LIC withdraws Jeevan Amar, Tech Term Insurance from market --Should the policyholders worry?

New Delhi: Insurance behemoth Life Insurance Corporation of India (LIC) has reportedly withdrawn LIC two very popular term insurance plans from the market -- Jeevan Amar and Tech Term Insurance. The two LIC plans Jeevan Amar and Tech Term Insurance have been apparently withdrawn due to increased reinsurance rates, media reports have said.

Should Jeevan Amar policy holders and Tech Term Insurance policy holders worry as LIC has withdrawn the plans from the market?

Though the insurance provider has withdrwan these two term insurance policies, the existing policy holders of Jeevan Amar, Tech Term Insurance should not worry. As per the bond promise, the policy holders will continue to get all the benefits. The policy covers and the premium will continue for the existing Jeevan Amar and Tech Term Insurance policy holders. 

The news only means that LIC will not issue fresh Jeevan Amar, Tech Term Insurance policies.

LIC’s Jeevan Amar is a Non-Linked, Non-participating, Individual, Pure Risk Premium Life Insurance Plan, which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term. This Plan can be purchased Offline through Licensed agents, Corporate agents, Brokers and Insurance Marketing Firms.

LIC's Tech-Term is a Non-Linked, Without Profit, Pure Protection "Online Term Assurance Policy" which provides financial protection to the insured's family in case of his/her unfortunate death during the policy term. However, Tech Term Insurance was an online-only plan.