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Review: LIC’s NEW JEEVAN ANAND (UIN: 512N279V01)

By   /   January 9, 2014  /   No Comments

 

LIC New Jeevan Anand

This is a new policy introduced by LIC in the year 2014. This is an investment + insurance plan where you need to pay a fixed amount for at least 15 years & at maturity you will get a lump sum amount. Your life will be insured till you are alive.

Seems good so far…. Trust me I can write a book on why not to invest here. I know you do not have patience to read all that stuff, so let’s start with what LIC is offering under this plan and at last i will put my point.

 

Salient Features:

Minimum Policy Term 15 Years
Maximum Policy Term 35 Years
Minimum Age at Entry 18 Years
Maximum Age at Entry 50 Years
Maximum Maturity Age 75 Years
Minimum Basic Sum Assured Rs.1,00,000
Maximum Basic Sum Assured No Limit

 

Benefits:

A. Death benefit :

1. On Death during the policy term: Death benefit, defined as sum of “Sum Assured on Death” + vested Simple Reversionary Bonuses + 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.

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

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

 

B. Survival / Maturity Benefits: 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.

 

Let’s have a look at an example given in LIC website:

Age at Entry 30 years
Policy Term 35
Mode of Premium Payment yearly
Basic Sum Assured/Insurance Amount Rs.1,00,000
Annual Premium Rs.3,165
Approx. Maturity Value Rs.4,53,000

To Download the full brochure click: Download

A 30 year old paying Rs.3,165 premium annually for 35 years will get close to Rs.4,53,000 at maturity & an Insurance cover for Rs.1.25 lakh till maturity & Rs.1 lakh thereafter.

Note:

1. Premium of Rs.3,165 does not include service tax.

2. Rate of return comes out to be 7.4% 🙁

 

MY VIEWS:

1. Investing Rs.3,000 per annum is Public Provident Fund will give you close to Rs.6,57,326 at the end of 35th year (Investing in New Jeevan Anand gives you close to Rs.4,53,000 on maturity, clearly a huge difference of 6,57,326 – 4,53,000 = Rs.2,04,326) . Here PPF rate is taken as 8.7%.

2. As far as insurance part is concerned, you can buy a online term plan with much higher insurance at a much cheaper rate.
So, my final words:  Go for combination of PPF + Term Insurance + MF, instead of buying LIC New Jeevan Anand.

 

If somehow your agent is still able to convince you to invest in this plan, please feel free to drop a comment or write to me at financialkundali@gmail.com & all for your good I will make sure that you do not invest in it.

 

Recommended Articles:

1. Public Provident Fund

2. Know About Your Existing Policy

 

www.financialkundali.com

www.financialkundali.com

 

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About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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