LIC Jeevan Anand is one of the most popular life insurance plans
LIC Jeevan Anand is one of the most popular life insurance plans offered by Life Insurance Corporation of India (LIC). It is a combination of an endowment plan and a whole life plan, providing both insurance coverage and savings benefits. This plan offers financial protection to the policyholder's family in case of their unfortunate demise and also provides a maturity benefit if the policyholder survives the policy term.
Key Features of LIC Jeevan Anand:
- Dual Benefit: The plan provides both a death benefit and a maturity benefit, making it an attractive option for individuals seeking financial security for their loved ones and a savings component for their own future.
- Flexible Premium Payment: Policyholders have the flexibility to choose the premium payment term, ranging from 5 to 57 years, depending on their age at entry. The minimum age of entry for this plan is 18 years, while the maximum age is 50 years.
- Policy Term: The policy term can be selected between 15 to 35 years. The policy continues as a whole life plan even after the completion of the selected policy term.
- Death Benefit: In the unfortunate event of the policyholder's demise during the policy term, the nominee receives the Sum Assured on Death along with accrued bonuses, if any.
- Maturity Benefit: If the policyholder survives the policy term, they are entitled to receive the Sum Assured on Maturity along with any accrued bonuses.
- Bonus: The plan participates in the profits of LIC and earns bonuses, which are declared annually. These bonuses are added to the policy and paid out at the time of maturity or death, increasing the overall payout.
Mathematical Calculation: Let's consider an example to illustrate the calculation of the benefits under LIC Jeevan Anand. Suppose Mr. Kumar, aged 30 years, opts for a policy term of 25 years and chooses a Sum Assured of Rs. 10,00,000. The premium payment term is 20 years.
Premium Calculation: The premium for the policy depends on the age of the policyholder, the policy term, the Sum Assured, and other factors. For this example, let's assume the annual premium for Mr. Kumar is Rs. 40,000.
Total Premium Paid: The total premium paid over the premium payment term of 20 years would be: Total Premium Paid = Annual Premium * Number of Premium Payment Years Total Premium Paid = Rs. 40,000 * 20 = Rs. 8,00,000
Death Benefit: In case of Mr. Kumar's unfortunate demise during the policy term, the Death Benefit payable to the nominee will be: Death Benefit = Sum Assured on Death + Accrued Bonuses Assuming the accrued bonuses amount to Rs. 2,00,000, the Death Benefit will be: Death Benefit = Rs. 10,00,000 + Rs. 2,00,000 = Rs. 12,00,000
Maturity Benefit: If Mr. Kumar survives the policy term of 25 years, he will be eligible to receive the Maturity Benefit, which includes the Sum Assured on Maturity and the accrued bonuses.
Maturity Benefit = Sum Assured on Maturity + Accrued Bonuses Assuming the accrued bonuses amount to Rs. 3,00,000, the Maturity Benefit will be: Maturity Benefit = Rs. 10,00,000 + Rs. 3,00,000 = Rs. 13,00,000
Overall Benefit: In this example, if Mr. Kumar survives the policy term, he will receive the Maturity Benefit of Rs. 13,00,000. If, unfortunately, he passes away during the policy term, his nominee will receive the Death Benefit of Rs. 12,00,000.
It is important to note that the actual benefits under the LIC Jeevan Anand plan may vary based on factors such as policyholder's age, premium amount, Sum Assured, and the declared bonuses by LIC. Additionally, LIC may revise its bonus rates from time to time, impacting the final payouts. Therefore, it is crucial to obtain the most up-to-date information and illustrations from LIC before purchasing the policy.