Life Insurance Corporation of India or LIC, the biggest life insurer in India, had launched a new insurance plan in the market known as Anmol Jeevan 2 last year. This policy is actually a renovative policy of the earlier one by the same name. This article will give you a brief overview of LIC Anmol Jeevan 2.
It is a complete protection plan that aims to provide financial protection to the family of the policy holder. This is definitely one of the better insurance plans of LIC (as we hate cash value insurance 🙂 ). We like it because it is not one of the cash back products.
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Benefits of Anmol Jeevan II policy
- Death Benefit – if the policy holder dies before the maturity of the policy, then the sum assured will be fully compensated to the nominee of the policy which can be any member of the family.
- Maturity Benefit – As this is a term plan nothing will be paid to the policyholder if he/she survives the term of the policy. The sum assured becomes ‘Nil’.
- Income Tax Benefit – the income tax benefits are available on the paid life insurance premium u/s 80C and the death benefit is also tax free.
Eligibility conditions
- Age – the minimum age for entry in this policy is 18 years and the maximum age is 55 years (nearest birthday).
- Sum assured – the sum assured for this policy starts from a minimum slab of 6 lacs and the maximum limit is 24 lacs. The sum assured increases in the multiples of 1 lac.
- Policy term – the minimum term for the policy is 5 years and the maximum period is set at 25 years.
Related : How much Sum Assured you need?
Premium payment
Premiums are either paid once a year (yearly) or twice a year (half-yearly) during the term of the policy. A grace period of 1 month is allowed for the payment of the premiums but the grace period can never be less than 30 days.
Revival of the policy
The policy will lapse if the premiums are not paid even within the grace period. However, a lapsed LIC Anmol Jeevan2 policy can be 
easily revived within a period of 2 years (consecutive) from the date of the first premium which is in ‘unpaid’ state. This date should be before the expiry of the term of the policy and one just needs to pay all the arrear premiums along with the interest to revive the policy.
Surrender value and loan
There is no surrender value in LIC Anmol Jeevan2 policy and no loan is available also.
Taxes
The taxes as per the prevailing rates need to be paid by the Policyholder on the installment premiums including the extra premiums, if there is any. The amount of tax paid is not calculated for the calculation of benefits permissible under this plan.
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Cooling period
The ‘terms and conditions’ of the policy is stated in the policy paper itself. If the policyholder does not agree with the stated terms then he/she can return the policy within 15 days from the receipt of the policy bond and state the reasons for return.
Exclusions
LIC Anmol Jeevan2 policy clearly states that if the premiums are not paid regularly or if the policy is surrendered then the policy holder will not get any amount as there is no surrender value on this policy (as mentioned above).
The policy will also become void if the Life Assured commits suicide within 1 year from the date of commencement of risk or from the date of revival, an amount equal to 80% of premiums paid till date.
Should you buy this policy?
If you are planning to buy a term plan for the first time, you may compare this LIC Anmol Jeevan2 plan with other plans. A few other term plans in the market which may offer better value but LIC is a brand name in Indian household and it is hard to think of any other insurance company when it comes to term plans.
However, it must be borne in mind that the premium charged by LIC is higher compared to the premium amount of other term plans.
There is also a term plan from HDFC Click 2 Protect Sum Assured of Rs 20 lac over a 25 year term. The premium amount of this plan for 30 year non-smoking male is only Rs 3320/- while LIC would charge around Rs 9200/- for the same term plan.
Going by this example alone one would refrain from buying Anmol Jeevan II but there are many people who has blind faith in the largest insurance company of India. You can consider this only if you’re uncomfortable with online policies.
So at the end of the day it is all a matter of individual choice; but considering the premium amount, we might be tempted to go for HDFC Click 2 Protect or similar. Hope this LIC Anmol Jeevan2 review was useful. What is your opinion of this plan?
Disclaimer: I hold two policies. One from LIC Online eTerm and HDFC Click2Protect pure term policies. We do not accept any reward/payment for any review on this website. It is just our opinion. Please do own analysis before purchasing any mutual fund or insurance product.
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