LIC’s Jeevan Anand policy is one of the most popular plans. Under this policy, the benefit of maturity is not only available, but whenever the policyholder dies, the nominee gets the benefit of Basic Sum Assured separately.
Jeevan Anand policy: Today we know about such a policy of Life Insurance Corporation (LIC) in which maturity benefit is available at the end of the policy period and coverage of sum assured for life time is available like term insurance. In such a situation, for those who want that they get the benefit of maturity and the nominee also gets the benefit on their death, this is a great policy for them.
The name of this policy of LIC is Jeevan Anand, whose table number is 915. The premium term and the policy term are same for this policy. Meaning, for the number of years the policy is in place, the premium will have to be paid. Talking about the eligibility, the minimum entry age is 18 years and the maximum entry age is 50 years. The maximum maturity age is 75 years. The policy term is from 15 to 35 years. The policy term itself will be the premium paying term.
Minimum Sum Assured Rs 1 lakh
Talking about the sum assured, the minimum sum assured is Rs 1 lakh and above that it will be in multiples of 5000. There is no limit on Maximum Sum Assured. Four riders are available with this policy. These riders are – Accidental Death and Disability Rider, Accident Benefit Rider, New Term Assurance Rider and New Critical Illness Benefit Rider.
Benefits of two types of bonuses
Two types of bonus are available with this policy. The older the policy, the higher the benefit of Vested Simple Revisionary Bonus. The policy has to be of 15 years to avail the final additional bonus. Talking about the death benefit, if the policyholder dies during the policy term, then 125% of the sum assured will be given as death benefit. If the benefit of bonus is eligible, then its benefit will also be available. If the policyholder dies after the policy term, then the nominee will get the sum assured amount. Sum assured on maturity is available with bonus. After that whenever the policyholder dies, his family will get the sum assured again.
rules regarding grace period
Under this policy, if the insured makes monthly payments, the grace period is 15 days for premium payment and 30 days grace period for quarterly, half yearly and annual premiums. The policy can be surrendered on completion of two years. Loan facility is also available after 2 years. The policy can also be revived within 5 years from the premium due date.
How to take advantage of maturity
Maturity and death benefit under this policy can be taken in lump sum or in installment. The policyholder can take some part in lump sum and the rest in installment. This installment can be for 5, 10 and 15 years. Talking about tax benefits, deduction is available on premium under 80C. Maturity and death benefit are tax free under section 10(10D).
Calculation of Maturity Benefit
For example, if A is 35 years old and buys a sum assured of 5 lakhs and the policy term is 35 years, then according to the LIC premium calculator, his annual premium will be around Rs 16300. Half yearly premium will be Rs 8200, quarterly premium will be Rs 4200 and monthly premium will be around Rs 1400. His total deposit in 35 years will be Rs 5.70 lakh. At present, at the rate of bonus issued by LIC, A will get a total of Rs 25 lakh on maturity. In this, the Basic Sum Assured will be Rs 5 lakh, Rs 8.60 lakh as vested simple revisionary bonus and Rs 11.50 lakh as final additional bonus. Whenever A dies, his nominee will get 5 lakhs again.