LIC New Jeevan Anand – Key Features and Exciting Benefits

Have you ever thought what will be the future of your family after you? If yes, then have you planned something that could provide them security after an unfortunate loss?

An unexpected and untimely demise is an uninvited guest. So it is always better to prepare for the worst beforehand to avoid great stress. And, the fact is, the earlier you plan, the sooner you can relax. In such a case, the first thing that comes to an individual's mind is – life insurance. The moment when this word comes to mind, an Indian citizen's mind goes to the one and only, LIC. It has served the nation ever since was introduced without any fail.

What is LIC?

The Life Insurance Corporation of India(LIC) is a familiar term for an Indian. Almost all of us have heard about this at some point in time.

One of the oldest insurance companies in India, LIC is serving the nation since 1956. It is the government's initiative to help the ordinary people by providing them financial security during an emergency.

To help the common man, LIC has come up with many insurance plans. These are the policies that are properly structured to suit your budget and needs.

LIC's Insurance Plans are divided into three major categories such as Endowment Plan, Money Back Plan and Term Assurance Plan.

What is LIC's New Jeevan Anand Policy?

This is one of the highest in demand endowment policies of LIC which provides both savings and insurance benefits even after completion of policy terms.

Age of Entry	18 to 50 Years Age Calculator
Premium Payment Frequency	Annual, Semi-Annual, Quarterly, Monthly (ECS only) Premium Calculator
Policy Term	15-35 Years
Basic Sum Assured	1,00,000 and more (in multiples of 5000)
Policy Revival	Within 2 Years
Rebate on Frequencies	2.00% on Annual, 1% on Semi-Annual, Nil on Quarterly and Monthly
Loan	Post completion of 3 Years
Surrender	Post completion of 3 years of full premium payment

[In Endowment plan or policy, the customer will pay a yearly premium which is calculated based upon customer's age at the time of purchase and terms of the policy. The maturity or insured amount can be availed either at the completion of the term (specified number of years) or after death of the customer, whichever is earlier.]

The combination of savings and insurance gives financial protection against the unfortunate demise of the client with the provision of payment of lump sum if the customer survives at the end or after the policy term. The appreciation of this feature can be clearly seen in LIC New Jeevan Anand review.

It also provides liquidity facility through its facility of loans. Hence, it is a highly beneficial plan either way.

How does it work?

To understand how LIC Jeevan Anand works, let us consider an example:

Let us consider a person named Suresh purchases this plan. He is 25 years old and purchases the plan in 2016. His policy term is 25 years with yearly premium of Rs. 22,277. The sum assured as per his terms is Rs. 5,00,000.

He has paid a total premium of around Rs. 5, 47, 277.

(Please click here to know your premium and benefits as per your term details: Premium Calculator and Maturity Calculator)

Case 1: (Maturity Amount in case the person survives)

If the person is fortunate to survive throughout the 21 years of the policy term, the maturity amount to be availed will be Rs. 13,37,500(Sum Assured + Bonus of Rs. 8,37,500).

Then the normal risk cover of Rs. 5,00,000 continues.

Case 2: (Death Claim after unfortunate demise)

If the customer passes away before completion of the policy term i.e. 25 years, then there would be two cases:

·         Normal Life Cover: This amount is the total of 125% of the sum assured (Rs. 5,00,000 in this case), Bonus and Final Addition Bonus.

·         Accidental Life Cover: In the case of death due to an accident, the total payable amount will be the amount covered in Normal Life Cover + an Additional Amount equal to the Total Sum Assured.

Hence, in this example, upon death as per Normal Life Cover, total payable amount will be Rs. 6,49,500 and as per Accidental Cover, the amount will be Rs. 11,49,500 in the year 2016.

These amounts keep increasing with every passing year as per the terms and conditions.

Accordingly, after 49 years, before the completion of the policy term, the person will get Rs. 

14,62,500 and Rs. 19,62,500 as per the normal life cover and accidental cover respectively.

What are the eligibility conditions for different plans?

LIC New Jeevan Anand review clearly shows that its customers are very happy with the eligibility criteria. Please refer to this table to know more about different eligibility criteria as per the plans you choose.

Conditions	Basic Plan	Accidental and Disability Benefit Plan
Minimum Sum Assured	Rs. 1,00,000	Rs. 1,00,000
Maximum Sum Assured	No Limit	Sum Assured as per Basic Plan and Added Bonuses or Compensations
Least Entry Age	Should have completed 18 Years	Should have completed 18 Years
Maximum Entry Age	50 Years	Can be availed at the anniversary of any policy during the terms. In other case, maximum age is 75 years.
Maximum Maturity Age	75 Years	NA
Minimum Policy Term	15 Years	NA
Maximum Policy Term	35 Years	NA
Maximum Cover Cease	NA	Nearest birthday around 70 years or end of terms, whichever is earlier

What are the other conditions of this plan?

Other conditions of this plan are:

·         The policy gets lapsed if the premium is not paid within a grace period of 30 days. So the customer must abide by the policy terms and pay premiums annually, semi-annually, quarterly and monthly without fail.

·         The revival of policy within two years from the time of discontinuity of payment before the end of policy term.

·         If at least the first three premiums are regularly paid, and the rest of the premiums are not paid, this policy will continue as a paid-up policy. This is a very useful feature as the policy will not ultimately become void. However, there will be few deductions in the basic sum assured.

·         This policy can be surrendered and the remaining amount can be withdrawn as cash, provided at least three premiums should be paid without any fail. The net receivable amount will depend on policy terms and the year in which the policy is surrendered or withdrawn. This one of the reasons why LIC New Jeevan Anand review is positive so far.

·         The customer can avail a loan on this policy provided it has attained a minimum surrender value.

·         Service tax and other taxes if any will be levied as per the Tax rules and the prevailing tax rate will be applicable. This amount should be paid with the premiums by the policy subscriber.

·         The customer can withdraw the policy if not satisfied with the terms and conditions, within a period of 15 days from the date of availing the policy. This is called the cooling-off period. The customer must state the reason of non-acceptance of the policy.

What are the exclusions according to this scheme?

In the case of suicide within 12 months from the date of purchasing the policy, this policy will remain void, and the benefits cannot be claimed. In case the system is active, up to 80% of the premiums paid (excluding taxes, or extra or rider premiums) will be payable.

Conclusion

To bring it to a close, as all benefits come with few terms and conditions LIC policies also come with the condition that the premiums must be paid in time. As long as this is done, the insurer can enjoy all the benefits and will realize at the end of the policy terms that it was worth investing.