About LIC Jeevan Anand
The Jeevan Anand Plan from LIC is one of the top endowment plans offered by the insurance giant. It is a non-linked endowment plan that offers an attractive combination of protection and savings.
This plan provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of a lump sum amount to the nominee.
This plan also has a survival benefit; the holder of the plan gets the sum assured on the maturity of the plan. Also, this plan takes care of all the liquidity needs through its loan facility.
Being a Participating Whole Life Endowment Plan it has various advantages. As you can get a hint from its name, this plan covers the policyholder till the end of his days, even when the maturity date of the plan has been passed. Thus, Jeevan Anand is a perfect blend of an endowment plan and a whole life plan.
Searching various plans for various needs is a tedious and time-consuming process; it is also confusing for many. If you are on the hunt of searching an ideal Endowment plan for you that is equipped advantages of an entire Life policy then LIC Jeevan Anand stands out as a perfect plan for you.
This plan is a buffet and offers protection of an aggregate amount and also the reward that comes along after the maturity period.
Other Details of LIC’s Jeevan Anand Plan
Jeevan Anand is a traditional savings plan which offers both death and maturity benefits. Unlike the Term Insurance Plan, nothing is payable by the company if you survive the maturity period.
Under a Term Insurance Plan or Pure Life Insurance Plan as it is called, your family members or your nominees gets the benefits or financial protection if you die within the term period of the policy.
The plan also earns you bonuses during the term of the plan. That is why this plan is also named as Endowment cum Whole Life Insurance Plan. If you die before the age of 70, your nominee shall be paid an additional cover amount up to a cap of 5 lacs.
Cases where there is permanent disability due to an accident, this additional amount is paid in installments. The additional premium shall not be payable for availing both the above-mentioned benefits.
Also, critical illness can be availed by you, if you pay an extra premium.
Key Features of LIC Jeevan Anand:-
- Jeevan Anand is a traditional participating whole life Endowment Plan.
- The plan provides options of both lump-sum payment and periodic payment to the ensured.
- Upon surviving the maturity period of the plan, the insurance holder is provided the maturity benefit and the plan continues.
- Death Benefit-Upon unfortunate death within the policy term, the nominee of the policyholder is paid a lump sum amount.
- An exciting feature of this plan is that it can be awarded to people with hazardous occupation upon the payment of extra premium.
- Reversionary bonus is payable on maturity of the plan or early death.
- This plan offers dual tax benefits. You get a tax rebate on the premium paid under Section 80C and also all the proceeds from the insurance company in case of maturity or death are exempt from income tax under Section 10(10)D.
Simple Reversionary Benefits:-
As this plan is a participating Endowment Plan, by participating in the profit of the company, all the simple reversionary bonuses are accumulated. Also, an additional bonus is declared according to the experience of the company and is paid to you.
The Working of Jeevan Anand Plan
In the initial phase, the policyholder decides the Cover Amount (sum assured) and Term of the plan. As described above, if the policyholder survives the entire term as chosen by him or her, the chosen sum assured along with Accumulated Bonuses over the years is paid to him as Maturity Benefits.
The Plan continues in full force but the insured is not liable to pay any further premiums. Upon the death of the insured, the Sum assured is again paid to the surviving to the nominee.
If the policyholder dies during the currency of the plan, the Sum Assured and Accumulated Benefits would be paid and the plan shall be terminated.
Let us understand this with the help of an illustration:-
Rishabh is a 35 years old businessman. He buys a LIC Jeevan Anand Policy of INR 1Lac (Sum Assured). The term of the plan is 25 years. Accordingly, his premium would be INR 4,535.
Rishabh dies in the 15th year of the policy. In this scenario, Sum Assured along with the Accumulated Bonuses till his death would be paid and the plan gets terminated. (The Annual Bonus payable at the end of the year can be checked at LIC company website.
Rishabh survives the whole policy term. In this scenario, Sum Assured of 1lac along with Accumulated Bonuses till maturity would be received by Rishabh and the financial cover for death shall continue. Later, whenever Rishabh expires, the Sum Assured of 1 Lac would again be paid by LIC to his chosen nominee or nominees.
You can calculate the total amount payable on maturity by using LIC Jeevan Anand Maturity Calculator.
Thus, here we can summarize the benefits of the plan as follows:
- Maturity Benefit: In this case, when the term of the plan expires and the insured is alive, the Sum Assured along with the Accumulated Bonuses shall be paid.
- Death Benefit: In this case, if the insured dies within the currency of the plan, the Sum Assured along with the Accumulated Bonuses shall be paid to the nominee and the plan terminates then and there. If the insured dies after the completion of the plan term and Maturity Benefit has already been paid by LIC, the company shall again pay the Sum Assured to the nominee.
Eligibility Criterion to Enter this Plan:
- The maximum entry age is 50 years.
- The minimum entry age is 18 years.
- Minimum Sum Assured is 1 Lac.
- No limit for maximum Sum Assured under this policy.
- The minimum term of the policy is 15 years.
- The maximum term of the policy is 35 years.
- The maximum age for the plan to mature is 75 years.
Tax Implication of the Policy:
The LIC Jeevan Anand Plan has dual tax benefits for the insured individuals. Whatever is the amount of premium they are paying is deductible from the Taxable Income under Section 80C of the Income Tax Act of India.
Moreover, all the proceeds or claim amount whether on maturity or death of the insured shall be totally exempt from Income Tax under 10(10)D of the Income Tax of India.
The Claim Process
Claim on Death: the entitled nominee would have to present the original policy documents along with the claims form to LIC. Apart from these two things, a nominee also has to provide other details and applicable documents like Bank Account details, Medical treatment details, Hospital bills, Death certificate, etc.
Claims on Maturity: the policyholder or the insured, in this case, has to provide the claim form duly filled attached with the original policy documents to LIC. Apart from this, the policyholder has to provide bank account details for any NEFT transfer of the claimed amount.
Claims on Surrender of Policy: the insured is entitled to give filled claim form attached with original policy document along with bank account details for any NEFT transfer of surrender claims. Surrender of Policy is a crucial feature that requires your utmost attention when you are buying the policy. Technically, the term, ‘Surrender’ here means the premature termination or closure of the purchased plan. In case of surrender, whatever amount is payable by the insurance company to the insured is called ‘Surrender Value.’
Under LIC Jeevan Anand Policy, you become eligible for the Surrender Value after paying the due premium for the first three years.
Loan Facility Under LIC Jeevan Anand Policy:
You can avail loans under the Jeevan Anand Policy, if you have paid all the due premiums for the first three years or in another word, if you have achieved or attained the Surrender Value status then you are eligible to get a loan against this policy.
The maximum loan that you can avail against this policy is ninety percent of the Surrender Value.
Other Features of LIC:
- Premium Calculator: Through the official website of LIC, you can compare the premiums of various plans before making a purchase.
- Host of Policies: LIC offers a plethora of individual Life Insurance Plans, Group Insurance Plans and surprisingly, Health Insurance Plans also.
- Online Purchase of Policies: LIC is progressing with the advancement in technology. In recent years, it has launched many online policies which you can purchase online without the intervention of any agent.
Paid-Up Feature Of The Policy
Once you have paid all the due premiums of the first three years of the term of the policy, and you decide to stop paying further premiums, under any circumstance, it automatically becomes eligible for paid-up option.
In this case, where the policy becomes paid-up, the benefits of the policy, both under death and maturity claims, get reduced by a factor of Total number of Premiums paid\Total number of Premiums to be paid.
Grace Period, Lapse and Revival Aspects
The Grace Period available under this policy is 30 days for Yearly, Half Yearly, and Quarterly modes and 15 days if you opt for monthly mode from the due date of premium payment. For example, if a yearly premium is due on 10th April, then the policyholder has the grace period till 10th March to deposit the premium without getting the policy lapsed.
Any failure in depositing the premium including the grace period causes policy lapse.
In a situation where the policy gets lapsed, it can be revived if you pay the due premium along with the applicable late fee within 2 years from the first unpaid premium.
Cooling Off Period Option
The Cooling-off period also called Free Lookup Period is of 15 days under this policy that is you can return the purchased policy within 15 days of receiving the policy documents from LIC.
The premium paid by you is refunded after deduction of proportionate premium, cost of medical tests and other clerical charges, etc.