Life Insurance Corporation of India LIC has discontinued two of its policies giving a shock to its customers. If you also have these plans, then first of all you should know what will happen to your money deposited as premium.
Life Insurance Corporation of India (LIC) has discontinued two of its schemes. LIC has withdrawn its term insurance plans, Jeevan Amar and Tech Term. Please tell that this decision of LIC has become effective from 23 November.
LIC Tech Term was an online policy, while LIC Jeevan Amar was offline. LIC’s (Life Insurance Corporation of India) circular states that it has been decided to withdraw both the term plans from November 23, 2022.
Why this policy was stopped
Term plans have been withdrawn due to increase in reinsurance rates. Let us tell you that Jeevan Amar Yojana was launched in August 2019 and Tech Term Plan in September 2019. The premium rates of these plans were not increased since their launch. The company has launched new plans with new amendments.
What were their benefits
Both the policies pay the sum assured in case of death of the life assured during their service term and offer policy term of 10 to 40 years. A minimum of 25 lakhs can be insured with LIC Jeevan Amar plan and a minimum of 50 lakhs can be taken with LIC Tech term plan. There was no maximum limit for investing money in both these schemes. Also, LIC Tech term plan was cheaper than LIC Jeevan Amar.
What will happen to the money of the policyholders
Existing LIC term plan policyholders should not worry at all about their investments. Their existing plans will continue even if they have bought LIC Tech Term or LIC Jeevan Amar plan. A discontinued product simply means that it is discontinued for future sale. Buyers who have applied for insurance policies under these term insurance plans by November 22, if their proposal is accepted by November 30, will be given these plans.
Both plans launched in new form
Jeevan Amar and Tech term are launched in a new way. They have been named New Jeevan Amar and New Tech Term. New Jeevan Amar and Tech Term are non-linked and non-participating plans, which means policyholders pay fixed premiums and get guaranteed returns. Non-linked plans are low risk products. They are not linked to the stock market.
What is the specialty of new plans
Jeevan Amar offers the facility to choose between two options: Sum Assured and Increasing Sum Assured. The customer can also opt for single premium payment or regular premium payment.
Women can avail special rates under New Jeevan Amar Yojana. As per the information available on LIC’s website, the premium rates are different for non-smokers and smokers. The minimum premium under the single premium plan is Rs.30,000.
