs 9984 per year for a term of 16 years. Is Feb 2016, the last premium.How much will I get as regular pension from March 2016.

  17. Hello sir,

    I am 31 old – smoker. I have registered LIC e-term policy for 50 lakhs -35 years. Initially while registering the premium was around 15k. Now after medical test and they have classified the risk as CLASS II and now asking to pay extra premium of around 6k. So the total premium sums up to 21k. Like to know if its still worth to go with LIC or should i look for other private players. Please advice.

      1. Thanks for your time Basavaraj.

        I am also wanted to know how long does it take for the LIC to refund. what would be amount they will deduce if it are going to refund.


  18. helli mr. basavaraj.
    you were really not very helpful
    you deleted my post query .
    IT shows your profession

    1. Jatin-What is there to delete your comment?? For your information, it needs my approval to saw it. Now I approved both of your comment because let others too know 🙂 Also, if I am not helpful to you means I am not fit for this profession??

  19. hello sir ,
    a simple question
    a person who is 46 years old
    can they get jeevan saral policy 165
    because someone told after 40 its not aligible

      1. thank you for replying
        but still thats not answer.
        can you please tell me
        what is the eligibility for that policy.
        if someone bought it at the age of 46.

        1. Jatin-If someone bought it before it’s closure then why that person need that eligibility creteria NOW?? If LIC already issued that policy then whether LIC issued it BLINDLY with breaking the eligibility creteria of that plan??

  20. Hi,

    I want to buy any investment plan/policy which offer the guaranteed return, I can make the annual payment of around 30-40K for the period of around 10-15 years, Please suggest me some good insurance polices (don’t want to invest in Stock related policies)

    Vikas Kumar

    1. Vikas-You want GUARANTEED RETURN? Then keep that in your savings account. Because even Banks also not offer you FDs more than 10 years (which may be considered as guaranteed return products). Also, your concern is of investment or buying a product which combines insurance with investment?

  21. Y.Ramakrishna

    Dear Mr.Basavaraju,

    Request for some help.
    I am 45 years old, and wish to take a plan which gives Family Protection as well as financial support at the age of 60.
    Could you suggest any suitable plans for me?

  22. Dear sir,
    I,29yrs old male have recently bought Amulya jeevan 2, from agent of SA 25 lacs. I have gone through a medical test. Now I was worried after the test,what would happen if they found some critical thing like .HIV..
    Now after some days my agent informed me that there was no problem with medical report and policy would be approved soon.Again after some days the agent confirm the policy was passed and he gave me the policy no. I checked its status from lic site found OK,but he said to get the policy bond will take a few more days. Now my question is Elisa test is must and was carried out during medical test?As my policy is approved does it mean I am sure HIV negative? For my peace of mind.

  23. In last financial year FY14-15 when i went to LIC office for Term policy, they told me the premium for Amulya Jeevan, term 35 years, sum assured 50L, will be around 12k and then they asked me to do some tests. After all the test now they informed me the Premium will be 22k.

    So my question is do premium amount will change after medical tests?
    How this process works in othe Insurance company?

  24. Hi BT,

    I am 29 years old, smoker. Want to take a Term plan for 50 lakhs with 30 years also considering the cost and settlement benefits of the companies. Which one would you suggest

  25. HI Sir,

    I want to buy Term policy from HDFC Life & Extra Life Option plan for Rs.50 lakhs and TATA AIA for Rs.50 lakhs. Because TATA AIA LifeInsurance iRaksha is term of 80 years and whereas HDFC is 75 years.

    Please suggest shall I take policy from one Insurance company for 1 Crore or Two insurance copanies for 50,50.

    Thanks You,

    1. Srinivas-Go with one company and restrict your term up to your age of retirement start. I don’t think one need insurance at 75 Yrs of 80 Yrs. Also, what will be the value of money of Rs.1 Cr when you reach 75 Yrs or 80 Yrs of age??

  26. Hi,

    I am 24 years old, unmarried. I would want to buy one insurance plan by paying monthly EMI. Could you please let me know which LIC plan to opt for.


  27. Dear Mr. Basavaraj Tonagatti

    I had recently been in touch with an LIC agent who informed me about LIC’s NEW JEEVAN ANAND – 815 endowment plan for a SA of 1o Lakhs , I’m 26 Years old & wanted to know a little about the which term I should opt for, I’m currently considering a 24 & a 29 years Term. And a bit confused whether I should wait till I get 55 years old or 50 is a better age to get the returns??
    Your help will be appreciated.

  28. Sanjay S Pimple

    In Dec 2014 i have taken LIC Amulya Jeevan-II policy of 2500000 and in Jan 2015 i have again applied for another new Amulya Jeevan-II policy of 2500000, please let me know validity of Medical test I have gone through in my first Amulya Jeevan-II policy taken in Dec 2014.

    1. Dear Mr.Sanjoy and Mr.Basavaraj
      Can you specifically mention list of medical tests that I have to undergo if I opt for Amulya jeevan-2 of amount S.A Rs2500000?(My age is 28 yrs. ,term of 25 yrs.).

  29. sir

    I am 30 years old i don’t have any problems now . If i will take this term plan. After that any diseases or virus attacked and death with in 2 year than what happen about the claim settlement ?

  30. Hi Basavraj, i’m planning to take ICICI’s Guaranteed_Wealth_Protector to get tax benefits. My Annual income is 6 lac PA. So, please suggest me is it good to join this plan. Thanks for you reply.

  31. Hi,

    While travelling in train, one fellow passenger told me this information.
    Can you please help me to clarify.

    Assume I pay insurance with multiple companies (one with LIC, one with SBI and another with a private insurance company) for my life and if something happened, is there any restriction on payment against these policies.

    What I mean is, if the highest of the policy with SBI – assume 50 lakh my survivors get it, can other insurance companies deny by saying that the insurance is already paid by some other company for the same reason.

    What I have been told is if we have a policy with multiple companies, while settling the insurance claim they ask for whether any insurance company paid any amount against this claim,, if we say yes, they deduct that amount and if we say no ,, they say it is wrong claim and reject it..

    Is this correct ? Can you please clarify.


    1. Murali-While buying multiple insurance products you usually disclose the existing policies to new insurance company but not to the old insurance company. So no question of that if one insurance company settled the claim then others must reject it. Even asking such information from insurance company for such information itself illegal. You be in risky only in case you not informed them about existing policies while buying. Rest of what you said about deduct and all are not true.

      1. thank you.

        I am clear on this point.
        What is the reason for asking existing policies with other insurance companies.
        Is this information is to cross verify any details in case of claims later on or any other reason.


        1. Murali-They ask the existing insurance irrespective of insurance company, to arrive at your actual insurance requirement to your human life value. Otherwise a person who earns monthly around Rs.10,000 may ask for insurance coverage of Rs.1 Cr. Nothing more than that.

      2. Dear Basavaraj –
        I am 40ys old now , my salary 6L/PA ( Private organisation) , question , I am planning to purchase Term plan from SBI or LIC , while purchasing term plan , I need to submit salary proff of income , suppose at sasy some thing went wrong , at the time of claim ,if I loose my job , and isndureres will raise any objections on this ( becuase of job loss) , please clarify me and also suggest me best term plans , I am expecting SA 50L with minimium tenure plans Thanks for your reply in advance

  32. sir, actually i meant that the 4th premium for my jeevan anand policy became due in sep 2014 and is still unpaid. are there any restrictions on part of lic e.g do i have to make payment for unpaid premiums on existing policy before a new term policy can be issued in my name? thanks sir.


  34. sir, i have decided to surrender my lic jeevan anand policy (sa-700000,yearly pre-28524,25 yrs) after paying three premiums. btw, the due date for 4th premium was sep 2014. last week my agent told me that i will not be alloted a fresh lic policy for three years after surrendering existing policy. is this true? pl clarify as i have to take a new term insurance before march 31st?

    1. Aditya-It is not true. If you not believe me too then call to LIC customer care and discuss. Above that you are planning to take term insurance before March 31st and your existing insurance Sept 2015. So first buy the term insurance then you can cancel also. No confusion in that case. Agents say so because if you surrender then they loose their income 🙂

  35. Hi Sir,

    I Am at 28 years, looking for investment plan, which would guarantee around 9%+ average annual return for short / long period. And my main concern is my savings than insurance coverage. I simply request you for your valuable advice to reach me in safer practice of savings either in insurance plans or in other guaranteed plans.

    The theory of choosing insurance is, I feel it like an liability, which would demand for regular payments, and restrict withdrawals.

    Best regards,


  36. Hello Mr. Basavraj,
    One of the LIC agent whom I’m in touch with was categorizing that the online term plan shall always be treated in the category of early claims, even if claim arises after a period of 3 years and thorough investigations shall be done in case of claims settlement, while it’s not so in case of the Offline term plan. Kindly share if you’ve come across any such news or if you can validate this?
    Also I came t know from one of the LIC marketing person/agent that during the floods of Himachal and J&K , many private insurance companies refused to pay the claims while LIC paid all claims diligently. Are you aware of any such news.?In case it’s true, does it not put LIC in a much better position than the private insurers, inspite of the higher premium?

    1. Anu-Your agent is misleading you. There is no different procedure to settle online or offline claims. He is just pitching for offline product to earn his commission. About flood claim settlement, it may true to certain extent. But private insurers also settled huge claims. Numbers may be towards LIC as their penetration of sale is also high. Anyhow if you opted for term plan with LIC then go for online term plan of LIC. But avoid the agent who mislead you. How can you believe him that he provide prompt service when he is misleading you in start itself?

  37. Hi Basavraj,

    Please help me with below queries.

    1)I have jeevan anand policy – paying yearly 50k for 21 years (2 years old)
    2)CITI bank Suvidha policy with 24k per year with 9.6 lacs coverage for 10 years (1 year old)
    For above 2 policies amount gets deducted monthly.

    My info :-

    Age 30 years
    non smoker
    annual package 9 lacs

    My liabilities :-
    9 lac home loan

    I want to take term plan which will cover 1 Cr for 30 years. Is it ok?

    What should I do with above 2 policies as I was not aware while taking those but later I found that these are not that beneficial as returns are not that good.


    1. Raviraj-Let the existing policies complete 3 years and they surrender them (I know you will be under loss, but still good to come out of junk products). IN my view better to have around 15-20 times of your yearly income and existing loan amount.

  38. Hi Basavraj,

    I am planning to buy online Term Insurance. Will you please guide on the following –
    1. What is the major difference between LIC’s Amulya Jeevan II and LIC’s e Term plan. I have observed for e Term Plan (UIN: 512N288V01) premium is less (Rs.12400) . For Amulya Jeevan II it is high (Rs.16400)

    2. Also, State Bank Life’s eShield (Level Cover with ADB #) with accidental benefit rider has comparatively very less (Rs. 9350) premium and it has benefit of this ADB rider.

    So I understand
    i. On unfortunate event State Bank Life pays double the sum assured. while LIC has no such rider, am I right?
    ii. LIC offers 35 years term while SBI offers 30 years

    3. Now with above points, which product I should select, please advise.

    4. Should I buy total sum assured in one go or should I plan to buy half sum assured in next few years? So that atleast one plan lasts upto the age of 70?

    Awaiting your suggestion.


    1. Ankush-Amulya Jeevan is offline plan and agent’s commission involved here. Whereas, in case of eTerm, it is online so it is cheap. Yes when you compare with other online plans then LIC’s plan is still costlier. Both SBI and LIC are good. Choose according to your budget and requirement of term. In my view it is better to opt accidental insurance separately from general insurance companies. It is always best to buy one sum assured in single buy. If you plan to split to next year then the premium will be high as you grow old.

      1. Thank you very much Basavraj! You reply is indeed very useful for me.

        1. I am 32 now. If I am buying online eTerm from LIC it will last till next 35 years i.e. my age that time would be 67 yrs. So If I buy another term plan at the age on 40 yrs which will last for next 35 years (as LIC offers maximum ceasing age as 75); premium would be high but the period would be till age 75. Also, once I opt any other policy; I can surrender the earlier one. Is it recommended approach?

        2. I was reading on internet; some Financial Consultants advised that if we split SA and buy from 2 different companies; if one rejects the application we will have other in hand to get the benefit. If other company approves the claim; nominees can again go back to the first company and challenge it’s rejection. Hence the question about splitting SA. Please suggest.

        Hope I am not doing micro analysis of this 🙂


        1. Ankush-But do you feel post retirement insurance is required? It is only mental calculation to benefit more out of term insurance premium you paid. That is a reason people tend to buy for long term insurance. Current premium may looks bit expensive. But the same will not be there after 30-35 years. At that time your grand kids may be having ice cream with what you used to pay towards this insurance. So restrict your insurance to your working age. What if in future the existing insurance companies communicate among them the reason for rejection of one company? So it is again theoretical assumption that splitting will save your dependents. Instead let your dependents life be cool and have insurance with one company with disclosing all facts correct.

  39. Hi Sir,

    Thank you for sharing and guiding all and thus making a “Future-Sensitive Indian Citizens”, indeed a noble cause.

    Myself is in a salaried occupation of frequent travalling by all modes.
    I have family of 3, myself (39 yrs- non alchoholic,non smoking), spouse (35 yrs.) and a son (08 yrs.).
    I am the only income source for family with a income of 7.5 lpa, Spouse – Home Manager, Son studying.
    currently owning a 1bhk flat, cash 90k, with no financial liablities.

    Pl Guide –
    1. Upto max. what age I should take this term ins. plan? e.g. upto age of 60,65 or 70…..
    2. What should be max. Sum assured? Calculation for the same?
    3. Tentetively what will be anuual/half yearly premium?
    4. Which are top 5 best institiutes whom I can think to go with considering zero resistace for claimimg and with maximum claim settlement rate?
    5. Which is best option – Online? or Offline? Why?? Pl share Limitations of both, if any that you might be knowing….

    Also leaving above mentioned points aside, what are other points that are to be considered more for taking term insurance?

    Thanks in advance.
    Yogesh kulkarni

    1. Yogesh- 1) It should be ideal to have term insurance till your retirement age. So it may be 50,55,60,65, or no retirement 🙂
      2) Again there is no such rule that this is the limit one must have maximum insurance. Ideal insurance coverage should be 15-20 times of your yearly income+Any current loans+Current values of future goals.
      3) It depends on individual product and company.
      4) None-Because zero resistance idea depends on individual claim. So hard to say so. Also including LIC all are into business and they are not running any charity organization. Hence they try to dig fault in your claim. So it is your duty to disclose all facts rightly and save your dependents.
      5) Online or offline again depends on one’s own comfort. If he/she feels that nominees know all the things about the process of claiming it then they can go for online. Otherwise go for offline, but at the same time do remember that the agent who is selling you may not be agent at the time of claim. So it may happen that your dependents again struggle to claim. Hence best way is to buy it online, educate your dependents and best part of benefit of buying online is, it is cheaper 🙂

  40. Hi, my dad is 52 years old, non smoking and healthy. Can u please guide how much premium will be needed for 1 crore term plan? Is it easy to pass medical test at this age? Thanks mate.

  41. Respected Sir ….. My name is Ravi ….. Age 23 …. Unmarried… Non smoker … Salary 2.5 lakh per annum …. I want to buy online term policy …. Would u plz suggest any online policy for me as I donno anything regarding this …. How trustworthy these online term policies are ??? Seen some where that the premium amount is less than 15k P.a for for 1 crore sum assured ….. Should I go wid that one sir…. Plz bear my ignorance and suggest me one good term policy sir.. (Sum assured 1 crore … 30-35 years term ) … Thank in advance….if no risk happens in this term….what is the amount I get after maturity…..???

    1. Ravi-You can choose anyone one among LIC (Online Term Plan), HDFC, ICICI, SBI or MaxLife. If nothing happens to during policy period then you will not receive anything as these policies are only risk taking products but not investment products.

  42. I want to buy online term plan of lic.please contact me.
    annual income 450000 to 500000 lac
    which plan will be suitable.

  43. Hi Mr.Basavaraj Tonagatti,

    Thanks for helping so many people thru this portal.

    I am 33 years old working in Delhi, looking to buy a Term Plan. I am Non smoker, Married & 2 kids. Please suggest which plan to buy . Is it important to go for a term plan??????

    Secondly. can you please suggest where to Invest for my Little New Born Baby Girl Future & Education.


    1. Vipin-Term Plan is required to those who have financial dependents. So if your family will not face any financial problem in case of your sudden demise then no need. Ideal insurance coverage should be around 15-20 times of yearly income. Regarding investing for your kid’s goal, I can’t suggest plainly without knowing you better.

  44. My age is 38 years and my salary is 2.70 Lakhs pa. I want to buy a online term plan Amulya Jeevan II of Rs 25 Lakhs with policy term 22 years.
    Please let me know if I buy an term plan right now the premium amount will remain the same throughout the policy term or it will increase as my age will increase?

  45. Dear Sir

    I want to enquire, whether an orphan can take Term Plan, if yes, whether he/she can make his/her friend as nominee?


    1. Ramesh-One can’t make his or her friends as nominee. But any individual who is earning and major can buy. But if no one dependent on you financially then the question of insurance will not arise. So why to buy any insurance?

  46. shailendra singh

    Hi , this is shailendra
    Age: (26)
    Salary: 3.36 PA
    No smoking no drinking habit.

    I readed all the conversation available here:
    i am the only earner of my family my parents (mom & dad) dependent on me.
    i am doing my saving via RD only.
    I have few questions:
    1) few best term plan for SA rs 1 Crore, for 30 years.
    2) how to choose best term policy?
    3) idealy from where to buy such term policies (via agent, online directly, via mediator like )


    1) f i opted any term insurance plan of private company like ICICI, HDFC or MAX for 30 year and if suppose they wind up there business after 10 or 15 year then what? weather i would get money back or any other clouses is set by IRDA in that scenario?

    (i rerally appreciate your effort and would like to say thank u for your such a wounderfull comments)

    1. Shailendra-All are best if they suites your need and budget and you are comfortable with company. So no specific names. Choosing best term insurance company is not a rocket science. But understanding your need it most important. So don’t run behind the requirement figure of Rs.1 Cr, instead ideal cover should be around 15-20 times of your yearly income. Better to buy it online.There is something called solvency ratio which they need to keep it aside and there is a regulator called IRDA to monitor such wind ups. So no need to worry.

  47. Dear Basvaraj,
    I read most of your reviews, thanks for your kind inputs, please guide me for purchase of a term plan
    Age -45 yes
    Sum assured -75 Lacs
    Non smoker
    Suggest me a best plan from a reputed company

  48. Abhishek bodkhe

    I have taken this plan but my agent told me , you will get all return at end ..

    he told me premium 18000 yrs ly for 600000 and 30 yrs .

    as per your comment , there is no return plan , could you please tell me .. is it ok or not
    such policy aare avaialble in LIC term plan..

    but at end 30 yrs , only i will get premium values not interest on that…

    is it correct as per lic polices..

    1. Abhishek-If you complete policy term and survive then you will neither receive extra nor the premium you paid. In case of your death during policy period then your nominee will receive the sum assured you opted.

  49. Hi,
    I want to know advantage and disadvantage of LIC online Vs. offline term Plan (Table No. 823)

    Please guide me.

    1. Jit-Premium will be lesser around 35%. You need to be cautious in future dealing as there will be no middlemen. Hence take care of service part yourself. But it does not mean that the agent who sell you will exist in same business or be in touch with you for rest of policy period.

  50. Audhesh Narayan

    I Audhesh Narayan, age 41 yrs. I want to take term plan Amulya Jeevan-II of Rs 30 Lakh for 25 Yrs. No smoking, no health problems.
    Pl let me know the yearly premium with all additional charges.


  51. Hello Mr. Basavaraj,

    Thanks for your helpful block,
    I am 35 yrs want to buy term insurance plan of 50 lac with additional accidental death benefit for 30 yr but i am confuse in LIC & SBI, can you guide which is better for me & what will be premium.

  52. Shalabh Srivastava

    Hi Basavaraj,

    I had taken a Jeevan Saral plan with half yearly premium of 24260 (48520 yearly) for 25 years (MSA 1000000) on Nov 11, 2013 and my DOB is 15/08/1987.When i had opted for this plan at that time i was looking for a plan that gives me insurance + saving.

    The chart of Jeevan Saral looks goods its show 54 lakhs in 25 years. So i had talked to the agent, after the discussion with him he told i would get 32 lakhs (appox) in worst case. I was surprised to hear why so much difference he said he had computed with 6% + loyalty because lic rate of return is not fixed.

    So i was convinced giving i.e -> 25 * 48000=1200000 Lakhs and getting 32 lakhs. (whether i will get this much?)
    I have paid 1 year’s premium till date.

    Now there so many questions coming in mind are as follows:
    1) If I deposits 4000 p/m in RD or PPF account return will get more return but no insurance.
    2) If i surrender the policy in one year then i will lost the whole money.
    3) If a buy a term plan of 50 lakh (its max premium will be 10000)
    3) What if maid this policy paid-up?
    4) Getting 32 lakhs after 25 year will meet the inflation at that time.

    So my question is whether I should continue the policy and if i made is paid-up then how much i would
    get ? Or is there any valuable suggestion then please share with me.

    Looking forward for your valuable suggestion.


    1. Shalabh-1) Do you feel the insurance coverage Jeevan Saral providing you is enough?? Ideal insurance coverage should be around 10-15 times of your yearly income. So that your dependents will survive for another 10-15 years without any hurdle.
      2) are right.
      3) Your term plan premium depends on your buying (online or offline) and also from which company you want to buy.
      4) You can’t make it paid up until you pay minimum 3 years. In that case also it is a worst return providing plan.
      5) If you consider the inflation rate at 6% then Rs.32 lakh after 25 years is equal to current Rs.7,45,595. So now think from this amount for how many years your dependent will survive currently 🙂

      I know it is hard for you if I say forget what you paid already as penalty for your unknowing things. But it is the reality and best option.

      1. Shalabh Srivastava

        Hi Basavaraj,

        Thanks for you reply, i will definitely take this on higher priority and one thing more i have also heard that
        we have to go medical test (for online term) so is there is any special procedure ?


          1. Shalabh Srivastava

            Hi Basunivesh,

            Thanks for sharing your articles are very reply helpful.I had gone through many articles provide by you in your blog after reading all this i am conclude all my questions(goals) in this post please reply them as it would give me much clear picture.

            1) So my question if i surrender after 5 year whether my 1st year premium will get deducted ?
            And for these year whether i will get some interest money for these years?

            2) My opinion to carry these policy for 5 years to get min loss. So after 5 years I can go for Tax Saver FD will give me better return after and would cover the loss i have maid in next 15 to 20 years.

            3) Currently i have investing 50000 yearly in PPF,so after paying next 4 years of lic premiums i could merge the amount in PPF for next 20 years it would give 51.5 lakhs (computed @ 8%).

            4) About Retirement Planning:
            Currently I don’t have EPF account & My annual salary is 3.75 LPA and i am looking for job change so next job will be in between 4.8 LPA to 5.4 LPA range.

            a) So if I open my EPF account + investing in MF by SIP ?
            b) Or should i go for some Pension plan ?
            c) What MF is good to start with ?

            5) About Online Term Plan:
            So many product are there is market. My preference is LIC as its best claim settlement in market then SBI,HDFC,ICICI.
            a) Is there is any link which provide all policy details of LIC example inclusion and exclusion.
            b) I have started my job at Aug 2011, but i don’t have form 16 of that year (2011-2-12).Does this will stop me buying policy?
            c) In am leaving in Noida but native home town is Allahabad. Is there is any problem in buying policy and medical test?
            d) In your opinion which will good term policy to buy?

            I know my post is very long & i will be very great full to you for reply.
            Looking forward for your response.


            1. Shalabh-
              1) Regarding surrender please first contact your nearest LIC branch.
              2) Yes wise decision.
              3) But don’t over invest in any one product or asset class.
              4) Better to choose EPF+Equity Mutual Fund (If planning is for long term). Regarding best mutual funds, I already written a post on this. Please refer the same.
              5) First choose a product of your choice then check your eligibility.All are equally good and bad. So choose according to your comfort and budget.

  53. Hi Basavraj,


    I am holding a Jeevan Saral Policy since last 3 years, can I discontinue the same ? As I already have a term plan in place

  54. Can u please tell me,,what document needed for LIC Amulya Jivan 2. I wii surrender my old jivan Anand plan and jivan saral plan. Please suggest,,also i am paying rs. 150000 per yr. PPF,, and rs. 6000 p.m. In new pension scheme… For 20 years. Please suggest about my planning.

  55. Thank You Mr. Basavaraj Tonagatti.

    I want to buy new term insurance.
    So. i plan to come India this week.
    Than how to start my this activity.

    Pls advice me.

  56. Hai
    I am NRI. I plan to buy Trem Policy.
    How to buy online.
    Pls. sent me like & Details.

    Already i have one policy with LIC (149 -Jeevan Anand) that one paying thourgh online, but that policy take thourgh agent.


    1. Ravi-Please first try to come out of Jeevan Anand as this plan is not pure term plan. Second thing for buying online term insurance, you need to be in India to undergo medical test. So my suggestion is to buy when you in India for few days.

  57. Hi Basavaraj,

    I want to know that is it any pure term plan is available in LIC in which I will get the survival benefit at the time of maturity.

    Lots of companies giving this type of benefit like Aviva Life Shield Advantage in which all the money paid as premium will be returned to you on survival at the end of the Policy Term through.

    Is it available this type of term plan in LIC ?

    1. Ajay-Is it freebie they are offering to you? Compare the pure term to return of premium. You will notice the difference. If you invest the same in any product then the probability of return is more. In one way you are looking for term plan and in another way you are expecting some return. Instead why can’t you opt for typical low yielding traditional or ULIP plans, which are combo of Insurance+Investment? But I am against this combination.

  58. Thanks for all your elaborate answers.
    I have one quick question. Is there any provision for accidental disability or critical illness in amulya jeevan term policy? If not can you please suggest how to take that into consideration may be using other policies of LICs?
    Thanks in advance.

  59. Dear Sir,

    Just got a quote from my agent for amulya jeevan 823
    SA:1 CR.
    Incl Service Tax: 29326/- yearly

    1) Is the premium higher compared to online subscription
    2) Why does premium quoted by agents…vary…another agent quoted >30k
    3) Does civil war, riots, or disturbances included in the exclusions
    4) What happens in case of natural death…abroad
    5) Can you give me a ball park figure for the above criteria for 1 cr and 1.5 cr cover…i.e. yearly premium

    Many thanks…

  60. Hello Basavraj- Very informative site, congratulations.

    I had a question on my LIC term plan. I have a Rs50L term plan from LIC for which i am paying Rs 15600 as premium yearly. With the online policy coming, i wanted to know if i can 1) Expand the policy cover to 1Cr and 2) I see the premium for 1Cr online policy is less than what i am paying for a Rs 50L. Please advise.


  61. Dear Basavaraj,

    Greetings !!!.

    I am 34 yrs old and I am looking for term insurance plan. I am looking to opt for a maximum period (like 30 or 35 yrs) and amount of 1 Cr. Please suggest me how much would be premium? And also i came across AEGON Religare’s iTerm insurance plan which is offering maximum period at low premium cost. Please let me know about this insurance company. One of my friend (aged 30 yrs) took term policy 3 yrs ago at this company for which his insured amount is 1 cr @ premium of 9000/- per annum for a period of 45 yrs. Which means, he is insured till 75 yrs.

    Thanks in advance for your help.

    Regards, Phani.

    1. Phani-Buying insurance need to be depends on your requirement, premium affordability and comfort with company. In case of LIC, it is costlier. But in case Religare they may be offering you at cheap rate but few will not believe on private insurers. It is your wish to choose the company.

  62. Hi,

    I am 32+ want to buy LIC’s Term Insurance plan Amulya Jeevan for 35 Years having sum assured Rs. Fifty lacs. I am a regular smoker. Could you please advise if i should go for it or not. Also please advise the premium which I will have to pay.


    1. Ashu-There is no such different category in LIC like smoker and non smoker. But while buying insurance you need to mention in proposal. Based on that LIC will fix you the premium. LIC’s term plan is costlier in market. But if you still have faith in LIC then go ahead.

  63. Hi,

    My DOB is 14-Jan-1983. I am looking for a 50L coverage under Amulya Jeevan-II. For duration of 25 and 30 years how much premium would be required to pay. I am a non smoker

  64. Dear Sir,

    My age is 25 years and my salary is 6 Lakhs pa. I want to buy a term plan of Rs 50 Lakhs with policy term 30 years.
    I can see premium amount is less for younger people. Please let me know if I buy an term plan right now the premium amount will remain the same throughout the policy term or it will increase as my age will increase?

    Rakesh Kumar

      1. Thanks for your reply.

        One more question in my mind. Who decides the premium for term plans. Is it decided by IRDA or Insurance provider by its own? Are premium rates for term loan increase annually on some basis?
        Can you tell me the premium growth for some last few years?

        1. Rakesh-It is individual insurance companies which decide the premium. Usually actuaries design the product and while doing so they arrive at premium rates. Again we can’t predict in future whether they will decrease new plans premium or not. Because no one known what lies in future.

  65. Good evening Basavaraj!

    I am male 34 years old and looking to get a term plan insurance for 25 years. I have gone through few comparisons and felt that LIC and HDFC is good. Could you recommend which one between these two should i go?

    Your assistance is much appreciated.







    1. Ashish-Good business promotion 🙂 But sadly you knocked the wrong door friend !!! Also being an agent sharing your commission is not legal according to IRDA rule. So do you know what you are doing??

  67. Hi Basavaraj,
    Thanks for this great Blog…

    I request your advice on the following need:

    I am a Male, 36 Yrs Non Smoker. I want to opt for the following:

    1. Term Insurance cover of Rs. 1.5 Crore for myself
    2. Critical Illness Cover for myself and my wife (35 Yrs) for a sum of 15 Lakh each

    I am quite impressed with the Max New York Online plan with a fixed SA + Monthly Payout for 10 Years. However, I really want the claims process and settlement to be hasslefree for my wife in case of my demise so I trust LIC even if they are expensive.

    My question is:
    1. Should I distribute my risk between LIC and Max? If yes, what ratio do you suggest?
    2. Are there any specific considerations while opting for more than one Insurer? Do I have to follow any particular sequence or special disclosures?
    3. Since a critical illness rider is not available with either LIC or Max, which one do you recommend?

    Thanks again for the great blog and your honest and practical advice …


    1. Animesh Singh-
      1) If LIC premium seems costlier then you can diversify it as you said. Otherwise I don’t think any reason behind such a logic.
      2) When you opt for multiple insurer then you must disclose all the existing insurance policies to new insurer correctly. This will actually make them clear about the existing cover, your human life value and how much SA they can maximum offer you.
      3) My suggestion is to separately buy it from General Insurance Companies rather than mixing it with Life Insurance.

  68. Hi,

    Can someone of age 62 yrs buy a term plan for say around 10 years for 20-30lakhs or even above? If yes how much would the premium be for HDFC/ICICI.

    If no, may I know what would be the maximum age to buy a term insurance and from which company?

    1. Kunal-He can buy but depends on how much healthy he is and which company offers term insurance to this age. Sadly HDFC Click2Protect maximum age at entry is 55 years and for ICICI it is 60 years. Maximum maturity age in both the plans is 65 years.

  69. Atul Suresh Daware


    I am 34 Year Old. I have taken Amulya Jeevan 1 on 23/11/2013. Comparing to Amulya Jeevan 2 which is better for me. If Amulya jeevan 2 is better then what can i convert Amulya jeevan 1 into 2. Please give me suggesstion.
    Thanking u.

    1. Atul-It is cheaper than old LIC’s term plan. Hence first calculate new premium for yourself with new term plan and if it is cheaper for your age then go ahead. But do remember that once the new policy issued then only cancel the old one.

  70. Sivaramakrishna

    Dear sir I am 24 years old i didn’t drunk & smoke – can tell me Short time (10 years) Term Policy I can Invest My self Max-20000

  71. Hi
    My DOB is July’81 and recently i’ve applied for a Term plan of LIC Amulaya Jevan II. They have offered me 1cr life cover for 20 yrs @ 22500/yearly premium. After that they told me to go for a medical test and post medical test they told me since my body weight is more and my Blood Pressure is also high so they can offer me only 60lacs cover for 15 years at the same premium.

    Pls suggest whether i should go for it or look for anyother options like HDFC, ICICI etc. Pls help in this regard.

    1. Atul-They reduced their risk by offering you lower SA due to some health complication. Also it is not guarantee that other insurers will be offer you smoothly. Hence if you are comfortable first buy this plan from LIC and for further insurance opt private insurer by mentioning all health issue with existing LIC cover.

      1. Will do that. Thanks a ton for all the help:-)
        Really appreciate your knowledge and understanding of the subject. Keep rocking man.

  72. Hi Basvaraj ,

    Thanks for so much details.Just wanted to know :

    If I buy a term plan at age of 33 yrs for 20 yr term .Will policy lapse on my 53rd B’day or it will continue 20 yrs from the date I purchased the policy even if it is after 53 rd b’day.

    And appreciate if you cld suggest which is better from SBI or MAX term plans

    1. Reji-If you buy at 33 years of age then opt for 20 years term plan, then it will close once 20 year completes. So it start from the policy bought date than your birthday. If you are looking for cheaper then go for Max.

  73. Mr. Basavaraj, I am 29 year old, Smoker(from last 8-9) years.
    I want 30 year Term plan with 01 CR SA. (Interested in LIC & HDFC)
    what would be the annual premium for this? There is any difference in premium cause of smoking?

    6-7 months before I had surrender LIC Jeevan saral. Am I eligible to take new LIC term plan?

    1. Mayur-In LIC you need to disclose your smoking habit while filling the form and based on your health condition they take the call. But in all other private insurers they let you to disclose in the initial state itself and set the premium accordingly. So for LIC there is no difference between premium rates while you approach but they may increase the premium while accepting the proposal itself. But I am providing you the general healthy person’s premium for age of 29 years, SA Rs.1 Cr and term of plan 30 years will be Rs.24,382 per year. Also you are very much eligible to buy term plan even though you surrendered Jeevan Saral.

      1. Thanks for prompt reply.

        My other query is about family health insurance. I haven’t seen any article about it. Hope you will write on this too.

  74. Hi,

    I went on Policy Bazaar, where the representative advised me to take Aviva (50 L) and Aegon Relegare (50 L).
    Can you comment on the above policies, and let me know if i need to inquire anything before doing any payment.

  75. vinesh topiwala

    hi,,,my d.o.b is 02-12-1971……43 age runing,,,i want term plan for 1.5 crore from lic…what will be primium?

  76. HI Basu,

    Can you let me know about the below things:
    1.I have a question related to national Pension system. I have gone through the entire offer document. The term is quite long time . I am now 30 yrs old. Shall I go for this plan.
    2.I want a insurance plan which is a life coverage plan and premium will be as minimum a possible.
    3.As per me if other investments return (eg: RD:9%,FD-9%,SBI Sweep Account))9% return, Why should i go for any life coverage plan @ maximum premium.

    Suggest me a good insurance plan that covers life at minimum premium amount.


    1. Rajiv-1) I don’t think NPS is a great product for accumulating your retirement corpus. You can create yourself with bit of knowledge and investing in a well diversified products. Also there is lock in facility and we can’t say how Govt will act in future.
      2) You can go for pure term insurance plans. But choosing the lowest premium product may harm your dependents (when you will not be there). So choose the product based on other features also. Hence in my view you can go with LIC (offline and costliest), HDFC or ICICI. Choice is your’s.
      3) You are right. Even if you opt for Bank FDs (interest earned is taxable), you earn more than the typical traditional products.

  77. Dear sir,

    I purchased two wealth plus policy on 31/3/2010 of Rs.50,000/-. As on date NAV of the same is Rs.10.8752. But’s the future of the same should I keep it or in cash the same.

    1. Vinay-Better to come out and invest the same according to your goal. I know it may be currently give you negative to flat return (because of expenses involved in ULIPs). But better to come out once for all.

  78. Abhishek Jagga

    Hi Sir,

    I am 30 year old and planning to buy Term Plan where in the only thing I am concerned about the Claim process in case of death.

    Most of these company’s have different clause, is their any trust-able name who pay without considering the nature of Death.

    1. Abhishek-Please bear in mind that none of the insurance company are here in India to do any social work. Hence while claim (especially early claim) they will try to find the exact cause of death. If you are declaring all materiel facts rightly then why you are worrying about nature of death (as including me, no one can predict our nature of death right? :)??

      1. Thanks

        Right I agree

        actually I been through a heart surgery @ the age of 25 but now I am fit and regularly go for medical check up. The only reason I ask above question is because of this.

        1. Along with this May I ask one thing regarding LIC plan Jeevan Saral. Is it really beneficial Plan as it shown by LIC agents ( will earn 10% Interest )

          I have all the Plans from Lic

          1. Abhishek-One of the worst and over sold product by agents. You can view the whole lot of comments in blog post at “LIC’s Jeevan Saral-Why so much confusion?“. Your agent showed you 10% indicative return which IRDA made it as a guideline to show plan feature. But it never said that this particular plan will you generate 10% return. I guarantee you that even this plan will not generate more than 8% return. It is typical traditional plan with few unique features that’s all.

  79. Dear Basavaraj Tonagatti

    My DOB is 24-08-1977. I and my family dependent on my salary, which is around 4 lac/annum.

    I am looking for pure insurance term plan, which can give financial support to family, if somthing happen.

    It is requested to you pl. suggest in some best term plan of various company which suite me as I said about my income.

  80. I have RPLI Endowment Assurance ( GRAMA SANTOSH) and paying premium at post-office regularly for last four years, but bonus rate of this policy is Rs.55 per one thousand. So my question should I surrender this policy and search for another or I should continue. Please advice. Thank you

    1. T K Singh-I am not an expert in postal life insurance. So unable to comment on your query at this time. But in my general observations, PLI is still good compare to LIC’s traditional plans as it’s premium is very cheap and bonus is high.

  81. Basu Sir,

    I have Amulay Jeevan (old plan before 2014). With new Amulya Jeevan-II, what happens to my plan and premium?

  82. Diwanshu Agrawal

    Dear Sir,
    I am 36 year old and planning to purchase 1 Cr Term Plan. I have some queries,

    1) Is there any difference in the Policy conditions for on-line / off-line term plans offered by the same Insurance company .

    2) Is there any hidden exclusion in online policies, which makes them cheaper?? E.g. SBI life is quoting Rs. 28969 for 29 year term Off-line policy, while it is quoting Rs. 20383 for the same term On-line policy.

    3) Is there anything special in the terms & conditions of LIC (Lesser exclusions), which makes it costly.

    4) If all insurance companies are governed by IRDA rules and judge every case with honesty, then why there there is vast difference in claim settlement ratio of different companies?

    1. Diwanshu-
      1) There is no such major differences between online and offline plans.
      2) Online plans are cheaper as the middlemen cost (agents cost) is directly passing to you by the way of reduced premium. There is no other hidden exclusion apart from this major cost.
      3) LIC plans are costlier because premium calculation of any product in insurance industry depends on lot of things like mortality table they are using, underwriting procedure and lot of issues, which common purchaser unable to understand. Hence the difference of pricing among insurers. Also new company may offer you cheaper to built it’s business (may or may not).
      4) Claim settlement ratio again depends on company reputation and why each insurance was got rejected. There are many reasons to reject like non disclosure of materiel facts by buyer, exclusions of few conditions in particular plan or intentional rejection by insurance company. Hence we can’t blame that rejection is only the fault of insurance company.

  83. Hi Mr. Basu, Thanks For All Your Informative Articles
    I (Age 28) just bought SBI-eShield For 30 Years SA 30,00,000/= 10 % increasing every 5 Years Premium 6000/= But I Am little bit Confused about some Quotations.
    I am Self employed Professional with Annual Income is Net 2,64,000/= (Gross 3,50,000/=) I want to bye 1 more term plan (Not Satisfy with SBI-Because their is not a single word about natural Calamities Or Terrorist Act.)

    1) Can i buy one more policy from any other Insurance Co.? Calculation of 15% Of Annual Income, is 15% of Net Income Or Gross Income ?

    2) Does LIC Amulya Jeevan-2 Or LIC Anmol Jeevan-2 OR ANY OTHER INSURANCE CO. Offering Term Plans give SA on Normal Death Or in Accidental Death Only ?

    3) Which Insurance Companies Term Insurance Covers Terrorist Attack OR Bomb Blast (Compulsory Now Days For Metro City Residents) & Other Natural Calamities like Tsunami, Earthquake or Flood ?

    4) Is Their Any Spacial Rider Available in Any Term Insurance ?

    1. Ravivaraj-1) Calculating your insurance coverage changes on insurance company to insurance. Some may give you 15 times of your net income and some flexible new entrant may offer 20 times. So it is again based on other conditions like your age, health condition, Sum Assured you opted and term of plan. Hence I can’t predict on that.
      2) Both the policies covers only death benefit whether it is accidental or normal which is equal to SA you opted.
      3) You will find such plans available in market. But I am not aware of policy which offering all such incidents.
      4) Yes, you can opt for riders like accidental, critical illness from other insurers, but not in LIC’s term plans.

      1. Ohhh..
        After doing long-long (4 Days) search and compare all the Term Insurance Plan
        I think ICICI is providing good term insurance plan Premium is second highest but affordable.
        They Paying whatever is Sum Assured in death due to any manner either TERRORIST ATTACK OR
        NATURAL CALAMITIES and also giving in writing (No other is doing that).
        So Any one who is going for term plan please check and compare with ICICI once.
        Or if You Already have one term insurance OR want to split in to Two (as said by Mr.Basu)
        go with ICICI.
        I have SBI-eShield but thank GOD, I will use my free-look period and cancel it.

        1. One of LIC agent was saying, if death occurs on bank holiday ICICI won’t allow to claim. Also death in any activity like Bungee jumping,trekking, amuzment rides etc is not qualified.
          Is this true?

          1. Sandeep-One of the worst advice I hear till day. There is no such thing that your death must occur on ICICI’s working day. So no need to worry. But few insurers exclude claims if death occurs due to risk activities like what you mentioned. Hence before proceeding to buy, disclose the details and be secure.

  84. Hi,
    I am new to insurance policies.
    I had invested in anand jeevan table 129 last year to which my friend suggest to stop it as there is no benefit and i also researched on the same proved as right.
    The new scheme under term growth plan of LIC as amulya jeevan plan 2 seems attractive as the returns are high.
    i am confused to its maturity plans as it says no benefit shall be payable to the survival on end of policy term.
    what does this means
    As i have gone thru your artcle u stated 90450 of premium for 20 yrs plan under the scheme for sum assured Rs 1 Crore which means the person gonna pay Rs 1809000 in total & will get Rs. 1 Crore after 20 Years (ie wen he is of 70 yrs)
    I want to know the sum assured here is fixed or is dependent on market growth on any condition bcoz the returns are around 15% wen compounded annually & the ROR increases as the LIC annexure as we decrease the age of insurer.
    Please help to solve the confusion.

    1. Juhi-The above said plans are called “Pure Term Insurance Plans’. In these plans suppose your age is 30 years and you opt for term of 30 years for Sum Assured of Rs.1,00,00,000 then you will pay the premium regularly till you reach 60 years. If your death occurs during this 30 yrs period then your nominee will receive the SA i.e Rs.1,00,00,000. If nothing happens during this 30 years period then you will not receive anything from LIC.
      But such type plans are must for each individual who have financial dependents. Ideal Sum Assured will be around 15 times of your yearly income. Hence buy such plans. Then based on your financial goals start investing in other products like FDs, RDs,PPF or MFs. Hope I resolved your doubt.

  85. For me, the problem with LIC’s plans is they do NOT allow riders like Critical Illness, Disability, Accidental etc. Do you think it is a good idea or even possible to take LIC’s endowment plan (some low value plan) with term ride r+ CI + disability etc?

    1. CP-When are buying term insurance then your sole goal is buying life risk. In that case the add on facilities such as critical illness, disability or accidental riders will not matter a lost. Because you can buy them separately too. Buying the traditional plans only because LIC not provides such additional facilities is not a prudent decision. My suggestion will be to separate the insurance with investment. Also the riders you are talking about are cheaply available separately in market.

  86. Surely it’s a good plan. However, their website doesn’t allow to calculate the premium for these plans. The only option available in the drop down is ‘pension/annuity’ plans. Anyone able to select anything else in the drop down?

  87. Dear sir

    I am act as agent from LIC OF INDIA in Dindigul Branch , Tamilnadu. If you arrange to give leads to me on yearly subscription basis. Kindly inform at the earliest.

    Agent: LIC OF INDIA
    MOB: 9994458868 & 9842760356

  88. Thanks for informing us about these plan in simple language.

    For 50 years male, what would be the annual/yearly premium for SA of Rs. 1 crore under Amulya Jeevan II plan?

    1. Shyam-Pleasure. As of now I have one source of data from a Development Officer. But I need to validate that with LIC site. So Once I get that then I will reply to you with the premium rate you are asking for. Hope you wait for a day or two.

        1. Shyam-It is Rs.90,450 per year for 20 years term plan (inclusive of tax) and Rs.65,731 (inclusive of tax) for 10 years term plan. But previously it used to cost you Rs.1,09,000 and Rs.75,300 respectively.

          1. Many thanks BT for finding out premium rates.

            Do you find 20 years plan attractive for people in my age group?

            Given the current scenario, do you think that LIC rates under this plan are competitive?

            If detailed comparisons with other companies may be a time consuming process, your preliminary assessment/gut feeling would be adequate for me.

            1. Shyam-I think maximum you can opt for term insurance will be upto 65 Years. Reason behind my suggestion is, your earning period ends at this age and no one will be financially dependent on you. Hence if unluckily something happens to you then there will be no financial loss to your dependents. But it depends on case to case. Hence you need to decide the term.
              LIC premium seems competitive when you compare with other offline term plans (It is my understanding but need to do some research and hope you will get one more post on the same). But when you compare with online plans then still this plan is bit costly. Considering LIC’s claim settlement ratio and other features either you may go 100% with LIC or diversify your risk among your insurers including LIC.

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