LIC New Jeevan Anand

LIC New Jeevan Anand (Plan No. 915, UIN No. 512N279V02) is an endowment plan that offers maximum protection and savings to the policyholder. The major highlight of the plan is that it offers twin benefits of full payout on maturity and continuous lifelong cover. LIC New Jeevan Anand is equipped with extensive features, making it a popular policy in its segment. The plan, furthermore, offers a loan facility to the user. The premiums paid under the plan are even eligible for tax rebate under “Section 80C” of the income tax act. This would ultimately allow the insured to save tax while receiving comprehensive financial protection from the corporation.

Eligibility Criteria

Here’s the eligibility criteria for the LIC Jeevan Anand Policy.

Minimum Entry Age

18 years (completed)

Maximum Age at entry

50 years (nearer birthday)

Maximum Maturity Age

75 Years (nearer birthday)

Minimum Sum Assured

Rs. 100000

Maximum Sum Assured

No Limit

Minimum Policy Term

15 Years

Maximum Policy Term

35 Years

What are the Key Features of LIC New Jeevan Anand Plan?

LIC’s New Jeevan Anand offers a wide gamut of features, making it one of the lucrative policy options under the hood. Let’s take a quick glance!

• Grace Period: A grace period of 30 days is offered on annual, half-yearly, or quarterly basis. For monthly payers, it is a 15 days period.

• Revival: A policyholder can easily revive the lapsed policy if it is purchased within 5 years after the date of the First Unpaid Premium but before the maturity date.

• Policy Surrender: The insured can easily surrender the policy only if he/she had already made the premium payment for 2 full policy years.

• Free Look Period: This exclusive feature of LIC’s New Jeevan Anand allows the newly opted policyholder to return the policy within 15 days.

• Loan Against Policy: A policyholder can easily avail loan against the policy only if at least two full policy years of premium payments have been made.

• Premium Payment: Policyholders can make the premium payment on either yearly, half-yearly, quarterly or monthly intervals at their convenience.

Benefits of LIC New Anand Plan

Listed below are the top benefits of this plan offered by LIC.

1. Death Benefit:

If the policyholder, however, dies during the period of the policy, then he/she will likely receive the final additional bonus and simple reversionary bonuses along with the sum assured on death.

For those who don’t know, the amount of sum assured on death is either;

125% of basic sum assured or 7X annualized premium
*The maximum of the above will be considered

On the other hand, if the policyholder dies after the end of the period of the policy, the family shall receive the basic sum assured.

Let’s consider an example to properly understand it:

A software engineer, Ajay who is 29 years old purchased “LIC Jeevan Anand” with a policy term of 15 years while the basic sum assured (BSA) is 1000000. In addition, he even included other options like Accidental rider, Term Rider, and Maturity Settlement.

But if he unfortunately dies, then

Basic Sum Assured: 1000000

Death Sum Assured: 1250000

Accidental SA: 1000000

Term SA 1000000

2. Maturity Benefit:

A policyholder is likely to get a maturity benefit which is given to him/her at the end/maturity of the policy only if they had paid all premiums on time. The major highlight of the policy is that it allows you to receive the so-called “Maturity Benefit” in installments for 5, 10, or 15 years.

Maturity Benefit = Basic Sum Assured + Final additional & simple reversionary bonuses

The policyholder, alongside, will likely receive a final additional bonus and a simple reversionary bonus that would be an additional bonus.

Explain the Working of LIC New Jeevan Anand Plan

Premium Calculation

Let us understand this plan with the help of an example:

Mr. Paul who is 40 years old decided to buy the LIC New Jeevan Anand Plan with a policy term of 20 years alongside the basic sum assured of Rs. 10 Lakhs (excluding any rider benefit).

Here’s the calculated premium for the First & Second Years

Mode            Premium Premium for 1st year (4.5% GST)       Premium for 2nd year (2.25% GST)

Yearly             60602                                     63329 61966

Half-Yearly    30626 32004 31315

Quarterly      15475 16171 15823

Monthly 5158 5390                                                       5274

Maturity Calculation

If Mr. Paul survives till the maturity date of the policy, then he shall receive the maturity benefit. Let’s discuss the amount of maturity benefit:

Basic Sum Assured: 1000000

Age: 40

Term: 20

Death Sum Assured: 1250000

AD & DB Sum Assured: 0

Term Rider Sum Assured: 0

Death Sum Assured is higher by 125% of Basic Sum assured (1250000) or 7 times of Annualized Premium (424214). So, Death Sum Assured or Sum Assured on Death, in this case, will be 1250000.

Maturity Details:

Sum Assured Bonus(approx.) FAB (approx.) Total (approx.)

1000000 820000   70000     1890000

Normal Life Cover is equal to Death Sum Assured + Accumulated Bonus + FAB + Term Rider Sum Assured (If opted).

Accidental Life Cover is equal to Death Sum Assured + Accumulated Bonus + FAB + Basic Sum Assured + Term Rider Sum Assured (If opted).

If we assume death occurs in the year 2033, the total paid premium will be 727224, and the Normal and Accidental Life Covers will be 1701000 and 1701000, accordingly.

Is There Anything Excluded Under LIC New Jeevan Anand?

Each insurance policy comes with its own set of inclusions and exclusions and the same goes with LIC New Jeevan Anand. Although many inclusions have already been covered under the features/benefits section, there’s one exclusion under the policy, i.e., none other than “Suicide”.

But at the same time, it is excluded only if it falls under the following circumstances:

Instance 1:

If the policyholder committed suicide within just 1 year (12 months) of buying the policy, then the corporation is entitled to pay the claim. But if he/she has made the premium payment on time, then the company shall pay 80% of the total premiums provided.

Instance 2:

Coming to another scenario, if he/she commits suicide within 12 months from the date of revival, then the corporation will not be paying you anything. However, if he/she already had the payment, then the family members will likely get 80% of the premiums paid.

Note: Taxes, extra premiums, and any rider premium(s) other than the Term Assurance rider, if any, are not included in the above-mentioned premiums.