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Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

LIC’s New Jeevan Anand Plan

LIC New Jeevan Anand Plan No. 915 – is a participating, non-linked, traditional savings cum insurance cover scheme. LIC New Jeevan Anand policy has an average premium, high bonus rate, and great features. The scheme presents an attractive combination of security and savings. This combination provides financial protection against death for the life of the policyholder, with the provision of Lumpsum payment at the end of the selected policy term in the event of survival. Risk coverage under LIC New Jeevan Anand Plan continues even after the policy term and the death benefit is paid even if the insured dies after the completion of the policy term. The scheme also takes care of liquidity needs through its loan facility. LIC New Jeevan Anand Plan is also a whole life plan with guaranteed returns and protection as it is not a market-based plan. LIC New Jeevan Anand is a Double Death Benefit Plan if the life insured survives until the end of the policy term. Here is everything you want to know.

Plan No. 915
Launch Dated 1 Feb 2020

Why we need such a Jeevan Anand policy?

You must be aware of the slogan “Jeendgi ke saath bhi aur Jeendgi ke baad bhi” what does it mean? Have you ever think of it? I am sure your answer is NO. Don’t worry; we just try to bring out some salient features.

No doubt, this is LIC’s New Jeevan Anand is an Endowment cum Whole Life Policy.  The main attraction of this policy is:

  • DAB — Double Accident Benefit
  • Average Premium with High Return
  • High Bonus — Being public sector LIC is known for its brand, reliability, and credibility. You may check its settlement ratio as per the IRDAI report.
  • High Liquidity — This is the best of its kind plan that you can avail loan facility during and after policy term.
  • Death Benefit after Policy Maturity is only Sum Assured.
  • Death Benefit before Policy Maturity is Sum Assured+Bonus.
  • Rebates in premiums are also available for high sum assured and premium paying mode.
  • Tax exemption on the premium paid under Section 80C and the claim amounts under Section 10(10D) of the Income Tax Act, 1961.

In this plan, the Life Insured receives the Sum Assured + Bonus as Maturity Benefit but the life cover chosen continues till his death. Again an additional Sum Assured is paid whenever the Life Insured dies. Thus, this plan is both an endowment plan and a whole life plan.

However, if the life insured dies before the completion of premium paying term, i.e. within the policy tenure, the entire Sum Assured along with accrued bonus is paid to the nominee and the policy would terminate.

There is also an additional Accidental Death and Disability Benefit is payable till 70 years of age of the life insured.

What is the greatness of this Jeevan Anand plan?

  • This plan is an endowment cum whole life plan
  • Maturity Benefit is Sum Assured + accrued 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 + accrued Bonus
  • Simple Revisionary Bonus is payable on maturity or earlier death.
  • Accidental Death and Disability Benefit is an inbuilt feature in this plan
  • Optional higher cover through 1 additional rider of Critical Illness Benefit.
  • This plan can be provided to people with hazardous occupations with an additional premium.
  • Large Sum Assured rebate is also provided

What we would get if we go for Jeevan Anand plan?

  • Tax Deduction Benefit — One can take benefit of Tax Deduction for the premium paid under u/s 80(C).
  • Maturity Benefit — If one survives till the policy term then he/she deserves for maturity benefit. For example, the maturity amount is calculated as (Sum Assured + Accrued Bonus + Final Addition Bonus)
  • Income Tax Benefit — Premiums paid under the life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under section 10 (10D).
  • Death Benefit — In case of death of the Life Insured
  • Before the end of the Policy Term, the Sum Assured + accrued Bonus is paid
  • After the Policy Term, Sum Assured is paid as Death Benefit whenever the Life Insured dies.
  • Peace of Mind — If you have taken this policy then you can do whatever you wish throughout the policy term and after the term too. No fear, what will happen in your absence? How things will be managed in your absence?

What are the Benefits of this Jeevan Anand plan?

Death Benefit:

If the insured dies within the policy term, the Sum Assured and accumulated bonuses are paid to the nominee.

  • 125% of the Basic Sum Assured as per policy terms, or
  • 10 times of the annualized premium, or
  • Minimum 105% of the total premiums payable as on the date of death, whichever is higher.

If the policyholder dies after the completion of the policy term while 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 policyholder survives the entire policy tenure then, Basic Sum Assured + Accumulated Bonuses is paid to the insured as a maturity benefit after the completion of the policy term.

Rebate:

  • 50%-3% if the Sum Assured is Rs. 2 lakhs and above.
  • 2% for yearly mode.
  • 1% for half-yearly mode.
  • None for quarterly mode.

Loans: After 3 years policyholders can avail loan facilities. It depends upon the Surrender Value acquired by the policy.

Revival: Lapsed policy can be revived within 2 years from the date of 1st unpaid premium by paying the entire premium with interest and other expenses.

Surrender Value: Policyholder can surrender the policy at any time after 3 years and avail the Surrender Value which is calculated as:

  • Guaranteed Surrender Value=30% of Total Premiums Paid–Premium of the 1st Year.
  • The corporation can also fix a particular Surrender Value based on its future performance.

Premium Payment Flexibility: Policyholders can pay the premium monthly/quarterly/bi-annually/annually.

Additional Riders Benefit:

  • Accidental Death Benefit Rider
  • Disability Benefit Rider

Premium Discounts: In case of higher Sum Assured and yearly or half-yearly premium paying mode.

Income Tax Benefit:

Premiums: The premiums paid for the plan are exempt from taxation under Section 80C up to 1.5 lakhs.

Claim Amount: Maturity or Death Claim is also tax-free under Section 10(10D) with no limit.

How this plan does works?

The policyholder selects a Sum Assured and Tenure as per the age that will determine the premium of the plan. In this plan, the policyholder has to pay premiums until the policy term.

  • If the policyholder survives till the policy term then he/she is eligible for Maturity Benefit that is calculated as:

Maturity benefit=Sum Assured + Bonus + if any Final Addition Bonus is declared

  • If the policyholder dies after the policy term, the nominee will get an additional Sum Assured amount as the Death Benefit.
  • If the policyholder dies within the policy term then the Death Benefit is calculated as:

Death Benefit = Sum Assured + Vested Bonus + if any Final Additional Bonus is declared

The Sum Assured on Death will be higher — 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.

What are the Eligibility conditions and restrictions in this Jeevan Anand plan?

Minimum Maximum
Sum Assured (in 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
Payment Modes Yearly, Half-yearly, Quarterly, Monthly

What are the Paid-up Value and Surrender Value in this plan?

Paid-up Value — If the policyholder has paid the 1st 3 years’ premiums and does not pay future premiums then the policy becomes a paid-up policy. Consequently, the Basic Sum Assured is reduced in proportion. Future bonuses are not added and on death or maturity, the reduced Sum Assured along with the vested bonuses is paid.

Surrender Value — If the policyholder wants to surrender the policy and avail the Surrender Value then the policy acquires a Surrender Value only if the 1st 3 years’ premiums have been paid.

Higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is paid. GSV and SSV are calculated as:

  • GSV = (total premiums paid* GSV Factor) + (vested bonus * GSV factor of Bonus)
  • SSV is declared by the company based on its performance.

Free-look Period — If the policyholder is not happy with the policy then he/she can cancel the policy within 15 days of the issuance. This period is called the free-look period. Upon cancellation, the premium paid after the deduction of expenses.

What are the Exclusions in this Jeevan Anand plan?

  • If the policyholder commits suicide within 12 months of policy inception then only 80% of the premium paid is returned.
  • If the policyholder commits suicide within 12 months of policy revival then higher of 80% of the premium paid or the Surrender Value is paid.

LIC’s New Jeevan Anand Plan (Plan No. 915)

What is the document’s requirement to buy this New Jeevan Anand plan?

The plan is an offline plan which can be bought only through the agents or brokers. The following documents are required to buy this plan:

  • Proposal/Application Form duly filled and signed with the required information
  • Cheque or Cash for the 1st Premium Amount
  • Identity Proof — PAN Card/Aadhaar Card/Passport/Voter ID Card/Driving License
  • Address Proof — Aadhaar Card/Passport/Voter ID card/Driving License/Bank Account Statement/Electricity Bill/Telephone Bill/Passport
  • Age Proof: Birth Certificate/ School Certificate/ Passport /Driving License etc
  • Income Proof: Salary Slip/Certificate/IT Return
  • Medical Reports, if needed

Additional Details

Simple Revisionary Bonuses

This is a participating plan. LIC declares bonus as per thousand Sum Assured annually. Once declared, it forms a part of the guaranteed benefits. Bonuses and Final (Additional) Bonus will be added during the term when the policy is in force or till death if it occurs earlier.

Grace Period

The policyholder gets a grace period of 30 days to pay the due premium. In case of non-payment, the policy can lapse.

Cancellation

The policyholder gets an option of free cancellation under which he can cancel his plan within 15 days of commencement.

Surrender Value

After 3 years, the policyholder can surrender the policy.

How to make a maturity or surrender claim?

The policyholder has to fill and sign the claim discharge form and submit it to the insurer.

In case of surrender, the policyholder has to intimate the LIC in writing to get the surrender value.

How to make a death claim?

The nominee has to fill up the claim discharge form and submit it to LIC with the following documents:

  • Original Policy Bond
  • NEFT Mandate Form
  • Nominee’s Identity Proof
  • Death Certificate
  • Medical Report
  • FIR, Newspaper cutting indicating the accident, copy of driving license in case of a road accident, postmortem report, etc.

Read to know more about this – LIC New Jeevan Anand: रोजाना 80 रुपये के निवेश पर पा सकते हैं 50 लाख, जानें क्या है ये पूरी पॉलिसी।

Also, read this – Why is LIC’s New Endowment Plan the Best Choice for Young People?

Plan Illustration (10)

Plan Illustration

New Jeevan Anand Plan Illustration (1) New Jeevan Anand Plan Illustration (2) New Jeevan Anand Plan Illustration (3) New Jeevan Anand Plan Illustration (4) New Jeevan Anand Plan Illustration (5)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s Jeevan Anand Plan

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How much bonus is declared under the plan?
It is not fixed. It depends upon the performance of the corporation and is paid only if the corporation makes a profit.
Is it possible to date back the policy?
Yes, it can be dated back within the same financial year with additional charges.
What type of bonus is declared under the policy?
The plan pays simple reversionary bonuses for every year till the policy is in force. In case of death during the policy term or on maturity, a Final Bonus might also be paid in addition to the vested bonuses.
Does the plan provide a loan facility?
Yes, after 3 years, policyholders can avail loan facility as per the Surrender Value.
Are there any rebates on the premium?
Yes, there are two types of premium rebates available.

The first on the high Sum Assured like 1.50% to 3%.

The second on premium paying Mode like 2% on Yearly or 1% on half-yearly mode.

Are riders available under the plan?
Yes, the plan offers an optional rider like Accidental Death and Disability Benefit Rider.
Why should We Buy LIC’s Single-Premium Endowment Plan?

Why should We Buy LIC’s Single-Premium Endowment Plan?

LIC’s Single Premium Endowment Plan

LIC Single Premium Endowment Plan No. 917 – is a participating, non linked endowment plan. In this plan, the premium is paid at the beginning, which is paid in a Lumpsum. It serves the investment purpose and even ensures it if one faces premature disappearance. There is a sure short return on this plan, this means that these plans are safe and provide financial benefits to you. The Single Premium Endowment Plan offers twin benefits of life protection and savings. Single Premium Endowment plans to provide coverage against risks and offer guaranteed returns. You can select the amount of coverage you want, depending on the details of the policy and the term that suits you best. Also, plans like the LIC Single Premium policy offer considerable premium discounts if you decide on a higher sum insured. This dual combination of protection and savings ensures that the family is always in a good financial position at all times. If the policyholder dies, it pays the Sum Insured plus the bonuses that can be declared every year (called the reversionary bonus) and at the end of the policy (called the terminal bonus). If the policyholder survives the term, this plan grants a Lumpsum payment based on the maturity benefit. These plans, therefore, allow you to create a secure corpus for your future. Single Premium Endowment plans are suitable for people who are looking for guaranteed returns on their investments and also want to have insurance coverage. These policies are basically for a long period of time since it helps to increase the overall returns that a person obtains at the end of the policy tenure. Even rebates exist on a Single Premium Endowment Plan if the highest sum is quoted. You can even avail of loans on this plan after 1 year. Here is everything you want to know.

Plan No. 917
Launch Dated 1 Feb 2020

Why we should buy this Single Premium Endowment Plan?

LIC’s Single Premium Endowment Plan is a Non- Linked, Participating, Individual, Life Assurance saving plan which offers an attractive combination of savings and protection features. The premium is paid in lump-sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

What are the Benefits available for this Single Premium Endowment Plan?

Death Benefit:

  • On death during the policy term before the date of commencement of risk: Return of single premium (excluding taxes extra premium and rider premiums if any), without interest.
  • On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus if any.

Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium and rider premiums, if any).

Maturity Benefit:

On Life Assured surviving the policy term, Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any, shall be payable.

Participation in Profits:

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.

What are the eligibility conditions and other restrictions?

  1. Minimum entry age: 90 days (completed)
  2. Maximum entry age:  65 years (nearest birthday)
  3. Maximum maturity age: 75 years (nearest birthday)
  4. Minimum policy term: 10 years
  5. Minimum age at maturity: 18 years (completed)
  6. Maximum policy term: 25 years
  7. Minimum Sum Assured: Rs.50,000
  8. Maximum Sum assured: No limit

Sum Assured will be in multiples of Rs.5,000 /- only.

  1. Premium payment mode: Single premium only

Date of Commencement of Risk: In case the age of Life Assured at entry is less than 8 years, f risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

What are the options available for this Single Premium Endowment Plan?:

Rider Benefits:

The following two optional riders are available under this plan by payment of additional premium.

LIC’s Accidental Death and Disability Benefit Rider

This rider is available at the inception of the policy only. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years.

LIC’s New Term Assurance Rider

This rider is available at the inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the Life Assured during the policy term.

The premium for LIC’s Accidental Death and Disability Benefit Rider shall  not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base plan

Each of the above Rider Sum Assured cannot exceed the Basic Sum Assured under the Basic plan.

For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.

What is the option to take Death Benefit in installments?

This is an option to receive a death benefit in installments over the chosen period of 5 or 10 or 15 years instead of a lump-sum amount. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her lifetime; for full or part of Death benefits payable under the policy. The amount opted for by the Policyholder/Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Edit Table

 

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall be paid in lump sum only.

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising an option to take Death Benefit in installments, the Policyholder during the minority of the Life Assured or the Life Assured, if major, can exercise this option during his/her life while in the currency of the policy, specifying the period of Instalment payment and net claim amount for which the option is to be exercised. The death claim amount shall then be paid to the nominee as per the option exercised by the Policyholder/Life Assured and no alteration, whatsoever, shall be allowed to be made by the nominee.

How can I understand through a sample illustrative premium?

The sample Illustrative Single premium (exclusive of taxes) for Basic Sum Assured of Rs 1 lakh for Standard lives are as under:

 

How much rebate can I avail for High Sum Assured?

High Sum Assured Rebates:

 

How can I avail policy loans in this plan?

A loan can be availed under this plan any time after completion of the first policy year and subject to terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for the entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

How and when can I surrender my policy?

The policy can be surrendered at any time during the policy year. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI

The Guaranteed Surrender Value allowable shall be as under:

  • First-year: 75% of the Single premium
  • Thereafter: 90% of the Single premium.

Single premium referred above shall not include taxes, extra premium & rider premium(s) if any.

In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the Guaranteed Surrender Value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which the policy is surrendered.

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.

What are the taxes implication?

Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of applicable taxes, as per the prevailing rates, shall be payable by the policyholder on the single premium including extra premium & rider premium(s), if any, which shall be collected over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Regarding Income tax benefits/implications on the premium paid and benefits payable under this plan, please consult your tax advisor for details.

How many days I would get for a free look period for this Single Premium Endowment Plan?

If the policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy stating the reason for objections. On receipt of the same, the Corporation shall cancel the policy and return the amount of single premium deposited after deducting the proportionate risk.

premium (for the base plan & rider(s) if any) for the period of cover, an expense incurred on medical examination, special reports, if any, and stamp duty charge.

What are the exclusions for this Single Premium Endowment Plan?

Suicide:

The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and under such case an amount which is higher of 90% of the Single Premium for Base Policy (excluding any taxes extra premium and rider premiums other than term assurance rider premium if any) or Surrender Value available as on the date of death shall be payable. The Corporation will not entertain any other claim under this policy. 

Read to know more about this:

LIC के Single Premium Endowment Plan में रहता है ड्यूल बेनेफिट, पॉलिसी के 1 साल बाद लोन का भी विकल्प; जानें डिटेल्स।

Also, read this – Why is LIC’s New Endowment Plan the Best Choice for Young People?

Plan Illustration (4)

Plan Illustration

Single Premium Endowment Plan (1) Single Premium Endowment Plan (2) Single Premium Endowment Plan (3) Single Premium Endowment Plan (4)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s Single Premium Endowment Plan

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What are the modes of premium payment?
Yearly/Half-yearly
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