LIC New Jeevan Anand is a participating non linked life insurance policy that offers the double benefit of protection and savings.The plan offers financial protection in case of death of the insured and also provides a lumpsum amount in case of survival at the end of the term policy. It is one of the most sold endowment plans from Life Insurance Corporation.
Eligibility Criteria for LIC's New Jeevan Anand
|Minimum age at entry||18 years|
|Maximum age at entry||50 years|
|Minimum sum assured||Rs. 10,00,000|
|Maximum sum assured||No limit on the maximum basic sum assured|
|Minimum policy term||15 years|
|Maximum policy term||35 years|
|Maximum maturity age||75 years|
Key Features of LIC's New Jeevan Anand
|Type||Participating non linked life insurance policy|
|Premium payment terms||Equal to chosen policy term|
|Policy term||Minimum 15 years and Maximum 35 years|
|Maturity benefit||Sum assured on death + Vested Reversionary bonus + Final additional bonus|
|Mode of premium payment||Annually, bi annually, quarterly, monthly|
|Free look period||15 days from the date of receipt of the policy|
|Grace period||15 days for monthly mode and 30 days for all other modes|
|Sum assured||Minimum sum assured is Rs. 10,000|
|Surrender value||The policy can be surrendered for cash given that the premium has been paid for three whole years. The surrender value to be paid will be a percentage of the total premiums paid.|
|Loan facility||Loan can be availed only if the policy has acquired a surrender value|
|Lapse of policy||The policy will lapse if premiums are not paid in due time|
|Policy revival||A lapsed policy can be revived within two years from the date of first unpaid premium|
Benefits and Advantages of LIC's New Jeevan Anand
Listed below are the important benefits and advantages of LIC’s New Jeevan Anand policy.
- The policy offers the double benefit of financial protection in case of death of the policyholder and savings.
- Death benefit- Sum assured on death along with reversionary bonus and final additional bonus(if any) will be paid as death benefit to the nominee in case of unfortunate death of the policyholder.
- Maturity benefit- The plan qualifies for Maturity benefit which will be paid at the end of policy term considering all the premiums have been paid in full. Sum assured along with reversionary bonus and final additional bonus will be paid as maturity benefit.
- Convenience- The plan can be purchased online with no hassles.
- Flexibility-The plan offers the flexibility of paying premiums monthly, quarterly, biannually or annually depending on what the customer is comfortable with.
How does the Plan Work?
Let’s consider the example of Mr. Arjun, a 26 year old professional who opts for LIC’s New Jeevan Anand plan with a sum assured of Rs. 5,00,000 for a policy term of 21 years. Let’s assume Arjun will be paying an yearly premium of Rs. 27, 454.In case Arjun survives the policy, he will get a maturity benefit of Rs.11,02,000. If Mr. Arjun passes away before the termination of the policy, his nominee will receive 125% of the sum assured along with various bonuses.
The plan offers riders in the form of LIC’s Accidental Death and Disability benefit rider. One can avail this optional rider by paying additional premium during the policy term. Accident benefit sum assured benefit will be paid in case of death due to accident during the policy term. In case of permanent disability due to the accident, an amount equal to the Accident benefit sum assured will be paid but in monthly installments.