LIC New Jeevan Anand Plan (715) Details with Example

The New Jeevan Anand Plan (715) is an updated version of the New Jeevan Anand Plan (915), introduced in line with the 2024 IRDA surrender guidelines. This popular LIC plan provides life cover even after maturity, best described as Zindagi ke Sath Bhi, Zindagi ke Baad Bhi. It is a non-linked, participating plan, ideal for individuals seeking financial security, long-term savings, and lifetime cover.

PLAN DETAILS

Age of Entry	18-50 Years
Policy Duration	15-35 Years
Maximum Maturity Age	75 Years
Minimum Sum Assured	₹2,00,000
Premium Payment Modes	Yearly, Half-Yearly, Quarterly, Monthly (NACH Only)
Premium Mode Rebate	2% for Yearly, 1% for Half-Yearly, Nil for Quarterly
High Sum Assured Rebate	0% for ₹2,00,000 to ₹4,95,000 2.5% for ₹5,00,000 to ₹10,00,000 4% for ₹10,00,000 and above
Surrender and Loan Availability	After One Year
Revival	Within 5 years of first unpaid premium

MATURITY BENEFITS

In the New Jeevan Anand (715), upon completion of the policy term, the policyholder will receive the maturity amount, which is the sum of the Basic Sum Assured, Simple Reversionary Bonus, and Final Additional Bonus, provided all premiums have been paid.

MATURITY BENEFITS LIFE COVER

The New Jeevan Anand policy offers a unique feature of lifetime coverage after maturity. This means that once the policyholder receives the maturity amount at the end of the policy term, the life cover continues. In the event of the policyholder's death at any time after maturity, the nominee will receive a death claim amount equal to the basic sum assured..

DEATH BENEFITS

In case of death during the policy term, the nominee will receive a death claim amount equal to the 125% of Basic Sum Assured, plus the accumulated Simple Reversionary Bonus up to the time of death, and the Final Additional Bonus (if any).

Past Simple Reversionary Bonus rates for previous versions of this plan are available here.

POLICY SURRENDER

The New Jeevan Anand (715) policy can be surrendered anytime after the first policy year, provided at least one full year’s premium has been paid. Eligibility for the Guaranteed Surrender Value (GSV) requires that premiums for the first two years are fully paid. The policy qualifies for the Special Surrender Value (SSV) once the full premium for the first year is paid. Upon surrender, the policyholder will receive the higher value between the SSV and GSV.

GUARANTEED SURRENDER VALUE (GSV)

The GSV is a percentage of the total premiums paid, plus a percentage of the total accumulated bonuses at the time of surrender. The specific GSV applicable to the premiums paid and the GSV Factors applicable to vested bonuses are detailed in the policy document.

SPECIAL SURRENDER VALUE (SSV)

The SSV for the New Endowment Plan (714) is calculated using the following formula:

SSV = (Death Paid-Up Sum Assured along with vested simple reversionary bonuses, if any) * Factor 1 + (Maturity Paid-Up Sum Assured along with vested simple reversionary bonuses, if any) * Factor 2 + (Paid-up Sum Assured payable after the expiry of policy term) * Factor 2 * Factor 3

PAID UP SUM ASSURED

The Paid-Up Sum Assured is a reduced sum assured, calculated as:

• Maturity Paid-Up Sum Assured = Sum Assured on Maturity * (Total premiums paid / Maximum premiums payable)
• Death Paid-Up Sum Assured = Sum Assured on Death * (Total premiums paid / Maximum premiums payable)

Note: : In the New Jeevan Anand (715), the Sum Assured on Maturity is equal to Basic Sum Assured and the Sum Assured on Death is equal to the 125% Basic Sum Assured. In the SSV calculation, Factor 1, Factor 2 and Factor 3 are revised periodically, typically on a yearly basis.

LOAN ON POLICY

A loan will be available once the full premium for the first policy year has been paid. In the new plans, the percentage of the loan amount in relation to the surrender value is predefined. In the case of a paid-up policy, the loan percentage differs from that of a fully in-force policy. The following table provides these rates.

Policy Status	Before Payment of Two Full Year’s Premiums	After Payment of Two Full Year’s Premiums
Under In-force Policies	50%	75%
Under Paid-up Policies	40%	65%

FREE LOOK PERIOD

If a Policyholder is not satisfied with the Terms and Conditions of the policy, he/she may return the policy to the Corporation stating the reasons of objections, within 30 days from the date of receipt of the electronic or physical mode of the Policy Document, whichever is earlier.

SUICIDE CLAUSE

In the event of suicide within 12 months of the policy’s commencement, the nominee will receive 80% of the total premiums paid, provided the policy is in force. If suicide occurs within 12 months of revival, the higher of 80% of the total premiums paid or the available surrender value will be paid. For suicide occurring after 12 months, the full death benefit, including the Basic Sum Assured and applicable bonuses, will be payable as per the policy terms.

SETTLEMENT OPTION

Maturity or death benefits can be received as a lump sum or in instalments over a period of 5, 10, or 15 years. The policyholder can choose to receive either the full amount or a percentage of the benefit, with instalments paid monthly, quarterly, half-yearly, or yearly, subject to minimum amounts. If the net claim amount is insufficient to meet the minimum instalment requirement, it will be paid as a lump sum. This option must be exercised at least three months before the maturity date for maturity benefits, and alterations to the instalment payments are not allowed once set.

Mode of Instalment Payment	Minimum Instalment Amount
Monthly	Rs. 5,000/-
Quarterly	Rs. 15,000/-
Half-Yearly	Rs. 25,000/-
Yearly	Rs. 50,000/-

OPTIONAL RIDERS

• LIC’s Accidental Death and Disability Benefit Rider
• LIC’s Accident Benefit Rider
• LIC’s New Term Assurance Rider

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NEW JEEVAN ANAND (715) BENEFITS ILLUSTRATION

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To understand the New Jeevan Anand (Plan 715) in practical terms, let’s consider the example of a 26-year-old policyholder who opts for a 21-year policy term with a basic sum assured of ₹10,00,000. The first-year premium will be ₹56,242, and from the second year onwards, the premium will be ₹55,030. The following table illustrates the year-wise progress of the policy.

Explanation

1. In the illustration table, the latest simple reversionary bonus rate for the New Jeevan Anand (Plan 915) is used. It shows that the simple reversionary bonus continues to accumulate annually within the policy.
2. The death sum assured in the New Jeevan Anand plan is 125% of the basic sum assured. This is why ₹12,50,000 appears in the fourth column of the table above.
3. In the table above, maturity occurs when the policyholder turns 46. After maturity, the policyholder continues to have life cover equal to the basic sum assured, which is ₹10,00,000 in this example. This is indicated in the table as age 46+, meaning that after age 46, whenever death occurs, the nominee will receive ₹10,00,000 as the death claim.
4. In the above illustration, the Final Additional Bonus (FAB) is based on a similar plan group (Table No. 149). Generally, FAB is declared for policies that have completed at least 15 years, making it a one-time bonus applicable either at maturity or at the time of a death claim.
5. In the example above, the maturity amount will be ₹10,00,000 (basic sum assured) + ₹9,66,000 (accumulated bonus over 21 years) + ₹1,00,000 (FAB for a 21-year term), totaling ₹20,66,000.
6. To understand the death claim process, let’s assume an unfortunate death occurs at the age of 40. In this case, the death claim amount would be ₹12,50,000 (death sum assured) + ₹6,90,000 (accumulated bonus) + ₹10,000 (FAB), totaling ₹19,60,000. At the time of death, the total premiums paid would be ₹8,26,662.
7. Please note, this example is created to simplify the understanding of this plan. Actual values may differ based on LIC’s declarations and policy conditions.