LIC New Jeevan Anand Policy Review

By | February 12, 2016
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LIC Jeevan Anand Policy Review

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Main characteristics of LIC’s New Jeevan Anand Plan:

  • The recent Jeevan Anand Plan is an unlinked Protection and an economically viable saving plan.
  • The all new plan is a mixture of Endowment & Whole life policy, which means that it is a Double Benefit Endowment plan.
  • Now you can enjoy lifetime financial protection against death as you can avail the provision of making payment in a lump sum amount after the selected policy term is over (in case of survival).
  • The plan is a participant towards profits and is permitted to obtain Bonuses.
  • In case, a person survives till the end of the policy term then, he / she will be provided with the Maturity Benefit. The maturity benefits include:

Sum Assured + Bonus + Final Additional Bonus (if any)

  • In case of demise within the policy term, Death Benefit will be payable to the nominee. The payable amount will include:

Sum Assured + Bonus + Final Additional bonus (if any)

If the demise takes place post the Policy Term then only the Basic Sum Assured will be payable as Death Benefit.

  • We can go for Accident Benefit Rider by paying little amounts along with the Premium.
  • The new Jeevan Anand plan takes care of all the liquidity needs through its exclusive loan facility.

 

Advantages of LIC’s New Jeevan Anand Plan:  

  • Maturity Advantage: If the policy holder lives post the tenure of the Policy, then he / she gets the Maturity Benefit e:

Basic Sum Assured + accrued Simple Reversionary Bonus + Final Addition Bonus

Also, the policy continues to offer Life Coverage to the Insured person for the rest of his / her life.

  • Demise Advantage: In case of demise of the policy holder prior to the termination of the Policy Term, the Death Benefit will include:

Sum Assured on Death + accrued Simple Reversionary Bonus + Final Addition Bonus

The same will be paid to the nominee as Death Benefit and the policy will be terminated.

  • Sum Assured on Death: It is defined as higher of 125% of the Basic Sum Assured or ten times the yearly Premium. This death benefit must not be less than 105% of all the premiums paid by the death date.
  • Post Policy Term: Just the Basic Sum Assured will be paid as a Death Benefit whenever the Insured dies and the policy gets concluded from then on.

 

For Instance: – Vishal has taken New Jeevan Anand Policy for Rs.10,00,000 /- for a period of twenty one years. In case of his demise, his nominee will be paid 125% of the Basic Sum Assured or ten times of the annual Premium (whichever is higher). As in this case the Basic Sum Assured is Rs. 10,00,000, so, 125% of BSA 10,00,000 X 125/100 = 12,50,000 . Assuming that, Vishal paid the Premium for just 5 Years and died, taking Annual Premium as 50,000, then ten times of 50,000 is Rs. 5,00,000/-. As in this case 12, 50,000 is greater than 5, 00,000, the Nominee will get 12, 50,000 as the Death Benefit.

Contribution in Profits:

The policy will contribute in profits of the Corporation and will be entitled to accept easy Reversionary Bonuses stated according to the experience of the Corporation, given that the policy is in full force.

Final (Additional) Bonus can also be affirmed under the policy in the year when the policy results in a claim either by the instance of death or maturity, given that the policy has completed a certain minimum term.

Easy Reversionary Bonus – It is affirmed per thousand Sum Assured every year at the end of Easy Reversionary Bonus each financial year. Once affirmed, they form part of the guaranteed advantages of the plan.

Policy Loan:

Loan can be taken under the policy offered, if the policy has acquired a surrender value, subject to the terms and conditions as the company may specifies in due course.

Optional Benefit:

LIC’s Accidental Death and Disability Benefit Rider: you can avail a voluntary rider by paying additional premium. In case of accidental death, the Accident Benefit Sum Assured shall be payable as a lump sum amount with the death benefit under the basic plan. In case of accidental permanent disability due to accident (within 180 days from the date of accident), an amount equivalent to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over a decade and future premiums for Accident Benefit Sum Assured as well as premiums for the part of Basic Sum Assured which is equivalent to Accident Benefit Sum Assured under the policy, will be waived.

Eligibility Conditions and other Restrictions:

Minimum Maximum
o   Age at entry 18 Years (Completed) 50 Years (Nearest birthday)
o   Age at maturity 75 Years (Nearest birthday)
o   Policy Term 15 Years 35 Years
o   Basic Sum Assured Rs.1,00,000/- No Limit
o   Premium Payment Term (in years) Equal to Policy Term Equal to Policy Term
o   Rider benefit –Sum Assured Rs.1,00,000/- Rs.50,00,000/-
o   Rider benefit – Age at entry 18 Years (Completed) 70 Years (Nearer birthday)
o   Rider benefit – Age at Cover ceasing 70 Years(Nearest birthday)
o   Payment modes Yearly, Half-yearly, Quarterly and Monthly (ECS&SSS)

 

Other Relevant Information:

  1. Renewal:

In case the premium is not paid within the grace period, then the policy will lapse. If you wish to renew the policy, it can be revived within a period of two consecutive years from the date of 1st unpaid premium and prior to the maturity date.

If you opt for Revival of rider(s), then it will be taken in mind along with renewal of the Basic Policy, and not in seclusion.

  1. Paid-up Value:

In case you have paid the full premium of 3 years and any not duly paid the subsequent premiums, this policy will not be completely void, but will carry on as a paid-up policy. The Basic Sum Assured under the policy will be decreased to a sum, called Paid-up Sum Assured.

Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.

  1. Surrender Value:

If you have completely paid 3 years premium, then the policy can be surrendered for cash. In such a case, the Guaranteed Surrender value must be a % of the total premiums paid (net of service tax), exclusive of the additional premiums and premiums for riders (if opted for).

For more details please go through the given below official link of LIC of India,

Click here for Lic New Jeevan Anand Plan

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