BackLIC Jeevan Amar vs LIC Tech Term: How these two term insurance plans compare
LIC Tech Term is an online term policy whereas, LIC Jeevan Amar can only be bought offline.
PremiumLIC offers two pure term plans - LIC Jeevan Amar and LIC Tech Term Plan. Both the policies pay sum assured in case of death of the life assured during the policy term. Being term plans, there is no other benefit in both the plans. LIC Tech Term is an online term policy whereas, LIC Jeevan Amar can only be bought offline. Let's see how the two policies compare with each other on features and premiums.
Eligibility
Both the policies allow anyone between 18 years and 65 years of age to buy the policy. Maximum allowed age at maturity is 80 years under both the term plans.
Policy term
Both the plans offer a policy term of 10 to 40 years.
Sum Assured
LIC Jeevan Amar allows to buy a minimum sum assured of ₹25 lakh. There is no maximum limit.
LIC Tech Term Plan allows a minimum sum assured of ₹50 lakh with no maximum limit.
Both the plans provide two benefit options: Level Sum Assured and Increasing Sum Assured.
For Regular premium and Limited premium payment policy, Sum Assured on Death is defined as the highest of:
• 7 times of annualised premium; or
• 105% of all the premiums paid as on the date of death; or
• Absolute amount assured to be paid on death
For Single premium policy, Sum Assured on Death is defined as the higher of:
• 125% of Single Premium.
• Absolute amount assured to be paid on death.
Absolute amount assured to be paid on death shall depend on Death Benefit Option chosen at the time of taking the policy as under:
Option I: Level Sum Assured: Absolute amount assured to be paid on death will be an amount equal to Basic Sum Assured, which will remain the same throughout the policy term.
Option II: Increasing Sum Assured: Absolute amount assured to be paid on death will be equal to Basic Sum Assured till completion of fifth policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the sixth policy year till 15th policy year till it becomes twice the Basic Sum Assured. From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.
Sum Assured - Lumpsum or installments
LIC Jeevan Amar Plan and LIC Tech Term Plan, both allow options to receive death benefits in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. The instalments shall be paid in advance at yearly or half yearly or quarterly or monthly intervals.
Premiums
LIC Tech Term Plan, the online term insurance plan is a cheaper policy as compared to the offline plan- LIC Jeevan Amar. Those who have knowledge to operate a computer, can go for LIC Tech Term Plan to save on costs. Here are the sample premium rates as available on LIC's website. You can buy double the sum assured under LIC Tech Term Plan by paying around 25% - 30% higher premium than the premium under LIC Jeevan Amar.
Sample premium rates under LIC Jeevan Amar for ₹50 lakh Sum Assured
Sample premium rates under LIC Tech Term Plan for ₹1 crore Sum Assured
Premium Payment
Both the plans allow an applicant to choose from three premium payment options- Single, regular and limited payment. Under regular premium payment, a policyholder has to pay premiums throughout the policy term.
Under Limited premium payment option, a policyholder can choose to pay premiums for :
--[Policy Term minus 5] years for Policy Term of 10 to 40 years
--[Policy Term minus 10] years for Policy Term of 15 to 40 years
Accident Benefit Rider
Both the policies allow to purchase an accidental rider under Regular Premium and Limited Premium payment.
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