Life insurance plays a critical role in long-term financial planning, especially when your family depends on your income. The Benefits of LIC Jeevan Amar Plan – Full Guide helps you understand why this term insurance policy from the trusted public insurer Life Insurance Corporation of India is considered one of the most dependable protection plans in India.

LIC Jeevan Amar is a pure term insurance plan designed to offer high life cover at affordable premiums. Unlike traditional endowment policies, this plan focuses purely on financial protection, ensuring your loved ones receive a substantial sum assured in case of an unfortunate event during the policy term. Let’s explore its features, benefits, eligibility, and why it may be a smart addition to your financial portfolio.

Overview of LIC Jeevan Amar Plan

LIC Jeevan Amar is a non-linked, non-participating term insurance plan that offers financial security to your family in case of your demise during the policy tenure. Since it is a pure protection plan, it does not offer maturity benefits. However, the premiums are significantly lower compared to savings-based life insurance plans.

This policy is ideal for:

  • Salaried professionals
  • Self-employed individuals
  • Young earners starting financial planning
  • Parents with dependent children
  • Individuals with financial liabilities such as loans

Key Benefits of LIC Jeevan Amar Plan

Understanding the advantages of this policy helps you make an informed insurance decision. Below are the major benefits:

1. High Life Cover at Affordable Premiums

One of the biggest benefits of LIC Jeevan Amar is the availability of a high sum assured at a relatively low premium. Since there is no maturity benefit involved, the cost remains budget-friendly while offering maximum protection.

This makes it suitable for individuals seeking a large cover to protect long-term financial responsibilities such as home loans, child education, or family living expenses.

2. Flexible Sum Assured Options

The plan offers flexibility in choosing the sum assured based on your financial goals and liabilities. Generally, the minimum sum assured starts from ₹25 lakh (offline mode) and can go much higher depending on underwriting.

You can select the coverage amount according to:

  • Current annual income
  • Outstanding loans
  • Future financial commitments
  • Inflation-adjusted needs

Financial experts often recommend coverage of at least 10–15 times your annual income.

3. Multiple Premium Payment Options

The plan offers flexibility in premium payment modes, making it easier to align with your financial planning. Available options include:

  • Regular premium (pay throughout the policy term)
  • Limited premium (pay for a shorter duration than the policy term)

This flexibility ensures you can structure payments based on your earning cycle and long-term goals.

4. Death Benefit Options

LIC Jeevan Amar offers two types of death benefit options:

Level Sum Assured:
The nominee receives the fixed sum assured throughout the policy term.

Increasing Sum Assured:
The sum assured increases by 10% annually for the first five years (without additional premium). This helps counter inflation and rising family expenses.

This feature makes the plan more dynamic compared to traditional fixed-term policies.

5. Option to Receive Death Benefit in Installments

Instead of a lump sum payout, the nominee can opt to receive the claim amount in installments over 5, 10, or 15 years. This ensures:

  • Regular income flow for the family
  • Better financial management
  • Reduced risk of misusing the lump sum

It works almost like a structured income replacement solution.

6. Special Premium Rates for Women and Non-Smokers

The policy offers lower premium rates for:

  • Female policyholders
  • Non-smokers

This makes LIC Jeevan Amar more affordable for individuals with healthier life>

7. Optional Rider Benefits

You can enhance your base coverage by adding riders such as:

  • Accidental Death Benefit Rider
  • Accidental Disability Rider

These riders provide additional financial support in case of accidental events, strengthening overall protection.

8. Long Policy Term Options

The plan allows you to choose a long policy tenure, extending up to 40 years depending on entry age. This ensures coverage during:

  • Working years
  • Loan repayment periods
  • Children’s education years

Long-term protection ensures peace of mind throughout major financial responsibilities.

9. Tax Benefits

Premiums paid under LIC Jeevan Amar qualify for tax deductions under Section 80C of the Income Tax Act, subject to prevailing limits.

Additionally, the death benefit received by the nominee is generally tax-exempt under Section 10(10D), as per applicable tax laws.

Tax efficiency enhances the overall financial attractiveness of the policy.

Eligibility Criteria

Before applying, it’s important to understand the eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: Typically up to 65 years
  • Maximum Maturity Age: 80 years
  • Minimum Sum Assured: ₹25 lakh (offline)

Medical tests may be required depending on age, sum assured, and health profile.

Who Should Buy LIC Jeevan Amar?

This policy is suitable if you:

  • Are the primary earning member
  • Have dependent parents, spouse, or children
  • Have outstanding loans
  • Want affordable high-risk coverage
  • Prefer a government-backed insurer

Since LIC is a well-established public sector insurer in India, many policyholders trust its claim settlement process and legacy.

Things to Consider Before Buying

While LIC Jeevan Amar offers strong protection, consider the following:

  • It does not provide maturity benefits.
  • Premiums may be slightly higher compared to some private insurers.
  • Early disclosure of health conditions is essential for smooth claim settlement.

Term insurance should always be selected based on long-term financial needs rather than short-term affordability.

Frequently Asked Questions (FAQs)

Q1. What is the main benefit of LIC Jeevan Amar Plan?
The primary benefit is high life coverage at affordable premiums, ensuring financial protection for your family in case of your demise during the policy term.

Q2. Does LIC Jeevan Amar provide maturity benefits?
No, it is a pure term insurance plan and does not offer maturity benefits if the policyholder survives the policy term.

Q3. Can I increase the sum assured later?
The policy offers an increasing sum assured option at inception. However, you cannot increase the sum assured later without purchasing a new policy.

Q4. Is medical examination mandatory?
Medical tests may be required depending on age, coverage amount, and underwriting guidelines.

Q5. Can the death benefit be taken in installments?
Yes, nominees can opt to receive the death benefit in installments over 5, 10, or 15 years instead of a lump sum.

Q6. Are there tax benefits under this plan?
Yes, premiums qualify for deductions under Section 80C, and death benefits are generally tax-free under Section 10(10D), subject to tax laws.

Conclusion

LIC Jeevan Amar stands out as a reliable and cost-effective term insurance plan for individuals seeking substantial financial protection. Its flexible coverage options, increasing sum assured feature, installment payout option, and tax advantages make it a comprehensive protection solution. While it does not offer maturity benefits, its focus on pure risk coverage ensures your family’s financial stability during uncertain times.

Choosing the right sum assured and policy term is essential to maximize benefits. With expert guidance from Square Insurance, you can compare options, assess your needs accurately, and secure your family’s future with confidence.