LIC's New Jeevan Amar 955

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LIC’s New Jeevan Amar (Plan 955): Complete Guide, Benefits, Eligibility, Premium & FAQs

Introduction

Life insurance is a critical component of long-term financial planning. It ensures that your family’s financial goals and daily needs remain protected even in your absence. In India, the Life Insurance Corporation of India (LIC) is one of the most trusted and widely recognized insurers, known for its stability, government backing, and extensive customer base.

To meet the growing demand for pure term insurance with flexibility, LIC introduced LIC’s New Jeevan Amar (Plan No. 955). This plan is designed for individuals who want high life cover at affordable premiums, along with multiple payout options and premium-paying flexibility.

In this detailed article, we will explain LIC’s New Jeevan Amar 955 in simple language, covering features, benefits, eligibility, premium options, riders, taxation, claim process, and frequently asked questions. This guide is intended to help you make an informed decision before purchasing a term insurance policy.

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What is LIC’s New Jeevan Amar (Plan 955)?

LIC’s New Jeevan Amar is a non-linked, non-participating, pure term assurance plan. This means:

• It provides only life cover, not savings or investment returns
• No maturity benefit is payable if the policyholder survives the policy term
• The entire benefit is paid only in case of death during the policy term

The main objective of this plan is to provide financial security to the nominee in case of the policyholder’s untimely demise.

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Key Features of LIC’s New Jeevan Amar Plan 955

1. Pure Term Insurance Plan

This plan focuses solely on risk coverage, which makes premiums comparatively lower than traditional endowment or money-back policies.

2. Two Death Benefit Options

Policyholders can choose how the death benefit is paid to the nominee.

3. Flexible Policy Term

You can choose a policy term based on your financial responsibilities, such as children’s education, home loan, or retirement planning.

4. Flexible Premium Payment Terms

Premiums can be paid for a limited period or throughout the policy term.

5. High Sum Assured at Affordable Premium

Being a pure term plan, it allows you to opt for a high life cover at relatively low cost.

6. Special Rates for Non-Smokers

LIC offers lower premium rates for non-smokers, making it more affordable for health-conscious individuals.

7. Optional Riders for Enhanced Protection

You can add riders to increase coverage against accidents and disabilities.

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Eligibility Criteria for LIC’s New Jeevan Amar 955

Minimum and Maximum Age

• Minimum Entry Age: 18 years
• Maximum Entry Age: Up to 65 years (varies based on policy term)

Policy Term

• Minimum: 10 years
• Maximum: Up to 40 years (subject to age at entry)

Sum Assured

• Minimum Sum Assured: Generally starts from ₹25 lakh
• Maximum Sum Assured: No upper limit (subject to underwriting)

Premium Payment Modes

• Yearly
• Half-Yearly
• Quarterly
• Monthly (through ECS or salary deduction)

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Death Benefit Options Explained

LIC’s New Jeevan Amar offers two payout options:

Option 1: Level Sum Assured

• The nominee receives 100% of the Sum Assured as a lump sum.
• Suitable for families who want immediate financial support.

Option 2: Increasing Sum Assured

• The Sum Assured increases by 10% every year for the first 5 years.
• After reaching 150% of the base Sum Assured, it remains constant.
• Ideal for individuals expecting rising financial responsibilities over time.

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Premium Payment Options

Regular Premium

• Premiums are paid throughout the policy term.

Limited Premium Payment

• Premiums are paid for a shorter duration (e.g., 10, 15, or 20 years).
• Coverage continues for the entire policy term even after premium payment ends.

The premium amount depends on:

• Age
• Sum Assured
• Policy term
• Premium payment term
• Smoking status

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Riders Available with LIC’s New Jeevan Amar

To enhance protection, LIC allows optional riders at an additional cost:

1. Accidental Death and Disability Benefit Rider

• Provides additional payout in case of accidental death.
• Offers financial support if the policyholder becomes permanently disabled due to an accident.

2. Accident Benefit Rider

• Pays an extra sum assured if death occurs due to an accident.

Riders are subject to terms and conditions and should be chosen based on individual risk profile.

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Tax Benefits Under LIC’s New Jeevan Amar

Income Tax Deduction (Section 80C)

• Premiums paid are eligible for deduction up to the applicable limit under Section 80C of the Income Tax Act, 1961.

Tax-Free Death Benefit (Section 10(10D))

• The death benefit received by the nominee is fully tax-free, subject to prevailing tax laws.

Note: Tax benefits are subject to changes in tax laws. Always consult a tax advisor.

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Advantages of LIC’s New Jeevan Amar Plan

• Trusted brand with government backing
• High coverage at affordable cost
• Multiple payout options
• Flexible premium payment terms
• Special benefits for non-smokers
• Simple and transparent structure

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Limitations of LIC’s New Jeevan Amar

• No maturity or survival benefits
• No investment or savings component
• Riders come at an additional cost

This plan is best suited for protection purposes only, not wealth creation.

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Who Should Buy LIC’s New Jeevan Amar 955?

This plan is ideal for:

• Salaried professionals with dependents
• Self-employed individuals
• Parents planning long-term security for family
• Individuals with loans (home loan, business loan, education loan)
• Anyone looking for a reliable and affordable term insurance policy

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Claim Settlement Process

LIC is known for its high claim settlement ratio. The process generally involves:

1. Intimation of death to the nearest LIC branch
2. Submission of required documents (death certificate, policy document, claim form)
3. Verification by LIC
4. Claim payout to nominee

Ensuring correct nominee details and honest disclosures at policy inception helps in smooth claim settlement.

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Comparison: LIC’s New Jeevan Amar vs Traditional LIC Policies

Feature	New Jeevan Amar	Traditional LIC Plans
Purpose	Pure protection	Protection + savings
Premium	Lower	Higher
Maturity Benefit	No	Yes
Returns	No	Yes
Ideal For	High cover at low cost	Long-term savings

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Important Points to Remember Before Buying

• Choose sum assured based on future financial needs
• Disclose health and lifestyle details honestly
• Select riders carefully
• Review policy term and premium affordability

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Frequently Asked Questions (FAQs)

Is LIC’s New Jeevan Amar a good plan?

Yes, it is suitable for individuals seeking pure life insurance coverage at affordable premiums.

Does this plan provide maturity benefit?

No, it is a term insurance plan and does not offer maturity benefits.

Can I buy LIC’s New Jeevan Amar online?

It can be purchased through LIC agents and authorized channels. Availability may vary.

Is the premium fixed?

Yes, once the policy is issued, the premium remains fixed throughout the premium payment term.

Is medical examination required?

Medical tests may be required depending on age, sum assured, and underwriting norms.

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Conclusion

LIC’s New Jeevan Amar (Plan 955) is a simple, transparent, and reliable term insurance plan designed to provide strong financial protection to your family. With flexible payout options, affordable premiums, and the trust of LIC, it is a suitable choice for individuals who want peace of mind without complex investment features.

Before purchasing, carefully assess your financial responsibilities, compare coverage options, and choose a sum assured that truly protects your loved ones.

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