LIC Jeevan Anand: A Comprehensive Guide Life Insurance Corporation of India (LIC) is synonymous with trust and reliability when it comes to life insurance in India. Among its vast range of products, LIC Jeevan Anand stands out as one of the most popular and versatile plans. This endowment plan, launched by LIC, offers the dual benefits of insurance and investment. It provides financial protection against death throughout the lifetime of the policyholder, along with a lump sum payout on survival at the end of the policy term. In this article, we will dive deep into the details of the LIC Jeevan Anand policy, its features, benefits, and why it is regarded as one of LIC’s flagship insurance products.

What is LIC Jeevan Anand?

LIC Jeevan Anand is a non-linked, participating, life insurance-cum-saving plan. It is essentially a combination of an endowment and a whole-life plan. Unlike most insurance plans, which provide either maturity benefits or death benefits, LIC Jeevan Anand offers both. The policyholder enjoys the benefits of a lump sum amount on policy maturity, and life coverage continues even after the policy term expires, thus ensuring financial security for the family in case of untimely death.

Key Features of LIC Jeevan Anand

1. Dual Benefits: LIC Jeevan Anand offers both death and maturity benefits. If the policyholder survives the policy term, they receive the maturity benefit along with bonuses. However, life cover continues even after the policy term ends, ensuring lifelong protection.
2. Bonus Participation: As a participating policy, Jeevan Anand allows policyholders to receive a portion of LIC’s profits in the form of bonuses. These bonuses are declared every year, enhancing the overall returns on the policy.
3. Whole Life Cover: Even after the policy matures and the policyholder receives the maturity benefits, the life insurance cover continues for the rest of their life. Upon the policyholder’s death, the nominee will receive an additional death benefit.
4. Flexible Premium Payment: The policyholder can choose from multiple premium payment options such as yearly, half-yearly, quarterly, or monthly, according to their convenience.
5. Loan Facility: Once the policy acquires a surrender value, the policyholder can avail of a loan against the policy. This adds liquidity to the plan, making it useful for those who might need funds in times of emergency.
6. Tax Benefits: LIC Jeevan Anand offers tax deductions under Section 80C of the Income Tax Act for premiums paid. Additionally, the maturity and death benefits are exempt from tax under Section 10(10D), provided certain conditions are met.

Eligibility Criteria for LIC Jeevan Anand

• Minimum Entry Age: 18 years
• Maximum Entry Age: 50 years
• Minimum Sum Assured: ₹1,00,000
• Maximum Sum Assured: No limit
• Policy Term: 15 to 35 years
• Premium Payment Term: Same as the policy term
• Maximum Maturity Age: 75 years

Maturity Benefit

The maturity benefit is a significant aspect of LIC Jeevan Anand, as it offers a lump sum payout at the end of the policy term. Upon survival, the policyholder is entitled to receive:

• Basic Sum Assured: This is the sum assured chosen at the time of policy purchase.
• Accrued Bonuses: These include simple reversionary bonuses and possibly a final additional bonus, depending on the performance of LIC and the policy tenure.

For example, if you opt for a sum assured of ₹5,00,000 and your policy participates in LIC’s bonuses, you will receive the basic sum assured plus the accrued bonuses at the end of the policy term.

Death Benefit

LIC Jeevan Anand ensures that the policyholder’s family is financially secure in the event of the policyholder’s death. The death benefit differs during and after the policy term.

1. During the Policy Term: In case of the policyholder’s death during the policy term, the nominee will receive:
   • Sum Assured on Death: This is either 125% of the basic sum assured or 10 times the annual premium, whichever is higher.
   • Bonuses: Accrued bonuses up to the date of death, including any final additional bonus if applicable.
   This ensures that the nominee gets a substantial amount in case of an unfortunate event.
2. After the Policy Term: Once the policy matures and the maturity benefit has been paid, the life cover continues. In the event of the policyholder’s death after maturity, the nominee will receive the basic sum assured as the death benefit.

Bonus Structure

Being a participating policy, LIC Jeevan Anand participates in LIC’s profit distribution. LIC declares two types of bonuses for participating policies like Jeevan Anand:

• Simple Reversionary Bonus: This is declared every year and is added to the policy’s sum assured. However, this bonus is payable only on death or maturity.
• Final Additional Bonus (FAB): FAB is a one-time bonus payable along with the maturity or death benefit. It is usually declared for policies that have been in force for a long time.

Optional Riders

LIC Jeevan Anand allows policyholders to enhance their coverage by adding optional riders at an additional premium. These riders include:

1. LIC Accidental Death and Disability Benefit Rider: This rider ensures that the nominee receives an additional sum in case of the policyholder’s accidental death. In the event of disability due to an accident, future premiums are waived, and the policyholder receives regular payments.
2. LIC New Term Assurance Rider: This provides additional death coverage to the policyholder during the policy term.

Advantages of LIC Jeevan Anand

1. Whole Life Coverage: One of the major advantages of LIC Jeevan Anand is the continued life cover even after maturity, ensuring lifelong protection.
2. Wealth Creation: The policy acts as a savings plan as well. At the end of the policy term, the policyholder receives a lump sum payout, including bonuses, making it a great tool for wealth creation.
3. Loan Facility: Policyholders can avail of a loan against the policy, which adds flexibility and ensures liquidity.
4. Tax Benefits: The policy offers tax deductions on premiums under Section 80C and tax-free maturity proceeds under Section 10(10D).
5. Bonus Payouts: As a participating plan, Jeevan Anand enhances the policyholder’s returns by providing yearly bonuses.

Limitations of LIC Jeevan Anand

1. Moderate Returns: While the bonuses add to the overall returns, LIC Jeevan Anand is primarily an insurance plan. The returns may not match those offered by pure investment instruments like mutual funds or stocks.
2. Premium Payment Commitment: The policyholder needs to pay premiums throughout the policy term, which can be a long commitment.
3. Surrender Value: If the policyholder decides to surrender the policy prematurely, the surrender value might not be very lucrative, especially in the initial years.

Who Should Buy LIC Jeevan Anand?

LIC Jeevan Anand is ideal for individuals looking for a combination of life cover and savings. It suits those who want lifelong protection along with a lump sum maturity benefit for future financial needs like children’s education, marriage, or retirement. It is particularly beneficial for those who:

• Want an insurance plan that continues even after maturity.
• Seek financial protection for their family and a savings corpus for the future.
• Prefer a policy with a bonus structure that increases their returns over time.

Conclusion

LIC Jeevan Anand is a versatile life insurance plan that offers a unique combination of lifelong protection and savings. Its whole life coverage, coupled with bonuses, makes it an attractive choice for those looking for both financial security and wealth creation. While the returns may not be as high as pure investment products, the lifelong protection and reliability of LIC make it a solid choice for risk-averse individuals seeking stable, long-term returns with a safety net for their families.