LIC New Jeevan Anand Policy (Table No. 815) Maturity, Benefits

LIC’s Jeevan Anand plan is a traditional plan, which gives you But it also provides security along with savings. You also get bonus under this plan. The risk cover under this plan continues even after the policy term. If the policyholder dies after the end of the policy term, the death benefit is still paid to him.

Commencement date                  October 9, 2013

Table number                              815

Product Type                               Endowment

Bonus                                        Yes

UIN                                            512N279V01

How LIC New Jeevan Anand Plan Works?

At the time of buying the policy, the policyholder chooses the cover amount (Sum Assured) and the term of the policy. The premium is determined on the basis of the age of the policyholder, the term of the policy and the Sum Assured. The chosen premium has to be paid by the policyholder for the entire policy term.

If the policyholder has paid all the premiums and survives till the end of the policy term, then the maturity benefit is paid to him by LIC.

Under this scheme, Sum Assured + Accrued Bonus + Final Additional Bonus (if any) is paid to the policyholder as maturity benefit. Thereafter, whenever the policyholder dies (even after the policy term), the Sum Assured is again paid to the nominee as death benefit.

If, during the policy term, the policyholder dies, the death benefit is paid to the nominee. Which is calculated as follows.

Sum Assured on Death + Accrued Bonus till Death + Final Addition Bonus (if any)

The sum assured on death is as follows,

Sum Assured on death will be 125% of the Basic Sum Assured or 10 times the annualized premium or 105% of the premiums paid till death, whichever is higher.

We will explain to you the working of New Jeevan Anand with example,

Example: Naveen, 35 years old, buys LIC’s New Jeevan Anand plan. He invests in this scheme for 20 years with a Sum Assured of 5 lakhs.

Under this, Naveen will get Rs. 30,273 (with tax) to be paid for 20 years.

Simple Reversionary Bonus declared every year = Rs. 45/1000 on Sum Assured

That is, every year, 45 X (5,00,000/1,000) = Rs. 22,500 bonus.

Note: There is no guarantee that the above bonus rate is applicable only. Every year it can be more or less.

Final Edition Bonus = Rs. 20/1000 on Sum Assured

That is, at the end of the policy, 20 X (5,00,000/1,000) = Rs. 10,000 Final Edition Bonus.

Scenario 1: Naveen survives till the end of the policy term.

In this case, the Simple Reversionary Bonus and Final Addition Bonus (if declared by the company) will be paid by LIC to Naveen along with the Sum Assured.

He will get: Sum Assured + 20 Years Accrued Bonus (Simple Reversionary Bonus) + Final Edition Bonus (if declared by the company).

i.e. Naveen as maturity amount,

Rs. 5,00,000 + (Rs. 22,500 x 20) + Rs. 10,000 = Rs.. 9,60,000/- will be paid.

In addition, the Sum Assured (Rs. 5,00,000) will be paid to his nominee when Naveen dies even after the policy term.

Scenario 2: If Naveen dies in the 17th year of the policy term,

Here, Naveen’s nominee will be paid Sum Assured on Death along with Accrued Bonus till Death and Final Edition Bonus (if any).

Sum Assured on death will be 125% of the Basic Sum Assured or 10 times the annualized premium or 105% of the premiums paid till death, whichever is higher.

So,

125% of Basic Sum Assured = Rs. 125% of 5 lakhs = Rs. 6,25,000 / –

10 times the annual premium = (30,273 * 10) = Rs. 3,02,730 / –

105% of premium paid till death = (30,273 * 17) * 105% = Rs. 5,40,373 / –

Hence, Sum Assured on Death will be the highest of the above three options = Rs. 6,25,000/-

That is, as death benefit to his nominee = Rs. 6,25,000 + Rs. (22,500 x 17) + Rs. 10,000 = Rs. 10,17,500/- will be paid.

Benefits of LIC New Jeevan Anand Plan:

Maturity Benefit: Basic Sum Assured + Accrued Bonus + Final Edition Bonus (if any) will be paid to the policyholder on maturity.

Death Benefit: The death benefit in this plan depends on the period of death.

• If death occurs during the policy term, the Sum Assured on Death + Accrued Bonus + Final Addition Bonus (if any) is paid.
• In case of death after the policy term, the Basic Sum Assured is paid to the nominee (Maturity Benefit has already been paid).

The Sum Assured on Death is chosen whichever is higher.

• 125% of Basic Sum Assured
• 10 times the annual premium
• 105% of premium paid till death

Bonus: The declaration of Simple Reversionary Bonus under this scheme depends on the performance of the company. Final Addition Bonus can be availed on maturity of the plan or on death.

Illustration of Sample Premium of LIC New Jeevan Anand:

Here the premium rates for a healthy, non-smoker male with different combinations of his age and policy term are given in the table as a sample.

Features of LIC New Jeevan Anand Plan:

• In this plan, LIC announces bonus which increases the payout of the benefit you get.
• In this plan, you have to pay the premium for the entire policy term.
• This plan gives you the facility of Additional Accidental Death and Disability Benefit Rider, which gives you additional protection in case of accidental death or disability.
• If your New Jeevan plan attains surrender value, then you can take a loan under this scheme.
• You get a discount in premium by opting for a higher Sum Assured. Similarly, you also get a discount on the premium paid annually and half yearly.

Conditions and restrictions for participating in LIC Jeevan Anand plan:

Tax concession on LIC New Jeevan Anand plan

Premium: The premium to be paid in this plan is exempted under section 80C of the Income Tax Act. A maximum exemption of Rs 1.5 lakh can be availed. To claim this exemption, your premium paid should be 10% of the Sum Assured.

Maturity Benefit: The maturity benefit under this scheme is exempted under section 10(10D) of the Income Tax Act. To claim this exemption, the Sum Assured should be 10 times the premium paid.

Death Benefit: The death benefit in this plan is exempted under section 10(10D) of the Income Tax Act. There is no limit on the claim amount.

Under this plan, on surrender, paid-up or cancellation of the policy

Paid Up Value: The policy converts to a paid up policy if at least three years’ premiums have been paid. The amount payable in this paid up policy is calculated as follows, Sum Assured, less the ratio of premiums paid and actual premiums payable. The accumulated bonus is also added to the amount obtained from this calculation. Future bonus is not added to the paid up policy. And this paid up amount is paid by LIC on maturity or death.

Surrender Value: The policyholder can surrender the policy, if he so desires, and obtain the surrender value. But the surrender value is applicable only if you have paid premium for the first three years under the policy. On surrendering the policy, whichever is higher of the Guaranteed Surrender Value and the Special Surrender Value, is paid. It is calculated as follows.

Guaranteed Surrender Value = (Total Premium Paid * Guaranteed Surrender Value Factor) + (Accrued Bonus * Guaranteed Surrender Value Factor of Bonus)

Special Surrender Value = It is calculated by the company on the basis of its future performance.

Free Look Period: If the policyholder is not happy with the plan, he/she can cancel the plan within 15 days from the date of purchase. This period is called the free look period. After cancellation of the plan, your premium is refunded without any additional charges.

Exclusions in LIC New Bima Anand Yojana

If the policyholder commits suicide within 12 months of buying the policy, then his/her nominee will be paid 80% of the premiums paid.

If the policyholder commits suicide within 12 months of the policy revival, 80% of the premium paid or the surrender value, whichever is higher, will be paid to the nominee.

How to Buy LIC New Jeevan Anand Plan:

This is an offline plan, which can be bought from the intermediaries of the company i.e. agent or broker. It can also be purchased by visiting any branch of the company or through any officer of the company.