Stay Away from LIC New Jeevan Anand Policy!

Purchasing an insurance policy is tough these days. You need to be careful of false advertisements and over-alluring offers. Insurance schemes can often cheat you with their great phrases and tricky clauses.

While advising you on insurance plans, I would warn you against LIC New Jeevan Anand Policy.

What Is LIC New Jeevan Anand Policy?

In short? LIC New Jeevan Anand Policy is an improvement over the old Jeevan Anand Policy, which presently stands discontinued. It is a guaranteed return endowment plan, promising vast amounts of benefits.

The additional and optional riders make this policy a much sought after one.

The Features and Benefits of the Plan

This review is actually about warning you against this cunning plan of LIC. True. But to properly issue my warning, I need to let you know about the plan's features and benefits. At least, an overview.

The features of New Jeevan Anand:

·         It’s not only an endowment plan. It is a whole life insurance policy as well.

·         The plan offers a rebate in case an insurance holder has opted for a high sum assured.

·         It guarantees returns along with the bonuses accumulated.

·         This insurance policy also offers you an optional and additional benefit rider – the Accidental Death and Disability Rider.

The benefits that you get under the New Jeevan Anand Policy:

·         Death Benefit

·         Maturity Benefit

·         Tax Benefit

You can get to know more about the features and benefits are given by this policy here.

Staying Away from The Plan – Why?

The sole objective of this review is to warn you. You must stay away from New Jeevan Anand because of some reasons. A careful household would consider all aspects and then proceed to purchase an insurance cover.

If you are one such family, you will find the following illustrations quite helpful.

Insurance Inadequacy of New Jeevan Anand

The first problem with this plan is its inadequacy of insurance. If you are a 30-year-old and you have opted for a cover for Rs 50 lakhs, your annual premium will be about Rs 2.21 lakhs. Calculate your premium for yourself.

Now. Two questions.

·         Will Rs 50 lakhs be enough for an insurance cover? Will that enough for you to take care of your family with? Decide.

·         Is Rs 2.21 lakhs within your affordability? Is that premium something you can afford annually? Think. Consider.

These two questions are very important. Buyers often tend to overlook them.

Even though most of us do it the other way round, the best way to choose your insurance plan is by first determining the life insurance cover needed. Then, you can purchase a plan whose premium is within your reach. You should not choose your premium first and then your insurance cover.

Low Returns from The Plan

Yes, indeed, the policy advertises guaranteed returns. However, it is not guaranteed. The returns get added to the maturity sum.

Plus, the New Jeevan Anand of LIC also gives you low returns. In fact, consider yourself lucky if you get a return of around 4-6%. If you help yourself into Life Insurance Corporation of India website and try calculating the benefits and returns, using the benefits illustrator, you will be shocked to know that a return rate of 8% on investment gives you an actual return of 4.61%.

That’s pretty shocking given the claims of the brand new policy.

Difficult Exit

Once you are into the New Jeevan Anand Policy, it's pretty difficult to get out of it. In fact, you would have to give a large sum of money to get yourself extricated of the plan. At least, in the starting years of the policy.

Beware The Plan Then!

Well, by now I hope it’s pretty clear to you why a warning against this plan was essential. LIC’s New Jeevan Anand Policy is not as good a policy as it seems. You know it now. So beware!