LIC Jeevan Anand Policy

Jeevan Anand is a life endowment plan that comes with a multitude of benefits for the policyholders throughout the term period. As per the plan, the insurance cover continues even after completion of the premium payment term. In the event of death of an individual due to an accident, the plan offers an additional cover sum which is capped at Rs.5 lakhs. But in case the accident leaves a policyholder with permanent disability, the plan takes care of the regular financial needs by paying the sum assured in installments. These additional benefits offered under LIC Jeevan Anand do not impose extra charges on the premium amount.

Prime features of LIC Jeevan Anand Plan:

  • It’s a traditional endowment policy which offers sum assured and additional bonuses
  • On survival, the maturity benefits are paid to the policyholder and the plan continues to be in force
  • In the event of policyholder’s death, the sum assured is paid to the nominee
  • Additional top-up covers are available on payment of a nominal sum along with premium
  • This Life Insurance Policy Provides financial protection throughout the lifetime of the person insured
  • Offers a lump sum at the end of the chosen term period
  • The policy participates in the profits of the corporation

Table of Features:

Minimum entry age 18 years
Maximum entry age 50 years
Premium payment modes Yearly, Half-Yearly, Quarterly, Monthly (only through ECS)
Policy term 15 to 35 years
Basic sum assured Rs.1,00,000
Revival Within 2 years
Rebate
  • 2% for yearly
  • 1% for half-yearly
  • None for quarterly
Loan eligibility After 3 years of entry
Surrender Eligible only after 3 years of full premium payments
Bonuses Simple reversionary bonuses plus additional bonuses
Death benefit
  • Sum assured and accrued bonuses are paid to the nominee.
  • The plan continues to be in force
Maturity benefits
  • Payable to policyholder after the maturity period
  • Includes basic sum assured and bonuses accrued from time to time
Sum assured on death The sum assured on death of the policyholder is:
  • 125% of the basic sum assured
  • 10 times the annualized premium subject to a minimum of 105% of the total premiums paid
Riders
  • LIC’s Accidental Death Benefit Rider
  • Disability Benefit Rider
Premium discounts Available on higher sum assured and yearly and half-yearly premiums
Tax benefits Available under Section 80C and Section 10 (10 D) of the Income Tax Act
Switching of policy Not allowed

Documents Required for Jeevan Anand Policy:

A duly filled form along with the following documents are to be submitted at the time of application:

  • Proof of residence
  • Age proof
  • KYC documents such as copy of Aadhaar card, PAN card, etc.
  • Medical test reports
  • Other necessary documents specified by LIC

Documents Required for Making Death Claims:

To make a death claim, the nominee shall have to produce the following documents along with the claim form:

  • Original policy documents
  • Documents pertaining to riders
  • Bank account details
  • Death certificate
  • Treatment records of the policyholder (if any)

Illustration of Benefits:

Let’s consider the following details for illustration of how the Jeevan Anand policy works:

Age of the policyholder: 25 years

Policy Term: 25 years

Yearly Premium: Rs.21,472

Total Premium Paid: Rs.5,36,800

Year of purchase: 2014

Scenario 1:

Let’s assume that the policyholder survives the policy term, in which case the benefits will be paid as under:

Year of maturity 2039
Age at maturity 50 years
Sum Assured Rs.5,00,000
Bonus additions Rs.8,00,000 (approx.)
Total amount payable Rs.13,00,000

Scenario 2:

If the individual expires before completion of the policy term, his nominee will be eligible for 125% of the Sum Assured, reversionary bonuses, and final additional bonuses. If the individual dies due to an accident, then additional benefits equal to the minimum sum assured is added to the claim amount. The below table illustrates the approximate values of sum assured and associated accidental life cover:

Year of Premium Payment Total Premiums Paid Life Cover (approx) Accidental Cover (approx)
1st year Rs.21,472 Rs.6,10,000 Rs.11,30,000
5th year Rs.1,07,360 Rs.7,50,000 Rs.12,60,000
10th year Rs.2,14,720 Rs.9,00,000 Rs.14,00,000
15th year Rs.3,22,080 Rs.10,52,000 Rs.15,50,000
20th year Rs.4,29,440 Rs.12,63,125 Rs.17,70,000
25th year Rs.5,36,800 Rs.15,80,000 Rs.20,00,000

Free Look Period:

The look in period is a provision whereby customers can cancel the policy within a specific time after its purchase. Jeevan Anand policy provides a free look period of 15 days, provided no claims have been made by the policyholder.

Surrender Benefits:

The policy attains its surrender value only after completion of 3 full premium years. The amount paid to the policyholder while surrendering the policy will be a percentage of the total premiums paid, and it will be exclusive of the premiums for riders. However, the guaranteed surrender value will be inclusive of simple reversionary bonuses.

Grace Period:

The policy allows a grace period of 30 days for payment of outstanding premium amount, after which the policy will lapse. But it can be revived within 2 years from the date of last unpaid premium by clearing all dues and applicable penalty charges.

Exclusions:

If the policyholder commits suicide within 12 months of commencement of the plan, then LIC is not liable to pay any of the assured benefits. But the nominees will be paid a sum equal to 80% of the premiums paid. In case policyholder commits suicide after completion of 1 year from the date of policy inception, then the beneficiary will receive a sum higher than 80% of the premiums paid.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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