LIC New Jeevan Anand

LIC New Jeevan Anand is a combination of endowment and whole life plans, offering both risk cover (in case of death) and a savings element (in the form of a lump sum payment) at the end of the policy term, or in case of death during the term. It is one of the most popular plans from LIC, designed to provide comprehensive financial protection to the policyholder and their family.

Key Features of LIC New Jeevan Anand:

1. Type of Plan:
   • It is a combination of an endowment and whole life policy. The policy provides life cover during the policy term (like an endowment plan), and after the policy term, the cover continues for the policyholder’s whole life (like a whole life policy).
2. Risk Cover and Savings:
   • The plan offers life insurance cover throughout the policy term, along with a savings component that is payable upon survival at the end of the policy term or in the event of death during the policy term.
3. Policy Term:
   • The policy term can be selected between 15 to 35 years, depending on the requirements of the policyholder.
   • Premium paying term is usually 5 years less than the policy term. For example, if the policy term is 20 years, the premium paying term will be 15 years.
4. Sum Assured on Death:
   • The sum assured on death is payable if the policyholder passes away during the policy term. The amount includes the sum assured on death and bonuses accumulated.
5. Maturity Benefit:
   • If the policyholder survives the policy term, the policy will pay the sum assured on maturity (which is the sum assured for the endowment cover), along with any bonuses accumulated.
   • If the policyholder opts for bonus facilities, then bonuses are added each year, which enhances the maturity benefit.
6. Whole Life Cover:
   • After the policy term, the whole life cover continues, meaning that the policyholder will have life insurance coverage beyond the term of the policy until death, with a nominal premium.
   • Nominee Benefit: In the event of death, the nominee will receive sum assured on death along with any bonuses accumulated till the date of death.
7. Bonus Facility:
   • LIC New Jeevan Anand participates in the corporation’s profit-sharing, which means the policyholder is eligible for simple reversionary bonuses and a final additional bonus. These bonuses will be added to the sum assured.
8. Loan Facility:
   • The policyholder can avail of a loan against the policy once it has acquired a surrender value. This is helpful if you need liquidity during an emergency.
9. Tax Benefits:
   • Premiums paid under the LIC New Jeevan Anand plan are eligible for tax deduction under Section 80C of the Income Tax Act.
   • The death benefit and maturity benefit (along with bonuses) are tax-free under Section 10(10D), subject to conditions.
10. Payment Modes:
    • Premiums can be paid in a variety of modes: annual, semi-annual, quarterly, or monthly (through ECS).

Benefits of LIC New Jeevan Anand:

1. Comprehensive Protection:
   • This plan provides dual protection: death cover during the policy term (like an endowment policy) and lifelong coverage (like a whole life policy) after the policy term ends.
2. Bonus Facility:
   • Since it is a participating policy, bonuses are paid annually, increasing the death benefit and maturity benefit.
3. Flexible Premium Payment:
   • It offers flexibility in premium payments (annual, semi-annual, quarterly, or monthly), allowing policyholders to choose a payment mode that suits their financial situation.
4. Lifelong Coverage:
   • After the end of the policy term, the cover continues for the entire lifetime, ensuring lifelong financial protection.
5. Tax Savings:
   • Premiums paid qualify for tax deductions under Section 80C, and the benefits received (death and maturity) are tax-free under Section 10(10D).
6. Loan Facility:
   • You can avail of a loan against the policy’s surrender value, which provides you with financial support if needed.
7. Affordable Premiums:
   • The policy is designed to provide affordable premiums relative to the comprehensive coverage and benefits it offers.

Eligibility Criteria:

• Age at Entry: Minimum age: 18 years (completed), Maximum age: 50 years (for a policy term of 35 years).
• Policy Term: 15 to 35 years.
• Premium Paying Term: Typically, 5 years less than the policy term (e.g., if the policy term is 20 years, the premium paying term will be 15 years).
• Sum Assured: The minimum sum assured is ₹1,00,000, and the amount can be increased based on the policyholder’s needs.
• Maximum Sum Assured: There is no upper limit on the sum assured, but it will be subject to the underwriting requirements of LIC.

Riders Available with LIC New Jeevan Anand:

LIC New Jeevan Anand allows policyholders to enhance their coverage by adding optional riders:

1. LIC’s Accident Benefit Rider: Provides additional coverage in case of accidental death or permanent disability due to an accident.
2. LIC’s Critical Illness Rider: Offers a payout in case the policyholder is diagnosed with one of the covered critical illnesses.
3. LIC’s Disability Benefit Rider: Provides additional benefits in case of disability caused by an accident.

Example of LIC New Jeevan Anand:

Let’s say you opt for a 20-year policy term with a sum assured of ₹10,00,000 and a premium paying term of 15 years.

• You will pay premiums for 15 years.
• If you survive the 20 years, you will receive the sum assured on maturity (₹10,00,000) along with any bonuses accumulated during the policy term.
• If you pass away during the policy term (e.g., within 15 years), the sum assured on death will be paid to your nominee along with any bonuses.
• After the policy term ends (after 20 years), your policy continues with lifetime cover and will provide the death benefit if the policyholder passes away in the future.