L.I.C. NEW JEEVAN ANAND POLICY (Plan No: 815)

 

LIC Jeevan Anand

Why should you invest in LIC New Jeevan Anand Policy (Plan 815):

LIC New Jeevan Anand Policy is perfect for you if you like to take an insurance plan that gives a:
• Decent insurance cover along with
• A reasonable return on the amount invested at the time of maturity of the policy,
• Along with tax benefits this policy is a good option.

LIC New Jeevan Anand Policy is an endowment plan and is one of the most sold products of LIC of India.

Who should buy this policy:

This is most appropriate policy for a person who is:
• Either businessman/businesswoman, self-employed, employee or a professional
• Who has started his career
• Whose age being in early twenties onwards.
He can have a long-term policy with an accidental and disability rider which will cover his insurance needs as well as can provide a decent return on maturity of the policy.

LIC New Jeevan Anand 815 is an endowment, with profit plan implying that the insured will get all the bonuses accrued on his policy at the time of maturity.

 A person with above profile will get this policy at comparatively lesser rate of premium as every policy is based on the principle “lower the age lesser the premium”, and once he takes a policy the premium rate will remain the same throughout the term of the policy. So, you lose on the premium rates if you take the policy at a higher age.

How LIC New Jeevan Anand Policy Works:

As mentioned before LIC New Jeevan Anand Policy is an endowment policy and it offers dual benefit of having both insurance and investment elements. This makes it doubly beneficial as compared to a term insurance policy (which has only insurance element).

  1. Once you decide to buy the policy you can approach either your nearest LIC Branch or LIC Agent, and decide the amount of sum assured you want commensurate with the premium you can pay according to your disposable income.
  2. You can opt for monthly, quarterly, half yearly or annual mode of paying premium.
  3. Half yearly and annual modes of paying premium earns rebate on premium rates.
  4. The policy covers death benefit, accidental and disability benefits (if accidental and disability riders are taken), and if policy holder survives the term of the policy he gets maturity benefit.
  5. Another benefit specific to this policy is death risk coverage even after maturity of the policy.
  6. Once initial premium is paid you will get the policy document in about fifteen days’ time.
  7. You can go through the policy conditions and schedule of the policy to ensure you are getting the same product that you have applied for as per your proposal form filled in and signed by you. If there is any discrepancy you can either get it corrected or you have the option of cancelling the policy and getting back the premium paid less some expenses, if your cancellation request is within 15 days of the receipt of the policy. This is called free look option.

You will be covered for all risks enumerated in the policy from date of commencement of the policy.

Key features / Details of LIC New Jeevan Anand policy:

  1. It is an endowment policy providing risk cover for natural as well as accidental death as well as disability benefit. For getting risk cover for accidental death and disability benefit an accidental and disability rider has to be taken with nominal additional premium.
  2. In case of death during policy term, higher of 125% of sum assured or 10 times the annual premium, vested bonus and final additional bonus if any is paid to the nominee subject to minimum of 105% of total premium paid till date of death.
  3. If the insured survives till end of the policy term and all premiums due have been paid, a maturity benefit would be paid to him equal to sum assured plus vested bonuses
  4. If death of the insured occurs after expiry of the term of the policy the nominee will get sum assured under the policy as death benefit. Thus, even after maturity is paid to the life assured his nominee will still be eligible for death benefit if death occurs any time after the maturity of the policy.
  5. Policy holder is eligible for availing loan under the policy if the policy has acquired a surrender value that is if three yearly premiums have been paid.
  6. If policy holder opts for yearly mode of payment of premium he will get 2% rebate on premium and for half yearly mode he will get 1% rebate in premium.
  7. High Sum Assured rebate is to the tune of 1.50% to 3% if Sum Assured is 2 lakhs and above.

 

Advantages / Benifits of LIC New Jeevan Anand policy

  1. The main advantage of the policy is that it being an endowment policy it combines risk and saving element. Thus, it fulfils the insurance as well as saving needs of the life assured.
  2. It is a very good insurance and investment option for employees, businessmen and professionals who have started or are into their career, and can save some part of their income. This will not only provide them death, accident and disability covers but also provide for a good saving which will grow into a substantial amount with added bonus and can be handy for futures expenses of the family.
  3. In some unforeseen circumstance during the term of the policy there is loan facility which can be availed for immediate financial need.
  4. The special benefit under this plan is death cover even after maturity of the policy. That is nominee will get death benefit even after the expiry of the policy term and even after the maturity benefit has been paid under the policy.
  5. Income tax benefit under section 80 (c) and section 10

Tax benefit under the LIC New Jeevan Anand policy:

Premium paid: under this plan is eligible for exemption under section 80 (c ) of the income tax act. The maximum exemption of Rs.1.5 lacs can be availed under this section of income tax act.

Maturity: The amount of maturity benefit received under this plan is exempted under section 10(D) of income tax act. The sum assured should be at least 10 times the premium paid to be eligible for exemption under this section.

Death claim:
No amount of death claim received under this plan is taxable. In other words, all death claim irrespective of the amount is completely exempted from income tax.

Special incentive under the LIC New Jeevan Anand Policy:

The distinct feature of this plan is the continuing risk cover even after expiry of the term of the policy and payment of the maturity amount. As already stated above in the event of death of life assured after the maturity of the policy the nominee will be paid sum assured under the policy.

What happens if LIC New Jeevan Anand policy lapses:

The policy lapses if the premium is not paid with the days of grace of 30 days for quarterly, half yearly and yearly mode and 15 days for monthly mode of payment of premium, death claim is not payable subject to other conditions including the number of years the policy has run before it lapses due to non-payment of premium. Therefore, it is of utmost importance that premiums are paid by due date or at the most within the days of grace.

What happens if policy holder dies:

If the life Assured dies during the term of the policy Death Benefit would be payable. It would be Sum Assured plus vested bonus accrued under the policy till the date of death plus final additional bonus.

Sum Assured will be calculated as higher of 125% of basic sum assured or 10 times the annual premium paid subject to a minimum of 105% of total premium paid till death.

If policy holder dies after the maturity of the policy his nominee will get sum assured under the policy as death benefit.

Suicide clause:

If life assured commits suicide within 12 months of policy commencement only 80% of premiums paid are refunded.

If suicide is committed with 12 months of revival of policy 80% of sum assured or paid up value acquired under the policy, whichever is higher is paid.

What happens if LIC New Jeevan Anand policy is closed before time:

If policy is closed before time that is before all the premium due are paid there are two situations:

  1. If policy is closed before three yearly premiums are paid it does not acquire any paid-up value and it lapses due to non-payment of premium and nothing is payable.
  2. However, if at least three full years premiums are paid and any subsequent premium is not paid non-forfeiture regulation operates and policy is not wholly void but the sum assured shall be proportionate to the premiums paid and such value is payable to the policy holder. Bonuses are payable only up to the period the premiums are paid and on death or maturity the reduced sum assured along with the vested bonus is paid.