We all work very hard to build HARD Assets! It is essential that these HARD Assets are transferred to the next generation without loosing value as Taxes, Transfer fees, Probate costs, Lawyers, Trusts, Foundations etc. The more complex the structure, the more fees the estate has to pay. Life Insurance ensures those payments are made without touching any of the assets in the estate. Hence ensuring Full Wealth Transfer.
New Jeevan Anand plan (table no.915) is a very popular insurance plan from Life Insurance Corporation of India (LIC). The highlight of this plan is, the insurance protection under this policy continues beyond the policy term and an additional sum assured as death benefit is paid even if the insured dies after the completion of the policy term to make Estate creation and wealth transfer a breeze.
10 reasons to buy this plan
Insurance Cover is 125% of Sum Assured
Yes you read it right! Moreover the coverage from day one. So if one is taking this plan for 1 crore life cover, they will be covered for 1 crore and 25 lakhs. Customer needs to pay for just 1 crore, LIC pays premium for the extra 25% coverage in Jeevan Anand.
Whole life insurance protection!
Risk premium paid by client during the premium paying term and after maturity by LIC.
Same premium for the entire term
Premium is calculated based on customer’s age and health, as on today. It is a fact that age and health are inversely proportional. Moreover health is a day-to-day condition. But once premium is fixed, it is the same amount the customer needs to pay throughout the premium paying term.
Endowment and Term Insurance in a bundle
In fact every Jeevan Anand policy is a combination of 2 policy bonds viz. a regular endowment policy which matures an returns after the premium paying term and a term insurance plan which gives coverage for the whole life.
No medical check up after maturity
So take insurance now when you are in good health
Better than a regular term insurance policy
In Jeevan Anand insurance is up to the age 100, whereas term policy available up to age 70 only.
One policy 2 maturities!
First maturity is for the policy holder and the later sum assured to nominee.
3 Bonuses
- Reversionary
- Final Addition bonus
- Emergency bonus (i.e) Cash value after maturity.
Accident Death & Disability Benefit (AD&DB)
On death double the sum assured and in case of permanent disability, 10% of sum assured is paid in 10 years as a replacement of income.
Returns from this plan are Tax Free!
What will be the tax rate after 5, 10, 15 years ? whether PF will be tax free after few years ? No body knows. but if you buy this plan today, it will be tax free under income tax section 10(10(d)) for sure, as it’s a contract.
Eligibility Conditions
This is a participating non-linked plan which offers an attractive combination of whole life protection and definitive savings. This policy offers a wide coverage period of 15 to 35 years.
| Minimum entry age | 18 years (completed) |
| Maximum entry age | 50 years (nearest birthday) |
| Maximum Maturity age | 75 years (nearest birthday) |
| Minimum Policy Term | 15 years |
| Maximum Policy Term | 35 years |
| Minimum Basic Sum Assured | Rs. 100000 |
| Maximum Sum assured | No Limit (The Sum Assured shall be in multiples of Rs. 5000/-) |
| Premium payment mode | Yearly, half-yearly, quarterly or monthly (through ECS only or through salary deductions) |
Maturity Benefits
To better understand the maturity returns from this plan, let us discuss with the help of an example
| Age | 30 |
| Premium Paying Term | 25 years |
| Yearly Premium Payable | 45,169 |
| Sum Assured (SA) (minimum amount payable by LIC to the family in case of the untimely death of the policy holder before maturity) |
10,00,000 |
| Yearly Bonus | 12,25,000 (Rs.49 per thousand SA) |
| FAB (Final Additional Bonus) |
4,50,000 (Rs.450 per thousand SA) |
| Maturity (Sum Assured + Bonus + FAB) |
26,75,000 |
| Total Premium Paid | 11,29,225 |
| Returns | 26,75,000 |
| Gain | 15,45,775 |
Death Benefits
Assume, the policy holder dies in the 4th year. Death benefit, throughout the lifetime of the policyholder is defined as the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 10 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
| Age | 30 |
| Sum Assured (SA) (minimum guaranteed amount payable by LIC to the nominee in demise of the policy holder) |
10,00,000 |
| Yearly Premium | 45,169 |
Case i. Natural Death
| Premium paid | 1,80,676 |
| Claim Amount Received | 14,42,000 (1.25 times SA + Bonus for 4 years = 12,50,000 + 1,92,000) |
Case ii. Accidental Death
| Premium paid | 1,80,676 |
| Claim Amount Received | 24,42,000 (1.25 times SA + Accident Benefit + Bonus for 4 years = 12,50,000 + 10,00,000 + 1,92,000) |
Other Benefits
- AD & DB Rider
- Additional Sum Assured in the event of death due to Accident
- Disability Benefit
- Policy Loan after 3 years
- Surrender Value too after 3 years
- Full SA available as Risk Cover throughout LIFE
- It can be surrendered for CASH VALUE
Final words
New Jeevan Anand (Table No: 915) is one of the most Innovative Insurance Plan in World. No Insurance company can match this product.
Jeevan Anand provides Risk Cover, that too even after maturity for lifetime up to the age 100 of the policy holder. Optional, Accidental Death and Disability Benefit Rider makes this plan more beneficial in case of an unforeseen eventuality.Tax free returns makes the offer more sweeter.
No wonder why this policy proclaims “Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi” meaning during a life time and beyond life.