LIC has withdrawn its two-term plans. This information has been given in the internal circular of LIC. According to this Jeevan Amar and Tech term plans are being withdrawn. This decision has come into effect from 23 November. LIC Tech term plan is an online policy whereas LIC Jeevan Amar is an offline policy. According to sources, these plans can be relaunched with new conditions depending on the changing conditions. According to reports, these plans have been withdrawn due to the rising cost of reinsurance.
Why did LIC take the decision?
According to sources, these term plans have been withdrawn due to the increase in reinsurance rates. Actually, the Jeevan Amar plan was launched in August 2019 and the Tech term plan was launched in September 2019. Since then till now there has been no change in the premium for these policies. Although the rates of reinsurance have increased during this period. Actually, reinsurance is the process when the company providing an insurance policy to the general public covers some part of the policy distributed by it through another insurance company to reduce its risk. Due to this, when the number of claims suddenly increases manifold on occasions like epidemics, the risk to the company remains under control.
What will be the effect on policyholders
Those who have invested in both these policies will not be affected by this, their policy will continue as before and benefits will be available on the basis of that. According to the sources, not only this but those people who have completed their purchase by November 22 or the proposal and money related to the policy have also been deposited, then the policy will be issued to all those people whose proposals are accepted by November 30.