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LIC New Jeevan Anand

LIC New Jeevan Anand is a participating non-linked plan providing a combination of both protection and savings. The plan offers financial protection against death throughout the lifetime of the policyholder with the provision of payment of a 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. The plan is there to provide the needful financial support to the family members in case of the demise of the insured.

Lic Jeevan Anand Plan Details & Benefits

Moreover, the plan also comes with the survival benefit wherein if the policyholder survives till the end of the policy term, the plan will give a lump sum amount as a survival benefit.

Key Features of LIC New Jeevan Anand

  • Policy Loans:LIC New Jeevan Anand offers a range of loan facilities. However, one can avail of policy loans only after paying the premiums for two continuous years.
  • Revival of Lapsed Policy:The coverage will lapse if premiums are not paid during the grace period. A lapsed insurance can be revived after 5 years from the date of the first unpaid premium but before the end of the policy term, whichever comes first.
  • Enhanced Coverage with Riders:The plans allow the policyholder to enhance their policy coverage with the help of 4 available riders. The Riders available under the plan are:
    • LIC's Accidental Death and Disability Benefit Ride
    • LIC's Accident Benefit Rider
    • LIC's New Term Assurance Rider
    • LIC's New Critical Illness Benefit Rider
  • Surrender Value:LIC New Jeevan Anand allows you to surrender the plan at any time and avail of the Surrender Value. The insured is eligible only after 2 years of full premium payments for the surrender value. On surrender, the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is payable.

Benefits of LIC New Jeevan Anand

  • Death Benefit:The death benefit depends on the year in which the insured dies:
    • If the insured dies within the policy term, the Sum Assured and accumulated bonuses are paid to the nominee.

      Sum assured on death payable to the nominee is defined as the higher of:

      • 125% of the basic sum assured as per policy terms or
      • 7 times the annualized premium

      **This death benefit shall not be less than 105% of total premiums paid upto date of death.

    • If the insured dies after the completion of the plan term when the maturity benefit has already been paid, the basic sum assured is then paid to the nominee and the plan terminates.
  • Maturity Benefit:In case the insurance holder survives the entire policy tenure then, basic sum assured along with vested Simple Reversionary Bonuses and Final Additional Bonus is paid to the insured as a maturity benefit after the completion of policy years.
  • Rebate:LIC is popular to serve multiple perks to its customers in the form of rebates. Below are the rebates under this plan:
    Mode RebateRebate
    Yearly mode2% of Tabular Premium
    Half-yearly mode1% of Tabular premium
    Quarterly, Monthly mode & Salary DeductionNIL

    High Sum Assured Rebate on Premium:

    Basic Sum Assured (B.S.A)Rebate
    INR 1 Lakh to 1.95 LakhsNil
    INR 2 Lakhs to 4.95 Lakhs1.50% of B.S.A.
    INR 5 Lakhs to 5.95 Lakhs2.50% of B.S.A.
    10, 00,000 and above3% of B.S.A.
  • Participation in Profits:The policyholder will be eligible for Simple Reversionary Bonuses based on the Corporation's experience over the policy tenure, as long as the policy remains in place.
  • Income Tax Benefit:Premiums: The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act, 1961. The maximum exemption that can be availed is Rs. 1.5 lakhs.

Eligibility Criteria of LIC New Jeevan Anand

ParametersMinimumMaximum
Entry age of policyholder (last birthday)18 year50 year
Age at maturity (last birthday)-75 year
Sum assured (in Rs.)Rs. 1 lakhNo Limit
Premium payment modeYearly, Half-yearly, Quarterly, Monthly
Policy term (in years)1535

How Does LIC New Jeevan Anand Work?

To understand the working of LIC New Jeevan Anand, let us take the example of Mr Arora. Mr Arora bought LIC New Jeevan Anand Plan and selected the sum assured of INR 10 Lakhs and the policy term of 20 years.

Now, as per the selected sum assured and policy tenure, LIC will determine the premium of the plan. Under this plan, the insured has to pay premiums for the entire duration of the policy term.

If Mr Arora dies during the policy tenure, the company will pay him the Death Benefit which will be equal to the sum assured on Death+Vested Bonus (till the date of death)+Any Final Additional Bonus.

The Sum Assured on Death will be higher than 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.

In case of survival of the insured till the end of the plan, a maturity benefit would be provided to the insured person.

Maturity benefit=Sum assured+bonus (amount received throughout the policy term)+any final addition bonus (if declared).

However, if Mr Arora dies (even after the policy term), the nominee will get an additional sum assured amount as the death benefit.

LIC New Jeevan Anand Riders

The plan offers four different types of riders that will help you to enhance your protection. However, out of four, you may select up to three riders from the following options:

  • Accidental Death and Disability Benefit:The LIC New Jeevan Anand Plan has an accidental death and disability benefit rider that provides additional coverage in the event of the insured person's accidental death or disability. If the policyholder has opted for this rider for accidental death, the Accident Benefit Sum Assured will be payable in a lump sum to the nominee, whereas, in case of accidental disability arising due to an accident (within 180 days from the date of accident), the beneficiary will be paid the amount equal to the Accident Benefit Sum Assured in equal monthly instalments spread over 10 years and all the future premiums will be waived off.
  • Accident Benefit Rider:This rider benefit can be obtained at any time throughout the policy term of the basic term plan, as long as the premium payment and rider terms are both 5 years. If this rider benefit is selected, the sum insured as the accidental benefit will be paid in a lump sum in the event of accidental death.
  • New Term Assurance Rider:Under this rider, an amount equal to the sum assured will be paid if the policyholder dies within the policy period. This rider can only be purchased at the time of inception of the policy.
  • New Critical Illness Benefit Rider:The Critical Illness Sum Assured shall be payable on the first diagnosis of any one of the specified 15 critical illnesses covered under this rider.

LIC New Jeevan Anand Premium Illustrations

Take a look at the below table showcasing the premium rates payable by a healthy, non-tobacco user male for a chosen sum assured of INR 20 Lakhs for different combinations of age and policy terms.

Age (in years)Policy Term (in years)
152035
2013,2459,4497,193
3013,9169,9987,681
4014,83910,7818,430

Exclusions of LIC Jeevan Anand Plan

  • Suicide:80 % of the premiums paid to date shall be returned to the nominee, in case the policyholder commits suicide within 12 months of the policy inception. However, the higher of 80% premiums paid to date or the acquired surrender value shall be paid in case of death after the plan renewal.

Documents Required to Buy LIC New Jeevan Anand

Below-mentioned are some of the important documents that one needs in order to buy the LIC New Jeevan Anand Plan.

  • Completely filled Application form/Proposal form with accurate information.
  • Age Proof.
  • Address Proof.
  • Medical History.
  • KYC documents such as Aadhaar Card, PAN Card, Tax Details, etc.
  • Medical Diagnosis Reports as needed.

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LIC New Jeevan Anand: FAQ's

1. How much bonus is there under this plan?

Under this plan, the rate of the bonus is not 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 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 two 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.

5. Is it possible to date back the policy?

Yes, the New Jeevan Anand plan can be dated back within the same financial year with charges applicable at the plan term ends as per conditions applied.

6. What are the benefits of LIC New Jeevan Anand Policy?

The key features of LIC New Jeevan Anand Policy:

  • It is a participating non-linked life insurance policy
  • Maturity benefit- tum assured on death+ Vested Reversionary bonus + final additional bonus
  • Mode of premium payment- annually, bi-annually, quarterly, monthly
  • Free look period- 15 days from the date of receipt of the policy

7. Is the New Jeevan Anand Policy a good policy?

Jeevan Anand (Plan 149) is one of the most popular insurance plans from the one and only public sector insurer – Life Insurance Corporation of India.

8. How is the maturity amount calculated in LIC New Jeevan Anand Policy?

LIC New Jeevan Anand policy maturity amount is calculated by using the formula mentioned below.

Basic Sum Assured + Accrued Bonuses

In case the life insured survives the entire tenure of the policy then a basic sum assured amount along with the accrued bonus or simple reversionary bonus is paid to the insured as maturity benefit after the completion of the whole policy year.

9. Can an NRI avail New Jeevan Anand Policy?

Yes, you can avail of the New Jeevan Anand plan by the Life Insurance Corporation of India, anytime you wish.

10. Can LIC New Jeevan Anand policy be dated back?

Yes, the LIC New Jeevan Anand plan can be easily dated backward within the same financial year with charges applicable at the plan term-end as per conditions applied.

Last updated on Aug, 2022

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