LIC New Jeevan Anand Plan is a participating non-linked plan that provides an attractive combination of protection and savings. This 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 requirements with the loan facility. You can say that it is a traditional saving cum insurance policy that offers 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. Thus, the plan is an Endowment cum Whole Life Insurance Plan.
Whole life insurance plan continues to provide coverage until the death of the insured even after the maturity of the plan.
Regular premium payment option is provided to the policyholder.
Offers Simple Reversionary bonuses to enhance the payable benefits on maturity or earlier death.
Maturity Benefit is Sum Assured+Resultant Bonus and the Life Cover continues till death.
Death Benefit after Policy Maturity is only Sum Assured.
Death Benefit before Policy Maturity is Sum Assured+Resultant Bonus.
Additional Accidental Death and Disability Benefit Rider that offers additional benefit in case of accidental death or disability until the 70th birthday of the policyholder.
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.
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.
Switching of the policy is not allowed.
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
10 times of the annualized premium.
Minimum 105% of the total premiums payable as on the date of death.
The premiums mentioned above exclude service tax, extra premium and rider premiums if any.
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.
In case the insurance holder survives the entire policy tenure then, Basic Sum Assured+Accrued Bonuses (from time to time) is paid to the insured as a maturity benefit after the completion of policy years.
Say for example, if you are 35 years old and you invest Rs. 25 lakhs in LIC New Jeevan Anand, here is what you get in return,
|Parameters||LIC New Jeevan Anand|
|Rate of return||3.56%|
|Total amount||Rs. 40.66 lakhs|
|Year of Benefit||25th year|
LIC is popular to serve multiple perks to its customers in the form of rebates. Below are the rebates under this plan:
1.50%-3% if the Sum Assured is Rs. 2 lakhs and above.
2% for yearly.
1% for half-yearly.
None for quarterly.
LIC offers loan facility but allowed only after completion of 3 years where the insurance holder can get a loan against the policy. If the plan acquires a surrender value as the limit of loan allowed depends on the Surrender Value acquired by the policy.
The policy can be revived any time within 2 years from the date of first unpaid premium by paying all the premium arrears along with interest and other expenses.
LIC New Jeevan Anand allows you to surrender the plan at any time and avail the Surrender Value. The insured is eligible only after 3 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, which are calculated as follows:
Guaranteed Surrender Value=30% of Total Premiums Paid–Premium of the First Year.
The company would fix a particular Surrender Value based on its future performance.
Premium Payment Flexibility
This plan offers individuals the flexibility of paying the premiums either monthly, quarterly, biannually, or annually.
Additional Riders Benefit
LIC’s Accidental Death Benefit Rider
Disability Benefit Rider
Available on higher Sum Assured and yearly and half-yearly premiums.
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.
Claim Amount: Maturity or death claims received would be tax-free under Section 10(10D) of the Income Tax Act, 1961. There is no limit on the amount of claim received, and the entire claim would be tax-free.
|Sum Assured (in Rs.)||Rs. 1 lakh||No Limit|
|Policy Term (in years)||15||35|
|Premium Payment Term (in years)||5||57|
|Entry Age of Policyholder (last birthday)||18 year||50 year|
|Age at Maturity (last birthday)||-||75 year|
|Policy Revival||Within 2 years|
|Loan||After 3 years|
|Premium Payment mode||Yearly, Half-yearly, Quarterly, Monthly|
|Surrender Value||After 3 years of full premium payment|
|Availability||Besides Indian citizens, Non-Resident Indians (NRIs) can also avail the policy from Indian Insurance companies as per the laws of India.|
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 a lump sum along with the death benefit under the basic plan.
In case of permanent disability 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.
Minimum Accident Benefit Sum Assured: Rs. 1 Lakh.
Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured under the Basic Plan subject to the maximum of Rs. 100 lakhs 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.
The policyholder will select a Sum Assured and tenure of the plan. 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.
Maturity benefit=Sum Assured+bonus (amount received throughout the policy term)+any Final Addition Bonus (if declared)
Now if the policyholder dies (even after the policy term), the nominee will get an additional Sum Assured amount as the Death Benefit.
In the case where the insured dies during the policy tenure, Death Benefit=Sum Assured on Death+Vested Bonus (till the date of death)+Any Final Additional Bonus will be payable to the nominee.
The Sum Assured on Death will be 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.
Example 1: 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.
|Policy Term (in years)→|
|Age (in years)||15||25||35|
|20||Rs. 39,525||Rs. 22,150||Rs. 14,975|
|30||Rs. 41,225||Rs. 23,375||Rs. 16,150|
|40||Rs. 44,100||Rs. 25,700||Rs. 18,550|
Example 2: Suppose Rohan, who is 25 years old, buys a Jeevan Anand policy in the year 2019 for 25 years (Policy Term). His annual premium would be Rs. 21,472 and total premium paid would be Rs. 5,36,800.
Case I: Now let's assume that Rohan survives the policy term, in which case the benefits will be paid as under:
|Year of Maturity||2044|
|Age at Maturity||50 years|
|Sum Assured||Rs. 5 lakhs|
|Bonus Additions||Rs. 8 lakhs (approx)|
|Total Amount Payable||Rs. 13 lakhs|
Case II: If Rohan expires before completion of the policy term, his nominee will be eligible for 125% of the Sum Assured, reversionary bonuses, and final additional bonuses. If he dies due to an accident, then additional benefits equal to the minimum Sum Assured is added to the claim amount.
The below table illustrates the approximate values of Sum Assured and associated accidental life cover:
|Year of Premium Payment||Total Premiums Paid||Life Cover (approx)||Accidental Cover (approx)|
|1st year||Rs. 21,472||Rs. 6,10,000||Rs. 11,30,000|
|5th year||Rs. 1,07,360||Rs. 7,50,000||Rs. 12,60,000|
|10th year||Rs. 2,14,720||Rs. 9,00,000||Rs. 14,00,000|
|15th year||Rs. 3,22,080||Rs. 10,52,000||Rs. 15,50,000|
|20th year||Rs. 4,29,440||Rs. 12,63,125||Rs. 17,70,000|
|25th year||Rs. 5,36,800||Rs. 15,80,000||Rs. 20,00,000|
Premiums: All the premiums that are paid under this plan will be tax-free under Section 80C of the Income Tax Act, 1961. 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) of the Income Tax Act, 1961. 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) of the Income Tax Act, 1961. There will be no maximum limit on exemptions of death claims.
Simple Reversionary Bonuses
This is a with-profit plan participates and gets a share in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Bonuses and Final (Additional) Bonus will be added during the selected term when the policy is in force or till death if it occurs earlier.
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.
In case the policyholder commits suicide within twelve months from the beginning date of the policy than 80% of the premium which is paid till date is given back to the nominee.
If after the plan renewal the policyholder dies then higher of 80% premiums paid till the date of death of the holder or the acquired surrender value will be paid.
If the company finds the given information during verification is deceptive or unreliable under section 45 of the Insurance Act, 1938 company has the right to surrender the insurance plan. An individual is eligible only 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.
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 following:
Completely filled Application form/Proposal form with accurate information.
KYC documents such as Aadhaar Card, PAN Card, Tax Details, etc.
Medical Diagnosis Reports as needed.
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 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 the policy the person insured is required to submit a discharge form along with the original certificate of policy which is given by LIC in favor of policyholder with it. The policyholder has to provide the bank account details for NEFT transfer of the maturity amount.
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 for NEFT transfer to get the surrender value in account of the policyholder.
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.
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.
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%.
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.
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.
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Last updated on 13-11-2019