Lic Jeevan Anurag policy plan no – 168 Review

Lic Jeevan Anurag Policy plan no -168 Review

LIC Jeevan Anurag Policy was Introduced on – 13/11/2004 and with drawn on 27/10/2004. Jeevan Anurag Policy is a with profit policy, especially planned to take care of educational needs of your child. Jeevan Anurag plan includes term assurance rider, critical illness rider and premium waiver benefit.

20% of Sum assured is paid at the start of every year throughout last 3 policy years before maturity, and the remaining 40% of the Sum assured would also be paid on maturity along with the bonus, regardless of whether the life insured is alive or not during the policy term.

Additionally, Jeevan Anurag policy provides Assured Benefit and Death Benefit.

Lic Jeevan Anurag policy Conditions

AGE AT ENTRY:                              Minimum:   20 years

                                                      Maximum:  60 years

POLICY TERM:                               Minimum:   5 years – for single premium policy

                                                                       10 years – for regular premium policy

                                                      Maximum:  25 years

MODE OF PAYMENTS:                   SINGLE PREMIUM,

                                                     Yearly, Half yearly, Quarterly,SSS and Monthly

MAXIMUM MATURITY AGE:           70 years

PREMIUM PAYING TERM (PPT):     Similar to Policy term for regular policies

                                                      One time for single premium policy

  SUM ASSURED:                            Minimum:    50,000

                                                      Maximum:   No limit

SUM ASSURED IN MULTIPLE:        5,000

Lic Jeevan Anurag Policy Rebates

There are 2 types of Rebates,

1. Sum assured rebate
2. Mode rebate

Sum assured rebate:   

Jeevan Anurag Policy is having large Sum assured rebate for both single premium and regular premium.

Sum assured	Rebate
50,000 to 1,00,000	Nil
1,05,000 and above	RS 2/- per 1000 Sum assured

Mode rebate:

Mode	Percentage
Yearly mode	2% of tabular premium
Half-yearly mode	1% of tabular premium
Monthly	5% Extra
Quarterly and SSS	No Rebate

Lic Jeevan Anurag Policy Survival Benefits

Life assured receives 20% of basic sum assured at the start of every year during last 3 policy years before maturity.

Payable Date	Payable Amount
3 years before date of maturity	20% of sum assured
2 years before date of maturity	20% of sum assured
1 years before date of maturity	20% of sum assured
On date of maturity	40% of sum assured + Bonuses

Lic Jeevan Anurag Policy Maturity Benefits

The nominee or the life insured will get 20% of sum assured on the last 3 years of the policy term and remaining 40% of the Basic Sum Assured will be paid with bonus on maturity.

For example, take the policy term of 20 years then the nominee or the life insured will get 20% of sum assured on the last 3 years of policy term i.e., 18th, 19th and 20th year and remaining 40% of sum assured will be paid on maturity with bonus.

Maturity Benefit = 40%( Basic Sum Assured) + Bonus

Fixed payments are not payable in case of reduced paid up policy, but paid up value along with vested bonus only will be paid in single payment on date of maturity. Reduced paid up policy will be treated if premiums not properly paid except last 3 policy years.

Lic Jeevan Anurag Policy Death Claims

If death of life assured takes place before date of FUP,

Death benefit = sum assured under basic plan + sum assured equal to term assurance rider.

Even though basic sum assured have already been paid , fixed benefits are payable for the last 3 years of the policy term.

Deduction of amount of assured benefit amount are not made from death claim even if death takes place after payment of installments of fixed benefits have started.

Nominee will get the sum assured immediately on the death of the life insured. Further premiums would be waived and the policy continues. Maturity benefit will be given regardless of whether life insured is alive or not.

In policy term If policy becomes paid up except in last 3 policy years, then

Death benefit = paid up amount + vested bonus – any recovery

Lic Jeevan Anurag Policy Assured Benefit

In Jeevan Anurag policy Assured benefit will be paid to nominee or life insured irrespective of whether life assured is alive or not.

20% of Basic Sum assured will be paid at the start of every year during last 3 policy years before maturity.

On the date of maturity, 40% of basic sum assured will be paid along with the reversionary bonuses for full term.

Lic Jeevan Anurag Policy Additional Benefits

Accident benefit:

Accident Benefit includes disability benefit and double accident benefit. These will be available for an amount not exceeding the sum assured under basic plan.

Under this rider sum assured will be included in maximum limit of Rs. 25/50 lakh for all policies of the life insured where Double Accident Benefit is payable.

Income tax Benefit:

Income tax benefit is available under section 80C for premiums paid and section 10D for maturity returns. For information about Tax on Life Insurance Policies www.taxqueries.in

Riders Available in   Lic Jeevan Anurag Policy

Three riders are available in Jeevan Anurag policy,

1. Term assurance rider
2. Critical illness rider
3. Premium waiver benefit

Term assurance rider:

AGE AT ENTRY:                            Minimum:   20 years

                                                    Maximum:  50 years

POLICY TERM:                             Minimum:    5 years – for single premium policy

                                                                         10 years – for regular premium policy

                                                    Maximum:    25 years

MODE OF PAYMENTS:                  SINGLE PREMIUM,

                                                    Yearly, Half yearly, Quarterly,SSS and Monthly

MAXIMUM MATURITY AGE:         60 years

PREMIUM PAYING TERM(PPT):   Similar to Policy term for regular policies

                                                    One time for single premium policy

SUM ASSURED:                            Minimum:    1,00,000

                                                     Maximum:   25 lakh

SUM ASSURED IN MULTIPLE:       25,000

Critical illness rider:

AGE AT ENTRY:                             Minimum:   20 years completed                  

                                                     Maximum:  50 years

POLICY TERM:                               Minimum:   5 years – for single premium policy

                                                                        10 years – for regular premium policy

                                                      Maximum:  25 years

MODE OF PAYMENTS:                    SINGLE PREMIUM,

                                                      Yearly, Half yearly, Quarterly,SSS and Monthly

MAXIMUM MATURITY AGE:           60 years

PREMIUM PAYING TERM(PPT):     Similar to Policy term for regular policies

                                                      One time for single premium policy

SUM ASSURED:                              Minimum:    50,000

                                                      Maximum:   5 lakh

SUM ASSURED IN MULTIPLE:       10,000

Premium waiver benefit:

Premium waiver benefit will be granted if CIR has been taken for and the sum assured under the basic plan is similar to the CIR sum assured.

If life insured has been diagnosed with any of the critical illness,

Premium waiver benefit =premium for basic plan + term rider premium + critical illness rider

GUARANTEED SURRENDER VALUE:

Policy can be surrendered after paying at least 3 full years premiums and also after completing 3 policy years.

There are 2 cases,

In case of regular premium policies, Guaranteed Surrender Value is equal to 30% of the premiums paid except the first year premiums and all extra premiums and the premiums paid for

optional benefits.

In case of single premium policies, Guaranteed Surrender Value is equal to 90% of the premiums paid except the premiums paid for rider benefits and all extra premiums, provided policy has completed 3 full policy year.

PAID UP VALUE:

After paying 3 full year premiums and if future premium are discontinued then the paid up value is calculated by,

Paid up value =  sum assured  x   no of years premiums paid  

                                               No of years premiums payable(PPT)

If there are any unpaid premiums once the payment of assured benefit starts, they shall be recovered from the assured benefit instalment.

SPECIAL SURRENDER VALUE:

SSV will be available after completing 3 policy years from date of commencement of policy. SSV is calculated by,

SSV = (paid up value + bonus) x SV factor.

Additional Information about Lic Jeevan Anurag Policy

LOAN:

• Loan is available under Lic Jeevan Anurag plan.
• The rate of interest on loan will be as determined from time to time.
• Loan will be available within 3 years of policy under single premium policy.

BONUS:

Jeevan Anurag plan is a with-profit plan. The policy shall participate in the profits of Corporation’s life insurance business.

If policy holder dies before the end of the policy term the policy will participate in profits for the balance of the term after payment of death claim.

REVIVAL OF LAPSED POLICY:

In Jeevan Anurag plan if the policy is lapsed , it may be revived during the lifetime of life assured, but within a period of 5 years from date of FUP and before the date of maturity.      

Lic Jeevan Chhaya Policy Benefit illustration

Example:

Mr. John aged 35 years opted for jeevan anurag plan, Sum assured is 2 Lac, for a term of 15 years. He pays an annual premium of Rs.15,323/- .

If the policy is in full force, Mr. John Will get 20% of Sum assured i.e. Rs.40,000/- at the start of 13th, 14th & 15th policy year and the balance 40% of Sum assured i.e. Rs.80,000 will be given at the end of 15th year along with reversionary bonuses declared from time to time for the full term, plus terminal bonus, if any shall be payable.

In case Mr. John dies during 10th year his nominee will receive Rs.2 lac.

No premiums are payable thereafter. Moreover the nominee will get Rs.40,000/- at the start of 13th, 14th & 15th policy year and on maturity Rs.80,000 + Reversionary Bonus + terminal bonus, if any.