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LIC NEW JEEVAN ANAND

LIC New Jeevan Anand Plan – Plan Number 815

LIC New Jeevan Anand Plan is one of the top rated Endowment plans in the market. This is a participating endowment plan which has a guaranteed Sum assured and gets a Simple Reversionary Bonus every year. Lets see some Key features and review about this plan.

LIC New Jeevan Anand Plan – Features

  • This is a Regular premium Endowment Plan – You have to invest every year till the policy term.
  • You can choose the Term Between 15 to 35
  • Age Category 18 to 50

MATURITY BENEFIT:

  • This plan participates in the profit of LIC every year.
  • The Maturity benefit is SUM ASSURED+BONUS declared till date of maturity. ( The plan matures at the end of maturity but the death benefit continues till death).
  • The plan continues even after maturity. Death benefit is payable till age 99.

DEATH BENEFIT

1)    If death before Maturity,Death Benefit is SUM ASSURED+ BONUS declared till date of death.

2)   If Death After Maturity, SUM ASSURED is paid.

  • Optional rider available- Accidental Death and Disability Benefit Rider

LIC New Jeevan Anand Plan – Review

What is the Net Return you get from this plan?

For understanding the net returns of this plan, we calculated with age as 18 and Sum assured or Rs. 1000000.  We got the following results in two scenarios.

Example 1: Plan- LIC New Jeevan Anand Plan

AGE18
SUM ASSUREDRs 1000000
TERM35 YEARS
PREMIUM*Rs 26057

Here in the Above case, the policy gave a Maturity Benefit of Rs.26,80,000 which gave a IRR of 5.37%( Assumed at Rs.48/1000* as Simple reversionary Bonus and No terminal Bonus was added).  Total Invested to Returns Ratio is 2.93 Times

Example 2: Plan- LIC New Jeevan Anand Plan

AGE18
SUM ASSUREDRs 1000000
TERM15 YEARS
PREMIUM*Rs 73979

Here in the Above case, the policy gave a Maturity Benefit of Rs.16,00,000 which gave a IRR of 4.45%( Assumed at Rs.40/1000* as Simple reversionary Bonus and No terminal Bonus was added).  Total Invested to Returns Ratio is 1.44 Times

* indicates the Bonus declared for this plan for the year 2013-14.

Is the Return on LIC New Jeevan Anand plan is guaranteed when buying the plan?

No. Since this is a participating endowment plan, the returns of this plan depends on LIC’s profit and Bonus declaration each year. The Initial Guaranteed Amount is Sum Assured only. Each year bonus declared by LIC will be added to the Guaranteed amount. LIC has declared bonus for this plan for the past 10 years continously.However to enjoy the full benefit of this plan you have to complete the full policy term as taken initially.

Bonus Declared For LIC Jeevan Anand Plan for the year 2013-14 is as below.

LIC NEW JEEVAN ANAND PLAN BONUS FOR 2013-14
POLICY TERMBONUS(PER THOUSAND SUM ASSURED)
537
5 t0 10 YEAR                             37
11 TO 15 YEARS40
16 TO 20 YEARS44
20 + YEARS48

what is the Flexibility\Liquidity of this plan?

This plan can be surrendered any time after paying first three years of premium. However surrender value may be much lower when surrendered before maturity. Both sum assured and Bonus declared will be paid at an reduced value if surrendered before maturity.

Do you have tax benefits for this plan?

YES. LIC New Jeevan Anand Plan is a regular premium payment policy, you can enjoy both the tax benefits of 80c and 10(10d). So you can claim exemption for the premium paid towards Section 80c and the maturity amount can be fully exempted under Section 10(10d).

Waytoinsurance score:

4.21/5

Why you should Buy LIC New Jeevan Anand Plan?

  1. More than 10 times risk coverage
  2. Safer investment and rider options available.
  3. Death Benefit payable after policy term.
  4. Have a good Bonus declaration in the past
  5. Tax Benefits of 80c and 10(10d).

Why you shouldn’t Buy LIC New Jeevan Anand Plan?

  1. The IRR is lesser and may not beat inflation in longer term.
  2. Only Sum assured is Guaranteed
  3. Lesser liquidity options.
  4. Surrender Value is Very less.
  5. other savings plans are providing better returns.(NSC, KVP and Sukanya Samruddhi Schemes)

**Disclaimer:

This post on LIC New Jeevan Anand Plan is just a review of what the plan offers to the customers. We aim at educating ins and outs of this plan. We are trying to simplify the product and make it easy to understand. The Returns provided in this post are for Illustrative purpose only and are Not Guaranteed.  The waytoinsurance score is given by our own metrics of calculation and are no way related to the performance of this plan. All these details are derived from the below links.

http://www.licindia.in/new_jeevan_anand_benefits.html

http://www.licindia.in/pages/Bonus2014Annex.pdf

you can have a complete and detailed features and illustrations of this plan in the above link.y

 

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