LIC: Jeevan Anand

Introduction:

Jeevan Anand (Plan No 915) is one of the most profitable LIC policies. LIC Jeevan Anand Policy is established by the Life Insurance Corporation (LIC) of India. It is a participating non-linked funding plan. It offers a combination of protection and savings which implies that your money will remain safe and you will receive a lump sum of money as promised. On top of that, this plan brings additional benefit to viewing your financial security in case you expire before the conclusion of the policy.

Key features of LIC Jeevan Anand:

Below are some salient features which are reflected by Jeevan Anand Policy-

1. You can pay the premiums as long as the policy is in existence
2. For additional profit, you can add an optional rider benefit
3. This policy lets you receive simple reversionary bonuses and a final additional bonus is also paid on maturity or death
4. You can avail loans under this policy which delivers you liquidity if you want funds

Eligibility benchmarks for Jeevan Anand Policy:

Eligibility benchmarks for Jeevan Anand are rehearsed as follows:

● Sum secured: Minimum 1 lakh and Maximum value is not restricted.

● Policy period (in years): Minimum policy term is 15 and the maximum policy term is 35 years.

● Age of access: Minimum eligible age is 18 years (completed)
Maximum eligible age is- 50years

● Policy revival: Within 2 years

● The loan can be avail: After 3 years

● Utmost maturity age: 75 years (nearest birthday)

● Premium amount: It solely depends on your age, the sum assured and the term

● Premium paying regularity: Either annually, half-yearly, quarterly, or monthly

● Who can avail this policy: Indian residents as well as non-Indian residents

How does LIC Jeevan Anand Policy work?

You must get acquainted with two terms (Sum assured and policy terms) beforehand. You have the full liberty to choose the amount of money which you want to invest in your LIC Anand plan. The minimum age boundary for applying is 18 years and the maximum maturity age is 75 years. Sum assured is the lump sum of money you will receive after the investment. Coverage or the sum assured will commence from 1 lakh to up to any amount you want.

Once your policy tenure surpasses the initial 3 years, you can avail for loans. If you survive till your policy exists, then you will receive maturity benefit at the end. If you expire before the policy ends, then your nominee will receive a lump sum of additional sum assured called a death benefit.

You can receive your maturity benefits in instalments. Instalments period can be 5 or 10 or 15 years. Before 3 months of the due date of maturity claim, you have to notify. This claim is valid if and only if you survive throughout the existence of your policy.

Benefits of LIC Jeevan Anand Policy:

Under this policy, you can get access to so many benefits.

1. The death benefit or Sum assured on death: It is the amount paid to your nominee in case you expire unexpectedly during the tenure of the policy. Your nominee will receive an amount of sum assured (125% of the actual sum assured), vested simple reversionary bonus (bonus is taken in account from the date of commencement of the policy till your date of death ) with the final additional bonus (if any). The sum assured on death is either 10 times of the annual premium or 125% of the sum assured, whichever is greater. The policy is terminated after your death and no more premium is required to compensate. Your nominee can also get the death benefits in instalments.
Suppose, you claim for this policy and you continue to pay till its maturity. Then after the maturity of the policy, the total handsome of money will be paid to you. If you expire after the maturity of the policy, then apart from maturity benefit (which is already paid to you), the sum assured will be paid to your nominee.

2. Maturity benefit or Sum assured on maturity: When you survive the entire tenure of the policy then a basic sum assured along with the simple reversionary bonus and the final additional bonus (if any) is paid to you as maturity benefit after the completion of the policy.

3. Profit participation or bonus: The plan proclaims a bonus if LIC earns profits in a financial year. The bonus includes a reversionary bonus and a final additional bonus. The reversionary bonus is added to your sum assured and the final additional bonus is paid at the time maturity or during releasing the payment of death benefit.

4. Loans: You can avail for loans if and only if you pay all the premiums in the initial three years of the policy. You can also discontinue or surrender your policy after two years and

5. Discounts on premium: You can get access to two types of discounts. If you pay annually, then you can avail for 2% discounts and for half-yearly, it’s 1%.

Riders benefits proposed by LIC Jeevan Anand Policy:

If you want to widen the coverage of your existing policy, then you can avail Rider benefits.

1. Accidental death: In case of your unexpected demise, your nominee will receive a specified amount of sum will be paid to your nominee along with the death benefit. You have to pay an additional premium at the beginning itself if you want to avail for an accidental death benefit.

2. Disability: If you meet with an accident then in case of your disability, a rider sum assured will be paid to you in monthly instalments for the subsequent 10 years and upcoming premiums are also waived off.

3. Accidental benefit rider: The accidental death benefit (sum assured) will be paid to your nominee within the upcoming 6 months (180 days) from the date of the accident in case of your sudden demise.

Keywords you must know:

1. Revival: You will get a concession for two years if you are unable to pay the premiums for a duration. You will get a revival period of 2 years starting from the day of lapse. You have to pay all the unpaid premiums combined with interest and remaining charges.

2. Loan: You can avail for loans if you have paid all the premiums in the first three years after the commencement of the policy.

3. Paid-up value: Paid-up value gets reduced when your future premiums are waived off. If you pay all the premiums at least for the initial 3 years, then the policy amasses paid-up value.

4. Policy surrender: It reflects that you can terminate the policy at any point if your policy has amassed a paid-up value. Policy surrender is the sum assured to you when you want to put an end to the policy.

5. Grace period: In case of monthly payments, it’s 15 days and in case of yearly, half-yearly and quarterly payments, it’s 30 days.

Tax implications:

Under Section 80C, the premiums paid under it are exempted from tax and considered as a tax-free deduction. You can avail for maximum reduction of 1.5 lakhs. Under Section 10 (10D), the maturity benefit and death claim are freed from taxes.

Exclusions under this policy:

If you comment suicide within 12 months after the commencement of the policy, then 80% of the premiums paid would be refunded to your nominee.