One can define LIC new Jeevan Anand (Plan No. 915) as a participating non-linked plan that involves a combination of saving and protection plan. This means it will not only give protection against death but will also act as savings which the policyholder will get after the policy term expires in case he or she survives.
In addition to the loan facility, it also looks after the liquidity requirement of the policyholder. So, on an overall basis, you can say it is an insurance policy cum traditional saving method.
Best features of the Plan No. 915
LIC New Jeevan Anand is a double death benefit plan that gives you endowment and whole life policy benefit along with a bonus facility. The policy has a high bonus rate, average premium and other great features. They are as follows:
- Here you will get an option of a regular premium to the insured.
- The plan is a traditional participating whole life endowment plan.
- Death benefit: If the insured dies, the Sum assured will be credited to his entitled nominee.
- On survival of the insured, the company will pay the maturity amount to the insurance holder at the end of the term plan, and the plan continues.
- Under Section 80C and 10(10D) of the Income Tax Act, LIC New Jeevan Anand plan also offers tax exemption on the premium paid and claim settlement.
- Added top-up covers as a rider is enjoyed on payment of nominal premium value.
Benefits of LIC New Jeevan Anand policy (Plan No. 915)
Suppose the insured survives, and the policy term matures, then a basic sum assured along with a simple reversionary bonus or the accrued bonus will be credited to the insured as maturity benefit. This is after the expiry of the whole policy year.
The amount payable to the policyholder when policy matures= Basic sum assured + accrued bonuses
For example, if the policyholder is 35 years old and invest an amount of INR 25 lakh in LIC New Jeevan Anand plan, the following will be the return:
|Different parameters||LIC New Jeevan Anand (Policy No:915)|
|Return rate or ROR||3.56percent|
|Total maturity amount||INR 40.66 lakhs|
|Year in which you get the amount||25th year|
Suppose the insured person passes by, the beneficiary of the plan will get the total sum amount along with accrued bonuses, and the policy will continue to be in force.
The amount payable to nominee= Sum assured on death + Accrued Bonuses, plus the plan will continue.
Sum assured on the demise of insured is defined as higher of:
- 125percent of the Basic Sum assured in accordance to policy terms
- Subject to a min. of 105percent of the total premium payable as on death date
- Ten times the annualized premium
- After the insured’s demise, the Basic Sum assured is paid to the nominee as a death benefit, and the plan terminates.
Simple Reversionary bonuses
LIC Jeevan new Anand Policy accumulates simple reversionary bonuses by participating in the company profit, and the final accrued bonus is declared based on the company experience. The amount of simple reversionary bonus is given to the policyholder along with a basic Sum assured at the policy’s maturity or at the time of death.
The plan offers insurance holder tax benefit under section 80C and 10(10D) of the Income-tax Act at the time of premium paid, and the claims received.
Disability and accidental death benefit
The plan also offers the insured person additional coverage against accidental death and disability rider benefit. People can buy this rider benefit in addition to their basic coverage. Under the benefit, the nominee of the plan receives an extra sum of money along with the Basic Sum assured in case of accidental death of the insured person. However, in partial or total disability, the plan offers the benefit in equal time intervals.
Discounted premiums: Annually or semi-annually premium payment and for high Sum assured chosen.
Documents required to apply for the plan
It usually depends on the amount chosen to be assured and the premium paid for it, that what documents will be required for you to submit. However, below are the basic documents that a person applying for the plan is asked to submit to be insured:
- Address proof
- Medical History
- Age Proof
- Correctly filled proposal form or application form
- KYC documents: Aadhar Card, PAN card, Tax details, etc.
- Medical Diagnostic reports as asked.
- How much bonus is received under the plan?
The bonus amount is not fixed. Instead, it will depend on the insurance company’s performance and will be paid only if the insurance company makes any profit in the respective financial year.
- Is LIC new Jeevan Anand policy beneficial?
Yes, in fact, it has the dual benefit of protection against life uncertainty and saving.
- Can I switch to some other term plan after five years in this plan?
No, you cannot switch. Once you buy it, it will continue to be in force for the chosen duration. Also, if the premium stops, the LIC policy would lapse.
- What bonus will I get under the policy?
The plan offers a simple reversionary bonus at the end of every year till the policy is in force. So, when the policy matures, a final bonus along with vested bonuses are paid to the insurance holder.
- What is the different premium paying duration available under this plan?
LIC New Jeevan Anand plan allows the insured to enjoy premium mode monthly, quarterly, semi-annually or yearly.
- Explain the grace period under LIC New Jeevan Anand policy
It generally depends on the premium paying mode. If you choose the monthly category, the grace period is 15 days. For other premium modes, it is 30 days.
- What do you mean by the Cooling-off period?
The cooling-off period is given to you in case of second thoughts. It is a period of 15 days in which you can choose to cancel the policy and get the refund back of the premium paid.
- Is there any loan facility available with the plan?
Yes, the policyholder is liable to take a loan if they have paid the first three premiums and the surrender value of the plan is also acquired.
- Can I date back policy?
Yes, you can date back the plan within the same financial year. However, a charge will be applicable at the end of the term plan as per the condition given.
- Can an NRI take this policy?
Yes, as per FEMA, even an NRI can avail LIC new Jeevan Anand policy plan in India.