New Jeevan Amar and Tech Term: LIC floats two term assurance plans with fixed premiums, guaranteed returns

LIC's new term insurance plans: Insurance giant Life Insurance Corporation (LIC) has launched two schemes, New Jeevan Amar and Tech Term, which are term assurance plans. As per the details provided by the company, both the plans are non-linked and non-participating plans, which means policyholders can pay fixed premiums and receive guaranteed returns. Non-linked plans are low-risk products that are not linked to the stock market. 

According to the LIC sales brochure, both plans offer special rates for women. Premium rates differ for non-smokers and smokers. 

Here are the special features for both the policies. 

LIC’s New Jeevan Amar 

The new policy is a non-linked, non-participating, individual, pure risk premium life insurance plan, which aims to offer financial protection to the investor’s family in case of his/her unfortunate death during the policy term. The plan can be purchased offline through licensed agents, corporate agents, brokers and insurance marketing firms. 

Key features 

• The minimum basic sum assured is Rs 25 lakh. 
• The basic sum assured shall be in multiples of Rs 1 lakh, if basic sum assured for the policy is Rs 25 lakh to Rs 40 lakh.  
• If the basic sum assured for the policy is above Rs 40 lakh, the same will be in multiples of Rs 10 lakh. 
• Premiums can be paid by various options like single, regular and limited premium payment options.  
• The premiums would be assessed on factors like the age at entry of the life to be assured, smoking status, gender, policy term, Premium Paying Term and Sum Assured Option chosen.  
• Non-smoker rates shall be ascertained on the findings of the Urinary Cotinine test. In all other cases, the smoker rates will be applicable. 
• Women would get special rates. 
• The minimum and maximum entry ages are 18 years and 65 years. 
• The policy term is for 10-40 years. 
• The maximum age at maturity should be 80 years. 
• As per the LIC document, under Single Premium, minimum premium shall be Rs 30,000. Under Regular and Limited Premium mode, the minimum premium shall be Rs 3,000. 
• The death benefit for the regular and limited premium payment policy will be highest of 7 times of annualised premium or 105 per cent of “total premiums paid” up to the date of death of the investor, or absolute amount assured to be paid on death of the investor. 
• Also, for single premium policy, the LIC policy says “sum assured on death” as higher of 125 per cent of single premium or absolute amount assured to be paid on death. 
• Once fixed, the death benefit option cannot be tweaked or changed again. 
• On survival of the life assured to the end of the policy term, no maturity benefit is payable. 
   

Tech Term Plan 

Investors can buy the plan online only through the LIC’s website. There are two benefit options: level sum assured and increasing sum assured. 

Other key features are:  

• The minimum basic sum assured is Rs 50 lakh. 
• The basic sum assured shall be in multiples of Rs 5 lakh if basic sum assured for the policy is Rs 50 lakh to Rs 75 lakh, and Rs 25 lakh, if basic sum assured for the policy is above Rs 75 lakh. 
• Premiums can be paid by various options like single, regular and limited premium payment options.  
• The premiums would be assessed on factors like the age at entry of the life to be assured, smoking status, gender, policy term, Premium Paying Term and Sum Assured Option chosen.  
• Non-smoker rates shall be ascertained on the findings of the Urinary Cotinine test. In all other cases, the smoker rates will be applicable. 
• Women would get special rates. 
• The minimum and maximum entry ages are 18 years and 65 years. 
• The policy term is for 10-40 years. 
• The maximum age at maturity should be 80 years. 
• As per the LIC document, under Single Premium, the minimum premium shall be Rs 30,000. Under Regular and Limited Premium modes, the minimum premium shall be Rs 3,000. 
• The death benefit for the regular and limited premium payment policy will be highest of 7 times of annualised premium or 105 per cent of “total premiums paid” up to the date of death of the investor, or absolute amount assured to be paid on death of the investor. 
• Also, for single premium policy, the LIC policy says “sum assured on death” as higher of 125 per cent of single premium or absolute amount assured to be paid on death. 
• Once fixed, the death benefit option cannot be tweaked or changed again. 
• On survival of the life assured to the end of the policy term, no maturity benefit is payable.