LIC New Jeevan Anand Policy Overview
LIC New Jeevan Anand Plan is one of the best endowment plans of LIC that offers a great risk cover to the insured person. The main benefits of this plan are accidental death and disability benefit riders. The plan offers an additional amount in the event of the death of the insured person.
Jeevan Anand policy is a perfect blend of a whole life plan and an endowment plan. For those who are looking for the endowment policy offering entire life cover advantages, LIC New Jeevan Anand Plan is the best choice. One can enjoy the bonus facility, tax-free maturity amount, etc.
Why should you buy LIC New Jeevan Anand Plan?
LIC Jeevan Anand policy has several benefits to buy it. Some of the reasons that make you buy this LIC include:
- This policy is a perfect combination of an endowment plan and a whole life plan.
- It offers a great life cover to the policyholder.
- The plan offers major benefits such as accidental death and disability benefit rider.
- One can get a bonus such as a simple reversionary bonus and final addition bonus after the policy term.
- The plan offers a tax-free maturity amount under Section 10(10D) of the Income-tax act.
- The premium that you pay during the policy term is free from taxes under Section 80C.
LIC New Jeevan Anand Plan – Key Features
The key features of the LIC Jeevan Anand 815 are as follows:
- It is a whole life insurance plan, as it offers the life cover even after completing the maturity period.
- The Policyholder gets the option of regular premium payment
- The plan offers a simple reversionary bonus to the insured person to increase the payable benefits in the event of an earlier death of an insured person or on maturity.
- Here the maturity benefit is equal to Sum Assured + Resultant Bonuses. And the risk cover option is available till death.
- The death benefit of this policy offers only Sum Assured after the maturity period.
- The death benefit of this policy offers both Sum Assured + Resultant Bonuses before the maturity period.
- In the event of the death of the policyholder or disability till the 70th birthday, the policy offers additional benefits such as accidental death and disability benefit rider.
- If the plan gets a surrender value, then the policyholder can apply for a loan.
- One can’t switch to another policy after purchasing this new Jeevan Anand.
- One can get the tax-free maturity benefit under Section 10(10D) of the Income Tax Act. The plan allows tax exemption on the premium amount paid during the policy tenure under Section 80C.
Eligibility Criteria of LIC New Jeevan Anand Plan
According to the Jeevan Anand policy details chart, the eligibility criteria is as follows:
|Sum Assured (in Rs.)||Rs. 1 Lakh||No limit|
|Policy Tenure (in years)||15||35|
|Premium Payment Term (in years)||5||57|
|Entry Age of an insured person||18 years||50 years|
|Maturity Age||Nil||75 years|
|The Revival of the policy||Within 2 years|
|Loan||After 3 years making full premium payment of the policy tenure|
|Surrender Value||After 3 years of making full premium payment|
|Premium Mode Rebate||Nil on Monthly & Quarterly, 1% on Half Yearly, 2% on Annually|
|Availability||In addition to Indian citizens, NRIs can also avail of this policy from Indian Insurance Companies.|
Benefits of LIC New Jeevan Anand Plan
Here are the benefits of the LIC New Jeevan Anand plan
If the policy term comes to an end and the policyholder is still alive, then he/she will get the maturity benefit. The maturity benefit is the total sum assured paid with a simple reversionary bonus and final addition bonus.
In the event of the death of the policyholder during the policy term, the nominee receives the death benefit. The death benefit is the sum assured on death with a simple reversionary bonus and final addition bonus. But the sum assured on death is higher, which is either 125% of the sum assured or 10 times the annual premium amount. It means that the death benefit will not be less than 105% of the total premiums.
The LIC Jeevan Anand 815 policy participates in the financial year to earn profits in LIC. Such profits of the policy are added to the sum assured as the reversionary bonus. In addition to the simple reversionary bonus, a final additional bonus is also available with the death or maturity benefit.
The whole life insurance plan offers
- Accidental Death
- Disability Benefit Rider
The above riders offer life cover to the accidental death and disability conditions of the policyholder. In the event of the accidental death of an insured person, he/she can get an additional sum assured. On the other hand, if the insured person faces disability issues due to an accident, then the sum assured for the policy is paid in monthly installments to the policyholder. The insurer pays it for the next 10 years.
The policyholder can avail of the loan facility after three years of the policy tenure. The insured person is eligible to get a loan after making premium payments. When the plan acquires the surrender value, the policyholder can apply for the loan.
Income Tax Benefit
Premium – The premiums that you pay for the plan are free from taxation. This is under Section 80C of the Income Tax Act, 1961.
Claim Amount – Maturity or Death Claims are free from taxes under Section 10(10D) of the Income Tax Act, 1961. There is no limit on the claim amount, and the entire amount will be tax-free.
One can avail of two types of premium discounts under the LIC Jeevan Anand policy 15 years minimum period. The first discount is available for those, who pay premiums half-yearly or yearly. The discount for half-yearly premium is 1% and the discount for yearly premium is 2%. The second discount is available for the policyholders, who choose higher coverage levels. The discount rates under the plan are as follows.
|Amount of Sum Assured||Rate of Discount|
|Rs. 200,000 to Rs. 495,000||1.50% of the sum assured|
|Rs. 500,000 to Rs. 995,000||2.50% of the sum assured|
|Rs. 10,00,000 and above||3% of the sum assured|
Other Policy Details
Here are the other Jeevan Anand Policy details:
If you pay the premiums continuously for at least three years of the policy term, then the policy will get a paid-up value. This will help you to not lose the plan benefits in the future. In such a situation, the policy may continue at a reduced paid-up value. Here, one can use the following formula to calculate the reduced sum assured.
Paid-up sum assured = (Number of premiums paid / number of premiums payable) * sum assured
If the LIC policy acquires the paid-up value, you can surrender the policy to avail of the surrender value. Here the surrender value is higher than the guaranteed surrender value (GSV) or special surrender value (SSV). To calculate guaranteed surrender value, the plan uses an aggregate surrender value of the premiums paid. On the other hand, it depends on the LIC to calculate the special surrender value.
Guaranteed Surrender Value (GSV) = (total premiums paid* GSV Factor) + (vested bonus * GSV factor of Bonus)
Revival Period of the policy
The new Jeevan Anand policy allows for the revival of the lapsed plan when the policyholder does revive within 2 years from the closed date. To revive the lapsed plan, one has to pay the outstanding premiums with proof of insurability.
The LIC Jeevan Anand plan offers an additional period for making premium payments is called a grace period. It depends on the mode of premium payments.
- Monthly – 15 days grace period
- Quarterly, Half Yearly, and Annually – 30 days grace period
If the insured person doesn’t pay the premium amount before the end of the grace period, then the policy will come to an end. But one can revive the lapsed policy within 2 years from the unpaid premium date.
For example, if the policyholder has to make a yearly premium payment on 10th June, then the policyholder has time till 10th July. After this date, the policy may come to an end.
In LIC new Jeevan Anand 815, a policyholder has the right to return the policy within 15 days is called the Cooling-off Period. The policyholder can return the plan if he is not happy with the terms and conditions of it. After making a cooling-off request, the insurer will cancel your plan and return your premium amount. But the insurer deducts some proportion of premium, clerical cost, and medical test cost from the premium amount. A Cooling-off period is also known as Free-Look Period.
How Does LIC New Jeevan Anand Works?
The policyholder has to select the Sum Assured and the policy term. The LIC Jeevan Anand policy details are essential to calculate the premium amount. Some of the parameters that the plan use to calculate the premium amount include
- Age of the insured person
- Sum Assured
- Policy Term
According to this plan, an insured person has to pay a premium amount for the whole policy term. The insured person gets the maturity benefit, in case if he/she survives until the end of the policy term.
Maturity Benefit = Sum Assured + Bonus (received amount throughout the tenure) + Any Final Addition Bonus
Now, if the insured person dies during the policy term, then the nominee will get the death benefit. Here the death benefit provides an additional sum assured amount.
Death Benefit = Sum Assured on Death + Reversionary Bonus (till death date) + Any Final Addition Bonus
Here the sum assured on death is 125a5 of the sum assured or 10 times the annual paid premiums.
LIC New Jeevan Anand Premium Illustrations
Let us discuss Jeevan Anand LIC policy details with example.
Consider the policyholder is 25 years old, and he buys the plan in the year 2019 with tenure 25 years. So, the annual premium is around Rs. 21472 and the total premium paid amount is around Rs. 536800.
If the policyholder survives the term, then he/she will get the following benefit.
|Maturity Age||50 years|
|Basic Sum Assured||Rs. 5 lakhs|
|Bonus Additions||Approximately Rs. 8 lakhs|
|Maturity Amount Payable||Rs. 13 lakhs|
If the policyholder dies during the tenure, then the nominee will get the 125% of the sum assured along with bonuses. If the policyholder dies in an accident, then the claim amount gets added to the minimum sum assured.
Let us see the table that provides approximate values of sum assured with life cover and accidental cover:
|Year of Premium Payment||Total Paid Premiums||Life Cover||Accidental Cover|
|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|
Role of an Income Tax
In LIC new Jeevan Anand plan, the premiums that the policyholder has to pay are exempt from taxes under Section 80C of the Income Tax Act, 1961. The policyholder can avail of the maximum exemption of around Rs. 1.5 lakhs. To get this maximum exemption, one has to restrict the premium to 10% of the sum assured.
The policyholder can get the maturity amount as a whole without any deductions. Because the maturity amount is free from taxes under Section 10 (10D). To get this exemption, the sum assured is 10 times the total premium paid.
In the event of the death of the insured person, the nominee can get the death claim without any deduction. Here the death claim is tax-free under Section 10 (10D) of the Income Tax Act, 1961. For death claims, there is no limit on exemptions.
How to buy LIC New Jeevan Anand Plan?
With the Jeevan Anand policy benefits, one can opt for this policy. This plan is an offline plan, as one has to visit the company’s branches or contact the company executives. One can also contact the company intermediaries such as LIC agents or brokers.
One can also buy the plan online, using the LIC portal or other online insurance companies. It is easy to buy this plan online, as it is completely hassle-free. One can even pay the premium amount online.
There is no need to worry about languages, as you can get in the form of needed language. For people in Tamilnadu, LIC new Jeevan Anand policy details in the Tamil language are available.
One has to provide details such as
- Sum Assured to buy this plan
You have many options in endowment policies. So check the details of different LIC plan to buy the right one.
Documents required for buying the LIC New Jeevan Anand Plan
To get LIC Jeevan Anand benefits, one has to submit the following documents:
- Dully-Filled Application Form/Proposal Form
- Address Proof Documents
- Age Proof Documents
- Other KYC documents like PAN card, Aadhar Card, Tax Details, etc.
- Medical History
- Medical Diagnosis Reports
Simple Reversionary Bonuses in LIC New Jeevan Anand Plan
With several LIC Jeevan Anand policy benefits, one can purchase this plan for a whole life cover. One such benefit is the Simple Reversionary Bonus. The plan participates in the profit investments and earns bonuses. Simple Reversionary Bonus is the bonus per thousand sum assured yearly at the end of every financial year. Once the plan gets profits, it declares guaranteed benefits for the policyholder. The policy adds bonus and final addition bonus to the maturity amount during the selected term of the policy. But it adds only when the policy is in force. So, one can enjoy the LIC new Jeevan Anand with profits and bonuses.
Bonus Value = (Sum Assured * Bonus Rate) /1000
Loan Facility under LIC Jeevan Anand Policy
One can avail the loan facility under the LIC New Jeevan Anand plan 815 if the policyholder finishes making the premium payments in the first three years. Another condition is to acquire the surrender value to get the loan under this policy.
One can get the maximum loan amount which is approximately ninety percent of the surrender value under the LIC Jeevan Anand plan 815 scheme.
Exclusions under LIC New Jeevan Anand Plan
According to the LIC Jeevan Anand plan details, there is some exclusion under the scheme.
- If the policyholder commits suicide within 1 year of purchasing the plan, then the plan will be excluded. But the insurer returns 80% of the paid premium to an insured person.
- If the policyholder commits suicide within 1 year of reviving the plan, then the plan will be excluded. In this case, the insurer refunds 80% of the premiums paid or higher of the surrender value.
Claim process of the LIC New Jeevan Anand Plan
In the event of the death of the policyholder, the nominee can claim the death benefit. Under the new Jeevan Anand LIC policy, the nominee has to submit the duly filled claim form 3783. A nominee has to submit the other mandatory documents such as
- Death certificate of the policyholder
- Bank account details
- Identity proof
- Medical treatment details
- Hospital bills
- Original policy document
- NEFT mandate form
- Age proof
In case of an accident, a nominee has to submit the panchnama, police FIR, post mortem report, etc.
If the policyholder survives until the end of the policy term, the policyholder can claim the maturity amount. Here the policyholder has to submit the following documents under the Jeevan Anand 815 plan.
- Identity Proof
- Policy bond
- Bank account details for NEFT transfer
Claim on Surrender of Policy
In the LIC Jeevan Anand plan, the surrender of policy is an important feature to consider with attention. The term ‘Surrender’ means the closure of the LIC plan before the policy term. The surrender value is the amount that an insurer pays to an insured person. For the surrender claim, the policyholder has to submit the following documents.
- Bank account details for NEFT transfer
- Identity proof
- Policy document
According to the new Jeevan Anand policy details, the policyholder becomes eligible for the surrender value only if he/she pays the premium amount for at least three years.
What Happens If?
- If the policyholder commits suicide within 12 months from the starting date of the LIC policy, then the nominee will get 80% of the premiums paid till the date of the death of the policyholder.
- If the policyholder commits suicide after the revival of the LIC policy, then the policyholder will get 80% of the premiums paid or surrender value acquired.
- If the insurance company finds the details of the policyholder to be unreliable, then the insurer can surrender the insurance policy. This is applicable under section 45 of the insurance act, 1938. So, the policyholder has to submit the right documents and correct details to the insurer. The LIC Company makes the verification process about the details of the policyholder. Once they get confirmation of the details, they may sanction your LIC policy.
Thus, LIC New Jeevan Anand Plan is a non-linked plan that offers a combination of life cover and savings. The policyholder can get better financial protection, as the policy offers a lump sum amount at the end of the policy tenure. It serves as the traditional saving cum insurance plan, so one can enjoy the Jeevan Anand with profits and bonuses. As it is one of the most sold endowment plans, people can purchase it without going for another option.