LIC's Amulya Jeevan II Term Plan offers high cover

Insurance

oi-Roshni

By Roshni Agarwal

Published: Tuesday, February 4, 2014, 15:14 [IST]

The new Amulya Jeevan II plan of LIC is a pure protection plan that offers financial security to the family members of the life insured in case of his/her unfortunate death. The plan is suitable for individuals who seek a high sum assured of Rs. 25 lakhs and above (there is no upper cap for the sum assured value).

Minimum and Maximum age : To subscribe for the LIC Amulya Jeevan II plan the minimum entry age is 18 years while maximum is 60 years. The maximum age allowed on maturity of the policy is 70 years.

Policy term: The policy can be purchased for a minimum term of 5 years up to 35 years.

Premium Payment option: Premium for the policy are to be paid regularly in half-yearly or yearly modes. And the single premium payment option is not available for the plan. A grace period of a month which shall not be less than 30 days is allowed for making due premium payments. It can be noted that the earlier version of the plan, Amulya Jeevan I, features single premium payment option.

Under the plan, for securing a life cover of Rs. 25 lakhs for a term of 25 years a person aged 30 years would need to pay just about Rs. 4900 on an annual basis. If the insured opts to pay the premium in half-yearly mode, an additional premium @ 2% of the annualized premium shall be payable.

Policy revival of lapsed policy: The lapsed policy can be revived within 2 consecutive years from the date when the premium first remain unpaid but before the end of the policy maturity term. Further policy reinstatement is subject to fully paying all the arrears of premium and interest as well as submission of requisite documents to the satisfaction of the corporation.

Benefits

Maturity Benefit : In case the insured survives through the policy term, no amount shall be payable.

Death Benefit: In case of death of the insured during the policy term, an amount equivalent to the sum assured value shall be payable to the nominee of the policy.

Loan or Surrender : Amulya Jeevan II is a pure term plan that does not allows surrender of the policy and also loan against the policy is not provided by the Corporation. Also, the policy does not acquires any paid-value.

Some other considerations:

In case the insured commits suicide during the first policy year or within a span of 1 year from policy revival the policy is considered to be void. However in case the policy remains in force, the new policy shall pay an amount equivalent to 80% of all the premiums paid till the date of death. Any other claim in this respect shall not be entertained by the Corporation.

It must be noted that the prior version of the plan, Amulya Jeevan I, in a similar situation shall declare the policy as void and no death benefit is payable.

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