The Life Insurance Corporation (LIC) of India on November 23, 2022 launched two non-linked and non-participating pure risk insurance plans.
Named Tech Term and New Jeevan Amar, the two policies allow policyholders to pay fixed premium and get guaranteed returns.
LIC listed out the features of the two products in its sales brochure. They are as follows
Tech Term Plan – Key features
- This plan shall be available online only through LIC’s website
- Buyers can choose between two benefit options: level sum assured and increasing sum assured.
- Premiums can be paid either through single, regular and limited premium payment options
- The premium rates have also been categorised for smokers and non-smokers. The application of non-smoker rates shall be based on the findings of the Urinary Cotinine test. In all other cases, the smoker rates will be applicable.
- The policy offers special rates for women.
- There are also options to enhance coverage through accident benefit rider on payment of additional premium for the rider benefit.
- Buyers can choose the policy term/premium paying term as well as opt for payment of benefit in instalments.
- The minimum and maximum entry age are 18 years and 65 years.
- The policy term is for 10-40 years.
- That said, the maximum age at maturity should be 80 years.
- According to an LIC sales document, the premium paying term is as follows: For regular premium, it is the same as the policy term. For limited premium, it is policy term less five years for policy term of 10-40 years, and policy term less 10 years for policy term of 15-40 years.
- The minimum basic sum assured is Rs 50 lakh.
- The basic sum assured shall be in multiples of Rs. 5 lakh if basic sum assured for the policy is Rs 50 lakh to Rs 75 lakh, and Rs 25 lakh, if basic sum assured for the policy is above Rs 75 lakh.
- The death benefit for the regular and limited premium payment policy will be highest of seven times of annualised premium or 105 per cent of “total premiums paid” up to the date of death, or absolute amount assured to be paid on death.
- For single premium policy, the policy defines “sum assured on death” as higher of 125 per cent of single premium or absolute amount assured to be paid on death.
- The death benefit option cannot be changed once chosen.
- On survival of the life assured to the end of the policy term, no maturity benefit is payable.
New Jeevan Amar – Key Features
- This plan can be purchased offline through licensed agents, corporate agents, brokers and insurance marketing firms.
- The minimum basic sum assured is Rs 25 lakh.
- The basic sum assured shall be in multiples of Rs 1 lakh, if basic sum assured for the policy is Rs 25 lakh to Rs 40 lakh. If basic sum assured for the policy is above Rs 40 lakh, the same will be in multiples of Rs 10 lakh.
- The remaining features of this policy, i.e., minimum and maximum entry age, policy term, premium paying terms, death benefit, special premium rates for women, and categorisation of premium rates for smokers and non-smokers are the same as for the Tech Term Plan.
