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.
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-
- For term of 5-9 years-1st Year 10%, 2nd and 3rd Years-5% and subsequent years-5%.
- For term of 10 to 14 years-1st Year 15%, 2nd and 3rd Years-7.5% and subsequent years-5%.
- 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-
- For term of 5-9 years-1st Year 10%, 2nd and 3rd Years-5% and subsequent years-5%.
- For term of 10 to 14 years-1st Year 20%, 2nd and 3rd Years-7.5% and subsequent years-5%.
- 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] / FreeDigitalPhotos.net
View Comments
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.
Kaushal-You have to be earning person to buy any type of Life Insurance.
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 ?
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.
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 ?
Mani-Nominee will receive the full sum assured. Because while buying the insurance, person's intention is not to suicide.
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 70years..so now I want to know any polices are there without refund to cover this amount. How much could be the premium.? Thanks;srinivas
Srinivas-"I want to know any polices are there without refund to cover this amount"-I am unable to understand.
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
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.
Hi Basavaraj; I don't have any policies without refund..now I want to take term policy..pls suggest which one could be better.
Srinivas-I listed my choices in my recent post "Top 5 Best Online Term Insurance Plans in India-2016".
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;
Srinivas-1st one.
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
Sharon-NONE.
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?
Shri-Better to do it. But cancel the existing one, only after they issue the online plan.
I was thinking of buying additional e-term and let the Anmol Jeevan expire next year.
Shri-Don't delay in buying.
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?
Thanks
Shri
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.
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?
Shri-If you not discontinue, then it is the fault of hiding material fact. Hence, if they come to know at later stage, then they may reject the claim of the second term insurance.
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?
Shri-I understood and what I am pointing is, if you dont want to continue, then why you want to mention?
Basavaraj Tonagatti, suggest which is better safety wise and Claim settlement wise?
1. LIC- Jeevan Amulya
2. LIC E-Term plan (online plan)
Vishnu-LIC eTerm.
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)
Vinod-It is purely LIC's call.
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,
Arbin-Check the premium on LIC Portal.
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
Bishun-It is usually 2 years.
DEAR SIR,
KINDLY SUGGEST WHICH KIND OF TERM PLAN IS BEST FOR US FROM L.I.C. PLEASE PROVIDE THE TABLE NUMBR OR NAME OF PRODUCTS.
THANK & REGARDS,
ROHIT
Rohit-Buy the basic term plan without riders and ONLINE. If you commented considering LIC, then LIC offers only one online term plan. Check it on LIC portal.
DEAR SIR,
ANY OTHER COMPANY TERM PLAN WHICH IS BEST AND THE CHEAPEST PREMIUM.
PLEASE SUGGEST WHICH ONE IS THE BEST & CHEAPEST.
THANK & REGARDS,
ROHIT
Rohit-There are many which are cheap. But first understand with which company you are comfortable and how much you can afford. Without all these information, I can't say which is BEST and CEHAP.
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,
rohit
Rohit-I already said you, there is no ROP policy in LIC. Also, you are buying insurance to cover the risk. Hence, don't expect return.