LIC New Jeevan Anand

 LIC New Jeevan Anand (Plan No. 915, ) 

is an endowment plan that offers maximum protection and savings to the policyholder. The major highlight of the plan is that it offers twin benefits of full payout on maturity and continuous lifelong cover. LIC New Jeevan Anand is equipped with extensive features, making it a popular policy in its segment. The plan, furthermore, offers a loan facility to the user. The premiums paid under the plan are even eligible for tax rebate under “Section 80C” of the income tax act. This would ultimately allow the insured to save tax while receiving comprehensive financial protection from the corporation.

Eligibility Criteria

Here’s the eligibility criteria for the LIC Jeevan Anand Policy.

Minimum Entry Age	18 years (completed)
Maximum Age at entry	50 years (nearer birthday)
Maximum Maturity Age	75 Years (nearer birthday)
Minimum Sum Assured	Rs. 100000
Maximum Sum Assured	No Limit
Minimum Policy Term	15 Years
Maximum Policy Term	35 Years

What are the Key Features of LIC New Jeevan Anand Plan?

LIC’s New Jeevan Anand offers a wide gamut of features, making it one of the lucrative policy options under the hood. Let’s take a quick glance!

• Grace Period: A grace period of 30 days is offered on annual, half-yearly, or quarterly basis. For monthly payers, it is a 15 days period.

• Revival: A policyholder can easily revive the lapsed policy if it is purchased within 5 years after the date of the First Unpaid Premium but before the maturity date.

• Policy Surrender: The insured can easily surrender the policy only if he/she had already made the premium payment for 2 full policy years.

• Free Look Period: This exclusive feature of LIC’s New Jeevan Anand allows the newly opted policyholder to return the policy within 15 days.

• Loan Against Policy: A policyholder can easily avail loan against the policy only if at least two full policy years of premium payments have been made.

• Premium Payment: Policyholders can make the premium payment on either yearly, half-yearly, quarterly or monthly intervals at their convenience.

Benefits of LIC New Anand Plan

Listed below are the top benefits of this plan offered by LIC.

1. Death Benefit:

If the policyholder, however, dies during the period of the policy, then he/she will likely receive the final additional bonus and simple reversionary bonuses along with the sum assured on death.

For those who don’t know, the amount of sum assured on death is either;

125% of basic sum assured or 7X annualized premium

*The maximum of the above will be considered

On the other hand, if the policyholder dies after the end of the period of the policy, the family shall receive the basic sum assured.

Let’s consider an example to properly understand it:

A software engineer, Ajay who is 29 years old purchased “LICJeevan Anand” with a policy term of 15 years while the basic sum assured (BSA) is 1000000. In addition, he even included other options like Accidental rider, Term Rider, and Maturity Settlement.

But if he unfortunately dies, then

Basic Sum Assured:	1000000
Death Sum Assured:	1250000
Accidental SA:	1000000
Term SA	1000000

2. Maturity Benefit:

A policyholder is likely to get a maturity benefit which is given to him/her at the end/maturity of the policy only if they had paid all premiums on time. The major highlight of the policy is that it allows you to receive the so-called “Maturity Benefit” in installments for 5, 10, or 15 years.

Maturity Benefit = Basic Sum Assured + Final additional & simple reversionary bonuses

The policyholder, alongside, will likely receive a final additional bonus and a simple reversionary bonus that would be an additional bonus.

Explain the Working ofLIC New Jeevan Anand Plan

Premium Calculation

Let us understand this plan with the help of an example:

Mr. Paul who is 40 years old decided to buy the LIC New Jeevan Anand Plan with a policy term of 20 years alongside the basic sum assured of Rs. 10 Lakhs (excluding any rider benefit).

Here’s the calculated premium for the First & Second Years

Mode	Premium	Premium for 1st year (4.5% GST)	Premium for 2nd year (2.25% GST)
Yearly	60602	63329	61966
Half-Yearly	30626	32004	31315
Quarterly	15475	16171	15823
Monthly	5158	5390	5274

Maturity Calculation

If Mr. Paul survives till the maturity date of the policy, then he shall receive the maturity benefit. Let’s discuss the amount of maturity benefit:

Basic Sum Assured: 1000000	Age: 40	Term: 20
Death Sum Assured: 1250000	AD & DB Sum Assured: 0	Term Rider Sum Assured: 0

Death Sum Assured is higher by 125% of Basic Sum assured (1250000) or 7 times of Annualized Premium (424214). So, Death Sum Assured or Sum Assured on Death, in this case, will be 1250000.

Maturity Details:

Sum Assured	Bonus(approx.)	FAB (approx.)	Total (approx.)
1000000	820000	70000	1890000

Normal Life Cover is equal to Death Sum Assured + Accumulated Bonus + FAB + Term Rider Sum Assured (If opted).

Accidental Life Cover is equal to Death Sum Assured + Accumulated Bonus + FAB + Basic Sum Assured + Term Rider Sum Assured (If opted).

If we assume death occurs in the year 2033, the total paid premium will be 727224, and the Normal and Accidental Life Covers will be 1701000 and 1701000, accordingly.

Is There Anything Excluded Under LIC New Jeevan Anand?

Each insurance policy comes with its own set of inclusions and exclusions and the same goes with LIC New Jeevan Anand. Although many inclusions have already been covered under the features/benefits section, there’s one exclusion under the policy, i.e., none other than “Suicide”.

But at the same time, it is excluded only if it falls under the following circumstances:

Instance 1:

If the policyholder committed suicide within just 1 year (12 months) of buying the policy, then the corporation is entitled to pay the claim. But if he/she has made the premium payment on time, then the company shall pay 80% of the total premiums provided.

Instance 2:

Coming to another scenario, if he/she commits suicide within 12 months from the date of revival, then the corporation will not be paying you anything. However, if he/she already had the payment, then the family members will likely get 80% of the premiums paid.

Note: Taxes, extra premiums, and any rider premium(s) other than the Term Assurance rider, if any, are not included in the above-mentioned premiums.

How To Purchase LIC’s New Jeevan Anand?

Since the plan is not available for online purchase on the GIP website, you can buy it via an offline method. You can visit to an office and the customer representative present there will assist you in buying the plan. Make sure to bring all your necessary documents to make your purchase seamless and convenient. You can also make a call to the company’s customer care number to ensure you bring the relevant documents to our office.

 If you have any questions on this plan, please contact our team and we would be happy to help. 

Thank You,

Team

(Growmore Insurance Point)