LIC’s New Jeevan Amar is the insurer’s standalone pure term plan, built purely for protection with no savings or maturity component. It’s available only through agents, corporate agents, brokers, or insurance marketing firms, not as a direct online purchase. Here’s what it actually covers.
What Are the Eligibility Terms?
- Entry age: 18 to 65 years
- Maximum age at maturity: 80 years
- Minimum Basic Sum Assured: ₹25,00,000, with no upper limit, subject to underwriting
- Sum Assured multiples: ₹1,00,000 for amounts between ₹25 lakh and ₹40 lakh, ₹10,00,000 above that
- Policy term: 10 to 40 years under the Level Sum Assured option; the maximum term under Increasing Sum Assured depends on your age and sum assured band
Worth noting upfront: the ₹25 lakh minimum sum assured is higher than many standalone term plans in the market, so this isn’t built for smaller cover requirements.
What Are the Two Death Benefit Options?
You choose one of these at the time of purchase, and it can’t be changed later:
Level Sum Assured: The death benefit stays fixed at your chosen Basic Sum Assured for the entire policy term.
Increasing Sum Assured: Cover stays at your Basic Sum Assured through the fifth policy year, then increases by 10% of the Basic Sum Assured every year from year six through year fifteen, until it reaches twice your original Basic Sum Assured. From year sixteen onward, it stays fixed at that doubled amount for the rest of the term. For example, a ₹50 lakh Basic Sum Assured would provide ₹55 lakh of cover in year six, rising steadily to ₹1 crore by year fifteen, then remaining at ₹1 crore through the rest of the policy.
How Is the Death Benefit Actually Calculated?
For Regular and Limited Premium policies, the Sum Assured on Death is the highest of:
- 7 times your annualised premium, or
- 105% of total premiums paid to date, or
- The absolute sum assured amount based on your chosen death benefit option
For Single Premium policies, it’s the higher of 125% of your single premium, or the absolute sum assured amount.
What Does This Plan Actually Cost?
LIC’s own brochure gives real sample premiums, useful for gauging actual cost rather than relying on a rough estimate. For a non-smoking male choosing a ₹50 lakh Basic Sum Assured over a 20-year policy term:
| Age | Level Sum Assured (Regular Premium) | Increasing Sum Assured (Regular Premium) |
|---|---|---|
| 20 | ₹5,959/year | ₹7,832/year |
| 30 | ₹7,830/year | ₹11,125/year |
| 40 | ₹15,441/year | ₹23,933/year |
These figures are exclusive of taxes and apply to non-smoker, standard-health applicants. Premiums are meaningfully higher for smokers, determined through a Urinary Cotinine test rather than self-declaration alone.
Can You Reduce Your Premium?
Yes, if your sum assured is large enough. LIC offers a High Sum Assured Rebate, applied as a percentage discount on your tabular premium:
| Age Band | ₹50L to under ₹1 Crore | ₹1 Crore and above |
|---|---|---|
| Up to 30 years | 13% | 25% |
| 31 to 50 years | 11% | 21% |
| 51 years and above | 6% | 11% |
(Figures shown are for the Level Sum Assured option; the Increasing Sum Assured option gets slightly lower rebate percentages at each band.) There’s no rebate below ₹50 lakh sum assured. Women also qualify for special, lower base rates under this plan.
What Riders Are Available?
Only one: the Accident Benefit Rider. A few conditions apply: it’s only available if your outstanding premium paying term is at least 5 years, the rider premium cannot exceed 30% of your base plan premium, and the rider sum assured is capped at 3 times your Basic Sum Assured. Cover under this rider ends at age 70 or at the end of your premium paying term, whichever comes first.
Can You Receive the Death Benefit in Instalments?
Yes. Rather than a lump sum, the life assured can opt, during their own lifetime, to have the death benefit paid to the nominee in instalments over 5, 10, or 15 years, at monthly, quarterly, half-yearly, or yearly intervals. Minimum instalment amounts apply: ₹5,000 for monthly payments, ₹15,000 quarterly, ₹25,000 half-yearly, and ₹50,000 yearly. Once this option is exercised, the nominee cannot alter it.
What’s Excluded or Restricted?
A few things worth knowing before you buy:
- No maturity benefit. This is a pure term plan. If you outlive the policy term, nothing is paid out.
- No loan facility. Unlike many of LIC’s savings-linked plans, you cannot borrow against this policy at any point.
- No paid-up value. If you stop paying premiums, the policy simply lapses rather than continuing at a reduced cover level.
- Limited surrender value. For Regular Premium policies, surrendering pays nothing at all. Limited Premium policies only have a surrender value (called Unexpired Risk Premium Value) if you’ve paid for at least 2 consecutive years (premium paying term under 10 years) or 3 consecutive years (premium paying term of 10 years or more). Single Premium policies can access this value at any time.
- Suicide exclusion: if death occurs by suicide within 12 months of the policy’s start or revival, the nominee receives 80% of premiums paid rather than the full death benefit.
How Does This Compare to Other Term Plans?
The defining trade-off here is straightforward: New Jeevan Amar carries a higher minimum sum assured than many competing term plans and is sold exclusively offline through agents and intermediaries, not as a direct online product. In exchange, it comes from LIC’s own underwriting and claims track record, which some buyers weigh heavily given the insurer’s scale and history. If you specifically want to buy term insurance online without going through an agent, or want a lower entry sum assured, it’s worth comparing against term plans built for direct digital purchase.
Frequently Asked Questions
What is the minimum sum assured for LIC New Jeevan Amar?
₹25,00,000, with no upper limit, subject to underwriting. This is higher than many other standalone term plans in the market.
Can I buy LIC New Jeevan Amar online?
No. This plan is sold only through agents, corporate agents, brokers, or insurance marketing firms, not as a direct online purchase.
What are the two death benefit options under this plan?
Level Sum Assured, where cover stays fixed throughout the policy term, and Increasing Sum Assured, where cover rises by 10% annually from year six to year fifteen until it doubles, then stays fixed at that level for the rest of the term.
Does LIC New Jeevan Amar pay anything if I survive the policy term?
No. As a pure term plan, there is no maturity benefit under any circumstances.
Can I take a loan against this policy?
No. Unlike many LIC savings plans, no loan facility is available under New Jeevan Amar at any point during the policy.
Does this plan offer a premium discount for larger cover amounts?
Yes, through the High Sum Assured Rebate, which can reduce your premium by up to 25% for sum assured levels of ₹1 crore or above, depending on your age band and chosen death benefit option.
Last Updated on 48 minutes ago by Team Paisaseekho
