Lic Jeevan Anand Policy Review

Plan No – 149 

Introduction about Lic Jeevan anand Policy plan no – 149

Lic Jeevan anand policy was INTRODUCED ON – 1/2/2002 and WITHDRAWN ON –  

Lic Jeevan anand plan is the combination of both Endowment and Whole life policy.

In Lic Jeevan anand policy, sum assured and bonus will be given to the life assured as Maturity benefit and Life cover chosen will be continued till the death of the life insured. i.e., Whenever the life assured dies the nominee will get additional sum assured.

If in case the death of life assured occurs during the PPT (Premium Paying Term), the nominee will be paid with sum assured along with accrued bonus and the policy will be closed.  

Lic Jeevan anand policy Conditions

AGE AT ENTRY:                                 Minimum:   18 years completed

                                                         Maximum:   65 years

POLICY TERM:                                   Not defined

                                                        (because plan is the combination of whole life policy)

PREMIUM PAYING TERM(PPT) :      5 years to 57 years                         

MODE OF PAYMENTS:                      All mode of payments are allowed except single

                                                        (Yearly, Half yearly, Quarterly,SSS and Monthly)

MAXIMUM AGE AT THE END OF PPT:       75 years   

SUM ASSURED:                                        Minimum:    1,00,000

                                                                Maximum:   No limit

Lic Jeevan anand Policy Rebates

The Rebates are of 2 types,

1. Sum assured rebate
2. Mode rebate

Sum assured rebate:  

Sum assured rebates are high under Lic Jeevan anand plan.

Sum assured	Rebate
Up to 2.95 lakh	Nil
3 lakh to 4.95 lakh	RS 1/- per 1000 Sum assured
5 lakh to 9.95 lakh	RS 1.50 lakh per 1000 Sum assured
10 lakh and above	RS 1.75 lakh per 1000 Sum assured

Mode rebate:

Mode	Percentage
Yearly mode	3% of tabular premium
Half-yearly mode	1.5% of tabular premium
Quarterly, Monthly and SSS	Nil

Lic Jeevan anand Policy Survival Benefits

If life insured survives till the end of PPT and provided all premiums for PPT (Premium Paying Term) have been fully paid, then

Survival benefit = Sum assured + vested bonus + final additional bonus

Since Jeevan anand is the combination of whole life policy, policy contract will not come to end. Death cover for an amount equal to Sum assured will continue till the death of life assured occurs.

If premiums have not been paid for less than 6 months, then

Survival benefit = full sum assured + ( Bonus – outstanding premiums )

After paying at least 3 full year premiums and if premiums have not been paid for more than 6 months at the end of PPT, then

Survival benefit = Paid up value (i.e., PUSA(Paid Up Sum Assured) + vested bonus)

Lic Jeevan anand Policy Maturity claims

Under Lic Jeevan anand policy,

Maturity claims are not payable for this whole life cover.

At the end of specified Premium Paying Term, Lic Jeevan anand policy provides Sum assured + bonus to the life assured.

Lic Jeevan anand Policy Death claims

If death of life assured occurs during the grace period, then

Death claim = sum assured + vested bonus – outstanding premiums

If policy is in Paid up condition, then

Death claim = paid up value + vested bonus

If death of life assured occurs on & after the completion of PPT ( Premium Paying Term ), then Nominee will be paid with an amount equal to sum assured or paid up value.

Riders Available in  Lic Jeevan anand Policy

DAB & EPDB Cover:

DAB and EPDB is an inbuilt rider available in Lic Jeevan anand policy during PPT and then up to age 70. Under this plan maximum DAB & EPDB cover will be Rs. 5 lakhs.

Under Jeevan anand plan, an additional sum assured is paid up to age 70, if death of life assured occurs due to accident.

If permanent disability of life insured occurs due to accident, then this additional sum assured will be paid to him in instalments.

GUARANTEED SURRENDER VALUE:

Under Lic Jeevan anand plan, policy can be surrendered for cash after paying at least 3 full years premiums.

GSV = 30%(total amount of premiums paid) – premium for the first year and all extra premium.

GSV is not payable after expiry of PPT.

PAID UP VALUE:

After paying at least 3 full years premiums, policy will acquire paid up value

Paid up value = PUSA + vested bonus.

Where,

PUSA (Paid Up Sum Assured) =  no. of years premiums paid              x sum assured

                                          total no. of premiums payable i.e. PPT

SPECIAL SURRENDER VALUE:

SSV during the Premium Paying Term:

For endowment assurance,

SSV = paid up value x factor 1

For deferred whole life component,

                         (n-d)

SSV = PUSA x  V        x Factor 2

where  n = premium paying term in years

           d = duration elapsed from commencement date to surrender date, nearest half

                 year.

SSV on and after PPT:

SSV =  PUSA x factor 3 .

SSV factors will depend upon policy duration as on date of surrender & PPT.

Additional Information about  Lic Jeevan anand Policy

LOAN:

• Loan facility is available under Lic jeevan anand policy.
• Loan is granted if policy acquires paid up value with in the surrendered value of policy during PPT.

REVIVAL OF POLICY:

Under Lic Jeevan anand plan, during the premium paying term  and within a period of 5 years from the date of First Unpaid Premium (FUP), the lapsed policy may be revived

Lic Jeevan anand Policy Benefit illustration

Example:

Mr. Paul 25 years, chosen jeevan anand policy for 20 years with  Sum assured of 1 lakh. He has to pay annual premium of Rs.5,490/- on maturity, Mr.  Paul will get Rs.1,98,000/-

(Sum assured + Bonus as per 2005 rates i.e. Rs.43 per thousand per annum which became 43 x 100 x 20 = 86,000/-).

Even after the premium paying term is over, risk cover continues till the death of Mr. Paul.

But if, Mr. Paul dies at the age of 65 years his nominee will get an additional amount equal to the Sum assured i. e. Rs.1 Lakh in cash

If Mr. Paul dies during premium paying term his nominee will receive Rs. 1 Lakh + Bonus.