LIC's Jeevan Anand Policy (Plan No. 815)
A Comprehensive Analysis of Benefits, Features, and Returns
Policy Highlights
LIC's Jeevan Anand is a participating non-linked plan which offers an attractive combination of protection and savings. This plan provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival.
Key Benefits:
- Death benefit payable throughout the lifetime of the policyholder
- Survival benefits payable on maturity
- Bonus additions to enhance the benefits
- Flexible premium payment options
- Loan facility available
Policy Details
| Feature | Details |
|---|---|
| Plan Type | Participating Non-Linked Endowment Plan |
| Policy No. | 815 (New Jeevan Anand) |
| Minimum Entry Age | 18 years (completed) |
| Maximum Entry Age | 50 years (for policy term 15 years) to 65 years (for policy term 5 years) |
| Minimum Sum Assured | ₹1,00,000 (no maximum limit) |
| Policy Term | 15 to 35 years |
| Premium Payment Term | Same as policy term or limited premium payment options available |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, Monthly (ECS) |
| Grace Period | 30 days for yearly/half-yearly/quarterly modes, 15 days for monthly mode |
Special Features:
- Double Benefit: Provides both death cover and maturity benefit
- Life Cover: Continues even after maturity date (for whole life)
- Bonus: Eligible for Simple Reversionary Bonuses and Final Addition Bonus
- Riders: Optional riders available for additional protection
- Tax Benefits: Available under Section 80C and 10(10D) of Income Tax Act
Benefits Illustration
| Scenario | Benefit |
|---|---|
| Death during policy term | Sum Assured + accrued bonuses + Final Addition Bonus |
| Death after policy term | Basic Sum Assured (without bonuses) |
| Survival to maturity | Basic Sum Assured + accrued bonuses + Final Addition Bonus |
Example Scenario (For ₹10 Lakh Sum Assured, 20 Year Term):
Assuming annual premium of approximately ₹50,000 (varies by age):
- If policyholder survives: Receives ₹10,00,000 + accrued bonuses (approx ₹6-8 lakhs) + Final Addition Bonus (approx ₹1-2 lakhs)
- If policyholder dies during term: Nominee receives ₹10,00,000 + accrued bonuses + Final Addition Bonus
- If policyholder dies after term: Nominee receives ₹10,00,000
Note: Bonus amounts are illustrative and not guaranteed.
Premium Calculator
| Age | Sum Assured | Policy Term | Approx. Annual Premium (Male) | Approx. Annual Premium (Female) |
|---|---|---|---|---|
| 25 years | ₹10,00,000 | 20 years | ₹51,210 | ₹48,650 |
| 30 years | ₹10,00,000 | 20 years | ₹55,890 | ₹53,100 |
| 35 years | ₹10,00,000 | 20 years | ₹61,950 | ₹58,850 |
| 40 years | ₹10,00,000 | 15 years | ₹78,100 | ₹74,200 |
Tax Benefits
- Premium Payment: Eligible for deduction under Section 80C up to ₹1.5 lakh per annum
- Maturity Benefit: Tax-free under Section 10(10D) provided premium doesn't exceed 10% of sum assured
- Death Benefit: Always tax-free under Section 10(10D)
Pros and Cons
| Advantages | Disadvantages |
|---|---|
| ✔ Lifetime insurance cover | ✖ Lower returns compared to pure investment options |
| ✔ Guaranteed sum assured plus bonuses | ✖ Long-term commitment required |
| ✔ Tax benefits on premiums and maturity | ✖ Surrender value may be low in initial years |
| ✔ Loan facility available | ✖ Bonuses are not guaranteed |
| ✔ Safe and secure (backed by LIC) | ✖ Inflation may erode value over long term |
Official LIC source: https://licindia.in/web/guest/lic-s-new-jeevan-anand-815
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