Salient features of the LIC's New Jeevan Anand - 915 plan:
- Policy term and premium payment frequency: The policy term of this plan can range from 15 to 35 years, depending on the policyholder's age at entry. The minimum age at entry is 18 years, and the maximum is 50 years. The policyholder can choose to pay the premium monthly, quarterly, half-yearly, or annually, as per their convenience.
- Death benefit: In the event of the policyholder's unfortunate demise during the policy term, the sum assured on death is payable to the nominee. The sum assured on death is the higher of 125% of the basic sum assured or 10 times the annual premium. In addition, the policyholder's accrued bonuses are also payable to the nominee.
- Maturity benefit: If the policyholder survives the policy term, they are eligible for the maturity benefit. The maturity benefit is the sum assured on maturity, which is equal to the basic sum assured plus accrued bonuses. The policyholder also receives the final additional bonus, if any, at the time of maturity.
- Bonus: The policyholder is entitled to receive simple reversionary bonuses, which are declared by LIC every year. The bonus is added to the policy and paid at the time of death or maturity, as applicable. In addition, the policyholder may also receive a final additional bonus, depending on the performance of the plan.
- Surrender value: The policyholder has the option to surrender the policy after paying the premium for at least three years. The surrender value is payable, which is equal to the sum of the guaranteed surrender value and the vested bonuses, if any. The guaranteed surrender value is a percentage of the total premiums paid, depending on the policy term and the premium payment mode.
- Loan facility: The policyholder can avail of a loan against the policy after paying the premium for at least three years. The loan amount is a percentage of the surrender value, depending on the policy term and the premium payment mode. The policyholder has to pay interest on the loan amount, which is deducted from the policy's surrender value.
Advantages of the LIC's New Jeevan Anand - 915 plan:
- Financial protection: The policy offers financial protection to the policyholder's family in case of their unfortunate demise during the policy term. The sum assured on death, along with accrued bonuses, provides a substantial financial cushion to the nominee.
- Savings and investment: The policyholder can save and invest their money through this plan, which offers guaranteed returns in the form of bonuses. The policy is ideal for those who want to build a corpus for their future financial goals.
- Tax benefits: The policyholder is eligible for tax benefits under Section 80C of the Income Tax Act, 1961, on the premium paid. In addition, the maturity benefit and death benefit received are also tax-free under Section 10(10D) of the Act, subject to certain conditions.
- Flexible premium payment options: The policyholder can choose to pay the premium monthly, quarterly, half-yearly, or annually, as per their convenience. The policy also offers a grace period of 30 days for payment of premium, which ensures that the policy remains active even if the premium payment is delayed.
Disadvantages of the LIC's New Jeevan Anand - 915 plan:
- Low returns: The policy offers a lower rate of return compared to other investment options such as mutual funds, stocks, or bonds. The returns are fixed and may not be able to keep up with inflation, which can erode the value of the investment over time.
- Long lock-in period: The policy has a long lock-in period, which can range from 15 to 35 years. The policyholder may not be able to access their money in case of any urgent financial need, and surrendering the policy may result in a loss of investment.
- Limited flexibility: The policy has limited flexibility, and the policyholder may not be able to modify or customize the policy to suit their changing financial needs. The premium amount and the sum assured are fixed and cannot be changed once the policy is issued.
Explain With a Simple Example
LIC's New Jeevan Anand - 915 is a participating non-linked plan that offers the combined benefits of insurance and savings. Here's an example to explain the plan in a simple way.
Let's say Mr. Sharma, a 30-year-old, wants to secure his family's future financially. He decides to invest in LIC's New Jeevan Anand - 915 plan. Mr. Sharma opts for a policy term of 25 years and chooses to pay an annual premium of Rs. 50,000.
In case of his unfortunate demise during the policy term, his nominee will receive the sum assured of Rs. 10 lakhs plus any bonuses declared by the company. In case he survives the policy term, he will receive the sum assured along with bonuses declared by the company as maturity benefit.
Additionally, Mr. Sharma's policy also qualifies for the bonus, which is declared every year and gets accumulated over the policy term. Upon maturity, he will receive the accumulated bonus along with the sum assured.
Let's assume that the bonus declared is Rs. 50 per thousand sum assured, which is Rs. 5,000 for Mr. Sharma's policy. So, over the policy term of 25 years, the accumulated bonus will be Rs. 1,25,000 (25 years x Rs. 5,000 per year).
So, in case of Mr. Sharma's survival till the end of the policy term, he will receive the sum assured of Rs. 10 lakhs plus accumulated bonus of Rs. 1,25,000, making the total maturity benefit of Rs. 11,25,000.
So, LIC's New Jeevan Anand - 915 plan is a great option for individuals looking to secure their family's financial future while also receiving a lump sum amount at maturity. The policy also provides a bonus, which is an added advantage.
Conclusion:
The LIC's New Jeevan Anand - 915 plan is a popular endowment policy that offers a combination of financial protection and savings to the policyholder. The policy is suitable for those who want to build a corpus for their future financial goals and provide financial security to their family in case of their unfortunate demise. The policy offers tax benefits and flexible premium payment options, but the returns may not be able to keep up with inflation, and the lock-in period is long. The policyholder should carefully consider their financial goals and risk appetite before investing in this plan.
FAQ
Q. What is LIC's New Jeevan Anand - 915 Plan?
A. LIC's New Jeevan Anand - 915 Plan is a participating non-linked plan which offers a combination of protection and savings. It provides life cover throughout the lifetime of the policyholder and also offers maturity benefits if the policyholder survives till the end of the policy term.
Q. What are the benefits of LIC's New Jeevan Anand - 915 Plan?
A. The benefits of LIC's New Jeevan Anand - 915 Plan are:
- Death Benefit: In case of the policyholder's death during the policy term, the sum assured along with any accrued bonuses is paid to the nominee.
- Maturity Benefit: If the policyholder survives till the end of the policy term, the sum assured along with any accrued bonuses is paid to the policyholder.
- Bonus: The plan participates in the profits of the corporation and earns bonuses which are added to the sum assured.
- Loan: The policyholder can avail of a loan against the policy after the policy has acquired surrender value.
Q. What is the policy term and premium payment term of LIC's New Jeevan Anand - 915 Plan?
A. The policy term of LIC's New Jeevan Anand - 915 Plan is between 15 and 35 years. The premium payment term is equal to the policy term.
Q. What is the minimum and maximum age to apply for LIC's New Jeevan Anand - 915 Plan?
A. The minimum age to apply for LIC's New Jeevan Anand - 915 Plan is 18 years and the maximum age is 50 years.
Q. What is the minimum and maximum sum assured of LIC's New Jeevan Anand - 915 Plan?
A. The minimum sum assured of LIC's New Jeevan Anand - 915 Plan is Rs. 1,00,000 and there is no maximum limit.
Q. What is the grace period for payment of premiums under LIC's New Jeevan Anand - 915 Plan?
A. The grace period for payment of premiums under LIC's New Jeevan Anand - 915 Plan is 30 days. If the premium is not paid within the grace period, the policy lapses.
Q. What are the exclusions under LIC's New Jeevan Anand - 915 Plan?
A. Suicide within 12 months from the date of commencement of policy or revival of the policy is excluded from the policy coverage. In such cases, the premiums paid will be refunded to the nominee or legal heirs of the policyholder.
