Life Insurance Corporation of India is the largest insurance company in India which is backed by the government. LIC has a widespread network of 2000+ branches and 1400+ satellite and central offices across the country. The insurance company also has its presence in various other countries with offices functioning there. LIC offers a wide array of life insurance products starting from endowment plans, term plans, pension plans, and special plans to unit-linked insurance plans etc. LIC New Jeevan Anand is one among the endowment plans offered by LIC.
LIC New Jeevan Anand –an Overview
LIC New Jeevan Anand is a traditional, participating and non-liked savings cum protection plan. The plan offers whole life protection that continues to provide risk cover until the death of the policyholder even after the plan gets matured. The plan comes with numerous advantages like a bonus, whole life cover, riders, flexible features, liquidity and tax benefits etc. Let’s take a detailed look into the plan.
Features of LIC New Jeevan Anand Plan
Below are the key features of the LIC New Jeevan Anand Plan
Eligibility Conditions and Other Terms in LIC New Jeevan Anand
|Entry age||18 years to 50 years|
|Maximum maturity age||75 years|
|Basic sum assured||INR 1,00,000 to no limit|
|Policy term||15 years to 35 years|
|Premium payment term||Same as the policy term|
|Premium payment mode||Yearly, half-yearly, quarterly or monthly (monthly instalments only through ECS or salary deductions)|
Eligibility conditions for accidental death and disability benefit rider
|Entry age||18 years to 70 years|
|Maximum cover ceasing age||70 years|
|Sum assured||INR 1, 00,000 to INR 100 lakhs|
Benefits of LIC New Jeevan Anand Plan
Following are the exclusive benefits offered under LIC New Jeevan Anand plan –
Where the sum assured on death is higher of the following –
How LIC New Jeevan Anand Plan Works?
The policyholder can choose the policy term and sum assured at the time of buying the policy. Premium needs to be paid throughout the policy term. In case the insured dies during the chosen policy period, the death benefit will be paid to the nominee/beneficiary. In case, the insured survives the policy period, maturity benefit will be paid on the date of policy maturity. However, the policy continues to stay in force even after maturity benefits are paid until the date of the insured’s death. Death benefits will be paid on death even after maturity. Let’s understand this with an example.
Mr Mohan, aged 30 years buys LIC New Jeevan Anand plan for 30 years tenure with INR 10 lakhs sum assured. The yearly premium payable would be around INR 39,500 for 30 years. Premium can be easily calculated using the LIC Jeevan Anand Calculator.
Let’s assume, LIC declares a simple reversionary bonus of 50 per 1,000 sum assured and a final additional bonus of 15 per 1,000 sum assured. This means annual simple reversionary bonus will be 50/1,000 (10, 00,000) = 50,000. And, final bonus would be 15/1,000 (10, 00,000) = 15,000.
(Please note bonuses are dependent on the company’s performance. Above rates are assumed for illustration purpose only.)
Let’s take different scenarios to understand the working of the policy.
Scenario 1: Mohan dies in the 15th year of the plan
As per the policy terms, Mohan’s nominee would get following death benefits on his death.
Death benefit = sum assured on death + vested simple reversionary bonuses + final additional bonus (if any)
= 12, 50,000 + 15X50, 000 + 15,000 = INR 20, 15,000
Where, Sum assured on death is higher of the following
Scenario 2: Mohan survives the policy term of 30 years
Mohan would get the following maturity benefits for surviving the policy term.
Maturity benefit = basic sum assured+ vested simple reversionary bonuses + final additional bonuses, if any
= 10, 00,000 + 30X 50, 000 + 15,000 = INR 25, 15,000
After the payment of maturity benefit, the policy will continue to provide risk cover for the whole life. If Mohan dies any time after the maturity, his nominee would be entitled to the death benefit of INR 10, 00,000 (basic sum assured).
LIC New Jeevan Anand Premium Calculator
The premium for LIC New Jeevan Anand plan can be calculated easily by using online LIC New Jeevan Anand Premium Calculator. It requires few basic details like the sum assured, age, and desired policy term, rider requirements, name and contact details. That’s all! LIC New Jeevan Anand Premium Calculator instantly calculates the premium amount for the details inputted. It also shows the premium amount for various premium payment modes. Approximate maturity amount can also be calculated using LIC New Jeevan Anand Maturity Calculator.
Sample Illustration for LIC New Jeevan Anand
Following is the sample premium (yearly payment mode) illustration for a healthy, non-smoker male for Sum assured of INR 10, 00,000 for various combination of age and policy term. Premiums below are calculated using the LIC Jeevan Anand Calculator.
|Age||15 years||20 years||25 years||30 years||35 years|
Surrender or revival of LIC New Jeevan Anand plan
In case, insured fails to make premium payment within due date to pay, the policy offers a grace period of 15 days to 30 days (depending on the mode of payment). If insured fails to make payment within the grace period given, the policy will lapse. However, the policy can be revived within a period of two consecutive years from the date of first unpaid premium by paying all the premiums due along with interest.
If the policy has completed three years with full premium payments, policy can be converted to ‘paid-up’ status wherein policy continues to stay in force without any further payment of premium. However, the sum assured will be reduced to ‘paid-up sum assured’ (basic sum assured X number of premiums paid/number of premiums payable).
The policy can be surrendered at anytime during the policy term. The surrender value payable would depend on the number of policy years and premiums paid till date. There are two scenarios to this.
Exclusions in LIC New Jeevan Anand
Suicide exclusion: If the life assured commits suicide within 12 months from commencement of the policy or 12 months from date of revival of the policy, insane or insane state, no death benefit will be payable to the beneficiary. However, an amount equivalent to 80% of total premiums paid till the date of death is paid to the beneficiary. After the payment, all the benefits under the policy will be ceased.
How to Buy LIC New Jeevan Anand Plan?
LIC New Jeevan Anand plan can be bought directly by visiting the nearest branch office of LIC as the plan is available for offline purchase only. The plan can be bought through intermediaries, agents and brokers also.
Documents required for buying the LIC New Jeevan Anand
Premiums paid for LIC New Jeevan Anand plan can be claimed for tax deduction under Section 80C of the IT Act. The settlement amount is also exempted from income tax under Section 10 (10D) of the IT Act.
Yes. LIC New Jeevan Anand plan can be cancelled within the free look period. There is 15 days free look period given under LIC New Jeevan Anand plan. Within this period, the policy can be cancelled if the insured is not satisfied with its terms and conditions. However, it’s important to state the reason for cancellation.
Yes. The policy offers a loan facility for policyholders provided at least three full years premiums are paid.
Yes. LIC New Jeevan Anand plan offers a rebate for high-value policies. The premium can be calculated using the LIC Jeevan Anand calculator. Following are the details:
|Basic sum assured||Rebate (% of sum assured)|
|INR 1, 00,000 to INR 1,90,000||Nil|
|INR 2, 00,000 to INR 4,95,000||1.5%|
|INR 5, 00,000 to INR 9,95,000||2.5%|
|10,00,000 and above||3.0%|
The grace period given is 30 days from the day of due date for yearly premium payment mode plans and 15 days from the day of due date for monthly premium payment mode plans. The policy will remain in force during the grace period.