LIC's New Jeevan Anand (Plan No: 915, UIN: 512N279V02)
The LIC's New Jeevan Anand Plan is a non-linked & participating life term policy which provides a combination of savings & protection at the same time. It offers financial protection to the nominees in case of death of the policyholder along with the provision of receiving a lump-sum payment at the end of policy term in case of survival. The plan also offers a facility to avail loans for catering the liquidity needs of policyholders.
This policy is not available online & can be bought through an agent or by visiting a LIC branch.
Eligibility Criteria and other specifications-
|Parameters||LIC’s New Jeevan Anand Plan|
|Minimum Entry Age||18 Years|
|Maximum Entry Age||50 Years|
|Maturity Age||75 Years (maximum)|
Minimum- 15 Years
Maximum- 35 Years
|Minimum Sum Assured||Rs.1 lakh|
|Maximum Sum Assured|
1. Benefits of LIC's New Jeevan Anand Plan
The following benefits are payable under the LIC's New Jeevan Anand Policy:
- Death Benefits
In case of death of the policyholder during the policy term, a death benefit equal to "Sum Assured on Death" along with the applicable reversionary bonuses & final bonus will be payable where the sum assured is higher of:
- 125% of Basic sum assured
- 7x of annualized premium
Note: The death benefit will not be less than 105% of total premium payments made till death.
- Maturity Benefits
In case life assured survives till the end of policy term, then the sum assured on maturity will be payable along with the simple reversionary & final additional bonus, if any.
- Participation in profits
The policy will have a participation in profits of LIC & will be entitled to receive simple reversionary bonuses declared as per the profits made by the corporation during the policy term. The final bonus may also be given by the LIC in the year of claims made under the policy by death during the term or due at maturity of the policy.
Final bonus will not be applicable for paid-up policies.
2. Rider Benefits
The policyholders have an option to avail additional riders by paying additional premiums along with the premium for base policy. There are 4 additional riders available for addition under this policy.The policyholders are allowed to pick only one rider between LIC's Accidental Death & Disability Benefit Rider and LIC's Accident Benefit Rider. Hence, policyholders can avail a maximum of 3 riders under this policy. The following are the additional riders:
- LIC's Accidental Death & Disability Benefit Rider
- LIC's Accident Benefit Rider
- LIC's New Term Assurance Rider
- LIC's New Critical Illness Benefit Rider
3. Death Benefit Payout Options
Instead of a lump-sum amount, the life assured has an option to take death benefits in installments over the selected period of 5,10, or 15 years. This option can be exercised anytime during the lifetime of a policyholder. This option may be selected for part or the complete amount of death benefit.
The installments will be payable in advance as per the chosen option i.e on a monthly, quarterly, half-yearly, or yearly option subject to minimum installments as mentioned below:
|Mode||Minimum Amount of Instalments|
4. Premium Payment Options
Under this policy, the premium payments can be made regularly on a monthly, quarterly, half-yearly, or yearly intervals. Also, premium payments can be made through regular deductions from salary during the policy term.
5. Sample Illustration
Below is the annual premium illustration for a sum assured of Rs. 1 lakh:
|Age||Amount for Policy Term (in Rs.)|
The LIC's New Jeevan Anand policy offers high sum assured rebates & mode rebates as under:
- High Sum Assured Rebate
|Sum Assured||Rebate (% of Basic Sum Assured)|
|1 lakh to 1.95 lakhs||Not Applicable|
|2 lakhs to 4.95 lakhs||1.50%|
|5 lakhs to 9.95 lakhs||2.50%|
|10 lakhs & above||3.00%|
- Mode Rebate
|Mode||% of Tabular Premium|
|Monthly, Quarterly & Salary Deductions||Not Applicable|
7. Grace Period
A 30-day grace period will be permitted for premium payments made by yearly, half-yearly or quarterly modes and a period of 15 days will be allowed in case of monthly premium mode from the first unpaid premium date.
During this period, the policy will remain active along with the risk cover without any interruptions till the expiry of the grace period. If the premium is not paid before the expiry, the policy will lapse.
The policy lapses in case premium payments are not made within the grace period. Such a policy can be revived within a period of 5 consecutive years from the date of the first unpaid premium but before the completion of the policy term. The revival of policy will be done by making the outstanding payments along with the applicable interest at the rate fixed by LIC.
Also, the policyholder will be required to submit the necessary documents & medical reports with the LIC at the time of revival. The final decision regarding the revival of policy will be made by LIC on original or revised terms & conditions.
Note: Revival of additional riders opted by the policyholder will be considered along with the revival of the policy.
9. Paid-up value
If the policyholder has paid premiums for less than 2 years, the policy will cease after the expiration of the grace period and nothing will be payable.
If the policyholder has made premium payments for more than 2 years, then the policy will not be fully void but will be called as a paid-up policy.
The "Sum assured on death" will be reduced to a sum called "Death Paid-up Sum Assured" which will be equal to the sum assured on death multiplied by the ratio of the total term for which premium has already been paid to maximum period for which it was originally payable. Along with that, a simple reversionary bonus, if any, will be payable on the death of life assured.
The "Sum Assured on Maturity" will be reduced to a sum called "Maturity Paid-up Sum Assured" which will be equal to sum assured on maturity multiplied by ratio of total term for which premiums have already been paid to the maximum period for which it was originally payable. Along with that, simple reversionary bonus, if any, will be payable on the expiry of the policy.
Surrendering of policy is allowed at any time given 2 full year's premium payments have been made. On surrender, the LIC will pay an amount equal to the higher of guaranteed surrender value or special surrender value.
The special surrender value is subject to revisions & will be determined by the LIC from time to time after the approval by IRDAI. And the guaranteed surrender value during the policy term will be equal to the total premium payments excluding taxes or extra premiums paid for riders multiplied by the factors applicable to total premium payments made. The factors will depend on the policy year & term in which the policy is surrendered.
11. Loan on policy
The LIC offers a facility to policyholders for availing loans against the policy which has acquired a surrender value subject to terms & conditions as specified by the corporation from time to time.
The interest rate applicable on the loans & for the entire term of the loan will be defined at periodic intervals. And it will be based on the methods as approved by IRDAI. Any loans or/and interest outstanding at the time of maturity will be recovered from the claim proceeds payable to the policyholder.
12. Free-look period
If the policyholder is dissatisfied with the terms & conditions of the policy, then he/she has the option to return the policy to LIC within 15 days of the date of receipt stating the arguments against the policy.
Upon receiving the request for return, the LIC will cancel the policy and refund the amount to the policyholder after deducting expenses like medical tests, stamp charges, special reports, etc.
13. Suicide Exclusion
The policy shall become void in case:
- If the life assured dies by suicide at any time within 12 months from the commencement of policy. In such a case LIC will not entertain any claims except for the 80% of the premiums paid, given the policy is active.
- If the life assured dies by suicide anytime within 12 months from the date of revival of the policy, then the LIC will not entertain any claims except for the amount which is higher of 80% of the premiums paid or surrender value available at the time of death.
Example of LIC New Jeevan Anand Policy
Let us suppose Mr. X plans to buy the policy at the age of 30 years. He selects the policy term of 30 years and a sum assured of Rs.10 lakhs.
Mr. X can select from the different payment options of paying the premium.
In this case, the premium for different payment options will be:
|Payment Mode||1st Year||2nd Year onwards|
Note: All the premiums are Inclusive of GST and Mr. X has to pay the premium during the policy term i.e. for 30 years.
Scenario 1: Mr. X survives the policy term
At the time of maturity, Mr. X will get the maturity benefit along with a simple reversionary bonus and final additional bonus.
|Simple Reversionary Bonus||Rs.9,60,000||Not Guaranteed|
|Final Additional Bonus||Rs.2,40,000||Not Guaranteed|
|Total Maturity Benefit||Rs.22,00,000|
Scenario 2: Mr. X dies during the policy term
Mr. X’s Nominee will get the death benefit along with a simple reversionary bonus and final additional bonus.
|Death Benefit (125% of sum assured)||Rs.12,50,000||Guaranteed|
|Simple Reversionary Bonus||Rs.6,40,000||Not Guaranteed|
|Final Additional Bonus||Rs.25,000||Not Guaranteed|
|Total Death Benefit||Rs.19,15,000|
Scenario 3: Mr. X dies after the policy term
In this case, the nominee will get the basic sum assured at the time of the demise of the policyholder. In this case, the basic sum assured is Rs.10,00,000.
Frequently Asked Questions
- What is LIC’s New Jeevan Anand?
LIC's New Jeevan Anand Plan is a non-linked & participating life term policy that gives the benefit of saving and life protection. The policy gives the death benefit to the nominee in case of the demise of the policyholder and the maturity benefit to the policyholder in case of the survival of the policyholder.
- What is the minimum age to opt for LIC’s New Jeevan Anand?
The minimum age to opt for the LIC New Jeevan Anand policy is 18 years. Individuals below the age of 18 years are not eligible to opt for the policy. Also, the maximum entry age for the policy is 50 years.
- What can be the maximum age at maturity in LIC’s New Jeevan Anand?
The maximum age of the policyholder at the time of maturity can be of 75 years. The policyholder cannot opt for the policy term which exceeds the age of 75 years at the time of the maturity.
- What is the sum assured for LIC’s New Jeevan Anand?
The minimum sum assured for the LIC New Jeevan Anand policy is Rs. 1 lakh. The additional sum assured can be selected in the multiples of Rs.5,000. There is no maximum limit to select the sum assured.
- What is the policy term for LIC’s New Jeevan Anand?
LIC New Jeevan Anand policy can have a minimum policy term of 15 years while the maximum policy term can be of 35 years.
- Is there any maturity benefit in LIC’s New Jeevan Anand?
Yes, if the policyholder survives the policy term, then he/she will get the maturity benefit. The maturity benefit will be the sum assured along with a simple reversionary & final additional bonus if any.
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