LIC Policy News: LIC Withdraws Old Jeevan Amar And Tech Term Insurance Plans, Relaunches New Ones
Find out details about the new Jeevan Amar and Tech Term plans launched on November 23, 2022.
On Tuesday, that is, on November 22, 2022, Life Insurance Corporation of India (LIC) withdrew two of its term insurance plans, namely Jeevan Amar and Tech Term. However, the company launched a new, revised version of these insurance plans on November 23, 2022.
Why Did LIC Withdraw Jeevan Amar And Tech Term Insurance Plans?
LIC launched both, the Jeevan Amar plan and the Tech Term plan in the same year. While the Jeevan Amar plan was launched in the month of August, the Tech Term plan was launched in September 2019.
Ever since then, the company had not increased the premium rates of the plans even once. Hence, owing to the increasing reinsurance rates, LIC had to withdraw their Jeevan Amar and Tech Term plans.
Who Will Be Affected By This Withdrawal?
Existing policyholders who already have an LIC term insurance plan need not worry about these changes, as the revised rate won’t affect them in any way. Their existing policy will continue to run as usual, whether they own an LIC Tech Term or LIC Jeevan Amar insurance plan.
In fact, as per a report on LiveMint, people who have already submitted a proposal for buying either of these insurance policies and paid the deposit by November 22 will be allowed to enjoy the benefits of the plan as per the previous rates. However, this is only valid if their proposal gets accepted by November 30, 2022.
Apart from these, every new or potential customer will have to buy their new term policies as per the revised rates. The closure or withdrawal of a product or service simply means that it is closed for future sales. This means anyone buying a new Jeevan Amar or Tech Term insurance plan will have to pay their premiums according to the new rates.
LIC’s New Jeevan Amar Plan
LIC’s New Jeevan Amar plan is a non-linked, non-participating, individual, pure-risk premium life insurance plan. This policy provides financial aid to the insured person’s family in case of his/her unfortunate death during the ongoing policy term.
According to the newly updated and revised plan, the core of the plan remains the same. However, there are some slight changes in the premiums one needs to pay to buy this plan.
Any person insuring themselves under this program should be between 18 to 65 years of age at the time of buying the insurance. Meanwhile, their age at maturity shouldn’t be more than 80 years of age.
The minimum Basic Sum Assured should be of ₹25 Lakhs with no upper limit. The Policy Term remains to be between 10 to 40 years. Here, the premium paying term for Regular Premium is the same as the policy term. Whereas for Limited Premium it is Policy Term minus 5 years for 10 to 40 years tenure and Policy Term minus 10 years for 15 to 40 years tenure.
LIC’s New Tech Term Plan
The Tech Term plan offered by LIC continues to be an online-only plan. Similar to Jeevan Amar, LIC’s New Tech Term plan is also a non-linked, non-participating, individual, pure-risk premium life insurance plan.
Here, the minimum and maximum age at the time of buying and maturity of the policy remain the same. This means that the insured person has to be between the ages of 18 to 65 years at the time of purchasing the policy and not more than 80 years of age at the time of maturity.
Here, the minimum Basic Sum Assured should be of ₹50 Lakhs with no upper limit. Meanwhile, the policy term and the premium paying term remains the same as the Jeevan Amar plan.