The New Jeevan Anand Plan from Life Insurance Corporation of India (LIC) is a non-linked, participating, life insurance policy. The key benefit of this plan is that in addition to a providing a risk cover against death, the insurer will also pay a one-time lump sum amount, as the maturity benefit, if the insured member survives till maturity of the policy.
Also, if the policyholder were to face any financial difficulties during the policy tenure, he/she has the option of availing a loan against the policy. If the policyholder wishes to increase the level of protection accorded by the base policy, he/she also has the option to purchase LIC’s Accidental Death and Disability Benefit Rider by paying an extra premium. You can also claim tax rebates under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
If you wish to purchase the New Jeevan Anand Plan from LIC, you will have to first ensure that you meet the eligibility criteria that’s listed below.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||50 years|
|Maximum age at maturity||75 years|
*Ages mentioned above are as on the policyholder’s last birthday.
The Sum Assured is what will be paid to you by the insurer, in case of an eventuality. This is the basic amount payable, before the inclusion of any bonuses or any other policy-specific monetary benefits. You will have to opt for your Sum Assured before the commencement of the risk cover, and your premiums are linked to the sum assured.
|Minimum Sum Assured||Rs.1 lakh|
|Maximum Sum Assured||No limit|
The premium is a certain fee that you will have to pay to the insurer as per the mode chosen by you in order to avail the benefits accorded by the policy. For the New Jeevan Anand Plan, the premium payable will vary based on your policy tenure, the sum assured, your age at entry, and whether you have opted for an additional rider.
|Minimum term of the policy||15 Years|
|Maximum term of the policy||35 Years|
|Premium Payment Mode||
* Premiums vary based on age, location, plan term, GST, and other factors.
|Death Benefit||If the life assured passes away during the policy tenure, the nominee can claim the death benefit from the insurer.
The death benefit payable will include the Death Sum Assured, Final Additional Bonus, and vested Simple Reversionary Bonus.
The Death Sum Assured will be calculated as the highest of the following:
|Maturity Benefit||If the policyholder survives till maturity of the policy, the insurer will pay a maturity benefit, which will include the Maturity Sum Assured, Final Additional Bonus, and the vested Simple Reversionary Bonus.|
Policyholders can purchase LIC’s Accidental Death and Disability Benefit Rider to increase the level of protection offered by the base policy. The rider can be purchased during the policy tenure by paying an extra premium. If the policyholder meets with an accidental death or suffers bodily injuries due to an accident, the rider benefit will be payable. In case of an accidental death, the entire Accident Benefit Sum Assured will be paid to the nominee. If the policyholder suffers from permanent disability, the benefit will be paid in instalments, for a period of 10 years. Further, premiums payable towards the rider and towards the base policy will be waived off.
LIC’s New Jeevan Anand Plan comes with a suicide exclusion. If the life assured, whether in an insane or sane mental state, commits suicide within 1 year of purchasing the policy, the insurer will not pay any benefit. However, the insurer will return 80% of the premiums paid during the policy tenure, rider premiums paid, and any extra premium that the policyholder may have paid.
If the life assured, whether in a sane or insane mental state, commits suicide within 1 year of the policy’s revival date, the insurer will pay the nominee the surrender value of the policy or 80% of the total premium paid till date, based on whichever is the higher of the two.
|Free-Look/Cooling-Off Period||Policy buyers have a period of 15 days during which they can review the terms and conditions of the policy and return the policy if they are not satisfied with it. The proportionate premium amount will be returned by the company upon cancellation.|
|Grace Period||If you opted to pay your premiums on an annual, half-yearly, or quarterly basis, you are allowed a grace period of 30 days to pay your premiums. If you’ve opted for the monthly mode of premium payment, the grace period is shortened to 15 days.|
|Mode Rebate||Based on your mode of premium payment, you may be eligible to receive certain discounts:
|High Sum Assured Rebate||
|Policy Revival||The policy will lapse if the premium is not paid within the end of the grace period. You can, however, revive your lapsed policy within two years from when the policy lapsed. To revive your lapsed policy, you will have to pay all unpaid premiums with an interest. The rider can also be revived along with the base policy.|
|Paid-Up Value||If the life assured has paid premiums for 3 full policy years but has not paid the subsequent premium, the policy will not completely lapse. The policy will be converted into a paid-up policy. The Basic Sum Assured will be reduced, and will be called the Paid-Up Sum Assured. Paid-Up Sum Assured along with bonuses, if any, are payable on the death of the life assured or expiry of the policy, as per the terms of your policy.|
|Surrender Value||The insurance policy can only be surrendered if the insured member has paid a minimum of 3 years’ premiums. The insurer will either pay the Guaranteed Surrender Value, which is a percentage of all the premiums paid, or the Special Surrender Value, based on whichever is the higher of the two. The surrender value of the Simple Reversionary Bonus will also be paid, if applicable.|
|Policy Loan||After the policy acquires a surrender value, the policyholder can take a loan against the policy.|
Tax benefits, as per prevailing Income Tax laws, can be claimed by the policyholder. Tax benefits can change from time to time, without any notice. Hence, ensure that you consult with a tax advisor.
Apart from the policy benefits that one is entitled to avail during the policy tenure, there are certain other benefits that you are eligible for by being a customer of LIC.
The New Jeevan Anand Plan from LIC provides member more than just a risk cover. In addition to a death benefit which is payable upon the life assured’s death, this policy also pays a maturity benefit at the end of the policy term. Thus, this policy doesn’t just provide protection, but it also offers a smart savings option. In addition, members are also eligible to receive the Simple Reversionary Bonus and the Final Additional Bonus, based on LIC’s experience. The bonuses will also help you increase your savings.
Life Insurance Corporation of India (LIC) is one of the premier life insurance firms in India. The insurer’s years of experience in this field and range of competitive insurance solutions make them a market leader in the field. The company’s Claim Settlement Ratio for FY15-16 was 98.33%. Even during previous years, the company had maintained a high Claim Settlement Ratio. The insurer also has branches across the country for a pan-India reach, in order to their products accessible to people everywhere.