- Date : 30/12/2022
- Read: 3 mins
Details of the withdrawn term policies of LIC and their replacements
The Life Insurance Corporation of India (LIC) recently withdrew two of its term insurance plans from the market. It decided to withdraw Jeevan Amar and Tech Term plans with effect from 23 November 2022. These two term plans have been withdrawn due to rising reinsurance rates, according to news reports.
Jeevan Amar was an offline policy which was launched in August 2019, while Tech Term Plan was an online policy launched in September 2019. There were no changes in the premium rates of these two policies since their launch.
Also Read: LIC Jeevan Shiromani policy know benefits will give you Rs 1 crore in 4 years
For Existing Policyholders
Withdrawal of a policy is not a cause of concern for existing policyholders. As per the promise made in the bond, LIC will continue to ensure that the policyholders get all the benefits. Besides, buyers, who had submitted proposals and paid the deposit by 22 November 2022 will get their policies, provided the proposal gets accepted by 30 November 2022. Apart from that, LIC will discontinue the issuance of new policies under these two plans.
Also Read: LIC new pension plus plan. 5 things know
New Jeevan Amar and New Tech Term
The decision to withdraw the policies doesn’t mean that they are wiped off the face of the earth. Such policies are often relaunched with modifications. LIC launched the New Jeevan Amar Plan and New Tech Term policies on 24 November 2022. Both are non-linked and non-participating policies, require fixed premiums and offer guaranteed returns. The premium rates, however, vary for smokers and non-smokers and offer special rates for women.
Besides, the New Jeevan Amar will have a minimum basic sum assured of Rs 25 lakhs, in multiples of Rs 1 lakh for a sum assured of up to Rs 40 lakhs. Beyond Rs 40 lakhs, the sum assured will be in multiples of Rs 10 lakhs. Entry age will be a minimum and maximum of 18 and 65 years respectively. The policy term will be between 10 and 40 years. The maximum age of the policyholder at the time of maturity is 80 years. Single, regular and limited premium payment options are available.
The Tech Term plan, on the other hand, will have a minimum sum assured of Rs 50 lakhs. The sum assured will increase in multiples of Rs 5 lakhs up to Rs 75 lakhs and in multiples of Rs 25 lakhs beyond Rs 75 lakhs. The entry age limits, the maximum age at the time of maturity and the policy term limits are the same as that of New Jeevan Amar.
Besides, in both the policies, the death benefit for limited and regular premium payment policies is seven times annualised premium or 105% of the total premium paid, or the absolute sum assured – whichever is highest. In single premium payment policies, the benefit will the higher of - 125% of the single premium or absolute sum assured.
Also Read: Looking to invest in term insurance zero cost term plan can be the right choice for you
You can find out detail information on these two term insurance policies on the LIC website and brochures.
Source:
The Life Insurance Corporation of India (LIC) recently withdrew two of its term insurance plans from the market. It decided to withdraw Jeevan Amar and Tech Term plans with effect from 23 November 2022. These two term plans have been withdrawn due to rising reinsurance rates, according to news reports.
Jeevan Amar was an offline policy which was launched in August 2019, while Tech Term Plan was an online policy launched in September 2019. There were no changes in the premium rates of these two policies since their launch.
Also Read: LIC Jeevan Shiromani policy know benefits will give you Rs 1 crore in 4 years
For Existing Policyholders
Withdrawal of a policy is not a cause of concern for existing policyholders. As per the promise made in the bond, LIC will continue to ensure that the policyholders get all the benefits. Besides, buyers, who had submitted proposals and paid the deposit by 22 November 2022 will get their policies, provided the proposal gets accepted by 30 November 2022. Apart from that, LIC will discontinue the issuance of new policies under these two plans.
Also Read: LIC new pension plus plan. 5 things know
New Jeevan Amar and New Tech Term
The decision to withdraw the policies doesn’t mean that they are wiped off the face of the earth. Such policies are often relaunched with modifications. LIC launched the New Jeevan Amar Plan and New Tech Term policies on 24 November 2022. Both are non-linked and non-participating policies, require fixed premiums and offer guaranteed returns. The premium rates, however, vary for smokers and non-smokers and offer special rates for women.
Besides, the New Jeevan Amar will have a minimum basic sum assured of Rs 25 lakhs, in multiples of Rs 1 lakh for a sum assured of up to Rs 40 lakhs. Beyond Rs 40 lakhs, the sum assured will be in multiples of Rs 10 lakhs. Entry age will be a minimum and maximum of 18 and 65 years respectively. The policy term will be between 10 and 40 years. The maximum age of the policyholder at the time of maturity is 80 years. Single, regular and limited premium payment options are available.
The Tech Term plan, on the other hand, will have a minimum sum assured of Rs 50 lakhs. The sum assured will increase in multiples of Rs 5 lakhs up to Rs 75 lakhs and in multiples of Rs 25 lakhs beyond Rs 75 lakhs. The entry age limits, the maximum age at the time of maturity and the policy term limits are the same as that of New Jeevan Amar.
Besides, in both the policies, the death benefit for limited and regular premium payment policies is seven times annualised premium or 105% of the total premium paid, or the absolute sum assured – whichever is highest. In single premium payment policies, the benefit will the higher of - 125% of the single premium or absolute sum assured.
Also Read: Looking to invest in term insurance zero cost term plan can be the right choice for you
You can find out detail information on these two term insurance policies on the LIC website and brochures.
