Life Insurance Corporation of India (LIC) has launched two term insurance schemes namely New Jeevan Amar and New Tech Term. Both plans are non-linked and non-participating. This implies that the insured person can pay a fixed amount to the schemes and they can get a guaranteed amount in return. People are more interested in non-linked products as they are not prone to market risks and provide guaranteed returns. LIC had the older versions of both plans, and they withdrew those and have come up with the newer versions of these schemes. There are some special offers for women and different rates for smokers and non-smokers.
Comparison between LIC New Jeevan Amar and LIC New Tech Term Plans
The following table talks about the differences and similarities between these two plans.
| Parameters | LIC New Jeevan Amar | LIC New Tech Term |
| Type of plan | Term plan | Term plan |
| Minimum age of entry | 18 years (Lat birthday) | 18 years (Last birthday) |
| Maximum age of entry | 65 years | 65 years |
| Maximum age of maturity | 80 years | 80 years |
| Minimum basic sum assured | Rs. 25 lakhs | Rs. 50 lakhs |
| Maximum basic sum assured | No upper limit | No upper limit, as per the underwriting decision |
| Policy term | 10 – 40 years | 10 – 40 years |
| Premium paying term | Regular premium – Same as policy term Limited premium – Policy term minus 5 years policy term, and 10 to 40 years (policy term minus 10) years for policy term 15 to 40 years Single premium – NA | Regular premium – Same as policy term. Limited premium – Policy term minus 5 years policy term, and 10 to 40 years (policy term minus 10) years for policy term 15 to 40 years. Single premium – NA |
| Optional riders | Available, at an extra cost | Available |
| Option to take benefit in instalment | Yes, available | Available Monthly, quarterly, half-yearly, and yearly |
| Grace period | 30 days | 30 days |
| Revival of the lapsed policy | Available A lapsed policy can be revived within 5 consecutive years from the date of the first unpaid premium | Available All the arrears and the interest should be paid |
| Surrender value | Not available | Not available. You may get refunds under certain clauses. |
| Policy loan | Not available | NA |
| Tax benefit | Yes, available | Available, as per the tax laws |
| Free look period | 30 days | 30 days |
| Online buying facility | Not available | Available |
| Special discount for women policyholders | Available | Yes, available |
| Flexibility | One can choose between Level Sum Assured and Increasing Sum Assured, or any other option available | Yes, available |
| Special rate for non-smokers | Yes, available | Yes |
What is the New Jeevan Amar Plan
LIC’s New Jeevan Amar is a pure risk premium life insurance plan which is non-linked and non-participating. In the event of the unfortunate death of the insured person, this scheme offers financial protection to the family. This plan can only be purchased through offline mode via agents, brokers, insurance marketing firms, visiting the official branch of the company, etc. This plan offers a special discount for female policyholders. One can get an attractive high-sum assured rebate under this plan. One can also avail of Accident Benefit Rider on the payment of an additional amount.
Key benefits of LIC New Jeevan Amar plan
Here are the important mentions.
Death Benefit:
One can get a Sum Assured on Death as a death benefit if the policyholder dies unnaturally before the date of the maturity of the active policy, provided the policy is in force. For regular premium and limited premium policies Sum Assured on Death is the highest of either 7 times of annualised premium, 105% of the total premium paid up to the date of death, or the absolute amount assured to be paid on death. For a single premium, it is the highest of either 125% of the single premium, or the absolute amount assured to be paid on death.
Maturity Benefit:
There is no provision of maturity benefit under this policy.
Rider Benefit:
Accident Rider Benefit is available under this plan only if the policy term is a of minimum 5 years. To avail of this benefit, one has to pay a little extra premium amount.
Death Benefit in Instalment:
One can get the death benefit in instalment over 5 years instead of getting it as a lump sum amount.
Payment of Premium:
There are three options available – Regular premium, Limited premium, and Single premium. In the case of regular and limited premium payment, the premium can be paid regularly during the premium paying term, in a yearly or half-yearly manner.
Two Benefit Options:
The absolute amount which is assured to be paid on death will be equal to the basic sum assured. This is called level sum assured. Another option is increasing the sum assured. After the completion of the 5th year, the absolute amount to be paid will increase by 10% of the basic sum assured each year from the 6th policy year to the 15th policy year. This will keep on continuing till it becomes twice the basic sum assured.
Understand the New Tech Term plan
Just like the New Jeevan Amar Plan, LIC’s New Tech-Term plan is also a non-linked, non-participating pure risk premium life individual plan. Unlike the New Jeevan Amar plan, this scheme is available online. In the event of an unfortunate demise of the policyholder within the policy term of an active policy, this scheme offers financial benefit to the family. Special rates for women and non-smokers are available under this plan.
Major highlights of the New Tech Term Plan
Here are the important mentions.
Flexibility:
This policy is highly flexible. One can choose among regular premium, single premium, and limited premium payment options. Policy term and premium paying term depend on the policyholder. One can also opt to receive the death benefits in instalments.
Premium Rates:
This policy offers a special premium rate that is certainly low for non-smokers. They conduct a urinary cotinine test to detect non-smokers and smokers. Apart from that, to encourage more women participation, they also offer lucrative discounts for the female policy-seekers.
Death Benefit:
The death benefit available under this policy is the same as the LIC’s New Jeevan Amar policy. Sum assured on death is payable in the vent of the untimely death of the policyholder of an active policy. The sum assured on death differs based on the type of the policy, whether it is a single premium, regular premium, or limited premium.
Surrender Benefit:
Usually, no surrender benefit is provided under this scheme. However, the policyholder may get some refunds if he/she surrenders the policy, subject to the terms and conditions of the policy and the company.
Optional Rider Benefits:
LIC’s Accident Benefit Rider is available under this scheme. One has to purchase this rider paying a little extra premium amount. This benefit is available during the premium paying term, or up to the policy anniversary in which the nearest birthday of the insured person has to be 70 years, whichever is earlier. If the life insured dies due to an accident, the accident benefit rider sum assured will be payable as a lump sum amount along with the death benefit.
Premium amount of LIC New Jeevan Amar and LIC New Tech Term Plans
For your better understanding, here is an example. Suppose, Mr. Sharma, a 30-year-old businessman, wants to invest in a term plan. He finds LIC’s New Jeevan Amar and New Tech Term Plan as the potential two-term plans. Before investing in one, he wants to figure out how much premium amount he has to pay for each policy for the given data.
| Age | Policy name | Benefit option | Policy term | Regular annual premium | Annual premium for limited premium paying term of (Policy term minus 5) years | Annual premium for limited premium paying term of (Policy term minus 5) years | Single premium |
| 30 years | LIC New Jeevan Amar | Level sum assured | 20 years | Rs. 7830 | Rs. 9091 | Rs. 11788 | Rs. 78213 |
| LIC New Tech Term | Rs. 9135 | Rs. 10527 | Rs. 13572 | Rs. 100833 |
LIC New Jeevan Amar and LIC New Tech Term Plans, which one to choose?
When it comes to the point between LIC New Jeevan Amar and New Tch Term Plan which one to choose for, it becomes difficult because both the plans are offered by the Life Insurance Corporation of India, and both plans have come up with similar types of benefits. As both plans are non-linked and non-participating, both of them offer guaranteed returns, and no market risk is involved. From the above-mentioned premium comparison table, it is visible that LIc New Tech Term is on the costlier side. However, this plan is available online and this plan also offers refunds under terms and conditions if it is surrendered. Therefore, it completely depends on the policy-seeker and his/her requirements and budget. It is highly recommended that before opting for any one, you must need to go through the exclusions of each policy and read the policy schedule carefully to have a thorough knowledge of the plans. While investing your hard-earned money, invest wisely.
