LIC Jeevan Anand: A Smart Choice for Young Professionals in India

India’s financial landscape is dynamic, and young professionals often find themselves juggling multiple financial obligations. From education loans to family expenses, these responsibilities can grow rapidly. Amidst this whirlwind of responsibilities, it can be difficult to prioritize personal savings and investments. However, smart financial planning is essential, especially during one’s formative years.

Why is Retirement Planning Important?

Retirement planning is a crucial aspect of financial planning, often overlooked until it becomes a pressing concern. The reality is that there are limited pension provisions in India, especially beyond the age of 60. This is true for individuals employed in the public sector, private industry, and even self-employed individuals. Therefore, initiating a robust retirement savings strategy early is imperative.

Benefits of LIC Jeevan Anand for Young Professionals

LIC Jeevan Anand is a life insurance plan that offers a combination of insurance coverage, tax benefits, and loan provisions, making it a smart choice for young professionals in India. Here are some of its key benefits:

Comprehensive insurance coverage: LIC Jeevan Anand provides comprehensive insurance coverage, starting from ₹3,000,000. This coverage increases with time and can reach up to ₹11,110,000 by the age of 57. Additionally, the plan includes accidental coverage, which begins at ₹2,300,000 and can soar to a staggering ₹88,330,000.
Tax benefits: LIC Jeevan Anand is an eligible investment for tax deductions under Section 80C of the Income Tax Act. This means that policyholders can deduct up to ₹1.5 lakhs from their taxable income every year, making the plan even more affordable.
Loan provisions: LIC Jeevan Anand policyholders can avail loans against their policies at lower interest rates than traditional bank loans or credit card debt. This can be a valuable feature in times of financial need.
Affordable premiums: LIC Jeevan Anand offers affordable premiums, starting at just ₹65,000 per year for a 23-year-old individual. This makes it an accessible investment option for young professionals with limited financial commitments.

Advantages of Starting Early

There are several advantages to starting LIC Jeevan Anand early, including:

Lower premiums: Younger individuals typically pay lower premiums for life insurance policies. This is because they are considered to be lower risk.
Favorable medical results: Medical examinations for life insurance policies are typically easier to pass at a younger age. This is because individuals are generally healthier at a young age.
Longer compounding period: The earlier you start investing, the longer your money has to compound. This means that your savings can grow significantly over time.

Helpful Tips for Readers

Compare different life insurance plans: Before choosing LIC Jeevan Anand, compare it with other life insurance plans available in the market to find the best plan for your needs.
Consider your financial goals: When choosing a life insurance plan, it is important to consider your financial goals. For example, if you are saving for retirement, you will need a plan with a longer policy term.
Read the policy document carefully: Before purchasing any life insurance plan, read the policy document carefully to understand the terms and conditions of the plan.
Seek professional advice: If you are unsure about which life insurance plan is right for you, seek professional advice from a financial advisor.

LIC New Jeevan Anand 915 Plan – Key Features

LIC New Jeevan Anand Plan 915, previously known as LIC Plan 149, is a comprehensive whole-life endowment plan offered by Life Insurance Corporation of India (LIC). This participating policy not only provides financial security but also allows policyholders to participate in the profits of the company. Here are the key features of this plan:

1. Participating Whole-Life Endowment Plan

LIC New Jeevan Anand 915 is a participating whole-life endowment plan, which means that it combines assured benefits with the potential for earning profits.

2. Premium Payment Options

Policyholders have the flexibility to choose regular premium payment options to suit their financial needs.

3. Maturity Benefit

Upon survival until the end of the plan term, policyholders receive the maturity benefit, which includes the basic sum assured and any applicable bonuses.

4. Lifelong Coverage

This plan provides lifelong coverage, ensuring that the risk coverage continues until the policyholder reaches the age of 100. In the event of the policyholder’s demise during the policy term or after, the death benefit is paid out.

5. Bonus Amount

Policyholders receive benefits along with a bonus amount, enhancing the overall earnings of the insured.

6. Rider Options

LIC New Jeevan Anand 915 offers optional rider benefits for added protection, including coverage against natural death, accidental death or disability, and critical illnesses.

LIC New Jeevan Anand 915 Plan Benefits

Death Benefit

Nominees can claim death benefits if all due premiums have been paid. The death benefit includes:

125% of the Base Sum Assured or 7 times the annual premium amount, whichever is higher at the time of death during the policy tenure.
The final additional bonus and simple reversionary bonuses are added to this amount.
If death occurs after the maturity date, only the basic sum assured is payable.

Maturity Benefit

Surviving policyholders, who have paid all due premiums until the maturity date, receive the basic sum assured along with any applicable bonuses. They can choose to receive this amount in a lump sum or installments over 5, 10, or 15 years.

Participation in Profits

LIC shares profits with policyholders in the form of a simple reversionary bonus. Additionally, a final additional bonus may be declared based on the company’s experience during the policy term. Please note that these bonuses are not guaranteed.

Loan Facility

Policyholders can avail of a loan against the policy once it acquires a surrender value. The maximum loan amount is typically a percentage of the surrender value.

Tax Benefits

The LIC New Jeevan Anand policy offers tax benefits on the premium paid and claims received under Sections 80C and 10(10D) of the Income Tax Act.

LIC New Jeevan Anand 915 – Eligibility

Criteria	Minimum	Maximum
Entry Age	18 years	50 years
Maturity Age	–	75 years
Policy Term	15 Years	35 years
Sum Assured	1 lac	No Limit
Premium Payment Term	Same as Policy Term
Premium Paying Frequency	Annual/Half Yearly/ Quarterly/ Monthly

Riders Benefits with LIC New Jeevan Anand – Plan No. 915

Four optional riders are available for extra protection:

LIC Accidental Death and Disability Benefit
LIC Accident Benefit Rider
LIC New Term Assurance Rider
LIC New Critical Illness Benefit Rider

These riders provide an additional sum assured amount on top of the assured death benefit. Policyholders can select a maximum of three of these options.

How Does LIC New Jeevan Anand Policy Work?

Let’s illustrate the working of the LIC New Jeevan Anand policy with an example:

Example:

Policyholder: Mr. Mathur, 30 years old
Policy Details:
- Policy Term: 25 years
- Sum Assured: Rs. 20 lakhs
- Premium Payment Term: 20 years
- Premium Amount: Rs. 25,000 per year

Working:

As long as Mr. Mathur pays the premiums regularly, he has life insurance coverage for 25 years.
In case of his demise during the policy term, the nominee receives the sum assured of Rs. 20 lakhs.
If Mr. Mathur survives the 25-year term, he is eligible for the maturity benefit, which includes the sum assured and any accumulated bonuses.

LIC New Jeevan Anand 915 – Additional Plan Details

Grace Period

A grace period of 15 to 30 days is provided for premium payment. If premiums are not paid during this grace period, the policy may lapse.

Revival of Lapsed Policies

Lapsed policies can be revived within 5 years from the due date of the first unpaid premium, but it must be done before the maturity date.

Free Look Period

Policyholders have a 15-day free look period during which they can cancel the plan if it doesn’t meet their needs.

Policy Termination or Surrender Benefit

After two policy years, the policy acquires a surrender value and a paid-up value. Even if premiums are not paid after 2 years, a percentage of the benefits/premiums is still available. Surrendering the policy after the chosen policy term ends doesn’t result in losses.

Sample Premium Rates of LIC New Jeevan Anand 915 Plan

The below table illustrates the annual premium rates in Rs. for a basic sum assured of Rs. 1 Lac for standard lives under LIC New Jeevan Anand plan 915:

Age	Policy Term
15	25	35
20 years	7747	4341	2935
30 years	8080	4581	3165
40 years	8644	5037	3636
50 years	9575	5846	–

The above premium rates are exclusive of taxes*

Exclusions of LIC New Jeevan Anand Plan 915

In the unfortunate event of suicide within 12 months of the policy’s inception, 80% of the premiums paid to date will be returned to the nominee. After the policy’s renewal, the higher of 80% of the paid premium amount or the acquired surrender value is paid in case of death.

Required Documents for Buying LIC New Jeevan Anand 915

To purchase the LIC New Jeevan Anand 915 plan, you will need the following documents:

Correctly filled Application/Proposal form
Address Proof
Age Proof
Other KYC documents (PAN Card, Aadhaar Card, Tax Details, etc.)
Medical History
Medical Diagnosis Reports as required

This comprehensive explanation of LIC New Jeevan Anand 915 Plan and its features should help you make an informed decision when considering life insurance options.