Lic New Jeevan Anand 815 Review – Is It The Best LIC Policy For Tax Exemption?

LIC Jeevan Anand policy is no doubt the most popular or you can say maximum sold LIC policy. But after new insurance from IRDA LIC has to discontinue many of their popular plans and among them old Jeevan Anand policy has also discontinued. But in few months LIC of India has come up with a new policy in the name of Lic New Jeevan Anand 815 with almost similar features only. But in this policy you will get life insured covered even after completion of the policy term till death.

You might have seen couple of TV commercials about this policy where the father is helping the girl child to get the ice-cream from the refrigerator. The popular LIC  tag-line “Zindagi ke saath bhi Zindagi ke baad bhi” is actually linked with this policy only. In this article, I will share how to use lic new jeevan anand premium calculator and find the maturity return, key features, death benefits, survival benefits, eligibility criteria etc.

Key Features of Lic New Jeevan Anand Plan – Table No. 815

LIC’s New Jeevan Anand Plan is a typical participating non-linked plan which will provide both savings with insurance benefit. I have reviewed almost every single lic endowment policy and found them all with similar benefits only. Let’s explore the key highlights of LIC’s New Jeevan Anand Plan Table no. 815.

  • As a death benefit your nominee will get 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. Seems like this is quite high compared to other lic endowment plan.
  • As a survival benefit, you will get Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any considering you have paid all the due premiums.
  • You can opt for LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider, with the payment of additional premium during the policy term.
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Here is the details of eligibility criteria of New Jeevan Anand Policy

Entry age
  • Minimum age – 18 years(completed)
  • Maximum age – 50 years(Nearest Birthday)
Policy Term
  • Minimum term – 15 years
  • Maximum term – 35 years
Sum Assured
  • Minimum – Rs.1,00,000
  • maximum – No limit
Premium paying modes
  • Monthly (SSS, ECS), Quarterly, Half yearly, Yearly
Maximum Age of Maturity
  • 75 years(Nearest Birthday)
Maximum Cover Ceasing age
  • 70 years(Nearest Birthday)
Grace Period
  • If the Premium is not paid within the time then a delay of 30 days for Yearly, Half-Yearly and Quarterly modes and 15 days for monthly mode is extended to pay the premium amount which is grace period.
Also Read  LIC New Single Premium Endowment Plan Review - Why You Should Avoid This Plan?

You can follow the official page of LIC New Jeevan Anand and explore more about the common features.

How To Use LIC New Jeevan Anand Premium Calculator and Calculate Return on Investment

Let’s visit LIC Premium Calculator page and choose the LIC Jeevan Anand 815. Next put the information as below

  • PLAN: New Jeevan Anand 815
  • TERM: 15 years
  • AGE: 25 years
  • Sum Assured: 500000

Then the calculator will return you the below table of premiums as per various premium payment mode.

Mode Premium Service Tax Total
Yearly 38220 1338 39558
Half Yearly 19311 676 19987
Quarterly 9756 341 10097
Monthly 3252 114 3366

So, If I consider the annual premium you are going to pay Rs 39,558 for next 15 years to get a life insurance coverage of Rs 5,00,000. That you are paying total Rs 39,558 X 15 = Rs 5,93,370 which is almost 1 lakh higher than the life cover itself.

As per LIC Bonus Rate 2014-15 data for a 15 year policy the rate will be Rs 41 / Rs 1000 sum assured value. That means for a 5 lakh sum assured value you will get  5,00,000 X 41/1000 X 15 Years = Rs 3,07,500 approx. I think a 15 years policy doesn’t get any FAB value.

Should I buy LIC New Jeevan Anand 815 Plan?

From the above calculation, we can clearly say that the life insurance coverage is really very bad as one need to pay even more premium to get the coverage of Rs 5 lakh only. Where you can get a 1 crore term insurance plan by paying a yearly 10,000 only. Although the life insurance will be covered till you die even after completing the policy premium terms, you just think whether the life cover is enough for you after 30 + years? And what is the need of an insurance policy till you die?

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From the return on investment point of view also, the major return parameters are their bonus rate & final additional bonus or loyalty addition which will hardly give 5% – 6% return in long run. You can definitely save income tax on yearly premiums and also get a tax free maturity value, which may be a good option compared to a bank fixed deposit scheme.

Whatever is your investment target, LIC New Jeevan Anand policy is not at a good product from insurance coverage point of view. But if you are considering it as a safe & guaranteed return product and happy to get the moderate returns, then you can invest in this product.

Lic New Jeevan Anand 815 Review – Is It The Best LIC Policy For Tax Exemption?
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