LIC New Jeevan Amar: Detailed Plan Guide

Quick Overview

LIC New Jeevan Amar (Plan 955) is a non-linked, non-participating, pure risk term insurance plan offering high life cover at reasonable premiums. The policy can only be purchased offline. It provides flexible options like level or increasing sum assured, with entry ages from 18 to 65 and policy terms ranging from 10 to 40 years.

Established in 1956, Life Insurance Corporation of India (LIC) remains India’s largest life insurer, holding over 55% market share and continuing to be a widely trusted name in life insurance.

LIC New Jeevan Amar is designed for those seeking straightforward financial protection for their family, without the complexity of multiple features. While it keeps things simple compared to modern term plans, many customers still prefer plans offered by LIC for its long-standing reliability and sense of financial security.

This guide walks you through the LIC New Jeevan Amar Plan review, covering its features, benefits, drawbacks, and whether it suits your financial protection needs.

LIC: Performance Metrics

Metrics	Average FY 22-25	Industry Average	Key Insights
Claim Settlement Ratio (CSR)	98.35%	98.66% (mean)	A CSR above the recommended mark of 97% indicates strong claim reliability. This is further backed by LIC’s government ownership and long-standing presence.
Amount Settlement Ratio (ASR)	95.48%	94.83% (mean)	An ASR above 90% indicates fair settlement across both large and small claims, reflecting balanced claim handling and supporting the overall financial reliability of the insurer.
Annual Business Volume (in cr)	₹2,27,169	₹3,411.73 (median)	A business volume significantly above the recommended mark of ₹5,000 cr highlights LIC’s large scale, strong market presence, and extensive reach across the country.
Amount Paid in Death Claims (in cr)	₹19,017.6	₹195.05 (median)	Total death claims paid above the recommended range of ₹200 cr indicate strong financial capacity and the ability to handle large claim payouts reliably.
Volume of Complaints per 10,000 claims	4.57	17.67 (median)	A low complaint ratio, around one-fourth of the industry average, indicates relatively better customer experience despite operating at a large scale.
Solvency Ratio	2.00x	2.04x (median)	A solvency ratio above the IRDAI requirement of 1.5x indicates that LIC maintains strong financial reserves, supporting long-term stability and its ability to meet future claim obligations.

Note: The above values reflect the overall performance of the LIC life insurance portfolio and are not limited to its term products.

Eligibility Criteria of LIC New Jeevan Amar

Eligibility	Criteria
Entry Age Range	18 years to 65 years
Policy Term Range	10 years to 40 years
Maximum Maturity Age	80 years
Payout Options	The death benefit can be received in installments over 5, 10, or 15 years or as a lump sum.
Premium Payment Term	Single, regular, and limited pay.
Premium Payment Modes	Yearly and half-yearly.

Key Features of LIC New Jeevan Amar Plan

Sum Assured: The minimum basic sum assured starts at ₹25 lakh, with no fixed upper limit. The maximum cover is determined based on eligibility and underwriting as per the insurer’s policy guidelines.
Death Benefit Options: You can choose between a level or an increasing sum assured. Under the increasing option, the cover stays constant for the first 5 years, increases gradually until year 15, and then stabilizes at twice the base cover.
Rider Option: You can enhance the policy by adding an accident benefit rider under regular or limited pay, subject to applicable conditions.
High Sum Assured Rebate: The policy offers a discount for opting for higher sum assured levels. As the coverage amount increases, the insurer provides a rebate on premiums, making larger life cover relatively more cost-efficient for policyholders. For instance, under the level sum assured option, if a 30-year-old chooses a ₹1 crore cover, they get a premium discount of up to 25%, making higher coverage more cost-effective.

Premiums for LIC New Jeevan Amar Plan

Age	Level Sum Assured	Increasing Sum Assured
20	₹5,959	₹7,832
30	₹7,830	₹11,125
40	₹15,441	₹23,933

Note: The sample illustrative premiums for the two plan variants are based on a basic sum assured of ₹50 lakh for a non-smoker male with a policy term of 20 years. The figures are extracted from the LIC New Jeevan Amar Plan Brochure.

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Drawbacks of LIC New Jeevan Amar Plan

Limited Features: The plan mainly focuses on providing basic term life cover without many built-in benefits. Compared to modern term plans, it lacks additional features like enhanced payout structures, flexible benefits, or comprehensive add-ons that improve overall protection.
Minimal Rider Options: It offers only one add-on. This means you cannot fully customize the policy with important protections like critical illness cover or disability benefit that are commonly available with private insurers.
Higher Premiums: The premium for this plan may be higher when compared to similar term insurance products offered by private insurers. Despite offering basic coverage, the cost efficiency is lower, especially for younger buyers who may find better value alternatives in the market.
Offline Purchase Only: The policy is primarily distributed through offline channels, which can make the buying process slower and less convenient. It also limits quick digital access for purchase, policy management, or comparisons with other plans online.

LIC vs Private Life Insurers: Which Is Better?

The difference between LIC and private life insurers lies in their approach to insurance. LIC generally offers more traditional products, whereas private insurers provide customized plans with competitive pricing and faster service.

Check out the infographic for a better understanding.

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Conclusion

The LIC New Jeevan Amar Plan is suitable for individuals who prefer a simple life cover for their dependents and are comfortable paying higher premiums in exchange for trust and brand legacy. If you wish to purchase an LIC term plan, you can also consider the New Tech Term Plan as an online alternative.

However, these plans lack several advanced in-built features such as instant payouts on claim intimation and key riders like waiver of premium. If you are looking for a term plan from insurers with personal customization and affordable riders, we recommend the best term insurance plans, which align with your future goals.

Frequently Asked Questions

Does LIC New Jeevan Amar offer maturity benefits?

No, this is a pure protection term plan. If the policyholder survives the policy term, no maturity or survival benefit is paid.

Who should consider the LIC New Jeevan Amar plan?

It is suitable for individuals seeking basic life cover from a trusted insurer like LIC, especially those who prefer traditional policies over feature-rich modern term insurance plans.

Does LIC New Jeevan Amar Plan have a surrender value?

No, LIC New Jeevan Amar is a pure term insurance plan, so it does not offer any surrender value. If the policy is discontinued during the term, no amount is payable.

What is the grace period in the LIC New Jeevan Amar Plan?

The plan offers a grace period of 30 days for payment of yearly or half-yearly premiums from the date of the first unpaid premium. During this period, the policy remains in force with uninterrupted risk cover. If the premium is not paid within this period, the policy will lapse.

What are the other term insurance plans offered by LIC?

LIC offers multiple term plans, such as Digi Term and Bima Kavach, broadly categorized by their online and offline availability. These plans differ in eligibility and features, with options for level or increasing coverage and flexible payout structures like lump sum or installments.

Last updated on: 27 Mar, 2026