What is the Limited Premium Endowment Plan 955?
This is LIC’s new term plan which is a non-participating and non-linked insurance plan. Jeevan Amar is an offline term plan which is similar to the Tech term plan which is an online plan. The difference in these plans is the total sum assured and medium to purchase. This plan comes with two options: level sum assured and increasing sum assured. There are two categories of premium rates, which come under this plan: non-smoker rates and smoker rates. Another advantage of this plan is that it offers special premium rates for women. The plan offers coverage of up to 80 years of age. The insurer can choose the required premium payment method. He/she can choose from single, regular and limited payment methods. It also offers ease to select death benefit payments in a lump sum or through installments.
- Age-18 to 65 years
- Policy Maturity-Maximum is 80 years.
- Sum Assured-Minimum amount-25 Lakhs. There is no limit for the maximum amount.
- 10 to 40 years of the policy term
- Premium payment can be chosen from options like single, regular and limited.
It was mentioned above that this term policy comes with two options: the level sum assured and increasing sum assured. In level, the sum assured, and the base amount assured will be stable all through the policy year. With the increasing sum assured plan, the basic sum assured will increase, according to the age of the policyholder. But there won’t be any change in the coverage amount of the policy for 5 years. The basic sum assured will increase every year by 10% or for the next 15 years or earlier. The death benefit will be according to the policy year. The death benefits will be received by the nominee as per the rules of the term plan.
Death benefits can be paid to the nominee as per the two categories, either paid in a lump sum or in installments. The nominee will get the whole death benefit of the amount assured right away without any delay. The death benefit is received in installments if you want steady cash flow. Nominees can choose any model according to their needs and wants.
Other features of this term plan are tax benefits under sections 80c and 10. There is no surrender value in their regular and limited premium payment plan options. You can avail the surrender value in the single premium payment option. The policyholder gets the benefit of the free lock period if he/she is not satisfied with the policy. The policyholder can cancel the policy at any time within the 15 days of receipt of the policy document. Overall, it is good to compare its features because there may be a need to purchase another policy in the future.