LIC Anmol Jeevan 2: A new low cost term plan

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LIC Anmol Jeevan 2: A new low cost term plan
To comply with the new IRDA guidelines, LIC has phased out several of its traditional products and also introduced few others. Anmol Jeevan 2 is one such pure term plan introduced after withdrawing the earlier Anmol Jeevan 1 plan.

Anmol Jeevan 2 is a traditional without-profit low cost pure protection plan. The policy plan with a regular premium payment option can be opted for a high sum assured value in the range of Rs. 6 lakh- Rs. 24 lakh. (Sum assured shall be in multiples of Rs. 1Lakh.) Minimum sum assured value has been increased from Rs. 5 lakh to Rs. 6 lakh in the revised version.

Minimum and Maximum entry age: Individuals in the age group of 18-55 years can subscribe to this new term plan for a term of 5 years to 25 years. Maximum age allowed at the maturity of the policy term is 65 years.

Premium payment mode: Unlike, the previous Anmol Jeevan I plan, under the new term plan premiums are to be paid regularly either annually or half-yearly. Provision to pay premium in single payment or single premium option is not available in the plan. In case of half-yearly premium payment mode, an extra premium @ 2% of the annual premium is charged.

Low cost of Anmol Jeevan 2 plan can be illustrated with the following example: An individual aged 30 years can secure LIC's Anmol Jeevan II plan for 25 years term with a minimum sum assured value of Rs. 6 lakh by paying an annual premium of just Rs. 2,124/-. For half-yearly premium payment mode, he will have to shell out 2% over and above this amount which comes in at Rs. 2167/-(It is to be noted that premium is determined excluding taxes)

Policy reinstatement or revival: Dissimilar to Anmol Jeevan I policy plan that can be revived anytime during the life time of the life assured but before the expiry of the policy term, the new plan in case of non-payment of premium can be revived within 2 consecutive years from the date when the premium first remain unpaid but before policy maturity term.

Benefits: As it is a pure term cover plan, sum assured shall be payable to the nominee of the policy only in case of unfortunate death of the insured during the term of the cover. No proceeds shall be payment, if the insured survives through the policy term.

Further, being a solely term cover, Anmol Jeevan II policy plan is not eligible for loan or surrender.

Read more about: lic, term plan
Story first published: Tuesday, February 4, 2014, 13:10 [IST]
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