Summary of LIC New Jeevan Anand Plan – Table No. 915
LIC’s New Jeevan Anand Plan (915) is a traditional savings cum and insurance protection plan. This plan is eligible to receive a bonus. The risk coverage under this plan continues even after the policy term and the death benefit is paid even if the insured dies after the completion of the policy term.
|Plan Name||LIC New Jeevan Anand|
|Plan Details||Plan No. 915|
|Launch Date||01st February, 2020|
Key Features of LIC New Jeevan Anand Plan – Table No. 915
The policyholder chooses the Sum Assured and the Term of the plan when buying the policy. Based on the age of the insured, sum assured and the policy term selected, the premium is determined. The policyholder is required to pay premiums for the entire duration of the policy term.
If the insured survives till the end of the policy term and all premiums have been paid, a Maturity Benefit would be paid to the policyholder. Maturity benefit would be equal to the Sum Assured + Bonus Amounts which have been received throughout the policy term + any Final Addition Bonus if declared. Now whenever the death of the policyholder happens (even after the policy term), the nominee will additionally get the Sum Assured amount as the Death Benefit.
However, if the insured dies during the policy term, then Death Benefit would be payable to the nominee which would be as follows: the Sum Assured on Death + Vested Bonus till the date of death + any Final Addition Bonus.
The Sum Assured on Death will be as follows: Higher of 125% of the Basic Sum Assured or 10 times the annual premiums paid subject to a minimum of 105% of total premiums paid till death.
Benefits of LIC New Jeevan Anand Plan – Table No. 915
- Maturity Benefit – On maturity, the Basic Sum Assured + accrued bonuses + any Final Bonus is paid to the policyholder.
- Death Benefit – The death benefit depends on the period when death occurs.
- If death occurs during the plan tenure, the Sum Assured on Death + vested bonuses + any Final Bonus is paid to the nominee.
- If death occurs after the plan term, the Basic Sum Assured is paid in addition to the Maturity Benefit already paid.
The Sum Assured on Death is higher of the following:
- 125% of the Basic Sum Assured
- 7 times the annual premium
Subject to a minimum of 105% of the total premiums paid till death.
- Bonus – Depending on the performance of the company, simple reversionary bonuses are declared under the plan. A Final Bonus might also be paid with the maturity or death benefit.
Tax Benefits of LIC New Jeevan Anand Plan (915)
Premiums – 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. To claim this exemption, the premium should be restricted to 10% of the Sum Assured selected.
Maturity Claim – Any amount received on plan maturity is exempt from taxation under Section 10(10D). To claim this exemption, the Sum Assured should be at least 10 times the premium amount paid.
Death Claim – Death claims received under the plan are free from taxation under Section 10(10D). There is no maximum limit on exemptions of death claims.
Documents required for buying the LIC New Jeevan Anand Plan (915)
To buy LIC’s New Jeevan Anand Plan, one has to submit the following documents:
- Plan Proposal Form duly filled in and signed
- Cheque or cash for the first premium
- A passport-sized photograph
- A valid Identity Proof
- A valid Address Proof
- Date of Birth Proof
- Vaccination certificate
LIC New Jeevan Anand Plan Example
Example – Naveen, aged 35 years, buys LIC’s New Jeevan Anand Plan.
Sum Assured = Rs. 5 lakhs
Policy term = 20 years.
Annual Premium for the 1st year – Rs. 30,492 at 4.5% GST
Annual Premium 2nd year onwards – Rs. 29,836 at 2.25% GST
The premium would be payable for the entire duration of 20 years.
Simple Reversionary Bonus declared every year = Rs. 45 per 1000 Sum Assured. That means a bonus of 45 x (5,00,000/1,000) = Rs. 22,500 every year. Please note that there is no guarantee that this same bonus rate will be applicable – it could be higher or lower every year.
Final Addition Bonus* = Rs. 70 per 1000 Sum Assured. That means a Final Addition Bonus of 70 x (5,00,000/1,000) = Rs. 35,000 when the policy ends.
*It varies according to the Sum Assured and the Term of your policy
Scenario 1 – Naveen survives till the end of the policy tenure,
In this case, the Sum Assured of Rs. 5 lakhs would be paid along with the simple reversionary bonuses and any Final Bonus declared by the company.
He gets: Sum Assured + Bonuses declared for 20 years + Final Addition Bonus if declared. That means he gets the Maturity Amount of Rs. 5,00,000 + (Rs. 22,500 x 20) + Rs. 35,000 = Rs. 9,85,000
Also as and when he dies even after the policy term, his nominee will also be eligible to receive the Sum Assured of Rs. 5,00,000
Scenario 2 – Naveen dies in the 17th year of the plan
Here, Naveen’s nominee would get the Sum Assured on Death along with the vested bonus and any Final Bonus. The Sum Assured on death would be higher of 125% of the Basic Sum Assured or 7 times the annual premiums paid subject to a minimum of 105% of total premiums paid till death. So,
125% of the Basic Sum Assured = 125% of Rs. 5 lakhs = Rs. 625,000
7 times the annual premium = (30,492 x 7) = Rs. 213,444
105% of all premiums paid = 105% x (30,492 x 17) = Rs. 544,282.
Therefore, the Sum Assured on Death would be the highest of the above options = Rs. 625,000
His Nominee gets: Death Benefits Payable = Rs. 6,25,000 + Rs. (22,500 x 17) + Rs. 35,000 = Rs. 10,42,500
Other Optional Benefits of LIC New Jeevan Anand Policy
- Optional Accidental Death and Disability Benefit Rider which can be taken for a minimum Sum Assured of Rs.1 lakh and a maximum of Rs.1 crore by individuals aged between 18 years to 70 years.
- The plan offers two types of premium rebates. First, the high Sum Assured rebate which offers a rebate of 1.50% to 3% if the Sum Assured is Rs.2 lakhs and above. The second rebate offered is for paying the premium in annual or half-yearly mode. For annual mode, the rebate is 2% of the tabular premium while for the half-yearly mode the rebate is 1%.
- Policyholders can avail of a loan under the plan if they have paid at least the first 2 years’ premiums and the plan has acquired a Surrender Value.
- The plan pays simple reversionary bonuses for every year the policy is in force. On death during the plan tenure or on maturity, a Final Bonus might also be paid in addition to the vested bonuses. The rate of bonus is not fixed. It varies depending on the performance of the insurer and is paid only if the insurer makes a profit in any financial year.
Eligibility condition of LIC New Jeevan Anand Policy
|Sum Assured||Rs. 1,00,000||No Limit|
|Premium Payment Term||5 years||57 years|
|Policy Term||15 years||35 years|
|Age at Entry||18 years||50 years|
|Age at End of Premium Payment Term||75 years|
|Premium Payment Modes||Yearly, Half-Yearly, Quarterly, Monthly|
Other conditions in LIC New Jeevan Anand
Paid-up Value – If the policyholder has paid the first two years’ premiums and future premiums have not been paid, the policy becomes a paid-up policy. The Basic Sum Assured under the plan is reduced in proportion to the number of premiums paid against the total number of premiums payable. Future bonuses are not added and on death or maturity, the reduced Sum Assured along with the vested bonuses is paid.
Surrender Value – If the policyholder wants, he can surrender his policy and avail the Surrender Value. The policy acquires a Surrender Value only if the first two years’ premiums have been paid. Higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is paid on surrendering the plan. GSV and SSV are calculated as follows:
GSV = (total premiums paid* GSV Factor) + (vested bonus * GSV factor of Bonus)
SSV is declared by the company based on its performance.
Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
If you have any questions on this plan, please comment below and we would be happy to help.