LIC Amulya Jeevan 2 is a pure risk cover plan - providing term insurance cover from for sum assured from Rs. 25 lakhs onwards. It is a pure protection plan with no maturity benefits. In case of death of the policyholder during the term of the policy, the nominee will get the Sum Assured as Death Benefit.
2nd January, 2014
Table No. 823
Term Insurance Plan
How does LIC Amulya Jeevan 2 Policy work?
When buying the Amulya Jeevan 2 Plan, the customer has to decide on the following:
Sum Assured - this is the amount of cover that you want. You can choose a minimum amount of Rs. 25 lakhs. There is no upper limit.
Policy Term - this is the period for which you wish to have the cover. The term can be anywhere between 5 to 35 years
Based on the amount of cover, your age and the policy term selected, your annual premium will be decided.
Benefits in the LIC Jeevan Lakshya Plan
Large cover at affordable premiums
Life Cover 25 lakhs onwards
Death Benefit – The entire Sum Assured is paid to the nominee on death of the Life Insured during the policy term.
Maturity Benefit – No benefit is payable on maturity as this is a pure protection plan.
Income Tax Benefit - Life Insurance premiums paid up to Rs.1,00,000 are allowed as a deduction from the taxable income each year under section 80C. Death Benefit is also tax free.
Suppose Shouvik Sen who is 35 years old, health and does not consume tobacco goes for this plan. He will have to pay the following premiums for a Rs. 50 lakhs cover.
<< Graph of Premiums. Please put values without tax and mention the fact >>
Understanding Amulya Jeevan 2 Plan with an Example
Suppose Lokesh Sharma purchased the plan with the following parameters:
His age when he purchased the plan = 35 years Sum Assured = Rs. 50 lakhs Policy Term = 25 years
Based on this, his annual premium would be Rs. 14,200 + Taxes. Currently the tax rates is 18%, hence the total annual premium is Rs. 16,756
At the beginning of each year, Lokesh has to pay the annual premium. So he will be eligible to this cover throughout the year. Again, he has to pay the premium at the start of each policy year for 25 years.
In case of death of the policyholder at any point during the term of the policy, the nominee will get Rs. 50 lakhs as the Death Benefit.
There is no Maturity Benefit in this plan.
Other Features of the LIC Amulya Jeevan Policy
Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date.
Loan - No loan facility is available in this plan.
Riders - There are no Riders available with this plan.
Surrender Value - This plan does not acquire any surrender value at any point of time.
If you have any questions on the LIC Amulya Jeevan 2 Policy, drop in a line in the comments and we will be happy to help out.