LIC Jeevan Anand: Popular Choice For Both Protection And Savings
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Insurance
oi-Kuntala Sarkar
LIC Jeevan Anand is a non-linked policy that will offer you both financial protection and savings for the future. The reason behind the popularity of this particular plan is the policy will provide ‘financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his or her survival.’ The minimum age of entry is 18 years completed and the maximum age of entry is 50 years under this plan. The minimum policy term is 15 years, while the maximum policy term is 35 years. The maximum age of maturity of the LIC Jeevan Anand policy is 75 years.
Basic policy benefits of LIC Jeevan Anand
At the time of policy maturity, provided all the premiums have been paid, LIC will pay the Sum Assured on Maturity along with vested Simple Reversionary Bonuses. The sum assured on maturity under this policy will be an equal amount to the basic sum assured.
Death benefits are the attractive and significant benefits of the LIC Jeevan Anand policy, and many senior Indians are signing up for this plan. Death benefit which is the sum of sum assured on death and vested Simple Reversionary Bonuses will be paid by LIC, provided all due premiums have been paid by the investor. According to this policy, the sum assured on death will be 125% of the basic sum assured or 10 times the annualized premium. However, the death benefit of the policyholder will not be any less than 105% of all the premiums paid till the date of death. In case the policyholder dies at any time after the policy term, the basic sum assured and vested Simple Reversionary Bonuses will be paid by LIC in a lump sum on survival to the end of the policy term. The policyholder should certainly be cleared with all due premiums. In both of the cases Final (Additional) Bonus will also be paid, if taken any.
Calculation of sum assured and benefits
The minimum basic sum assured under this endowment policy is Rs. 1 lakh with no maximum limit, but that will depend on the policyholder’s income. The below calculation has been done considering the policyholder’s age at 50 years and the policy term at 15 years. Premiums can be paid yearly, half-yearly, quarterly and monthly in this policy.
| Basic Sum Assured (INR) | Death Sum Assured | 1st year premium (4.5% tax) | Premium from 2nd year (2.25% tax) | Total approximate return at the time of maturity | Life time risk cover |
|---|---|---|---|---|---|
| 200000 | 250000 | 19906 | 19478 | 318000 | 200000 |
| 500000 | 625000 | 49244 | 48183 | 795000 | 500000 |
| 1000000 | 1250000 | 97965 | 95855 | 1590000 | 1000000 |
The calculation is done by Goodreturns.in through the ALL IN ONE CALC mobile app.
Additional policy benefits
Along with the above-mentioned benefits, LIC will also offer some optional benefits with the plan, like Accidental Death and Disability Benefit Rider. The policyholder can avail of it by paying an additional premium during the policy term. If the policyholder dies accidentally during his/her policy term running, the Accident Benefit Sum Assured will be paid by LIC as lumpsum along with the death benefit under the basic plan. Otherwise, if the policyholder becomes disabled due to an accident (within 180 days from the date of accident), LIC will pay him/her an amount equal to the Accident Benefit Sum Assured in equal monthly installments for 10 years. Along with this, the future premiums will also be waived due to the disability. Also under the Critical Illness Benefit Rider, specified 15 critical illnesses are covered that a policyholder can avail, but the ‘benefit rider should not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together should not exceed 30% of premiums under the base plan’.
You can also take a loan under the policy provided at least two full years’ premiums have been paid. Premium paid under this plan is eligible for tax rebate under section 80c and maturity under this plan is free under section 10(10D).
Story first published: Friday, September 24, 2021, 18:30 [IST]
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