If an individual is searching for an endowment plan which offers the advantages for an entire life policy, then LIC Jeevan Anand is one of the best possible options to choose from. The new LIC Jeevan Anand policy offers a special bonus facility. It is a kind of Double Death Benefit Plan which guarantees the agreed sum assured if an insured person survives till the very end of the maturity period. This arrangement includes a high reward rate, a normal premium and even more phenomenal liquidity features.
The LIC New Jeevan Anand is a participating life insurance policy which offers a double benefit of protecting as well as the savings. This plan offers financial protection in case of the death of the insured individual and also offers lumpsum amount in the case of the survival of the individual at the end of the policy term. It is considered to be one of the most popular endowment plans from the Life Insurance Corporation of India.
The Key Features of LIC New Jeevan Anand plans are as follows:
The LIC Jeevan Anand is a traditional participating whole life endowment policy plan.
LIC's Accidental Death and Disability Benefit Rider is available by making the payment of a nominal premium amount.
The LIC New Jeevan Anand Plan offers tax exemption on the amount of premium paid under Section 80C and the claim amounts i.e. Death or Maturity Benefit under Section 10(10D) of the Income Tax Act, 1961.
Death Benefit - In case of death of the policyholder, the sum assured on death and vested Simple reversionary bonuses and final additional bonus, if any, will be paid to the family. The sum assured on death is defined as higher of 125% of basic sum assured or 10 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Survival Benefit - Provided all premiums have been paid and the policy is still in force, the basic sum assured, along with vested simple reversionary bonuses and final additional bonus, if any, will be paid to the policyholder as a lump sum amount.
Participation in Profits - This is a participating non-linked endowment plan as it participates in the profits of the company. In case the company declares profits, the policyholder will be entitled to receive simple reversionary bonuses provided the policy is in force.
The LIC policy offers a double benefit in terms of financial protection in the case of the death of a policyholder as well as the benefits of savings on survival.
The Death benefit- In case of death of the insured during the policy term, the Sum that is assured on the death along with the reversionary bonus and the final additional bonus (if any) would be paid as a death benefit to the nominee.
On death of policyholder at any time after policy term, only the agreed Basic Sum Assured is paid.
The Maturity benefit- The LIC Jeevan Anand plan qualifies for the Maturity benefit that would be paid out at the time of the end of the policy term by considering all the premiums which have been paid fully. The Sum assured along with the reversionary bonus and the final additional bonus, if any would be paid as the maturity benefit.
The flexibility of operation- This plan offers individuals the flexibility of paying the premiums either monthly, quarterly, biannually or annually
The Eligibility Criteria for the LIC's New Jeevan Anand policy are as follows-
| Parameter | Eligibility Criteria |
|---|---|
| Minimum Basic Sum Assured | Rs. 100,000 |
| Maximum Basic Sum Assured | No Limit (The Basic Sum Assured shall be in multiples of Rs. 5000/-) |
| Minimum Age at entry | 18 years (completed) |
| Maximum Age at entry | 50 years (nearest birthday) |
| Maximum Maturity Age | 75 years (nearest birthday) |
| Minimum Policy Term | 15 years |
| Maximum Policy Term | 35 years |
LIC’s Accidental Death and Disability Benefit Rider
| Parameter | Details |
|---|---|
| Minimum Accident Benefit Sum Assured | Rs. 100,000 |
| Maximum Accident Benefit Sum Assured | An amount equal to the basic sum assured under the Basic plan subject to the maximum of Rs. 100 lakh overall limit taking all existing policies of the life assured under individual as well as group schemes including policies with inbuilt accident benefit taken with Life Insurance Corporation of India and the accident benefit sum assured under the new proposal into consideration. (The accident benefit sum assured shall be in multiples of Rs. 5000/-) |
| Minimum Age at entry | 18 years (completed) |
| Maximum Age at entry | The cover can be opted for at any policy anniversary during the policy term but before the policy anniversary on which the age nearer birthday of the Life Assured is 70 years |
| Maximum cover ceasing age | 70 years (nearest birthday) or till the end of the Policy |
Sample Premium Rates
Sample tabular premium rates (exclusive of service tax) per Rs. 1000/- Basic Sum Assured
| Policy Term in Years | |||
|---|---|---|---|
| Age (in years) | 15 | 25 | 35 |
| 20 | 79.05 | 44.30 | 29.95 |
| 30 | 82.45 | 46.75 | 32.30 |
| 40 | 88.20 | 51.40 | 37.10 |
| 50 | 88.20 | 59.65 | - |
Additional Policy Details
| Mode Rebate | |
|---|---|
| Yearly mode | 2% of Tabular Premium |
| Yearly mode | 1% of Tabular premium |
| Quarterly & Monthly mode | NIL |
| High Sum Assured Debate | |
| Basic Sum Assured | Rebate |
| 00,000 to Rs. 1,95,000 | Nil |
| 00,000 to Rs. 4,95,000 | 1.50% of B.S.A. |
| 00,000 and Rs. 9,95,000 | 2.50% of B.S.A. |
| 00,000 and above | 3.00% of B.S.A. |
Revival - A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but before the end of policy term on payment of all the arrears of premium together with interest.
Rider Options - LIC's Accidental Death and Disability Benefit Rider is available by payment of additional premium during the policy term. In case of accidental death during the policy term, accidental benefit sum assured will be payable as lump sum along with the death benefit under the basic plan. In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the accident benefit sum assured will be paid in equal monthly installments spread over 10 years. In addition, any future premiums for accident benefit sum assured as well as premiums for the portion of basic sum assured which is equal to accident benefit sum assured under the policy, will be waived.
Paid-up Value - If the premium has been paid for at least three years followed by non-payment of premium, the policy will acquire a paid-up value. The basic sum assured under the policy shall be reduced to such a sum, called paid-up sum assured and shall bear the same ratio to the basic sum assured as the premiums paid bears to the total number of premiums payable i.e. Basic Sum Assured *(number of premiums paid / number of premiums payable).
Surrender Value - The policy can be surrendered for cash provided at least three full years’ premiums have been paid. The Guaranteed Surrender value during policy term shall be a percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for riders. The surrender value of any vested simple reversionary bonuses, if any, is equal to vested bonuses multiplied by the surrender value factor applicable to vested bonuses.
LIC’s New Jeevan Anand is a good life insurance plan for your family. It offers an attractive combination of savings and protection. The cover provided is available throughout the lifetime of the policy. In addition, this plan comes with a loan facility as well.
Let us consider one example of Mr. Vijay, a 26-year-old IT professional who opts for the LIC’s New Jeevan Anand plan having a sum assured of the amount of Rs. 5,00,000 for a policy term that is of 21 years. Let us assume that Vijay will be paying the yearly premium amount of Rs. 27, 454. In the case that Vijay survives the policy period, then he will receive a maturity benefit of the amount of Rs.11,02,000. In case if Mr. Vijay passes away before the end of the policy, then his nominee would receive 125% of the entire sum assured, as well as various other bonuses as applicable.
This LIC plan provides riders in the form of the LIC’s Accidental Death and Disability benefit. One may avail such an optional rider by paying an additional premium for it during the policy process. The Accident benefit sum assured benefit would be paid in the case of death due to an accident occurring during the policy period. In case of a permanent disability because of the accident, an amount equivalent to the Accident benefit sum assured would be paid, but in the form of monthly installments.
The documents that are necessary to be insured under the insurance plan are all subject to the sum assured amount that is chosen and the premiums that are paid for it. Below mentioned are some of the primary documents that are required for an individual to get insured under the plan:
Claim on death - The entitled nominee must present the claims form and the original policy documents as given by LIC. Additionally, the nominee must be required to provide all the details and the applicable documents, such as the bank account details, the death certificate, the medical treatment details before death, etc.
Claims on maturity - the individual insurance holder has to provide a filled claim form that is attached to the original policy documents, in the name of a policyholder. Additionally, the individual policyholder has to give bank account details for NEFT transfer of the maturity amount.
Surrender claims - The insurance holder has to give the filled claim form that is attached along with the original policy document, in the name of a policyholder, along with the bank details for the NEFT transfer of the surrender benefits as applicable.
Grace Period: A grace period of 30 days is given for the purpose of the payment of the due premiums. If the individual fails to pay the premium during the grace period also, then the policy will lapse. But, the insurance holder is given an opportunity to revive his policy within a tenure of 2 years beginning from the due date of the first unpaid premium.
Surrender Benefit or Policy Termination: On the completion of the 3 policy years, the policy can be surrendered. Even, the insurance plan offers loan advantages where the insurance holder can get a loan against the policy.
Policy Exclusions
Suicide:
Is New Jeevan Anand a good policy?
Yes, it is a good policy. It has dual benefits of saving as well as protection against life uncertainties.
Is LIC New Jeevan Anand maturity amount taxable?
No. The LIC Jeevan Anand policy provides tax benefit to the insured individuals on the premium paid as well as on the claims that are received. This tax benefit is available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Are riders available under the new Jeevan Anand plan?
Yes, LIC’s Accidental Death and Disability benefit Rider can be attached to the base plan. One may avail such an optional rider by paying an additional premium for it during the policy process. The Accident benefit sum assured benefit would be paid in case of death due to an accident occurring during the policy period. In case of a permanent disability because of the accident, then an amount equivalent to the Accident benefit sum assured would be paid, but in the form of monthly installments.
How much bonus is there under this plan?
The bonus rate declared under various plans of LIC depends upon the profits generated by the corporation. One can see the bonus rates applicable for various plans by visiting the following link licindia.in/Customer-Services/Bonus-Information.aspx
Does the plan provide a loan facility?
Yes, this LIC insurance plan offers loan advantages where the insurance holder can get a loan against the policy.
Can an NRI avail LIC New Jeevan Anand Plan?
Yes, the Foreign Exchange Management Act (FEMA) allows NRIs to avail life insurance plans in India.
Can the plan be forfeited by the company?
Yes, this can happen if it is found that any condition is contravened or any incorrect statement is contained in the proposal or any other statements or any information is withheld. In such instances, the policy shall become void and all claims will be subject to the provisions of Section 45 of the Insurance Act, 1938.
How can a nominee file a death claim?
To file a death claim, the nominee is required to submit the claim form along with other required documents like the original policy, proof of death, proof of title, among others.
How can the life assured make a maturity claim or surrender the policy?
For the purpose of making a maturity claim or surrendering the policy, the life assured needs to submit the discharge form with the original policy document and NEFT mandate for direct credit of the claim to the bank account.
Can the policy be dated back?
Yes, the policy can be dated back within the same financial year.
How to apply for LIC New Jeevan Anand?
You can apply for LIC new Jeevan Anand online from the official website of LIC or through Intermediaries. Online
You can log in to the official website of LIC India and select LIC New Jeevan Anand. Choose the coverage and provide personal details as asked. The system will determine the premium amount as per the details that you fill in. You can make premium payment via debit card, credit card or internet banking facility. After successful payment, the policy will be issued. Intermediaries
Some of the LIC plans which are not available online, can be purchased from LIC agents, brokers and banks.
