LIC India’s Jeevan Anand plan is the combination of whole life policy and endowment insurance policy with little extra premium compared to Pure Endowment plan. The plan provides the per-decided Sum Assured and bonus at the end of the stipulated Premium Paying Term (PPT), but the risk cover on the life continues till death.
Salient features of LIC’s Jeevan Anand
- The minimum age of entry in this case is 18 years, while 65 is the upper limit.
- The minimum Sum Assured is 1 Lac and max any amount.
- The minimum Premium Paying Term (PPT) maturity age is max is 75 years.
- The Minimum term is 5 years and maximum term is 57 years.
- Accident benefit is available.
- The Surrender and Guaranteed Surrender Value is available.
S.A.+ Bonus + FAB, if any is at the end of the premium paying term (PPT).
|On Maturity||S.A + Bonus + F.A.B|
|1- During term||S.A + Bonus + F.A.B|
|2- After Term||S.A|
If accidental death benefit is taken, nominee would receive
1. 2 times of S.A + Bonus in case of death in between term.
2. Double accident Benefit is paid even if person dies due to accident after the policy term up to 70 years of age.
If death occurs during the premium paying term S.A. + Bonus + FAB, if any is payable and premium payment is ceased. An extra amount equal to the S.A. is payable if death occurs after the premium paying term. No bonus is paid on death after the premium paying term.
The double accident benefit is available during the premium paying term and thereafter up to age 70.
Example – How accident Benefit works?
Mr. Sanjay Kumar, 25 years, opts for Jeevan Anand policy for 20 years with S.A. Rs.1 Lac. He has to pay annual premium of Rs. 5490/- on maturity, Mr. Sanjay Kumar will get Rs.1,98,000/- (S.A. + Bonus Rs.43 per thousand per annum, (Assumed); which become 43 x 100 x 20 = 86,000/-). Even after the premium paying term is over, risk cover continues till the death of Mr. Sanjay Kumar.
But if, Mr. Sanjay Kumar dies at the age of 65 years his nominee will get an additional amount equal to the S.A. i.e. Rs.1 Lac in cash;
If Mr. Sanjay Kumar dies during premium paying term his nominee will receive Rs. 1Lac + accumulated Bonus.
Advantages on LIC’s Jeevan Anand
1- Jeevan Anand plan is worth taking for those who wants the benefit of both Endowment as well as Whole Life.
2- Provided the risk cover on the life assured till death.
Disadvantages on LIC’s Jeevan Anand
In case your death occurs, during the normal prem. paying term, the benefit of receiving SA again after maturity of the policy will not be there.
From the above bonus rate, u can expact an average bonus rate of around 41 Rs. for all the 20 years (not guaranteed).
The Bottom Line
On a simple note, you are not even getting double of your money after paying for continuously 25-30 years and the sum assured you will be getting after 25-30 years may seems high at present but think for next 45-50-60 years & think about the effect of inflation on the sum assured.
Insurance is an expense, not an investment. Go for Term Insurance Cover. Invest the difference in premium in mutual funds, it will give you far higher returns.