LIC Revised Jeevan Amar Plan 955 Features, Benefits and Major Modifications

LIC New Jeevan Amar Plan 955 has recently undergone significant modifications aimed at enhancing its appeal and flexibility for policyholders. As per Circular Ref: CO/PD/247 dated September 30, 2024, LIC announced changes to the policy’s structure, specifically regarding the Maximum Policy Term under the Increasing Sum Assured death benefit option (Option II). With these adjustments, the existing version of LIC’s New Jeevan Amar Plan (Plan No. 955), designated by UIN 512N350V01, has been officially withdrawn as of November 18, 2024.

The revised plan, carrying the updated UIN 512N350V02, has now been launched for new business from this date, while the plan number 955 remains unchanged. This enhanced version brings forward important improvements that align with LIC’s commitment to providing robust financial protection with greater customization. In this article, we will delve into the detailed features, benefits, and modifications of the LIC Jeevan Amar Plan 955, offering a comprehensive guide to help prospective policyholders understand how this revised term assurance plan can meet their financial security needs.

The modifications for LIC New Jeevan Amar plan, as per the updated circular (Ref: CO/PD/247 dated 30.09.2024), are as follows:

Also see: LIC New Jeevan Shanti Plan 758

Revised Policy Term for New Jeevan Amar

The policy term under Para 2.f) has been updated as follows:

1. Level Sum Assured Death Benefit Option (Option 1):

• Policy Term: 10 to 40 years.

2. Increasing Sum Assured Death Benefit Option (Option 2):

• Minimum Policy Term: 10 years.
• Maximum Policy Term: Based on the age and Basic Sum Assured band, as detailed in the Regular / Limited Premium and Single Premium options.

For detailed conditions and limits under each Basic Sum Assured band and corresponding age range, please refer to the table provided in the revised document​(LIC Revised Jeevan Amar Plan 955).

Also see: LIC Bima Shree Plan 748

Key Features of the Revised Jeevan Amar Plan 955

LIC’s Jeevan Amar Plan is a non-linked, non-participating term assurance plan, designed specifically for individuals looking for substantial life cover without an investment component. The key features include:

• Plan Type: LIC Jeevan Amar is a pure protection plan, meaning it does not offer maturity benefits. Instead, it focuses on providing financial security to the family in the event of the policyholder’s death. As a non-linked, non-participating plan, it is immune to market risks, ensuring that the sum assured remains constant and guaranteed.
• Flexibility: The revised plan now includes a broad range of choices for policyholders. They can select a premium payment term, life cover structure, and policy tenure that best suit their lifestyle and financial goals.
• Sum Assured Options: Under the revised guidelines, LIC has set new limits for the sum assured, allowing both higher minimum and maximum sums to provide flexibility for policyholders in various income brackets.
• Policy Term: Policyholders can choose a policy term within the newly defined minimum and maximum limits. This flexibility lets individuals select coverage that matches their life stage and the duration of their financial commitments.

Also see: LIC New Money Back Plan 720

Premium Payment Options

Jeevan Amar Plan 955 offers multiple premium payment methods, making it easier for policyholders to choose a payment structure that aligns with their budget:

• Regular Premium Payment: Allows policyholders to pay premiums throughout the policy term, ideal for those seeking affordable annual or semi-annual payments.
• Limited Premium Payment: Here, premiums are paid for a shorter period than the policy term, with two limited options—5 years or up to the policyholder’s age of 60. This option suits individuals who wish to complete their premium payments early but still maintain long-term cover.
• Single Premium Payment: For those who prefer to make a one-time payment, the single premium option provides lifetime coverage with no further payments.

Frequency of Premium Payment: LIC offers annual, half-yearly, quarterly, and monthly payment options. For instance, a policyholder selecting a 20-year policy with a regular premium can decide to pay annually, benefiting from lower per-payment costs, or monthly for added convenience.

Also see: LIC Jeevan Tarun Plan 734

Death Benefit Options in Jeevan Amar Plan 955

Jeevan Amar provides two death benefit structures to cater to varying financial needs:

• Level Sum Assured: This option ensures a fixed sum assured throughout the policy term. For example, a policyholder opting for a ₹50 lakh sum assured at the start will retain this coverage without increases. It’s ideal for those who want consistent, predictable coverage.
• Increasing Sum Assured: This option is designed to keep up with inflation by gradually increasing the sum assured. In the revised Jeevan Amar plan, the sum assured grows by a set percentage, enhancing the benefit payout over time. For instance, a ₹50 lakh sum assured can increase by 10% after each year, ensuring greater financial protection as the years pass.

Each option caters to specific needs, with Level Sum Assured benefiting those looking for consistent coverage and Increasing Sum Assured suitable for those concerned about inflation and rising financial obligations.

Also see: LIC Jeevan Utsav Plan 771

Rider Benefits for Added Protection

To enhance the policy’s coverage, LIC offers optional riders. Policyholders can add these riders to increase their protection level in specific scenarios:

• Accidental Death and Disability Benefit Rider: This rider offers extra coverage in case of accidental death or disability, adding a layer of financial security during unexpected incidents.
• Critical Illness Rider: Covers specific critical illnesses and provides a lump sum payout if the policyholder is diagnosed with a covered condition. This can alleviate the burden of medical expenses.
• Premium Waiver Rider: Under this rider, premiums are waived in the event of total disability or critical illness, ensuring the policy remains active without requiring further payments.

Benefits and Coverage: Riders extend the basic plan’s coverage, offering financial security in unexpected situations, such as a severe accident or illness.

Eligibility Criteria and Premium Impact: These riders come with additional premiums, allowing policyholders to customize their plans. For example, adding the Critical Illness Rider increases the premium but gives peace of mind against major health risks.

Also see: LIC Micro Bachat Plan 751

Flexibility and Policy Customization

Customization is a core feature of the revised Jeevan Amar Plan. Policyholders can tailor their coverage, selecting the type of death benefit, premium payment term, and policy tenure that best suit their financial situation and future goals.

For instance, a young professional with family obligations might choose a long-term policy with an Increasing Sum Assured, while a retired individual might opt for a shorter-term policy with Level Sum Assured. This level of flexibility enhances Jeevan Amar’s appeal across different life stages and financial backgrounds.

Also see: How RBI Monetary Policy Could Affect LIC Pension Plan Annuity Rates

Eligibility Criteria and Age Limits

Eligibility for the Jeevan Amar Plan 955 has been set with specific criteria:

• Minimum Entry Age: The minimum age for entry is 18 years, catering to young adults and early earners looking to secure their future.
• Maximum Entry Age: The maximum entry age is 65 years, allowing older adults to also benefit from this comprehensive cover.
• Maximum Maturity Age: The revised plan extends coverage until a maximum age of 80 years, ensuring prolonged security for the insured’s family.
• Sum Assured Requirements: The minimum sum assured is set at ₹25 lakhs, which increases the level of financial protection for beneficiaries in case of the policyholder’s untimely demise.

Premium Calculation

The premium for Jeevan Amar Plan 955 is determined by several factors, including the policyholder’s age, chosen sum assured, and premium payment term. Premium rates may vary depending on health assessments and lifestyle choices, like smoking habits.

Premium Calculation Example

To illustrate how premiums are calculated under LIC Jeevan Amar Plan 955, consider the following example:

Example Scenario:

• Policyholder: Male, Age 30, Non-Smoker
• Sum Assured: ₹50 lakh
• Policy Term: 25 years
• Premium Payment Option: Regular Premium with annual payment
• Benefit Option: Level Sum Assured

Using these details, LIC calculates the annual premium based on factors including the policyholder’s age, term length, chosen sum assured, and premium payment frequency.

Calculation Breakdown:

• Base Premium Rate: For a non-smoker male aged 30 with a sum assured of ₹50 lakh, the base premium rate might be approximately ₹5,000 per lakh of sum assured for the Level Sum Assured option.
• Annual Premium Calculation: Base Rate x Sum Assured in Lakhs = ₹5,000 x 50 = ₹2,50,000 annually

If choosing a monthly payment mode, this premium would be distributed across 12 installments, though each installment may carry a slight loading fee for the convenience of monthly payments.

Adjustments for Optional Riders:

If the policyholder opts for an Accidental Death and Disability Rider, an additional premium would be added based on the rider’s rate per lakh of coverage, increasing the overall premium cost.

Final Annual Premium: The policyholder’s final annual premium would be ₹2,50,000, with adjustments for any chosen riders. This premium provides life cover protection of ₹50 lakh, ensuring financial security for the family in case of the policyholder’s untimely death.

Policy Surrender Value

Surrender Value Options: While term insurance generally doesn’t offer surrender value, certain provisions allow for it under specific conditions in this plan. Policyholders opting for Single or Limited Premium modes may qualify for a minimum surrender value if they discontinue the policy before its term ends.

Policy Loan and Revival Options

The revised Jeevan Amar Plan also outlines provisions for policy revival:

• Loan Facility: Jeevan Amar typically doesn’t support policy loans given its term assurance nature. However, in some cases where a surrender value is present, the policy may allow for a limited loan.

• Policy Revival Terms: If a policy lapses, LIC provides a grace period and revival options, enabling policyholders to reinstate the policy within five years of the first unpaid premium. This grace period safeguards individuals against accidental lapses and provides continuity of coverage.

Tax Benefits Under Jeevan Amar Plan 955

The plan offers tax benefits as per prevailing tax laws, which are an added advantage for policyholders:

• Premium Deductions: Premium payments are eligible for deductions under Section 80C of the Income Tax Act, up to the defined annual limit.
• Death Benefit Exemption: The death benefit is exempt from income tax under Section 10(10D), subject to conditions specified under tax laws.

These tax advantages not only make the plan financially efficient but also enhance the overall value of Jeevan Amar as a protective instrument for future generations.

Benefit Examples: For instance, a policyholder in the 20% tax bracket paying ₹1 lakh annually can save up to ₹20,000 in taxes under Section 80C, enhancing the plan’s affordability.

Conclusion

The revised LIC Jeevan Amar Plan 955 stands as a versatile and strengthened term assurance option that caters to diverse policyholder needs with enhanced flexibility, particularly in its Increasing Sum Assured option. With its robust death benefit options, flexible premium payment modes, and added protection through optional riders, Jeevan Amar 955 provides a well-rounded financial safeguard tailored to different life stages and responsibilities. The modifications, effective from November 18, 2024, not only improve coverage but also ensure that policyholders have a solution that adapts to inflationary pressures and changing financial landscapes.

Overall, LIC Jeevan Amar Plan 955 remains a valuable tool for securing a family’s financial future, reinforcing LIC’s commitment to providing dependable and adaptable life insurance solutions.

FAQs

Disclaimer: This article provides an overview of LIC Revised Jeevan Amar Plan 955 for informational purposes only. It does not constitute financial advice. Policy terms, eligibility, and benefits are subject to change. Readers are encouraged to consult official LIC documentation or a certified LIC agent to understand the latest plan features, premiums, and conditions before purchasing.