LIC New Jeevan Anand Plan

LIC New Jeevan Anand Plan

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LIC New Jeevan Anand Plan

Life Insurance Corporation of India has the most extensive product catalogue to cover the diversified financial and insurance needs of individuals. It secures the largest market share in the Indian insurance industry.

LIC of India offers different types of life insurance plans, including endowment, ULIP, child, whole life, pension, etc. to help individuals plan their life stages. The company remarks a good claim settlement ratio, making the claim settlement easy and hassle-free for the customers.

In the row, LIC of India launched New Jeevan Anand plan 915, where customers can invest around Rs. 45 daily and secure a good corpus of up to Rs. 25 Lakhs on maturity. The plan has extensive product features combining whole life and endowment plans, making it popular among prospective customers. Let’s look at the features and advantages of the plan and figure out why you should choose to invest in it.

What is the LIC New Jeevan Anand Plan?

LIC New Jeevan Anand policy is a non-linked, participating, individual, whole life endowment plan. The plan offers a combined benefit of lifelong protection and savings. By investing in the plan, the life assured secures themselves and their families against any unfortunate event throughout the policy term. Also, if the life assured survives the full policy term, Life Insurance Corporation offers a full payout on maturity. The policyholder can also benefit from the loan facility, riders, and assured bonuses.

Highlights of LIC New Jeevan Anand Policy

Below are the key highlights of LIC New Jeevan Anand policy:

  • Plan Type

    LIC Endowment Plan

  • Policy Term

    15-35 years

  • Commencement of Risk

    Immediately

  • Grace Period

    30 days/ 15 days (monthly)

  • Free Look Period

    15 days

  • Tax Benefits

    Under Sections 80C & 10 (10D)

Eligibility Criteria of LIC New Jeevan Anand Plan

An individual must meet the following eligibility criteria and restrictions to purchase the LIC New Jeevan Anand plan:

Particulars Specifications
Minimum Entry Age 18 years
Maximum Entry Age 50 years
Maximum Maturity Age 75 years
Minimum Basic Sum Assured Rs. 1 Lakhs
Maximum Basic Sum Assured No limit

What are LIC New Jeevan Anand Plan Benefits?

When the policyholder duly pays all the premiums under the LIC New Jeevan Anand, they can avail of the following benefits to ensure financial security:

01

Death Benefit

On the death of the life assured during the policy term but before the policy maturity date, the nominee receives the death benefit under the LIC New Jeevan Anand plan. The death benefit equals the ‘Sum Assured on Death’ and is paid with vested simple reversionary bonuses and a final additional bonus (if any).

The sum assured on death is an amount higher of

  • 125% of the basic sum assured
  • 7 times the annualized premium

On the death of the life assured after the expiry of the policy term (completion of the policy maturity), the nominee receives the basic sum assured.

Note: The death benefit payable cannot be less than 105% of the total premium paid till the date of the death

02

Maturity Benefit

If the life assured survives the policy maturity date, they receive ‘Sum Assured on Maturity’ with the vested simple reversionary bonuses and final additional bonus (if any). The sum assured on maturity is the amount equal to the basic sum assured under the LIC New Jeevan Anand plan.

03

Participation in Profits

The LIC New Jeevan Anand plan is eligible to participate in the profits of the Life Insurance Corporation. The policyholders receive simple reversionary bonuses based on the company's experience during the policy term.

A final additional bonus is also payable under the LIC New Jeevan Anand plan in the year when the policy is claimed due to the death of the life assured during the policy term or upon the policy maturity. The final reversionary bonus is not payable under a paid-up policy.

Optional Benefits Under LIC New Jeevan Anand Plan

Other than the benefits mentioned above, the policyholder can opt for optional benefits to extend the base policy coverage and flexibility under the LIC New Jeevan Anand plan. These include:

Rider Benefits

The policyholder can add optional riders to the LIC New Jeevan Anand plan by paying an additional premium. However, the rider sum assured cannot be more than the basic sum assured under the base plan. The policyholder can select the riders between LIC Accidental Death and Disability Benefit Rider or LIC Accident Benefit Rider. Hence, a maximum of 3 riders can be availed under the LIC 915 plan.

01

LIC Accidental Death and Disability Benefit Rider:

If the policyholder opts for this rider, the accident benefit sum assured will be payable in a lump sum in case of accidental death of the life assured.

Say an accidental disability is observed to the life assured within 180 days of the accident. In that case, the life assured receives an accident benefit sum assured in equal instalments spread over 10 years.

02

LIC Accident Benefit Rider:

The policyholder can gain the rider coverage benefits during the policy term or before the policy anniversary, on which the nearer age of the life assured is 70, whichever is earlier. If the policyholder opts for LIC Accident Benefit Rider, in case of accidental death, the nominee receives the accident benefit sum assured in a lump sum amount.

03

LIC Accident Benefit Rider:

The policyholder can gain the rider coverage benefits during the policy term or before the policy anniversary, on which the nearer age of the life assured is 70, whichever is earlier. If the policyholder opts for LIC Accident Benefit Rider, in case of accidental death, the nominee receives the accident benefit sum assured in a lump sum amount.

04

LIC New Term Assurance Rider:

If the LIC New Term Assurance rider is added to the base policy, in case of the death of the life assured, the nominee receives an amount equal to the term assurance rider sum assured.

05

LIC New Critical Illness Benefit Rider

If the rider is added to the base policy, the life-assured receives the critical illness sum assured upon the first diagnosis of any of the 15 critical illnesses covered.

Option to Take Death Benefit in Instalments

The life assured can opt for this option during their lifetime for the full or part of the death benefit under the in-force or paid-up policy. If the policyholder opts for it, the beneficiaries receive the death benefit in instalments over the chosen 5/10/ 15 years instead of a lump sum amount. The minimum instalment amount for the selected mode of payment is as under:

Mode of Instalment Payment Minimum Instalment
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Yearly Rs. 50,000

Settlement Option for Maturity Benefit

This option can also be selected for full or part of the maturity benefit under an in-force policy and paid-up policy. If the policyholder opts for this option, they receive the maturity benefit in instalments over the chosen period of 5/ 10/ 15 years. The minimum instalment amount for different modes of payments can be in the following manner:

Mode of Instalment Payment Minimum Instalment
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Yearly Rs. 50,000

How Does LIC New Jeevan Anand Policy Work?

Have a look at the example below to better understand the workings of the LIC New Jeevan Anand policy and see how the life assured and beneficiaries benefit in different scenarios.

Say, Mr. Sandeep buys LIC Jeevan Anand plan with a sum assured of Rs. 20 Lakh to ensure the future financial security of his family against any unforeseen event. He selected policy coverage for 20 years and the premium payment mode per his suitability. When he duly pays the premiums for the entire policy term, he or his family can gain the benefits in the following manner:

  • Case I: On the unfortunate demise of the life assured during the policy term
    The nominees receive the sum assured of Rs. 20 Lakhs plus any accumulated bonuses and final additions as the death benefit.
  • Case II: Upon the survival of the life assured
    The life assured receives the maturity benefit with the accumulated bonuses and any final additional bonus (if any).
  • Case III: On the death of the life assured after the policy term
    The nominees receive the additional sum assured as the death benefit.

Additional Features of LIC New Jeevan Anand Policy

On purchasing LIC New Jeevan Anand policy, the policyholder can benefit from the following features to enhance the flexibility of the policy, allowing policyholder to make a calculated decision that perfectly suits their financial suitability:

01

Policy Premium Payment

The policyholder can choose to pay the LIC premium regularly at yearly, half-yearly, quarterly, or monthly intervals as per their financial fit.

02

Grace Period

In case, the policyholder fails to pay the LIC premium within the premium due date, they can pay it before the expiry of the grace period. A grace period of 30 days is allowed for yearly, half-yearly, or quarterly payments and 15 days for monthly payments from the date of the first unpaid premium. During this period, the risk cover under the LIC 915 policy remains enforced without any interruption. The policy lapses if the premium is not paid within the grace period.

03

Policy Revival

The policyholder can revive the policy within five consecutive years from the date of the first unpaid premium but before the completion of the policy term. The revival of the lapsed LIC policy is done by paying all the outstanding premiums with interest.

04

Policy Rebate

Life Insurance Corporation allows two types of rebates under LIC New Jeevan Anand policy to maximize the benefits to the policyholder. The following rebates are available under the policy:

Rebate on Mode:

Mode of Payment Rebate
Yearly 2% of the tabular premium
Half-yearly 1% of the tabular premium
Quarterly/ Monthly Nil

Rebate on High Sum Assured Premium:

Basic Sum Assured Rebate
Rs. 1 Lakh - Rs. 1.95 Lakhs Nil
Rs. 2 Lakhs - Rs. 4.95 Lakhs 1.50% of the basic sum assured
Rs. 5 Lakhs - Rs. 9.95 Lakhs 2.50% of the basic sum assured
Rs. 10 Lakhs and above 3% of the basic sum assured
05

Paid-Up Policy

If the policyholder has paid the premium under the LIC New Jeevan Anand plan for at least two full policy years and no subsequent premium payments are made, the policy shall not be wholly void and will continue as a paid-up policy.

Under a paid-up policy, the sum assured on death is reduced to the death paid-up sum assured, and the sum assured on maturity is reduced to an amount equal to the maturity paid-up sum assured. In addition, the vested simple reversionary bonuses are also payable when the policy is claimed due to the death of the life assured or upon the completion of the policy term.

06

Policy Surrender

If the policyholder has paid the premiums for at least two full policy years, they can surrender the LIC 915 policy. Upon surrender, the surrender value higher of the below is payable:

  • Guaranteed surrender value
  • Special surrender value
07

Policy Loan

The policyholder can avail of the loan under the New Jeevan Anand policy if they have paid the premiums for at least two full policy years. The maximum loan allowed under the policy is:

  • For in-force policies: up to 90% of the surrender value
  • For paid-up policies: up to 80% of the surrender value
08

Tax Benefits

The policyholder can avail of tax benefits under LIC New Jeevan Anand policy as per the prevailing tax laws and rates. Under Section 80C of the Income Tax Act, they can avail of the tax benefits on the premium paid towards the policy. Also, the benefits received are tax-exempted under Section 10 (10D).

07

Free Look Period

A 15-day free look period (from the date of policy receipt) is provided under the policy, during which the policyholder can review the policy and return it to the Life Insurance corporation if they are not satisfied with the terms and conditions. To support the cancellation, the policyholder is required to state the reason for the objection.

On receiving the receipt, the LIC of India shall cancel the policy and return the premium amount submitted after deducting the applicable charges and expenses incurred.

LIC New Jeevan Anand Policy Premium Chart

LIC New Jeevan Anand premium refers to the amount the policyholder pays under the policy as per the selected premium payment mode to get uninterrupted benefits. Let’s look at the LIC New Jeevan Anand premium rates on an annual basis for a sum assured of Rs. 1 Lakh at different ages:

Age Policy Term
15 25 35
20 Rs. 7,747 Rs. 4,341 Rs. 2,935
30 Rs. 8,080 Rs. 4,581 Rs. 3,165
40 Rs. 8,644 Rs. 5,037 Rs. 3,636
50 Rs. 9,575 Rs. 5,846  

* The above annual premium rates are for standard living (exclusive of taxes) and are taken from sources available on the official website.

Premium rates vary depending on an individual's financial preferences and lifestyle choices. The LIC New Jeevan Anand plan premium calculator, available on the official website, can help you calculate the premium for your personalized needs.

Exclusions Under LIC New Jeevan Anand Plan

LIC New Jeevan Anand policy stands void under the following conditions:

  • Suppose the life assured commits suicide at any time within 12 months from the date of commencement of the risk. In that case, the Life Insurance Corporation of India shall release 80% of the total premium paid to the nominee.
  • When the life assured commits suicide within 12 months from the date of revival of the policy, the nominee receives an amount higher of:
    • 80% of the total premium paid till the date of the death, or
    • Surrender value available as of the date of the death

The Life Insurance Corporation will not consider further claims under the LIC New Jeevan Anand policy. Also, no benefits are paid under a policy lapsed without gaining a paid-up value.

Documents Required to Buy LIC New Jeevan Anand Policy

The following documents are required to buy 915 LIC plan:

  • Duly filled and signed proposal form
  • Proof of address
  • Proof of age
  • Other KYC documents: PAN Card, Aadhaar Card, Tax Details, etc.
  • Medical history of the applicant
  • Medical examination report (if required)

Final Words

Buying the LIC New Jeevan Anand policy, the life assured enjoys the double benefit of lifelong cover and gets ensured payout on maturity. This way, they can save a good amount of corpus over the years. Also, the plan participates in the profits of the corporation, which ensures the bonuses.

You can buy the LIC New Jeevan Anand plan by visiting the nearest LIC branch or connecting with an LIC agent. Upon purchase, you can list the policy on the LIC customer portal and track it online. With the launch of LIC e-services, you can pay the premium and check policy status in a few clicks.

Find a LIC agent or a life insurance agent nearby with the help of RenewBuy Advisor Connect.