One of the most important investments in our life is Life Insurance. To choose an investment plan that fits all our criteria and needs is another task in itself. LIC gives us the luxury of picking and choosing the insurance that’ll suit us.
Launched on October 9, 2013, LIC Jeevan Anand Plan is one of the most popular endowment policy. Along with this, it also offers all the advantages for a whole life policy. This policy benefits those who are looking to save for retirement and to get an insurance cover. In this article, we explain this scheme in detail to help you understand if it is the best option for you.
Features Of LIC Jeevan Anand Plan
In this article
1. This plan will pay you or your nominee the Basic Sum Assured along with bonuses.
2. The minimum sum assured amount is 1 Lakh.
3. There is no maximum sum assured.
4. One must deposit the sum assured in multiples of ₹5,000.
5. The minimum age at entry is 18 years, and maximum is 50 years.
6. Policy term exists for 15 to 35 years.
7. Maximum maturity age for the policy is 75 years.
8. There exist four payment modes; monthly, quarterly, half-yearly, and yearly.
9. This policy gives the choice of adding Accidental Death and Disability Benefit Rider
Who Should Invest In LIC Jeevan Anand Plan?
Insurance seekers in the age group of 18 to 50 years are the best candidates for this policy. It is ideal for those who are looking to save to fulfill their long-term goals. It guarantees that the policyholder will get a large sum of money at the end of the policy term. The policy enables a relatively high rate of interest with high liquidity features.
Benefits Of LIC Jeevan Anand Plan
1. Maturity Benefit
If the policyholder survives the term and has paid premiums, they will avail this benefit. This includes Sum Assured on Maturity, Simple Reversionary Bonus, and Final Additional Bonus.
2. Death Benefit
If a policyholder dies before the policy has matured, the nominee gets this benefit. The Death Benefit will include Sum Assured on Death and bonuses collected till then.
Sum Assured is the amount your policy pays your nominee. It depends on the number of years of your policy term. It is higher one of the two options
- 10 times the annual premium
- 125% of the Basic Sum Assured
It will never be below 105% of the total premiums paid
The amount of bonus you receive is set by LIC, and the duration of your policy can play a part in it.
3. Tax Benefits
The policyholder of this insurance will benefit in income tax. Due to, Section 80c the premium amounts paid are tax-free. A highest deduction of 1.5 lakhs can be easily claimed on paid premiums. The amount granted at the end of the tenure is also tax-free under Section 10 (10D) of the Income Tax Act, 1961.
4. Rider Benefit
One can add, (by paying extra) Accidental Death Benefit and Disability Benefit Rider.This rider will make sure that all financial requirements of the individual or their family are promptly met.
5. Free Look Period
LIC allows the prospective policyholder 15 days to decide if Jeevan Anand policy is for them. If they are not happy and no claims are made by them, this policy stands canceled.
6. Participation In Profits
The policy will take part in profits of the Bank. They will receive bonuses declared on the basis of the experience of the company. The policyholder will receive profits in the form of Simple Reversionary Bonus.
7. Revival Period
The policy will lapse if the unpaid premiums are not paid within the grace period.The individual can revive the policy if they pay the unpaid premium.This must be fully paid within two years from the date of unpaid premium but well before the maturity date.
The policyholder will also have to pay some interest, fixed by the Bank. The Bank reserves the right to accept or refuse the revival of the policy.
8. Surrender Value
If the policyholder is unhappy, they can surrender their plan and get a Surrender Value as a payout. This is possible only after payment of 3 full premium years. This value will depend completely on the premiums paid but will include the bonuses.
9. Loan On Policy
Loans can be taken under this insurance. This is possible only after plan acquires a Surrender Value i.e. of 3 years of premium payment.
10. Flexibility
This policy allows the holder the flexibility to choose their payment schedule. They have four options to choose from; monthly, quarterly, half-yearly, ad yearly.
Rebates Given By LIC Jeevan Anand Plan
Rebates of partial refunds are another perk given to the Jeevan Anand policyholder. There are two types of rebates offered under this policy. One way to avail this discount depends on the payment mode you choose.
The other way to avail this refund depends on the amount of sum assured you pay
Riders Of LIC Jeevan Anand
LIC Jeevan Anand allows you the option of adding on two riders on your basic policy plan.
In the event of accidental death, this ensures that your nominee is paid the Sum Assured. This Sum Assured does not include the Death Benefit, which is also paid.
In the event of an accident which results in a permanent disability, Accident Benefit Sum Assured is paid in monthly installments.
- Minimum Accident Benefit Sum Assured is 1 lakh
- Maximum Accident Benefit Sum Assured is 100 lakhs
- Minimum age to be applicable is 18 years (completed)
- Maximum age to be applicable is 70 years
Documents Required For LIC Jeevan Anand
A prospective policyholder would need to present the following documents-
i. Filled Application form with accurate information.
ii. Proof of age
iii. Proof of address
iv. KYC documents (Aadhar Card, PAN Card)
v. Medical History
vi. Required medical test reports.
vii. Cheque or cash for the first premium payment.
Filling For Claims For LIC Jeevan Anand
i. Death Benefit
The nominee or beneficiary must present the following documents:
- Original policy documents
- Discharge form
- Documents for the riders (if applicable)
- Bank account details
- Death certificate
- Police report, FIR, post mortem report (if death occurs due to an accident)
ii. Maturity Benefit
At maturity, the policyholder must present the following documents:
- Original policy documents
- Discharge form
- Bank account details
Explanation Of LIC Jeevan Anand With An example
Let us take an example of Ms. Seema buying the LIC Jeevan Anand Policy with the following details
- Sum Assured- 5 lakh
- Policy term- 25 years
- Year of buying policy- 2020
- Age- 25
Thus she will be paying a yearly premium of 21,472.
After purchasing this plan two cases are possible with Ms.Seema. She can either outlive her policy term and avails the Maturity Benefit. Or she passes away and her nominee avails the Death Benefit.
i. Maturity Benefit
Assuming that Ms. Seema survives her policy term,
ii. Death Benefit
Assuming that Ms. Seema passed away due to an accident 20 years from date of sale. her nominee will get the death benefit of-
Other LIC Life Insurances
LIC makes everyone’s life easier by offering a plethora of insurances. To choose the best life insurance that will fit our needs, it is important to compare and see. Some differences and similarities in some LIC policies are below-
LIC Jeevan Anand vs LIC Jeevan Labh
1. Basic Sum Assured- The minimum sum assured for Jeevan Anand the is 1 Lakh and for Jeevan Labh it is 2 Lakh. Both have no limit.
2. Policy term- Jeevan Anand Policy’s term is from 15 to 35 years while Jeevan Labh Policy’s term is 16, 21 or 25 years.
3. Age restriction- The minimum age to be eligible for LIC Jeevan Anand is 18 and maximum is 50. The minimum age for Jeevan Labh is 8 and maximum is 59.
4. Maximum age at maturity- The maximum age at maturity for Anand is 65 and for Labh is 75.
5. Payment mode- Both are only paid through ECs.
6. Policy revival- Both the policies will lapse if premium is not paid within the grace period.
7. Death Benefits- The death benefit must be higher than, 105% of premium for Labh and 125% of premium for Anand.
LIC Jeevan Anand vs LIC Jeevan Pragati
1. Basic Sum Assured- The minimum for Jeevan Anand the is 1 Lakh and for Jeevan Pragati it is 1.5 Lakh. Both have no limit.
2. Policy term- Jeevan Anand Policy’s term is from 15 to 35 years while Jeevan Pragati Policy’s term is 12 to 20 years.
3. Age restriction- The minimum age to be eligible for Anand is 18 and maximum is 50. The minimum age for Pragati is 12 and maximum is 45.
4. Maximum age at maturity- The maximum age at maturity for Anand is 75 and for Pragati is 65.
5. Payment mode- Anand is only paid through EC. While Pragati is either paid through ECs or salary deductions.
6. Policy revival- Both the policies will lapse if premium is not paid within the grace period.
7. Death Benefits- The death benefit must be higher than, 105% of premium for Pragati and 125% for Anand.
LIC Jeevan Anand vs LIC Jeevan Rakshak
1. Basic Sum Assured- The minimum for Jeevan Anand the is 1 Lakh and for Jeevan Rakshak it is 75,000. There is no maximum for Anand but it is 2 Lakh for Rakshak.
2. Policy term- Jeevan AnandPolicy’s term is from 15 to 35 years while Jeevan Rakshak Policy’s term is 10 to 20 years.
3. Age restriction- The minimum age to be eligible for Anand is 18 and maximum is 50. The minimum age for Rakshak is 8 and maximum is 55.
4. Maximum age at maturity- The maximum age at maturity for Anand is 75 and for Rakshak is 70.
5. Payment mode- Both are only paid through ECs.
6. Policy revival- Both the policies will lapse if premium is not paid within the grace period.
7. Death Benefits- The death benefit must be higher than, 105% of premium for Rakshak and 125% for Anand.
LIC Jeevan Anand vs LIC Jeevan Lakshya
1. Basic Sum Assured- The minimum for Jeevan Anand the is 1 Lakh and for Jeevan Lakshya it is 1 Lakh. There is no limit.
2. Policy term- Jeevan Anand Policy’s term is from 15 to 35 years while Jeevan Lakshya Policy’s term is 13 to 25 years.
3. Age restriction- The minimum age to be eligible for Anand is 18 and maximum is 50. The minimum age for Rakshak is 18 and maximum is 50.
4. Maximum age at maturity- The maximum age at maturity for Anand is 75 and for Lakshya is 65.
5. Policy revival- Both the policies will lapse if premium is not paid within the grace period.
6. Death Benefits- The death benefit must be higher than, 105% of premium for Lakshyaand 125% for Anand.
Frequently Asked Questions
1. Is this a good plan? Should one invest in it?
Investing in any plan depends on one’s own goals and finances.
2. How much bonus do I get under this plan?
This plan offers Simple Reversionary Bonus. But, the amount of bonus received is not fixed. It depends on the performance of the company. The policyholder only gets a bonus if the company makes profits.
3. Is it possible to date back Jeevan Anand policy?
Yes, dating back this policy to the same financial year with applicable charges.
4. Do I have to pay extra to add the two riders to my plan?
Yes. You will have to pay extra to add the two, Accidental and Disability Benefit Rider.
5. Does LIC Jeevan Anand cover suicide?
There are two instances where this policy covers suicide. For both to work, the policy would still have to be in force. The two instances are-
i. If the person commits suicide within 1 year of buying the policy, 80% of the premiums is payable.
ii. If the individual commits suicide within 1 year of reviving the policy. Then an amount higher 80% of the premiums is payable.
6. Is the policyholder allowed to switch to another LIC policy if they are not satisfied?
Prospective policyholders have 15 days to make up their mind on the life insurance they choose to buy. They are not allowed to switch their policy after purchasing it.
7. As an NRI can I buy this life insurance?
Yes. NRIs can avail this life insurance under Foreign Exchange Management Act (FEMA).
Bottom Line:
LIC has been the most trusted insurance company for middle-class Indians since decades. This policy like many of theirs is a very good option for life insurance. All the details for LIC Jeevan Anand are in this article to help you choose your perfect life insurance. LIC also provides LIC nav Jeevan and Jeevan Pragati.
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