LIC Jeevan Anand Plan

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Jeevan Anand Plan Summary

LIC’s Jeevan Anand Plan is a traditional savings plan which not only covers the insured for the chosen policy term, but the life cover continues after the completion of the policy term till the entire life of the insured. The plan also earns bonuses during the plan term. Thus, the plan is an Endowment cum Whole Life Insurance Plan.

In case of death due to an accident before the age of 70, the nominee will be paid an additional cover amount. This additional accidental death benefit is capped at Rs. 5 lakhs. In case of permanent disability due to an accident, this additional cover amount is paid in installments. No extra premiums need to be paid for these 2 additional benefits.

Additionally, you can avail a Critical Illness rider by paying an extra premium.

LIC Jeevan Anand was launched on 1st Feb 2002 and was discontinued on 30th September, 2013. It has been replaced with a similar plan with better features. Check out details of the LIC New Jeevan Anand Plan.


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How the LIC Jeevan Anand Policy works?

The policyholder chooses the Cover Amount (Sum Assured) and the Term of the plan when buying the policy. If the insured survives the entire chosen term of the plan, the chosen Sum Assured and the Accumulated Bonuses are paid on maturity. The plan then continues and the policyholder does not have to pay any premiums. When the policyholder eventually dies, the Sum Assured is paid again to the nominee. 

If the insured dies during the term of the plan, the Sum Assured and the Accumulated Bonuses would be paid and the plan would be terminated. 

We will explain the working of Jeevan Anand with an example: Suppose Arun who is 35 years old buys a Jeevan Anand policy of Rs. 1 lakh (Sum Assured) for a 25 years (Term). His annual premium would be Rs.  4,535

Scenario 1 – Arun dies in the 15th year of the policy
In this case, the Sum Assured of Rs. 1 lakhs and accumulated bonuses till the date of death would be paid and the plan would terminate. Bonus is declared every year by LIC. Check the LIC Jeevan Anand Bonus rates which are declared every year.

Scenario 2 – Arun survives till the end of the policy term.
In this case, the Sum Assured of Rs. 5 lakhs and the accumulated bonus till maturity would be paid to Ram and the risk cover under the plan would continue. Later, whenever Arun dies, the Sum Assured of Rs. 5 lakhs would again be paid to his nominee. 
You can use the LIC Jeevan Anand Maturity Calculator below to check the total amount he would get on maturity.

So, the plan benefits are as follows:
  • Maturity Benefit –When the plan term expires and the insured is alive, the Sum Assured and any accumulated bonuses are paid. 
  • Death Benefit – The death benefit depends on the year in which the insured dies:
    • If the insured dies within the policy term, the Sum Assured and accumulated bonuses are paid.
    • If the insured dies after the completion of the plan term when the Maturity Benefit is already been paid, the Sum Assured is paid. 



LIC Jeevan Anand Maturity Calculator

You can use this to get a fairly accurate estimate of the Maturity Value of LIC Jeevan Anand plan of yours. The amount of LIC Jeevan Anand Returns is totally tax free.

Jeevan Anand Maturity Value Calculator
Calculate the maturity amount of LIC Jeevan Anand Plan
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LIC Jeevan Anand Surrender Value Calculator

A very common question asked to us: What is the surrender value of LIC Jeevan Anand Policy? So we are sure this will be helpful to many.

Coming up on 15th Nov 2016.

 

Eligibility conditions and other restrictions in LIC Jeevan Anand Plan

 
  Minimum Maximum
Sum Assured (in Rs.) 1,00,000 No Limit
Policy Term (in years) 5 57
Premium Payment Term (in years) 5 57
Entry Age of Policyholder (last birthday) 18 years 65 years
Age at Maturity (last birthday) - 75
Single Premium (in Rs.) NA NA
Payment modes Yearly, Half-yearly, Quarterly, Monthly
 


Key Features of LIC Jeevan Anand Plan 

  • This plan is an endowment cum whole life plan
  • Maturity Benefit is Sum Assured + accrued Bonus and the Life Cover continues till death
  • Death Benefit after Policy Maturity is only Sum Assured
  • Death Benefit before Policy Maturity is Sum Assured + accrued Bonus
  • Simple Reversionary Bonus is payable on maturity or earlier death.
  • Accidental Death and Disability Benefit is an inbuilt feature in this plan
  • Optional higher cover through 1 additional rider of Critical Illness Benefit.
  • This plan can be provided to people with hazardous occupation with additional premium.
  • Large Sum Assured rebate is also provided
 
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Tax Benefits in LIC Jeevan Anand Plan 

Premiums paid – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. The maximum exemption that can be availed is Rs. 1.5 lakhs.

Claims Amount – Maturity or death claims received would be tax-free under Section 10(10D) of the Income Tax Act. There is no limit on the amount of claim received and the entire claim would be tax-free.

 

Sample illustration of premium of LIC Jeevan Anand Plan

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs 1,00,000and Policy Term = 25 years respectively.

LIC Jeevan Anand Plan Premium Illustration

 

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What happens when you stop paying the LIC Jeevan Anand Premiums?

Grace Period – Premium is required to be paid regularly on every due date. In case premium is not paid by the due date, a grace period is allowed for payment of the outstanding premium. This period is equivalent to 30 days for policies where annual; half-yearly or quarterly mode of premium payment is selected. In case of monthly mode of premium payments, 15 days is allowed as the grace period.

Paid–up Value – If premium is not paid even during the grace period, the policy lapses. If at least the first 3 years’ premiums have been paid, the policy is liable to acquire a paid-up value which is equal to the Sum Assured reduced in proportion of the total premiums paid against the actual number of premiums payable. The accumulated bonus is also added to this reduced Sum Assured to arrive at the Paid-up Value. Future bonuses will not be applicable for a Paid-up Policy and on death or maturity this paid-up value is paid out.

Surrender Value - If the policyholder wants, he can surrender his policy and avail the Surrender Value. The Surrender Value is applicable only if the first 3 years’ premiums are paid under the policy. On surrender, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is payable which are calculated as follows:
  • Guaranteed Surrender Value = 30% of total premiums paid –premium of the first year
  • Special Surrender Value would be fixed by the company based on its future performance. 

Revival – A policy which has been lapsed and continuing on a paid-up basis can be revived. This revival can be done within 2 years of the first unpaid premium. To revive the policy, the outstanding premium along with any interest as applicable is payable.
 

Some FAQs on LIC Jeevan Anand 

I have missed my policy renewal last year by mistake can my Jeevan Anand policy be revived now?
Yes, a lapsed policy can be revived if the revival is done within 2 years of policy lapsing. The outstanding premium and any applicable interest for the lapsed period would have to be paid to the company for such revival.

Can I switch to a term plan after 5 years in LIC Jeevan Anand?
No, the policy does not allow switching. Once bought it should be continued for the chosen duration. If premiums are stopped, the policy would lapse.

Can I take loan in against my Jeevan Anand policy?
Yes, loans are allowed under the plan. Loans are allowed only if the plan acquires a surrender value as the limit of loan allowed depends on the Surrender Value acquired by the policy. 

If I add the Critical Illness Rider to my Jeevan Anand Policy and do not suffer any illness, would I get the rider benefit on death or maturity? 
No. Rider benefits are contingent on happening of the even against which the rider has been taken. If you are not diagnosed with any illness covered by the rider during the plan tenure, you would get no additional rider benefits either on death or maturity.
 

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