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Yogi Zone

Useful articles for your finance management by our team of experts

jeevan anand details best lic policy

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Jeevan Anand is a combination of Whole Life plan and the most popular Endowment plan. The plan provides the pre-decided Sum Assured and Bonuses at the end of the stipulated Premium Paying Term (PPT), but the risk cover on the life continues till death. Premiums are usually payable for premium payment term selected at inception of the policy. This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be used for Retirement planning, Vacation planning or Asset creation planning during the balance time period of his life or in any other way considered suitable at that time.

 

The primary purpose of whole life plan is protection; however it has many features that make it a good place to put your money – and one that can be the foundation of a diversified investment portfolio. Unfortunately, life insurance is always seen by us in other way. The risks that have been taken because of the popularization of equity and mutual funds mostly went down in value, but there was only one asset class that went up, which were the participating endowment plans.

Benefits under Jeevan Anand policy

Maturity Benefit1). Sum Assured

plus

2). Accrued Bonus

plus

3). Final Addition Bonus if any

·

(Paid only after premium payment term)

Death Benefit1). Before the end of the policy term:-

Sum Assured + Accrued Bonus and

2). After the policy term whenever the life Insured dies:-

Sum Assured

Additional Protection1). Accidental Death and Disability Benefit

as an inbuilt riders

2).

Critical Illness

as an optional rider

Tax Benefit1).

Section 80 (C) -  Premium paid are exempted from tax

2).

Section 10 (10D) – Maturity proceeds are exempted from tax

The scheme also provides for an additional Accidental Benefit where an additional sum assured (subject to a maximum of Rs 5 lakh) is payable to the nominee in the event of the death of the policyholder due to accident, up to 70 years of age. In case of permanent disability of the policyholder due to accident, this additional sum assured shall be paid in installments.

Who can take this policy- Eligibility Criterion?

 MinimumMaximum
Entry Age18 years65 years
Maturity Age-75 years
Policy Term5 years57 years
Premium Paying Term5 years57 years
Sum Assured1,00,000No Limit
Payment ModesYearly, Half-Yearly, Quarterly, Monthly and SSS

Other options available under Jeevan Anand

Non- Payment of premium:

If it happens within in first 3 policy years, the policy will lapse without any value. After 3 completed policy years, the policy acquires a Paid-Up Value for a Proportionately Reduced Sum Assured.

 

Surrender Option:

The policy may be surrendered after it has been in force at least 3 years. There is a Guaranteed Surrender Value after 3 completed policy years i.e., 30% of all premiums paid – 1st year’s premium and any extra.

 

Loan:

You can avail Loan facility which is available under this policy after 3 completed policy years.

Sample Illustration of Jeevan Anand policy

Age and Gender35 years Male
Premium Paying Term25 years
Annual PremiumRs. 4,535
Total Premium PaidRs.1,13,375
Sum AssuredRs.1,00,000
Additional Cover -RiderAccidental Death Benefit
Guaranteed Death Benefit During PPTRs.1,00,000 plus accrued bonus
Total Survival Benefit (at the rate 6%p.a )Rs. 1,41,500

Bonus declared under Jeevan Anand

Premium Paying Term2010-112009-102008-09
Up

to 10 years

3.6%3.4%3.4%
11 to 15 years3.9%3.7%3.7%
16 to 20 years4.3%4.1%4.1%
21 & above years4.7%4.5%4.5%

These rates are per 1,000 of sum assured like Rs.36/1,000 of sum assured i.e., Rs.3,600 during 2010-11 for 10 years policy, if sum assured is Rs.1,00,000.

 

Merits of Jeevan Anand policy

  • Protection for your family against uncertainties of life like death, disability and diseases

  • Dual Protection with two Sum Assured

  • Can help during your retirement to enhance your pension amount

Demerits of Jeevan Anand policy

  • Low Return

  • High Surrender Charges

  • Low Liquidity

 

At the end, I would say any Whole Life Insurance Plan should be used as an extra life cover in your life. It should NOT be the primary long term solution for your life insurance needs. And it is very vital to have an adequate life cover due to day to day uncertainties in our life. LIC has a few policies similar to Jeevan Anand, hence it may not be get the distinction of being the “Best LIC Policy in India”.

For latest updates on LIC policies, visit www.licindia.in

 

Would be happy to hear your views, please share!!!

About the Author:

Gaurav Gahlout is an Insurance Trainer and CFP with great interest in the field of personal finance. He can be reached at

expert@investmentyogi.com

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  • RAJA ANWAR Hussain

    Hi suresh,

    I have a Jeevan Tarang Policy of 5.0L (Term 15 years, Annual Premium Rs. 34361.00, already Paid Five (5) Premium).
    If I surrender now i am getting Rs.1,26,000 amount I enquired at LIC Branch.
    Shall I make it Paid up policy and invest the premium amount (Rs. 34361.00) in PPF or shall I continue to pay full term premium.

    Please advice.
    Regards,
    Hussain

    • Av Suresh

      This one, like other LIC policies has failed to generate returns for investors. You can make it paid up or even surrender it totally and use the lumpsum amount to invest in other good products.

  • R KUMARI

    Earn upto 48% by investing
    in LIC, save Income Tax on Salary, save TDS on Bank FD/MOD Bal/Auto Swipe. also
    save Income Tax/TDS on money back/maturity. Call/mail for details/special
    cashback offers, if interested. Mob 8102810104 licrashmikumari1405@gmail.com

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