Endowment plans help in creating a savings corpus while at the same time providing insurance coverage. LIC New Jeevan Anand is one such endowment policy which provides you with a combination of insurance and risk-free returns under the same plan. Let’s understand the plan in details –
Overview of LIC New Jeevan Anand Plan
LIC’s New Jeevan Anand is a participating endowment assurance plan which creates a corpus for your financial needs. The plan also promises insurance coverage during the tenure which takes care of your protection needs.
Key features of LIC New Jeevan Anand Plan
Here are some of the salient features of LIC’s New Jeevan Anand policy which you should know –
- Being a participating plan, Jeevan Anand earns simple reversionary bonuses throughout the term of the policy. Moreover, on maturity or death, a final additional bonus might also be paid
- There is an optional rider benefit which you can choose for a wider scope of coverage
- Premiums are payable throughout the term of the policy
- You get premium discounts which reduce the premium rate
- Loans are available under the plan which provides you liquidity if you need funds
Benefits offered by LIC New Jeevan Anand Plan
Here are the benefits available under LIC New Jeevan Anand policy –
- Maturity benefit
If the chosen term of the plan comes to an end and the insured is alive, a maturity benefit is paid. This benefit is the sum assured paid along with the vested reversionary bonuses and any final additional bonus.
- Death benefit
In case of death of the insured during the coverage period, the sum assured on death is paid along with the vested reversionary bonuses and a final additional bonus. The sum assured on death is either 125% of the sum assured you chose or 10 times the annual premium, whichever is higher. Moreover, the death benefit would not be below 105% of total premiums paid.
The plan participates in the profits earned by LIC in a financial year. When LIC declares a bonus, such reversionary bonuses are added to the sum assured of the policy. Furthermore, a final additional bonus is also paid with the maturity or death benefit.
LIC New Jeevan Anand plan offers LIC’s Accidental Death and Disability Benefit Rider. This rider covers instances of accidental deaths and disablements. In case of accidental death of the insured, an additional rider sum assured is paid with the death benefit. If, on the other hand, the insured becomes disabled in an accident, the rider sum assured is paid in monthly instalments for the next 10 years and the subsequent premiums are also waived off.
- Premium discounts
You can avail two types of premium discounts under the policy. The first discount is the modal discount which is allowed if you pay premiums annually or half-yearly. The discount for annual premium is 2% and for half-yearly premiums is 1%. The second discount is for choosing higher coverage levels. The discount rates under this category depend on the sum assured that you choose. They are as follows –
|Amount of sum assured||The applicable rate of discount|
|INR 200,000 to INR 495,000||1.50% of the sum assured|
|INR 500,000 to INR 995,000||2.50% of the sum assured|
|INR 10,00,000 and above||3% of the sum assured|
Eligibility criteria for LIC New Jeevan Anand Plan
|Age at entry||18 years to 50 years|
|Maximum age at maturity||75 years|
|Term of the plan||15 years to 35 years|
|Sum assured||Minimum – INR 1 lakhMaximum – no limit|
|Premium paying term||Equal to the policy term|
|Premium amount||Depends on age, the sum assured and term|
Sample premium rates of LIC New Jeevan Anand Plan
Here are the sample premium rates which are payable for buying LIC New Jeevan Anand Plan at different ages and for different policy terms. The sum assured is taken to be INR 5 lakhs and the premiums are assumed to be paid annually.
|Age of the insured||Term 15 years||Term 25 years||Term 35 years|
|20 years||INR 26,235||INR 9207||INR 2176|
|30 years||INR 27,901||INR 10,408||INR 3327|
|40 years||INR 30,718||INR 12,686||INR 5679|
Other LIC New Jeevan Anand policy details
- Paid-up value
If you have paid the premiums for at least the first three years of the policy, the policy acquires a paid-up value. If the future premiums are waived off, you would not lose out on the plan benefits. In that case, the policy would continue at a reduced paid-up value. The sum assured would be reduced and would be calculated as follows –Paid-up sum assured = (number of premiums paid / number of premiums payable) * sum assuredThis sum assured would be used to calculate the maturity and death benefits. Moreover, the bonuses which vested before the policy became paid-up would also be paid.
- Surrender value
If the policy has acquired a paid-up value, you can surrender the plan and avail the surrender value if you do not want to continue with the coverage. The surrender value will be higher of the guaranteed surrender value or special surrender value. The guaranteed surrender value would be calculated as the aggregate surrender value of premiums paid and bonuses earned. The special surrender value, on the other hand, would depend on LIC and would be determined from time to time.
You can revive a lapsed policy provided the revival is done within 2 years from the date of lapse. To revive, the outstanding premiums would have to be paid along with a proof of insurability.
Loans are available only if the first three years’ premiums have been paid. The quantum of the loan depends on the surrender value acquired by the plan.
Exclusions under LIC New Jeevan Anand Plan
Under LIC New Jeevan Anand plan, suicide would be excluded under the following instances –
- If suicide is committed within 12 months of buying the policy it would be excluded. In this case, 80% of the premiums paid would be refunded
- If suicide is committed within 12 months of revival it would be excluded. In this case, the higher of the acquired surrender value or 80% of the premiums paid would be refunded.
Tax implications of LIC New Jeevan Anand Plan
The premiums paid towards buying LIC New Jeevan Anand policy would be considered as a tax-free deduction under Section 80C of the Income Tax Act. You can claim a maximum deduction of INR 1.5 lakhs on the premiums paid.
The benefit received from the policy would also be tax-free in your hands. Section 10 (10D) of the Income Tax Act allows the full amount of benefit to be exempted from tax.
How to buy LIC New Jeevan Anand Plan?
You can choose to buy the policy through LIC’s office premises or from a LIC agent.
However, if you wish to buy any other endowment plan, you can do so from Turtlemint itself. The process of buying online from Turtlemint is easy and hassle-free. You would just have to provide your details like your age, gender, income, the sum assured, etc. and you would be shown a list of endowment plans. You can compare the available plans and then buy the best endowment policy for your needs. Premiums would have to be paid online and the policy would be issued quickly.
Claim process of LIC New Jeevan Anand Plan
If the plan matures, the maturity claim can be availed by filling and submitting a claim discharge voucher along with the following documents –
- Identity proof
- Policy bond
- Bank account details
In case of death, however, claim form number 3783 should be filled and signed by the nominee. The nominee should submit this claim form along with the following documents for the death claim to be processed –
- Death certificate
- Policy bond
- Identity proof
- Bank account details
A police FIR, post mortem report, panchnama, etc. would also be required if the death occurs in an accident.
If you are an existing Turtlemint customer, you can also make your claim through Turtlemint. Turtlemint offers its customers personalised claim services where your claims are handled by Turtlemint’s team, for speedy settlements. Just inform Turtlemint at 1800 266 0101 or by sending an email to firstname.lastname@example.org. Once the claiming team is informed, they take the necessary steps and get your claims settled at the earliest.
LIC New Jeevan Anand plan allows premiums to be paid monthly, quarterly, half-yearly or annually.
The grace period depends on the premium paying mode. If monthly premiums are paid, the grace period is 15 days. For all other premium paying modes, however, the grace period is 30 days or a month.
The cooling-off period also means a free-look period. This period is allowed for you to cancel the plan if you have second thoughts. LIC New Jeevan Anand plan allows you a cooling-off period of 15 days from buying the policy. During this period you can cancel the policy if you want and get the refund of your premiums.