Home > Business & Investment > Product Review: LIC Jeevan Anand

Product Review: LIC Jeevan Anand

Monday, November 12, 2012
By Manoj Aswani

Summary
LIC Jeevan Anand is a combination of Endowment Assurance and Whole Life plans. It provides financial protection against death throughout the lifetime of the life assured with the provision of payment of a lump sum at the end of the selected term in case of his survival.

Key Features
l    Endowment cum whole life plan
l    Maturity Benefit is Sum Assured + accrued Bonus and the Life Cover continues till death
l    Simple Reversionary Bonus is payable on maturity or earlier death.
l    Accidental Death and Disability Benefit is an inbuilt feature in this plan
l    Optional higher cover through 1 additional rider of Critical Illness Benefit.
l    This plan can be provided to people with hazardous occupation with additional premium.
l    Large Sum Assured rebate is also provided.

Bonuses
LIC Jeevan Anand is a with-profit plan and participates in the profits of LIC’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period.

Benefits
In case of death: In the event of death of the life insured, the Sum Assured along with the vested bonuses is payable in a lump sum.

In case of survival to the end of selected term: The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the end of the term. An additional Sum Assured is payable on death thereafter.

Accident Benefit
An additional Sum Assured (subject to a limit of Rs. 5 lakh) is payable in a lump sum on death due to accident up to age 70 of life assured. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in instalments.

Income Tax Benefit –
Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

Extra Benefits / Riders
There are the optional benefits that can be added to your basic plan for extra protection/option.  An additional premium is required to be paid for these benefits.
Riders – There are 2 In Built Riders available:
l    Accidental Death Benefit Rider- an additional Sum Assured is paid if death is due to accident till 70 years of age
l    Accidental Disability Benefit rider- additional Sum assured is payable in instalments
There is 1 additional Rider available:
l    Critical Illness Rider

Eligibility Criteria
    Minimum    Maximum   
Sum Assured (in Rs.)    1,00,000    No Limit   
Policy Term (in years)    5    57   
Premium Payment Term (in years)    5    57   
Entry Age of Policyholder    18    65   
Age at Maturity    -    75   
Payment modes    Yearly, Half-yearly, Quarterly, Monthly and SSS   

Surrender
Surrender values are available on the plan on earlier termination of the contract. The policy may be surrendered after it has been in force for 3 years or more.  The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded.

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