New LIC Term Insurance relaunched with low premiums

POSTED BY Jagoinvestor ON April 14, 2014 COMMENTS (100)

This is a bit old news now – but a lot of you might not know that LIC has relaunched their Term plans (offline) few weeks back. LIC has two term plan policies now called Anmol Jeevan II (below 25 lacs sum assured) and Amulya Jeevan II (Above 25 lacs sum assured) , and now both of these are relaunched (earlier one was Jeevan Anmol I and Amulya Jeevan I) to make sure that they comply with new IRDA regulations which came some months back.

LIC new Jeevan Amulya Term Plan

The main change in the new term plan and the old term plan is – that SINGLE premium option has been removed from these term insurance policies and the premiums have dropped due to change in mortality rates, which was due from long time for LIC to adopt (that was the main reason why LIC term plan premiums were very high compared to other companies)

Lower Premiums for New LIC Term plans

For the simplicity purpose, in this post we will just talk about LIC Jeevan Amulya (Sum Assured above 25 lacs) and not LIC Anmol Jeevan.

So now the premium is lower.  Consider an example where a 30 yr old person wants to buy a 25 yr policy . In this case the old LIC Amulya Jeevan premium was Rs 292 for every Rs 1 lac sum assured, however in the new Amulya Jeevan , its only Rs 196 , which is a reduction of approximate 33% .

Now with this new rates – if a person wants to buy Rs 1 crore term plan with LIC – then it can be bought at only Rs 19,600 , compared to Rs 29,200 earlier !

New LIC Term Plan premiums

Is LIC Term plan premium lower than other companies? 

No , LIC Term plan is still one of the highest even after reduction in its premium rates, but if someone is hell bound on buying a term plan from LIC only, then its a great news for them. If you consider other private companies – then the premiums are much lower for other companies like Bharti Axa, Aviva or HDFC Click2Protect . For example – A policy of 1 crore sum assured (25 yrs tenure) , most of the other companies will charge below Rs 10,000 per year, however in case of LIC its Rs 19,600 which is almost double .

Already bought old term plan from LIC long back , Will your future premiums be lower?

I dont think so, if you already have bought LIC Amulya Jeevan Term plan some time back, you will be paying higher premium which was decided at the time of buying and you will continue paying that only. So now its your choice if you want to re-purchase a new term plan or not, But better check the premiums difference in case you plan to repurchase it now , because if you re-purchase it now, your current age will be considered and it might happen that the premium difference is not much for you.

So now – if you still have not bought a term plan , and if you are only interest in LIC term plan, then its a good time to buy the term plan from LIC – go ahead !

100 replies on this article “New LIC Term Insurance relaunched with low premiums”

  1. Anandkumar says:


    I need your guidance. My wife passed away this Aug 2016, I had taken a HDFC life term plan, however, i missed to pay the premium this year. When I went to HDFC life they told me that my policy is lapsed and will not get anything from the company. Let me know, if I have any other option?

    1. If the policy was not renewed and it was lapsed, then why will you get the money? There is no option here. The contract is over. Its that simple


  2. Sri says:

    Is it Mandatory to show Pay Slip and 3 Years IT Returns to take 1 Cr. Term Insurance Plan …..Please advice.

  3. nashapatel says:

    hai manish ji
    i’m a student,
    a company ask me to do life insurance. tell any insurance which has low premium

    1. Hi nashapatel

      I can see that you are thinking of buying a term plan. ALl you need to do is leave your details at

      Our team will get in touch with you


  4. shankar says:

    Sir, I want to take a term plan for my wife who is aged 42 years. The cover should be Rs. 5 to 6 Lakhs and period should be 15 years. My wife is basically a home-maker. But she runs a beauty parlour from our apartment. The beauty parlour is not registered and no income documents are available. However she earns 12 to 15 K per month from the beauty parlour. Kindly suggest some way of getting term plan for her.

    1. You can catch an agent for this or do it online ..

  5. DHAMODARAN says:

    I am aged 52 and want to open a Policy in LIC for I crore .This policy period shall be for 10 years , then, what will be premium for 1/2 yearly .After 10 years, what amount will be received and any monthly payment also . SPECIFY The policy name.

    If i pay one time for 1cr Policy , how much amount i should pay.

    Is it all policy is Accident COVERED? If any other Insuarance doing much better than LIC Poilcy

    1. Hi Dhamodaran

      Do you want to take mainly an insurance cover or you want to invest your money ?

  6. Vijay Ahire says:

    Dear Manish,
    I’M 38 and planing to buy a term plan of 1 Cr.
    Kindly suggest suitable plan which will help my family,when I’m not around.
    I’m more inclined to off line policy,coz the agents are accessible .
    The policy should have riders and least premium possible.

    1. Take a term plan online

  7. Prakash says:

    Hi I applied for a term policy with lic in the month of feb now it’s almost two months still the policy has not come me the agent says as it’s a term policy it takes time the Intial premium amount as been debited by lic so kindly advise thank u

    1. Hi Prakash

      It should not take this much time if all documentation is complete. Check for exact status and where is it stuck exactly ?!

  8. gaurav.rk says:

    Hi Manish,
    Need your advise please.
    I want to purchase online plan and i dont want to continue my offline plan. So shall I surrender the policy as per procedure or stop paying premium. Stop paying premium of insurance is affect on credit score?

    1. Yes Gaurav

      You can surely do this . It has no effect on credit score !

  9. Sandeep Kumar says:

    The website or the article does not give any information regarding terminal illness. Can anyone explain?

    1. What is terminal illness ?

  10. Vivek says:

    Hi Manish,
    Need your advise please.
    I have got a new born. Am looking for a policy for him so that his school fees and other education expenses can be covered via this policy.
    Me and my wife have sufficient polices which covers a good life coverage.
    Can you please tell me if I should go with Policies or making FDs.


    1. Anand says:


      Policy for a new born is really not a good idea.
      What you can do is start an SIP and continue the contribution till his education and also increase the SIP amount each year.

      The person who has dependents should take the policy. The child has no dependents and so it does not make sense to take a policy in his name. Moreover, the returns from the policy is poor.

    2. There cant be any policies which cover it . I mean I have no idea what do you mean by “the policy should cover it” .

      THe best option for those short term expenses is to make FD’s


  11. jay agarwal says:

    Dear Vijay,

    Can u pls advise how much is your SA and what premium u r paying.??

    Understand HDFC click 2 protect is one of the cheaper online plans.

  12. vijaykumar says:

    HI… friends
    I have HDFC click-2-protect policy for myself and my wife paying high premiums every year. Is this policy trustable or should i add buy one more term policy from LIC ….


    1. You can keep your HDFC click2protect. You can trust it ..

  13. jay agarwal says:

    Is Online Term plan from LIC already out in market????..Cannot find any line as of now!!

    1. No , its not yet launched !

      1. jay agarwal says:

        Thank You Manish

  14. krishna pradeep says:

    19600 for 1 crore is still higher than other insurance providers. I think LIC should reduce it further.

  15. Anand says:

    Hi Manish,

    I’m 32 and I took a LIC term insurance for SA 40 lakhs last year (2013) and paid the first premium (yearly premium of Rs. 14280).
    Now after coming to know about this new term insurance with reduced premiums, I’m confused.
    Since I’ve paid only one premium till date, does it make sense now for me to cancel the old policy and go for a new one? As I understand that, as per the new policy my premium would be reduced by almost 4000 – 5000 per year.


    1. Given it has just been a year .. i would have gone for it !

      1. Suryakant says:

        If you are opting to cancel old one, make sure you get new one first and then cancel older to ensure continuos coverage.

  16. narasimha murthy says:

    Hi Manish ,
    I am planning to buy LIC’s Amulya Jeevan – II, 35 year policy for 50 lac sum assured.
    My age is 32 years( DOB 5th Feb 1982) .
    Would you please calculate yearly premium for me ?

    1. Hi Narasimha

      You should get in touch with LIC agent for this.

      1. Suryakant says:

        This premium calculator may serve as a rough guideline…. actual premium may depend on health history and medical test results etc.

        1. Thanks for sharing that !

  17. prashant says:

    hi Manish ,
    LIC term insurence good to buy for thoes belive only on LIC. i will share my experience i took amulya jeevan term plan last year . it was just suggest by my friend i was paying premium of around 8000 Rs for 25 lac for 30 year & even i did n’t have any problems with that policy .
    problem was started , when i forgot to pay next premium due to other priorites . after that my agent called me and asked for the reason for not paying the premium , i told him ok will pay right now . he told me sir your policy is stopped and if want to pay the premium you need to go throgh medical check -up with your own money and may be chances of getting rise in premium . it was just 2 day delay after the grace period . i ask him it is only 2 days delay , why should i go through medical check- up , ans came from him that medical test is must to check if you are not came across any illness . (how the people came in to in to serious illness within 2 days )
    then que is that if people pay the premium on time are realy fit and don’t have any serious illness . suppose person has paid the premium almost 20 years and forgot for 21 premium so in that case as per this policy it like to purchase new policy with high premium ….. then what is the use or benifit of paying for 20 years.
    i knew most of terms and conditons are same for all insurece company . but my mind was not accepting to go medical check -up just delay by 2 days & finally i took decision not to continue the policy and not to go for any new term plan by LIC .

    1. Hi Prashant

      Thanks for sharing that, but the rules are exactly like that for every company. If you feel stopping your policy is better for you, then its your decision

  18. nsraghavan50 says:

    Hi Manish, this is Raghavan, I have taken LIC’s Jeevan Saathi policy in 2008, and am paying an annual premium of approx Rs 56000 for a SA of Rs 10 lacs for 20 yrs term. The policy covers both husband and wife, and pays both should it be warranted. However I have later taken term policies at far more easier terms and beleive it best to either surrender or leave it as paid up. Would like to know your views on what is the best course. I have paid 6 years premium so far

    1. I would have made it PAID UP !

  19. bhasker2103 says:

    Hi Manish,
    This is bhasker working in idbi federal life insurance (hyderabad)andhra pradesh
    if any one interested with idbi federal life insurance pls suggest

    1. Sure .. will let you know

  20. Romit says:

    Hi Manish,

    I recently got a call from a guy from FundsIndia & told me a few things about term plan. He told me that its better to go for offline term plan rather than online term plan as in offline term plan there will be someone to help while claiming the term amount, if needed. And hence there will be more chance of getting the claim amount for the family.
    Can you please tell whether its true or not?

    1. Srinivas says:

      It will be useful if someone is there at the time of claim. But there is no gaurantee that this gentleman will be there after 10-15 years.

      Coming to the basics, online policy or off line policy is a policy first. So it is to be paid. True, the branch people may take the dependents for a ride, if they are not properly knowledgeable about the policy details.

      In such case, it is better to educate family members on the procedure for claiming the amount. Off line policy or online policy, the dependents have to run around for some time time with documents to get the claim settled.

    2. I personally do not support this view . Offline or Online – the claim procedure is totally same in both the cases. the argument “there will be someone to help while claiming the amount” is just an imaginary thing I guess .. Yes technically there is an agent who helped you to take the policy, but I dont see even a minute chance why he will still be motivated to help you with the claim procedure, unless its part of his offering and it surely depends on their business ethics !

      Just make sure you know the premium difference between offline and online version and if you are fine taking the offline term plan

      1. chennapragada srinivas says:

        dear sir,
        this is a good thought provocing question.
        1. in my experience ( sales ) most of the nominees ( housewife ) really do not know the polices taken by his husband, from lic or others.
        2. only few said some papers are in safe.
        3. o k. next in case the policy holder has FORGOT to change nominee name ( mother to wife ).
        4. in case of accidental death min 4 papers are required like fir in nearby police station,, doctors report, any eye witness like trafic police or the person called the ambulance or 101. etc
        5. in some cases a good proffessional agent services are really required.
        6. knowing what to do in such cases reduces mental pain. always tell your wife / dependents about your polices and claim process, there is no wrong in that.
        you have taken for them only
        and they may be excuted in your/ our ABSCENCE .
        thanks to the forum !

        1. Thanks for sharing your views !

  21. Santosh says:

    Is there medical test for LIC Anmol Jeevan 2 plan – for 6 lakhs, 34 years age

    1. Srinivas says:

      Many people have misconception about medical test.

      One has to understand that policy is a contract entered by both parties in good faith. In case of doubt, either party can check the facts. Medical test is one such route.

      Some agents get policies for their clients, by submitting incorrect data. If this is found out after some time, the policy claim can be rejected.

      Main fear about medical test is that premium may increase. This is true, in case of diseases etc. But once medical test is done and correct premium is paid, the policy cannot be refuted on medical grounds.

      1. Santosh says:

        Thanks Srinivas. But what i want to know is that if i decide to purchase “LIC Anmol Jeevan 2 plan” term plan, sum insured 6 lakhs, is there medical test requirement for this .. or can i just purchase it directly through their website??

        1. I dont think they will take any medical checkup for this, because its a very small amount ..

    2. I dont think so .. its a small sum assured .

  22. RitzP says:

    Hi Manish

    The premium is still very high if you compare it with other insurers. The difference is huge.

    One Question: Why LIC have not launched their online term plan?

    1. Only LIC can tell why they have not launched the online term plan

    2. prashant says:

      becouse they are living in still 18th century …. 🙂 forget about LIC online go with other one …

  23. sandeep banerjee says:

    Dear Manish,
    Pls suggest can I take LIC’s Amulya Jeevan- II term plan instead of Home loan Insurance??

    Many Thank in advance….

    Sandeep Banerjee

    1. Yes, you can take it , Home loan insurance is not MANDATORY , its just missold by creating pressure, read this

  24. Renjith says:

    Dear Manish,

    Please explain whether any medical examination is needed for LIC’s Amulya Jeevan- II (Plan No 823)



    1. Depends on the LIC , if they want to take it or not , considering your information ..

  25. bharat shah says:

    thank you for the information Manish and thank you for the table link in your comment , Kishan

  26. dr m kishan says:

    Hi Manish
    For the benefit of the viewers I am posting the links to premium tables. We have to multiply the premium factor by 1000 and then ad service tax @ 12.36% for calculating to the exact premium amount. You will see that because of the service tax (which was not there in the old rates) the difference comes down significantly and therefore we should go forward after calculating the total premium including the service tax


    Keep it up

    1. Anjan says:

      I have been reading on various sites that new service tax rate is 3.06% or so. Are you sure its 12.36%? If so, then its a significant blow and will indeed not make much difference.

      Also, what is not mentioned in the article are the rates for Jeevan Anmol II which are ridiculously high for reasons only known to LIC.

      1. Hi Anjan,

        For Insurance Service Tax is 3.06%.

        1. dr m kishan says:

          Hi Chandrashekhar
          In my opinion the service tax is 12.36% only. Actually I contacted an agent of LIC for a quote and on reverse calculating and tallying with the mortality rates table the service tax came to be 12.36%

          May be some LIC officials are required to confirm


          1. Hi Kishan,

            ST Rates for Insurance Policies as follows :

            a) 12.36% on ULIP (only on charges, such as mortality and administration), b) 3.09% on traditional products
            c) 12.36 per cent on term plans.

            Chandrashekar Iyer

      2. The general service tax is 12.36% only .. but only when its applied on 100% of the amount . For various things, its different percentage , like in case of food items its applied only on 40% of value, so its 40% X 12.36% = 4.something %

    2. Thanks for sharing that !

  27. Praveen says:

    Thanks for the article Manish.

    I have a suggestion and question.

    Suggestion: You can tie up with the websites so that when you click “Buy LIC Term now online”, and users can be directed to LIC site and purchase, you will get some money. Similar to Amazon associates (

    Can you please suggest any Term plan we can buy online, esp when we are not in India. I know most of them are excluded, but checking in cae you are aware of.

    Thank you.

    1. Do you know LIC pays like that ? I dont think so !

    2. VINAY MAITHANI says:

      HDFC Click2protect you can buy when you are outside India as well.

    3. As far as I know, there is no affiliate kind of thing for online term plans ..

  28. Krishna says:

    How did you arrive at the premium rates, I do not see this plan listed in premium calculator on LIC’s webiste

  29. DK says:

    Hi Manish,
    I am fan of your ‘Financial Freedom’ book.
    In relation to above article. I have taken 50L term inurance AMULYA JIVAN in Dec. 2013 in a fobia that rates of insurance are going up. BUT it happened reverse!! So I have 50L term insurance with 6-monthly premium of 10500 approx. and has paid 1st premium only. Your quick advice may save me from future loss. I am 31st.
    Same time I have AEGON RELIGARE term insurance for 50L in 6500 only but by LICs reputation(claim settlement) I attarcted to LIC which costed me 4 times.

    please advise If I discontinue 3 month old LIC term plan and buy a new one ??

    1. Anjan says:

      No point in discontinuing after 3 months since you paid the premium for the entire year. Wait for 12 months to be complete, then go for the new plan. Don’t pay the premium of old plan and it will be automatically lapsed, one of the big advantages of term plans…not having to worry about surrender value 🙂

      1. DK says:

        No, I am paying premium half yearly so paid only 10500 Rs. (total premium 21000+Rs). It means I am more safe and right person to switch for new plan.

        1. hemkumar says:

          switch by 5th month and hence only one month premium would be lost.

        2. prashant says:

          just switch .. don’t think too much .. any way LIC policy will get in to troble more with such huge premium of 21000 …

    2. Yes you can do that .. you can discard it and take a new one now !

  30. karan says:

    Hi Manish,
    As other Term insurance needs medical examination for smoker category.
    LIC is not mentioned about premium hike rate for smoker.


    1. Nandish says:

      Karan, All insurance companies are regulated by IRDA and have to follow similar guidelines. Premium for smoker will always be more than non-smoker be it LIC or any other insurance company


    2. VINAY MAITHANI says:

      It is not necessary that term insurance for smoker category has mandatory medical test.
      Where is this fact originating from ?

    3. Its never fixed , They will share that with you after the medical examination ..

  31. Shekhar says:

    Hi Manish,

    I had bought Term Plan online from Aviva in year 2012 for 1 crore. I had to go through medical examination and cross checked all the necessary documents which on final approval shared to me. I am paying around 9k as yearly premium.
    But checking the claim settlement ratio i am little worried. Aviva is not among the top 5 and it is around 88% where as LIC has the highest claim settlement. Should i stop and buy an different Term Plan from ICICI(CSR ~96%) or HDFC(CSR~95%).

    Or Do you suggest to buy a LIC Term plan(~98%) which are too costly

    Kindly suggest


    1. No you dont need to do anything .. Claim settlement does not show how it will be paid to you .. its just a numbers thing , which I will write about very soon . Right now just sit tight !

  32. Jk says:

    This article does not take into account number of years completed in old policy. I took previous term insurance policy at age of 32, four years back. After 4 years, the new term insurance premium though is reduced does not give me much advantage, max of 1K. Also, we need to take into account on time elapsed paying premiums. God forbid if something happens to the insurer, chances of getting sum assured is higher when you are associated longer with the plan than newest policy. In my case, chances of getting sum insured in case of contingency would be higher since I am into 5th year than a new policy where I would be in first year.
    So for a premium difference of 1K (considering time elapse and increased age), it may not be worth switching to new policy.

    1. yes, thats what I said, that if someone is wanting to buy a new policy, you need to take into consideration things , there is an article linked too , which takes about this point .. So in your case, yes – it does not make sense !


      1. Gowri Shankar says:

        God forbid if something happens to the insurer, chances of getting sum assured is higher when you are associated longer with the plan than newest policy. In my case, chances of getting sum insured in case of contingency would be higher since I am into 5th year than a new policy where I would be in first year.

        – Manish can you pls explain the fact behind the above point, I think irrespective of the years a insured is associated with the insurer, the insurer has the responsibility to pay the promised sum to the insured.

        1. hemkumar says:

          What Mr.Gowrishankar means by his statement is, longer the duration of the policy, lesser the scrutiny.For example suicidal death is excluded for 1-3 years in various companies policies. This methodology is adopted by the insurance companies to avoid fraudsters from taking policy(like some known critical illness). Whereas people who have remained with the company for long would be more genuine and hence scrutinized lesser.

        2. You are correct .. one always has to pay the sum assured irrespective of the tenure .. However note that there are two kind of claims in the world of insurance company . Early claims, and normal claims

          Early claims are those claims which happen within 2 yrs of taking the policy, where the investigation happens at a more deeper level . each point is checked and each thing is noticed ..

      2. Romit says:

        Yes Manish, pls explain the point raised by Gowri Shankar.

    2. chennapragada srinivas says:

      kindly recall from your memory, EDC ( early death claim ) means any death except accidental warrants an enqiry or many times an investigation by the insurer, which may delay the claim process.
      so hence having a long time premium paying history even for a term plan is always better.

  33. Rajesh says:

    It’s now tough to sell this policy to new clients for LIC…….Old clients will now wait for any new policy from LIC..33% reduction in premium is good but where is the fault of old clients who paid higher charges and what answer will be given by LIC agents when they will go for new policies to the same clients ??

    1. But it happens always .. there can be changes anytime ! .. So one cant say the LIC agents who sold old policies are guilty of anything !


    2. Its a product whose premium keep on changing .. so its just luck !

      1. Vara says:

        I have Jeevan Anmol I now, taken in 2011, can I by any chance change it to Jeevan Anmol II??

        1. No , there is no option of “changing policies” …

  34. Ratan says:

    One thing to be considered is that, 3 years back, if someone had taken a 25yrs policy of 1 Cr at the age of 30years, now, if he wants to go for a new policy, he would need to take it for 22yrs. So the impact on premium due the increase in age would be somewhat balanced with the reduced duration of the policy.

    1. Good point , Didnt think about it 🙂

    2. Hi All,

      Thanks for the article Manish.

      Ratan coming to your queries :

      In both Amulya Jeevan 1 & 2
      1) Max Policy Term in both policies : 35Yrs
      2) Max Maturity Age for both policies : 75yrs.
      Referring your query related to policy term, client can opt for higher risk cover period by opting for new plan. please refer below table for premium in both plans.

      Age Term Insurance Cover Amulya Jeevan 1 Amulya Jeevan 2
      25 35 10,000,000.00 23,400.00 19,600.00
      30 35 10,000,000.00 29,400.00 27,200.00
      35 35 10,000,000.00 38,800.00 39,200.00

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