LIC Jeevan Anand Plan

LIC’s Jeevan Anand Plan is a traditional savings plan which not only covers the insured for the chosen policy term, but the life cover continues after the completion of the policy term till the entire life of the insured. The plan also earns bonuses during the plan term. Thus, the plan is an Endowment cum Whole Life Insurance Plan.

In case of death due to an accident before the age of 70, the nominee will be paid an additional cover amount. This additional accidental death benefit is capped at Rs. 5 lakhs. In case of permanent disability due to an accident, this additional cover amount is paid in installments. No extra premiums need to be paid for these 2 additional benefits.

Additionally, you can avail a Critical Illness rider by paying an extra premium.

LIC Jeevan Anand was launched on 1st Feb 2002 and was discontinued on 30th September 2013. It has been replaced with a similar plan with better features.

Key Features

Maturity Benefit is Sum Assured + accrued Bonus and the Life Cover continues till death

Simple Reversionary Bonus is payable on maturity or earlier death.

Death Benefit after Policy Maturity is only Sum Assured

Death Benefit before Policy Maturity is Sum Assured + accrued Bonus

Accidental Death and Disability Benefit is an inbuilt feature in this plan

Optional higher cover through 1 additional rider of Critical Illness Benefit.

This plan can be provided to people with hazardous occupations with additional premium

How it works

The policyholder chooses the Cover Amount (Sum Assured) and the Term of the plan when buying the policy. If the insured survives the entire chosen term of the plan, the chosen Sum Assured and the Accumulated Bonuses are paid on maturity. The plan then continues and the policyholder does not have to pay any premiums. When the policyholder dies, the Sum Assured is again paid to the nominee.

If the insured dies during the plan's term, the Sum Assured and the Accumulated Bonuses would be paid and the plan would be terminated.

We will explain the working of Jeevan Anand with an example: Suppose Arun who is 35 years old buys a Jeevan Anand policy of Rs. 1 lakh (Sum Assured) for 25 years (Term). His annual premium would be Rs. 4,535

Scenario 1 – Arun dies in the 15th year of the policy
In this case, the Sum Assured of Rs. 1 lakhs and accumulated bonuses till the date of death would be paid and the plan would terminate. The bonus is declared every year by LIC. Check the LIC Jeevan Anand Bonus rates which are declared every year.

Scenario 2 – Arun survives till the end of the policy term.
In this case, the Sum Assured of Rs. 1 lakhs and the accumulated bonus till maturity would be paid to Arun and the risk cover under the plan would continue. Later, whenever Arun dies, the Sum Assured of Rs. 1 lakh would again be paid to his nominee.
You can use the LIC Jeevan Anand Maturity Calculator below to check the total amount he would get on maturity.

So, the plan benefits are as follows:

• Maturity Benefit –When the plan term expires and the insured is alive, the Sum Assured and any accumulated bonuses are paid.
• Death Benefit – The death benefit depends on the year in which the insured dies:
  • If the insured dies within the policy term, the Sum Assured and accumulated bonuses are paid.
  • If the insured dies after the completion of the plan term when the Maturity Benefit is already been paid, the Sum Assured is paid.

  Tax Benefit

  Premiums paid – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. The maximum exemption that can be availed is Rs. 1.5 lakhs.
  Claims Amount – Maturity or death claims received would be tax-free under Section 10(10D) of the Income Tax Act. There is no limit on the amount of claim received and the entire claim would be tax-free.

  Eligibility

  Minimum	Maximum
  Sum Assured (in Rs.)	1,00,000	No Limit
  Policy Term (in years)	5	57
  Premium Payment Term (in years)	5	57
  Entry Age of Policyholder (last birthday)	18 years	65 years
  Age at Maturity (last birthday)	-	75
  Single Premium (in Rs.)	NA	NA
  Payment modes	Yearly, Half-yearly, Quarterly, Monthly

  FAQs

  I have missed my policy renewal last year by mistake can my Jeevan Anand policy be revived now?

  Yes, a lapsed policy can be revived if the revival is done within 2 years of policy lapsing. The outstanding premium and any applicable interest for the lapsed period would have to be paid to the company for such revival.

  Can I switch to a term plan after 5 years in LIC Jeevan Anand?

  No, the policy does not allow switching. Once bought it should be continued for the chosen duration. If premiums are stopped, the policy would lapse.

  Can I take loan in against my Jeevan Anand policy?

  Yes, loans are allowed under the plan. Loans are allowed only if the plan acquires a surrender value as the limit of loan allowed depends on the Surrender Value acquired by the policy.

  If I add the Critical Illness Rider to my Jeevan Anand Policy and do not suffer any illness, would I get the rider benefit on death or maturity?

  No. Rider benefits are contingent on the happening of the event against which the rider has been taken. If you are not diagnosed with any illness covered by the rider during the plan tenure, you would get no additional rider benefits either on death or maturity.

  What happens when you stop paying the LIC Jeevan Anand Premiums?

  Grace Period – Premium is required to be paid regularly on every due date. In case the premium is not paid by the due date, a grace period is allowed for payment of the outstanding premium. This period is equivalent to 30 days for policies where annual; half-yearly or quarterly mode of premium payment is selected. In the case of the monthly mode of premium payments, 15 days is allowed as the grace period.

  Paid–up Value – If the premium is not paid even during the grace period, the policy lapses. If at least the first 3 years’ premiums have been paid, the policy is liable to acquire a paid-up value that is equal to the Sum Assured reduced in proportion to the total premiums paid against the actual number of premiums payable. The accumulated bonus is also added to this reduced Sum Assured to arrive at the Paid-up Value. Future bonuses will not be applicable for a Paid-up Policy and on death or maturity this paid-up value is paid out.

  Surrender Value - If the policyholder wants, he can surrender his policy and avail the Surrender Value. The Surrender Value is applicable only if the first 3 years’ premiums are paid under the policy. On surrender, a higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is payable which is calculated as follows:

  • Guaranteed Surrender Value = 30% of total premiums paid –the premium of the first year
  • Special Surrender Value would be fixed by the company based on its future performance.

  Revival – A policy that has been lapsed and continues on a paid-up basis can be revived. This revival can be done within 2 years of the first unpaid premium. To revive the policy, the outstanding premium along with any interest as applicable is payable.