LIC's 'Jeevan Ankur' : Review



LIC India’s Jeevan Ankur plan is an endowment insurance policy with optional riders for critical illness and accidental death benefits.

Salient features of LIC’s Jeevan Anand
1- The minimum age of entry in this case is 18 years, while 50 years is the upper limit.
2- The minimum Sum Assured is 1 Lac and max any amount.
3- The Minimum term is Higher of (18 – age of child, 8) years and maximum term is (25 – age of child) years.
4- Optional riders for critical illness and accidental death benefit.

Death Benefits
On death of the Life Assured during the policy term
Basic Sum Assured shall be payable to the nominee and an income benefit equal to 10% of Basic Sum Assured shall be payable on each policy anniversary, from the policy anniversary coinciding with or next following the date of death, till the end of the policy term.

On death of child, when Life Assured is alive
On death of the child, the Life Assured will have an option to nominate another child/person and the policy will continue with the same benefit payable to new nominee/legal heirs after the death of the Life Assured during the term of the policy.

On death of child/nominee after Life Assured’s death
The policy shall continue and the benefits shall be payable to the legal heir(s).
ii) Maturity Benefit: At the end of the policy term an assured maturity benefit equal to Basic Sum assured along with Loyalty Addition, if any, shall be payable irrespective of survival of the Life Assured.
iii) Loyalty Addition: Depending upon the Corporation’s experience the policy will be eligible for Loyalty addition on the stipulated date of maturity irrespective of survival of Life Assured.

2. Optional Benefits
You may choose the following optional riders by payment of additional premium-
(i) Accident Benefit Rider
This benefit is available under regular premium policies only. An additional sum equal to Accident Benefit Rider Sum Assured is payable upon death due to accident. The Accident Benefit Rider Sum Assured may be opted for an amount up to the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 70 yrs.

(ii) Critical Illness Rider
An amount equal to Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illnesses. The Critical Illness Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to a minimum of Rs. 50,000 and a maximum of Rs. 5 lakh (including all policies with LIC of India). This benefit will be available provided the policy matures on or before the Life Assured attains 60years of age.

Advantages on LIC’s Jeevan Anand
1- Waiver of Premium (WoP) is the feature of LIC’s Jeevan Ankur plan, wherein future premiums are waived off by the insurer upon death of the policyholder. The policy continues till the end paying the maturity benefits.
2- LIC’s Jeevan Ankur plan also offers optional riders of critical illness and accidental death benefits.
3- LIC’s Jeevan Ankur has loyalty bonus along with maturity benefit

Disadvantages on LIC’s Jeevan Anand
1- LIC’s Jeevan Ankur does not assure any guaranteed addition and hence it is worse than other plans where you have guaranteed additions.
2- There is no loan facility under this plan.
3- Bonus or loyalty addition does not earn compounded return unlike PPF or NSC and hence only simple interest will be paid.

The Bottom Line
Term Insurance plan gives only sum assured in case of unforeseen death but Jeevan Ankur goes beyond traditional term plan and gives sum assured immediately and 10% of SA every year till end of policy term. As LIC’s Jeevan Ankur is conventional plan so returns are very less. This plan is for the parents, who wants peace of mind with nominal returns.