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If an individual is searching for an endowment plan which offers the advantages for an entire life policy, then LIC Jeevan Anand is one of the best possible options to choose from. The new LIC Jeevan Anand policy offers a special bonus facility. It is a kind of Double Death Benefit Plan which guarantees the agreed sum assured if an insured person survives till the very end of the maturity period. This arrangement includes a high reward rate, a normal premium and even more phenomenal liquidity features.
The LIC New Jeevan Anand is a participating life insurance policy which offers a double benefit of protecting as well as the savings. This plan offers financial protection in case of the death of the insured individual and also offers lumpsum amount in the case of the survival of the individual at the end of the policy term. It is considered to be one of the most popular endowment plans from the Life Insurance Corporation of India.
The Key Features of LIC New Jeevan Anand plans are as follows:
The LIC Jeevan Anand is a traditional participating whole life endowment policy plan.
This plan offers an option of the regular premium payment to the insured individual.
On survival at the end of the LIC plan term, the benefit on the maturity is given to the insurance holder and the life cover continues to remain in force.
The Death Benefit: In the case of the death of an insured person, the assured amount is paid to the entitled nominee.
LIC's Accidental Death and Disability Benefit Rider is available by making the payment of a nominal premium amount.
The LIC New Jeevan Anand Plan offers tax exemption on the amount of premium paid under Section 80C and the claim amounts i.e. Death or Maturity Benefit under Section 10(10D) of the Income Tax Act, 1961.
The LIC policy offers a double benefit in terms of financial protection in the case of the death of a policyholder as well as the benefits of savings on survival.
The Death benefit- In case of death of the insured during the policy term, the Sum that is assured on the death along with the reversionary bonus and the final additional bonus (if any) would be paid as a death benefit to the nominee.
On death of policyholder at any time after policy term, only the agreed Basic Sum Assured is paid.
The Maturity benefit- The LIC Jeevan Anand plan qualifies for the Maturity benefit that would be paid out at the time of the end of the policy term by considering all the premiums which have been paid fully. The Sum assured along with the reversionary bonus and the final additional bonus, if any would be paid as the maturity benefit.
The flexibility of operation- This plan offers individuals the flexibility of paying the premiums either monthly, quarterly, biannually or annually
The Eligibility Criteria for the LIC's New Jeevan Anand policy are as follows-
|Minimum Basic Sum Assured||Rs. 100,000|
|Maximum Basic Sum Assured|
(The Basic Sum Assured shall be in multiples of Rs. 5000/-)
|Minimum Age at entry||18 years (completed)|
|Maximum Age at entry||50 years (nearest birthday)|
|Maximum Maturity Age||75 years (nearest birthday)|
|Minimum Policy Term||15 years|
|Maximum Policy Term||35 years|
Let us consider one example of Mr. Vijay, a 26-year-old IT professional who opts for the LIC’s New Jeevan Anand plan having a sum assured of the amount of Rs. 5,00,000 for a policy term that is of 21 years. Let us assume that Vijay will be paying the yearly premium amount of Rs. 27, 454. In the case that Vijay survives the policy period, then he will receive a maturity benefit of the amount of Rs.11,02,000. In case if Mr. Vijay passes away before the end of the policy, then his nominee would receive 125% of the entire sum assured, as well as various other bonuses as applicable.
This LIC plan provides riders in the form of the LIC’s Accidental Death and Disability benefit. One may avail such an optional rider by paying an additional premium for it during the policy process. The Accident benefit sum assured benefit would be paid in the case of death due to an accident occurring during the policy period. In case of a permanent disability because of the accident, an amount equivalent to the Accident benefit sum assured would be paid, but in the form of monthly installments.
The documents that are necessary to be insured under the insurance plan are all subject to the sum assured amount that is chosen and the premiums that are paid for it. Below mentioned are some of the primary documents that are required for an individual to get insured under the plan:
Claim on death - The entitled nominee must present the claims form and the original policy documents as given by LIC. Additionally, the nominee must be required to provide all the details and the applicable documents, such as the bank account details, the death certificate, the medical treatment details before death, etc.
Claims on maturity - the individual insurance holder has to provide a filled claim form that is attached to the original policy documents, in the name of a policyholder. Additionally, the individual policyholder has to give bank account details for NEFT transfer of the maturity amount.
Surrender claims - The insurance holder has to give the filled claim form that is attached along with the original policy document, in the name of a policyholder, along with the bank details for the NEFT transfer of the surrender benefits as applicable.
Grace Period: A grace period of 30 days is given for the purpose of the payment of the due premiums. If the individual fails to pay the premium during the grace period also, then the policy will lapse. But, the insurance holder is given an opportunity to revive his policy within a tenure of 2 years beginning from the due date of the first unpaid premium.
Surrender Benefit or Policy Termination: On the completion of the 3 policy years, the policy can be surrendered. Even, the insurance plan offers loan advantages where the insurance holder can get a loan against the policy.
In a case where the policyholder commits suicide within 12 months of the inception of the policy, then 80% of the amount of the premiums paid till the date of suicide will be returned to the nominee. In case of the death of the investor after the plan revival, an amount between 80% of the premiums paid till the date or the acquired surrender amount will be paid, whichever is higher.
Is New Jeevan Anand a good policy?
Yes, it is a good policy. It has dual benefits of saving as well as protection against life uncertainties.
Is LIC New Jeevan Anand maturity amount taxable?
No. The LIC Jeevan Anand policy provides tax benefit to the insured individuals on the premium paid as well as on the claims that are received. This tax benefit is available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Are riders available under the new Jeevan Anand plan?
Yes, LIC’s Accidental Death and Disability benefit Rider can be attached to the base plan. One may avail such an optional rider by paying an additional premium for it during the policy process. The Accident benefit sum assured benefit would be paid in case of death due to an accident occurring during the policy period. In case of a permanent disability because of the accident, then an amount equivalent to the Accident benefit sum assured would be paid, but in the form of monthly installments.
How much bonus is there under this plan?
The bonus rate declared under various plans of LIC depends upon the profits generated by the corporation. One can see the bonus rates applicable for various plans by visiting the following link licindia.in/Customer-Services/Bonus-Information.aspx
Does the plan provide a loan facility?
Yes, this LIC insurance plan offers loan advantages where the insurance holder can get a loan against the policy.
Can an NRI avail LIC New Jeevan Anand Plan?
Yes, the Foreign Exchange Management Act (FEMA) allows NRIs to avail life insurance plans in India.
Can the plan be forfeited by the company?
Yes, this can happen if it is found that any condition is contravened or any incorrect statement is contained in the proposal or any other statements or any information is withheld. In such instances, the policy shall become void and all claims will be subject to the provisions of Section 45 of the Insurance Act, 1938.
How can a nominee file a death claim?
To file a death claim, the nominee is required to submit the claim form along with other required documents like the original policy, proof of death, proof of title, among others.
How can the life assured make a maturity claim or surrender the policy?
For the purpose of making a maturity claim or surrendering the policy, the life assured needs to submit the discharge form with the original policy document and NEFT mandate for direct credit of the claim to the bank account.
Can the policy be dated back?
Yes, the policy can be dated back within the same financial year.