LIC Jeevan Anand is a product newly launched by LIC which mainly focuses on providing financial security to the life assured from death like situations. There would be lump sum payment of sum assured in case the life assured sustains until the maturity of the policy term.
The Jeevan Anand Policy from LIC will give a death benefit that can be availed by the family of life assured.
The plan also gives you profits that are added on an annual basis by LIC authorities at a certain percentage. Plus, in case no death happened during the term, lump sum payment premiums are given returned back.
|Age of Entry||18 years to 50 years|
|Sum assured||Rs 10 lakhs to no limitation|
|Policy term||15 years to 35 years|
|Maturity Age||75 years|
As a policyholder, focus on these factors before purchasing LIC Jeevan. They are-
|Policy term||15 years to 35 years|
|Premium payment terms||Same as Policy term chosen|
|Premium Payment Frequency||Yearly, Half-yearly, Quarterly, Monthly|
|Maturity Benefit Payment||Sum assured on death plus Reversionary bonus and Final Additional Bonus|
|Surrender Value||Payable only when policy completes 3 years.|
|Free Cancellation Period||Starting 15 days|
|Revival of Policy||Within 2 years starting from the date when premiums are due.|
|Termination of Policy||Automatic end of the policy for non-payment of due premium (for more than 2 years)|
What benefits are included?
- Death benefits: If you are anxious about your family protection after your death, this will provide financial assistance to them to restore normal life.
- Rider Benefit: This is for extra protection to your coverage. An additional cost has to be paid to utilize the benefits. LIC’s Accidental Death and Disability Benefit Rider can be purchased to get extended protection from disabilities and accidental death.
- Guaranteed Surrender Value: this value is paid only when the policy is active for 3 years minimum. The life assured has to inform the LIC of India about the decision to surrender the policy. The life assured will get 30% of the basic premium. LIC will not pay the first-year premium, rider premium and taxes deposited.
- Simple Reversionary Bonuses: the benefit is payable by the LIC only when the policy is in continuity for 3 years. On fulfillment of this condition, the policy is eligible to participate in the corporation’s profits and earn proportionate Reversionary Bonuses. The rate of profit is defined by LIC.
How do you Receive Benefits?
Let’s take an example. Suppose, you have taken a LIC Jeevan Anand of Rs 1 lakhs with a policy term of 25 years. You have to pay premiums for 25 years which is equal to the policy term. The amount premium for one year is Rs 4,535 and you have opted yearly mode of payment.
Situation 1: Suppose you died after completing 20 years of the policy. The investment rate of return given by LIC on the annual premium is 6%. After 20 years, your nominees will get Rs 1,33,000.
Situation 2: If the investment rate of return is 10% applicable to the premium paid every year. The lump sum payment to nominees on date of death (same as above) will be Rs 2,13,000.
Overall, the policy is best in terms of coverage. You get the benefit of a term pan as well as the benefit of an investment. The life assured get flexibility in paying premiums and deciding the policy term.
Also, if you are not satisfied with the policy and want to discontinue, then also you can do it with ease. In such situations, premiums are returned back after reducing some taxes and rider premiums. Not only this, but it will also give you the loan facility.