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LIC New Jeevan Anand Plan is basically a participating non-linked plan that provides an attractive combination of protection and savings. This plan offers the needful financial protection against death throughout the lifetime of the policyholder with the provision of payment of lump sum at the end of the selected policy term in case of his/her survival. It also takes care of liquidity needs with the loan facility. You can say that it is a traditional saving cum insurance policy that offers the required protection in case of need. The plan is there to provide the needful financial support in case of demise of the insured. It also offers a lump sum amount in case of survival at the end of the term policy. It is one of the most sold endowment plans by LIC.
The plan offers bonus declarations to enhance the benefits that are payable.
You have to pay the premium for the complete plan duration
It comes along with an additional Accidental Death and Disability Benefit Rider that offers additional benefit in case of accidental death or disability.
Loans can be taken under the plan if the plan acquires a Surrender Value.
Rebates in premiums are allowed for choosing a high level of Sum Assured and also for paying premiums annually or semi-annually.
Provided all due premiums have been paid, the following death benefit shall be paid:
In case of demise during the policy tenure: Death benefit, defined as the sum of Sum Assured on Death and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where Sum Assured on Death is defined as higher of 125% of Basic Sum Assured or 10 times of annualized premium. This death benefit will not be less than 105% of all the premiums paid as on date of death.
Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses claimed as per the experience of the Corporation during policy term provided the policy is in full force.
Final (Additional) Bonus may also be declared under the plan in the year when the policy results into death claim during the policy term or due for the survival benefit payment provided the policy is in full force and has run for certain minimum term.
LIC Accidental Death and Disability Benefit Rider: It is an optional rider benefit that you will get on paying the extra premium. In case of accidental death during the policy term, Accident 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 that will be equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and 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, shall be waived.
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
|Sum Assured (in Rs.)||Rs. 1,00,000||No Limit|
|Policy Term(in years)||15||35|
|Premium Payment Term (in years)||5||57|
|Entry Age of Policyholder (last birthday)||18 years||50 years|
|Age at Maturity (last birthday)||-||75 years|
|Payment modes||Yearly, Half-yearly, Quarterly, Monthly|
It is a plan under which the policyholder will be liable to select a sun assured and tenure of the plan as well. As per the age of the insured person, selected sum assured and policy tenure, the LIC will determine the premium of the plan. Under this plan, the insured have to pay premiums for the entire duration of the policy term.
In case of survival of the insured till the end of the plan, a maturity benefit would be provided to the insured person. In this plan, the maturity benefit will be equal to the sum assured +bonus amounts that have been received throughout the policy term + any Final Addition Bonus if declared. Now whenever the death of the policyholder happens (even after the policy term), the nominee will additionally get the Sum Assured amount as the Death Benefit.
In the case where the insured dies during the policy tenure, the death benefit will be payable to the nominee that would be as follows- the Sum Assured on Death + Vested Bonus till the date of death + any Final Addition Bonus.
The Sum Assured on Death will be like -Higher of 125% of the Basic Sum Assured or 10 times the annual premiums paid subject to a minimum of 105% of total premiums paid till death.
Accidental Death and Disability Benefit Rider
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 Term, whichever is earlier.
Here is the sample tabular premium rates payable by a healthy, non-tobacco user male for different combinations of age and policy term. The Sum Assured is taken to be Rs.5 lakhs.
|Age||15 Years||25 Years||35 Years|
Premiums – All the premiums that are paid under this plan will be tax-free under section 80 C of the Income Tax Act. The maximum exemption that a person can avail under the same will be around Rs.1.5 lakhs. To claim this exemption, the premium should be restricted to 10% of the Sum Assured selected.
Maturity Claim – The maturity amount will be tax-free under Section 10(10D). To claim this exemption, the Sum Assured should be at least 10 times the premium amount paid.
Death Claim – Death claims received under the same will be free of tax under Section 10(10D). There will be no maximum limit on exemptions of death claims.
More details about the Policy
A grace period of thirty days is given to pay the premium which is due. In the case of policyholder delays the payment of premium then the policy can lapse. However, the policyholder is allowed to pay within the period of two years from the date of the first unpaid premium. He has the option to revive the closed LIC New Jeevan Anand Plan by paying all the premiums which are due within the given time.
The insured person has an option of free cancellation under which he can cancel his plan within fifteen days of its commencement, provided that no claims have been made yet for it.
As the three years of the policy gets completed, the policy becomes eligible to offer surrender value benefits. There is another benefit of acquiring the loan which the policyholder can take against the policy.
What happens if
In case the policyholder commits suicide within twelve months from the beginning date of the policy than eighty percent of the premium which is paid to date is given back to the nominee.
If after the plan renewal the policyholder dies then higher of eighty percent premiums paid till the date of death of the holder or the acquired surrender value will be paid.
The documents required to be insured under this insurance plan are subject to the sum assured amount quoted and the premiums which are paid for it. Some of the documents which are required for the policy are the application form which should be correctly filled, the address and the age proof on whose name the policy is going to be made. Other than this other KYC documents such as PAN card, Adhaar card, and Tax details are also to be given. One needs to submit the medical history and if there is any problem the reports of the diagnosis should also be submitted.
Besides Indian citizens, the LIC New Jeevan Anand Policy is also available for NRI’s and they can avail the policy whenever they wish to become insured. As per the laws of India, the Non-Resident Indians are eligible to buy an insurance plan from Indian Insurance companies.
An individual is eligible if he/she submits all the required documents along with a fully filled application form. The LIC will do the verification and after the verification is complete, a confirmation will be sent to the person involved within 15 to 20 days. Under section 45 of Insurance Act, 1938 company has the right to surrender the insurance plan if the company finds the given information to be deceptive or unreliable.
To get a claim on the death of the policyholder, the person who is entitled as the nominee is required to show the claim form along with the original policy documents which are issued by the LIC on the name of the person insured. In addition to this, the nominee is required to submit all the other details such as bank account, medical treatment details, and death certificate.
To get the claim on the maturity of policy the person insured is required to submit a discharge form along with the original certificate of policy which is given by LIC in the favor of policyholder with it. The policyholder has to provide the bank details for the transfer of money into his account.
Even if one has to surrender the policy then also a discharge form attached with prior documents issued by LIC and all other certificates are to be submitted. Bank details are also to be given to get the surrender value in the account of the policyholder.
1. How much bonus is there under this plan?
Under this plan, the rate of the bonus will not be fixed. It completely varies according to the performance of the insurance company and paid only if the insurance company makes any benefit in the financial year.
2. What are the bonus is there under the policy?
The plan offers simple reversionary bonuses for every year the policy is in force. At the time of death during the policy’s tenure or on maturity, a Final Bonus might also be paid in addition to the vested bonuses.
3. What are the different rebates on the premium?
The plan comes out with different premium rebates. The first one is a high Sum Assured rebate that provides a rebate of 1.50% to 3% if the Sum Assured is Rs.2 lakhs and above. The second rebate offered is for paying the premium in annual or half-yearly mode. The annual mode rebate is 2% of the tabular premium while for half-yearly mode the rebate is 1%.
4. Does the plan provide a loan facility?
Yes, policyholders are liable to take a loan under the plan if they have paid at least the first 3 years’ premiums and the plan has acquired a Surrender Value.