LIC Jeevan Anand
New Jeevan Anand (Table No: 815) is one of the most sold endowment plans of LIC, which provides Risk Cover even after maturity for lifetime. Accidental Death and Disability Benefit Rider makes this plan more beneficial as it provides additional amount equal to basic sum assured in case of death. This article provides comprehensive details of the policy and various benefits associated with New Jeevan Anand Plan with help of example.
Maturity & Life Cover (Death Claim) of Jeevan Anand
On completion of Premium Paying term, LIC Jeevan Anand Provides Maturity which is equal to Basic Sum Assured + Simple Revisionary Bonus + Final Addition Bonus (FAB), if Any. LIC declares Simple Revesionary Bonus or simply Bonus for each policy year during policy term. Year-wise declared bonus for New Jeevan Anand has been given in Table-1.
Lifetime Risk Cover After Maturity
New Jeevan Anand has special feature which provides lifetime risk cover after maturity without any further premiums. In simple words, after completion of premium paying term, policyholder receives maturity as explained above and premium payment stops, but life cover equals to Basic Sum Assured still remains for life time.
Life Cover (Death Claim)
In case of death during the policy term, death claim will be 125% of Basic Sum assured + Accumulated Simple Reversionary Bonus + Final Addition Bonus, provided all due premium till the time of death are paid and policy is in force. Year-wise death claim has been explained in the example section in the later part of this page.
Related Link: New Jeevan Anand Maturity and Death Benefit Calculator
|Table-1. New Jeevan Anand Bonus details ( per 1000 of Sum Assured)|
|Year||15 Years Term||16 to 20 Years Term||21 to 35 Years Term|
To know how total bonus is calculated, please click here.
|Age of Entry||18 to 50 years|
|Premium Paying Mode||Yearly, Half Yearly, Quarterly, Monthly (ECS Only)|
|Policy Term||15 to 35 Years|
|Basic Sum Assured||100000 and above ( in multiple of 5000)|
|Policy Revival||within 2 year|
|Premium Mode Rebate||2% on yearly, 1% on Half Yearly, Nil on Quarterly|
|Loan||After 3 years|
|Surrender||After 3 years of full premium payment|
Surrender, Loan and Paid-up value in New Jeevan Anand
Policy Surrender in Jeevan Anand
Policy surrender is the most important feature that a customer should know before buying a policy. Surrender means, pre-mature closure of the purchased policy and receiving surrender value. LIC New Jeevan Anand Policy becomes eligible for surrender value, if all due premiums of first 3 years have been paid. For calculating and understanding surrender value, please go to Jeevan Anand Surrender Value Calculator.
Loan Facility in New Jeevan Anand
In LIC Jeevan Anand, a policy holder can avail loan after successfully paying all due premiums for first 3 policy years, in another words, a loan can be availed only if the policy has attained a surrender value. Generally, maximum loan available is 90% of surrender value. Please use Jeevan Anand Loan value calculator to know more about it.
Paid-up Feature of New Jeevan Anand
Once a New Jeevan Anand policy has completed minimum 3 years with all due premiums paid and policyholder chooses to stop paying further premiums, it automatically becomes eligible for paid-up option. In case of paid-up, benefits of the policy (Maturity and Death claims) reduced by factor of total number of premiums paid/ total number of premium to be paid. Go to Jeevan Anand Paid-up value calculator to know more about it.
Grace Period, Lapse and Revival in New Jeevan Anand
There is a grace period of 30 days for Yearly, Half-yearly & Quarterly modes and 15 days for monthly mode from due date of premium payment. For example, if yearly premium is due on 10th June, then policyholder has time till 10th July to deposit premium without policy being lapsed.
If premium is not deposited before due date including grace period, then policy lapses. A lapsed policy can be revived by paying due premiums along with late fee within 2 years from first unpaid premium.
Cooling-off Period in New Jeevan Anand
Cooling-off means, a policyholder can return the purchased policy(s) within 15 days from receipt of policy document(s), if he is not satisfies with Terms & conditions of the policy(s). On cooling-off request, policy is cancelled and paid premium is returned after deduction of proportionate premium, medical test cost, clerical charges etc.
Optional Riders with New Jeevan Anand
Following riders are available with New Jeevan Anand on payment of additional premium.
- Accidental Death and Disability Benefit Rider
- Term Rider
Paid premium under New Jeevan Anand is exempted under section 80c and received maturity or death claim is tax free under section 10(10D) of Income Tax act.
Jeevan Anand (815) Policy with Example
To Illustrate the benefits of New Jeevan Anand, Lets take an example of a person who is purchasing New Jeevan Anand Plan with following details.
|Sum Assured (Rs.)||5,00,000|
|Yearly Premium (Rs.)||21,472|
|Total Paid Premium (Approx)(Rs.)||5,36,800|
After taking policy as above details, there are two possible cases are, either policy holder survives 25 years policy term or death happens before 25 years.
Case:1 (Maturity Details)
If policy holder survives the policy term (25 years), Maturity will be as under.
|Age at Maturity||50|
|Sum Assured (A)||500000|
|Bonus (Approx) (B)||837500|
|Total Maturity (A+B)||1337500|
Normal Risk Cover continues even after maturity. Following table provides details of year-wise risk cover.
|Year||Age||Normal Life Cover|
Case:2 (Death Claim Details)
If death happens during the policy term ( Before 25 years ), 125% of Sum Assured + Bonus + Final Addition Bonus(FAB) is paid to nominee and it is indicated as Normal Life Cover. In case of accidental death, additional amount equal to sum assured is also added death claim amount, the calculation is indicated as Accidental Life Cover. Calculation of year-wise and age-wise death benefits according to accumulated bonus and FAB is illustrated below.
|Year||Age||Premium Deposited||Normal Life Cover (Approx)||Accidental Life Cover (Approx)||Return|
Features of the plan written on this web page based on personal understanding and solely for explanation purpose only. In the example part, the Bonus rate has been taken as Rs. 49 per thousand of sum assured which is as per last declared and FAB rate as Rs. 450 per thousand of sum assured. for More details, please refer to LIC Website and in case of any query please write your comment below.