LIC New Jeevan Anand Premium Calculator

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

• The plan is a participating policy that provides a return in the form of bonus
• The premium for the policy needs to be paid for the entire term
• Death cover continues for the whole life even after the maturity benefits are paid
• On the death of the insured, sum assured will be paid to the nominee
• Additional coverage for accidental death and disability is offered as a rider in the policy
• Tax benefits are offered on the policy premium and tax exemptions on the settlement sum

Eligibility Conditions and Other Terms in LIC New Jeevan Anand

Eligibility conditions for accidental death and disability benefit rider

Benefits of LIC New Jeevan Anand Plan

Following are the exclusive benefits offered under LIC New Jeevan Anand plan –

• Death benefit:
  In case of death of the policyholder, death benefits are paid to the nominee/beneficiary of the policy. Following benefits are paid out on the death of an insured

• • • Death during policy term –
      Death benefits payable is the sum assured on death + vested simple reversionary bonuses + final additional bonus (if any)
    • Death after policy term –
      The death benefit payable is the basic sum assured

Where the sum assured on death is higher of the following –

• • 125% X basic sum assured
  • 10 X annualised premium
  • 105% of all the premiums paid

• Maturity benefit:
  In the case, the policyholder survives until the end of the policy term, survival/maturity benefit will be paid to the policyholder on the date of maturity. Maturity benefit payable is basic sum assured+ vested simple reversionary bonuses + final additional bonuses if any. The approximate value of maturity can be known by using the LIC New Jeevan Anand Maturity Calculator.

• Bonuses:
  As the policy participates in the profit of the company, policyholders are entitled to simple reversionary bonuses every year (declared as per the company’s performance). The vested bonuses are paid on maturity or death during the policy term. The final bonus may also get added (if declared by the company) at the time of maturity or death benefit payouts.

• Optional benefit:
  The policy offers additional optional benefit on accidental death and disability which can be availed at an extra cost of the premium. The rider offers the additional benefit of sum assured which will be paid in case of accidental death and disability suffered by the insured.

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

• 125% X basic sum assured = 125% X 10, 00,000 = INR 12, 50,000
• 10 X annualised premium = 10 X 39,500 = INR 3, 95,000
• 105% of all the premiums paid till death = 105% of 15 X 39,500 = INR 6, 22,125

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.

Surrender or revival of LIC New Jeevan Anand plan

Revival

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).

Surrender

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.

• Surrendering the policy within three years of inception: If the policy is surrendered during the first three years, the surrender value will be nil and nothing is payable to the policyholder.
• Surrendering the policy after completion of three years: After three years of full premium payment, policy can be surrendered for cash. Guaranteed surrender value applicable for the particular policy year (percentage of total premiums paid) will be payable to the policyholder after deduction of surrender charges if any. In the case of paid-up policies, paid-up sum assured will be payable to the policyholder.

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 

• PAN Card (mandatory)
• Identity proof: PAN card/Aadhaar card/passport/Voter’s ID card/driving license etc
• Age proof: Birth certificate/ school certificate/ passport /Driving license etc
• Income proof: Salary certificate/IT return
• Address proof: Bank account statement/electricity bill/telephone bill/passport etc.