Comprehensive life insurance plan that provides financial protection to the policyholder and their family, while also helping them save for their future.
LIC Jeevan Anand is a popular life insurance policy offered by the Life Insurance Corporation of India (LIC). It is a non-linked, participating, endowment plan that offers both protection and savings benefits to the policyholder.
Under this plan, the policyholder is covered for the entire duration of their life. In case of the policyholder’s unfortunate demise during the policy term, the sum assured and accrued bonuses (if any) are paid to the nominee. On the other hand, if the policyholder survives the policy term, a maturity benefit is paid to them, which includes the sum assured and any bonuses that may have been accrued.
In addition to the death and maturity benefits, LIC Jeevan Anand also offers the option of taking a loan against the policy and surrendering it for a cash value. The policyholder may also choose to receive the maturity benefit in installments instead of a lump sum.
Key Features of LIC Jeevan Anand Plan
- Dual benefit: The policy offers both protection and savings benefits to the policyholder. In case of the policyholder’s unfortunate demise during the policy term, the sum assured and accrued bonuses (if any) are paid to the nominee. On the other hand, if the policyholder survives the policy term, a maturity benefit is paid to them, which includes the sum assured and any bonuses that may have been accrued. Also policyholder is covered for whole life even after the maturity of policy.
- Policy term: The policy term for LIC Jeevan Anand ranges from 15 to 35 years, depending on the age of the policyholder.
- Premium payment options: The policyholder can choose to pay the premium for the policy on an annual, half-yearly, quarterly, or monthly basis.
- Sum assured: The minimum sum assured for the policy is Rs. 1 lakh, with no upper limit on the maximum sum assured.
- Bonus: The policy participates in the profits of the Corporation and is entitled to receive bonuses declared by LIC. These bonuses are paid out at the end of the policy term or in case of death of the policyholder.
- Loan facility: The policyholder can avail of a loan against the policy after it has acquired a surrender value.
- Surrender value: The policy can be surrendered for a cash value after it has acquired a surrender value, subject to certain conditions.
- Tax benefits: The policyholder can avail of tax benefits under Section 80C of the Income Tax Act, 1961, for the premium paid towards the policy. The proceeds received from the policy are also tax-free under Section 10(10D) of the Income Tax Act, 1961.
Illustration of Benefits:
To demonstrate how the Jeevan Anand policy works?, we can examine the following particulars:
Age of the policyholder: 25 years
Policy Term and premium payment term: 25 years
Yearly Premium: Rs.41,443 + GST
Total Premium Paid in 25 years: Rs.10,36,075
Year of purchase: 2023
Scenario 1:
Assuming that the policyholder outlives the policy term, the benefits will be disbursed as follows:
| Year of maturity | 2048 |
| Policyholders Age at maturity | 50 years |
| Sum Assured | Rs.10,00,000 |
| Bonus additions | Rs.16,00,000 (approx.) It is important to note that this is an estimate and the actual bonus may be different from this, depending on the performance of the insurance company. |
| Total amount payable | Rs.26,00,000 |
LIC Jeevan Anand Maturity Benefit Illustration
Scenario 2:
In the event of the policyholder’s death before the completion of the policy term, their nominee will receive 125% of the Sum Assured, along with reversionary bonuses and final additional bonuses. If the policyholder’s death is caused by an accident, an additional benefit equivalent to the minimum sum assured is added to the claim amount. The table below provides an approximate representation of the sum assured and the corresponding accidental life cover:
| Year of Premium Payment | Total Premiums Paid | Life Cover (approx) | Accidental Cover (approx) |
| 1st year | Rs.41.443 | Rs. 12,96,000 | Rs. 22,96,000 |
| 5th year | Rs.207215 | Rs. 14,80,000 | Rs. 24,80,000 |
| 10th year | Rs.414430 | Rs. 17,10,000 | Rs. 27,10,000 |
| 15th year | Rs.621645 | Rs. 19,60,000 | Rs. 29,60,000 |
| 20th year | Rs.828860 | Rs. 22,40,000 | Rs. 32,40,000 |
| 25th year | Rs.1036075 | Rs. 28,50,000 | Rs. 38,50,000 |
Jeevan Anand Natural Life Coverage and the corresponding accidental life cover
Frequently Asked Questions about LIC Jeevan Anand plan
What are the documents Required to buy Jeevan Anand Policy?
At the time of applying for the policy, the applicant must submit a completed proposal form along with the following documents:
1. Proof of residence
2. Proof of age
3. KYC documents such as a copy of Aadhaar card, PAN card, etc.
4. Medical test reports
5. Other relevant documents as specified by LIC.
How to file death claim in LIC ?
In order to make a death claim, the nominee must provide the following documents, in addition to the claim form:
1. Original policy documents
2. Documents related to any riders
3. Bank account details
4. Death certificate
5. Treatment records of the policyholder, if available.
NRI’s are eligible for LIC Jeevan Anand policy?
Yes, NRI’s are eligible to buy the policy. The New Jeevan Anand plan (formerly known as LIC plan 149) offered by the Life Insurance Corporation of India is available for purchase at any time for NRI. According to Indian laws, non-residents of India are also eligible to purchase insurance plans from Indian insurance companies, provided they submit the necessary documents and a completed registration form. Once LIC verifies all the required information, the buyer will receive a confirmation within 15 to 20 working days.
Is the maturity amount taxable?
One of the key advantages of LIC’s New Jeevan Anand Policy is that it qualifies for tax exemptions upon maturity. This policy is eligible for tax benefits under both Section 80C and Section 10 (10D) of the Income Tax Act, 1961.
How is maturity calculated in LIC New Jeevan Anand?
If the policyholder survives the entire duration of the policy, they will receive the basic sum assured amount and any accrued bonus or simple reversionary bonus as a maturity benefit payout.