New Endowment Plan

LIC's New Jeevan Anand Plan is a participating non-linked plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lump sum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

Death benefit :

Provided all due premiums have been paid, the following death benefit shall be paid:

• On Death during the policy term: Death benefit, defined as 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 7 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.

The premiums mentioned above exclude service tax, extra premium and rider premiums, if any.

• On death of policyholder at any time after policy term: Basic Sum Assured

Benefits payable at the end of Policy Term:

Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.

Participation in Profits :

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during policy term provided the policy is in full force.

Final (Additional) Bonus may also be declared under the plan in the year when the policy results into death claim during the policy term or due for the survival benefit payment provided the policy is in full force and has run for certain minimum term.

LIC's Accidental Death and Disability Benefit Rider: LIC's Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium during the policy term. In case of accidental death during the policy term, Accident Benefit Sum Assured will be payable as lump sum along with the death benefit under the basic plan. In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.

Premium Payment Mode :

Yearly, Half Yearly, Quarterly, Monthly (ECS) ;

Term :

15 to 35 Years ;

Minimum Entry Age :

18 Years completed ;

Maximum Entry Age :

50 Years ;

Maximum Maturity Age :

75 Years ;

Minimum Sum Assured :

Rs. 1,00,000.00;

Maximum Sum Assured :

NO LIMIT ( Depending on the proposer's income);

Surrendered Value :

The Policy can be surrendered at any time during the policy term provided at least 2 full years premiums have been paid. The guaranteed surrender value during policy term shall be a percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for raider, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered.

Loan :

Loan can be availed under the policy provided, the policy has acquired a surrender value and subject to the terms and conditions as the company may specify from time to time.

Income Tax Benefit :

• Premium paid under this plan is eligible for TAX rebate under section 80c.
• Maturity under this plan is free under section 10(10D).

Benefit Illustration :

Mr. Chandru, a male executive is working in an MNC after graduation. His company is located in Bengaluru. His current age is 22 Years. He could set aside about Rs.35,000.00 to Rs. 37,000.00 rupees of money to keep aside after meeting all his expenses, for his future. He decides to buy The New Jeevan Anand Policy from LIC.

His goals are:

(1)Protecting the interests of his dependant parents (in case of his death while on duty) and

(2) To save some money for his 50th year.

Let us see how he achieves his goals.

Solution :

Mr. Chandru chose Mr. Niranjana as his insurance advisor. Both meet and create in illustration to achieve Mr. Chandru's Goals:

• Mr. Chandru (Proposer) wants to buy an Life Insurance for Rs. 9,00,000.00 Sum Assured. ( He is actually eligible to buy a SA of 15 times his gross annual salary).
• Because Mr. Chandru wants to save some money for his 50th year, the tenure of his insurance must be 28 years.
• Because Mr. Chandru is travelling to work on his personal vehicle in the city traffic, his life is prone to risks due to accidents. Hence, he is advised buy an DAB (Double Accident Benefit) Raider of Rs. 9,00,000.00.
• In order to increase the risk coverage the advisor told Mr. Chandru to avail a Term raider for Rs. 9,00,000.00, for which he agreed.
• Let's assume the prevailing income tax rate is 30% .

With these details, we arrive at the following numbers:

Summary of Insurance Coverage:

1. DAB : Rs. 10 Lakhs ( This will save him from any unforeseen expenses upto Rupees 10 Lakhs, which may be arising due to accidents and dismemberment)
2. Term Raider S.A. : Rs. 10 Lakhs ( This will double the Sum Assured)
3. Life S.A. : Rs. 10 Lakhs. ( This is the policy coverage for Mr. Chandru's life)

Detailed Illustration given below:

As you see, this plan gives insurance coverage upto 100 Yrs. For personal counselling and planning call us today.