LIC Jeevan Anand Policy: For many Indian families, finding financial products that offer both security and growth can feel overwhelming. The LIC Jeevan Anand policy stands out as a reliable option that combines life insurance with long-term savings. What makes it special? For about ₹1,358 per month – less than the cost of a daily coffee habit – you could potentially build a ₹25 lakh corpus while ensuring your family’s financial protection.
Understanding How the Plan Works
Jeevan Anand is what financial experts call a participating endowment plan. This means your money grows through a combination of guaranteed returns and bonuses based on LIC’s performance. Unlike term insurance that only pays out on death, this policy gives you money back when the term completes, plus continues your life coverage indefinitely. It’s like having two policies in one – a savings plan with an eternal safety net.
LIC Jeevan Anand Policy – Complete Details Table
| Category | Details |
|---|---|
| Policy Type | Participating Endowment Plan (Non-Linked) |
| Plan No. | Plan 815 (New Money Back) / Plan 814 (Earlier Version) |
| Minimum Sum Assured | ₹1,00,000 (No Upper Limit) |
| Policy Term | 15 to 35 years (Depends on entry age) |
| Premium Payment Term | Same as Policy Term |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 50 years (Varies with term) |
| Maturity Age Limit | 75 years |
| Premium Frequency | Monthly, Quarterly, Half-Yearly, Yearly |
| Grace Period | 30 days (Yearly/Half-Yearly), 15 days (Monthly) |
| Loan Facility | Available after 3 years (Up to 90% of Surrender Value) |
| Surrender Value | Acquired after 3 years |
| Death Benefit | Sum Assured + Accrued Bonuses |
| Maturity Benefit | Sum Assured + Bonuses + Final Additional Bonus (FAB) |
| Riders Available | Accidental Death & Disability (AD&D), Term Rider |
| Tax Benefits | Section 80C (Premium), Section 10(10D) (Maturity/Death Claim) |
| Bonus Type | Simple Reversionary Bonuses (Declared Annually) |
| Risk Cover After Maturity | Lifetime Cover (Sum Assured without bonuses) |
Premium & Maturity Projection (Example for ₹10 Lakh SA)
| Entry Age | Policy Term | Monthly Premium (₹) | Total Premium Paid (₹) | Estimated Maturity Value (₹) | Life Cover After Maturity |
|---|---|---|---|---|---|
| 25 years | 35 years | 1,310 | 5.51 lakhs | ~26 lakhs (with bonuses) | ₹10 lakhs (lifetime) |
| 30 years | 35 years | 1,358 | 5.70 lakhs | ~25 lakhs (with bonuses) | ₹10 lakhs (lifetime) |
| 35 years | 30 years | 1,420 | 5.11 lakhs | ~22 lakhs (with bonuses) | ₹10 lakhs (lifetime) |
| 40 years | 25 years | 1,690 | 5.07 lakhs | ~20 lakhs (with bonuses) | ₹10 lakhs (lifetime) |
| 45 years | 20 years | 1,880 | 4.51 lakhs | ~18 lakhs (with bonuses) | ₹10 lakhs (lifetime) |
Key Benefits & Features
| Feature | Description |
|---|---|
| Lifetime Coverage | Risk cover continues even after maturity. |
| Bonus Accumulation | Yearly bonuses + Final Additional Bonus (FAB) at maturity. |
| Loan Facility | Emergency funds available after 3 years. |
| Tax-Free Maturity | No tax on maturity/death claim under Section 10(10D). |
| Flexible Premiums | Pay monthly, quarterly, or yearly. |
| Surrender Option | Can surrender after 3 years (subject to surrender value). |
| Accidental Death Rider | Optional add-on for extra coverage. |
The Math Behind Small Premiums Creating Big Returns
Let’s break down how ₹1,358 monthly can become ₹25 lakh. For a 30-year-old choosing a 35-year term, the numbers tell an impressive story. You’d pay about ₹5.7 lakh over the term, but thanks to compounding bonuses (which have historically been stable), the maturity amount could triple your investment. The real magic happens in the later years as bonuses accumulate, showing why patience pays with such long-term plans.
Who Benefits Most From This Policy?
This plan shines for young professionals starting their savings journey, parents planning for children’s futures, or anyone wanting a low-risk alternative to market-linked investments. The guaranteed life cover provides peace of mind, while the savings component grows steadily in the background. It’s particularly valuable for those who struggle with disciplined saving – the premium payments create automatic financial discipline.
Important Considerations Before Investing
While the projections look attractive, remember that bonuses aren’t guaranteed and depend on LIC’s performance. The policy requires long-term commitment – withdrawing early significantly reduces returns. Also, factor in inflation; ₹25 lakh today won’t have the same value in 35 years. Many financial advisors suggest combining this with other investments for balanced growth.
Making the Decision That’s Right For You
Jeevan Anand works best as part of a diversified financial plan. Before committing, assess your complete financial picture – existing insurance, other investments, and future goals. An LIC agent can provide personalized illustrations, but consider consulting an independent financial advisor for unbiased advice. Remember, the best financial plan is one that fits your unique life situation while providing both security and growth opportunities.
