Benefits of LIC New Jeevan Anand and LIC Jeevan Saral

Jeevan Saral and New Jeevan Anand are amongst the most-selling individual plans offered by Life Insurance Corporation of India. Both the policies are well designed to promote savings and provide coverage against death. LIC Jeevan Saral and LIC Jeevan Anand are a mix of endowment plan and whole life plan. Both the plans offer some unique benefits that are discussed below in detail:

Benefits of LIC New Jeevan Anand Policy

• Death Benefit

If all the premiums of the LIC New Jeevan Anand Policy have been duly paid, then the following shall be payable:

• In case of insured’s death during the term of the policy: Death benefit equal to the Sum Assured along with vested Simple Reversionary Bonus and Final Additional bonuses (if any) is paid. The ‘Sum Assured on Death’, referred to here, is the higher amongst 125% of the Basic Sum Assured or annualized premium multiplied by 10. However, the death benefit so paid cannot be lower than 105% of the total paid premiums till the date of death.

NOTE: The premiums referred to in the above statement do not include any extra premiums or service tax.

• In case of insured’s death during the term of the policy: Basic Sum Assured
• Maturity Benefit

Maturity benefit under the LIC New Jeevan Anand Policy is equal to the sum of the Basic Sum Assured, vested Simple Reversionary Bonus and Final Additional Bonuses. This sum is paid in lump sum to the person insured under the LIC New Jeevan Anand Policy in case he survives the entire term of the policy and all the premiums have been duly paid.

• Participation in Profits

LIC New Jeevan Anand is a policy that participates in the earnings of the LIC and the holder of this policy is receives Simple Reversionary Bonus as declared the Corporation based on its experience during the policy term; provided the plan is in force.

This Final Additional Bonus might also be declared in the year when a death claim is made against the policy or if the policy is due for survival benefits; provided the plan is in force and a certain number of years of the policy years have been successfully completed.

Benefits of LIC Jeevan Saral Policy

• Loyalty Additions

LIC Jeevan Saral is a with-profits policy that participates in the Corporation’s profits earned from the life insurance unit. The policyholder under LIC Jeevan Saral or his family receives a part of corporation’s profits as loyalty additions in addition to the maturity benefit or death benefit.

• Death Benefit

Death benefit under the LIC’s Jeevan Saral Policy is equal to monthly premium multiplied by 250. The monthly premium would also include the loyalty additions and the return of premiums minus first year’s premium and extra or rider premium. This benefit is payable as a lump sum in case of insured’s death during the policy term.

• Maturity Benefit

On completion of term of the LIC Jeevan Saral Plan, the policyholder is entitled to a lump sum equal Maturity Sum Assured along with Loyalty additions.

• Guaranteed Surrender Value:

LIC Jeevan Saral Plan can be surrendered post the successful completion of 3 years of the policy term. In such a circumstance, the policyholder is entitled to a Guaranteed Surrender value which is equal to 30 per cent of the total paid premiums minus first year’s premiums and extra or rider premiums.

• Special Surrender Value:

Special Surrender Value is equal to 80% of the Maturity Sum Assured if the premiums have been paid for more than 3 years but not more than 4 years; 90% of Maturity Sum Assured if the premiums have been paid for more than 4 years but not more than 5 years and 100% of Maturity Sum Assured if the premiums have been paid for 5 or more years.

This is Yash sharma Sr. creative writer. I have written several articles on finance, insurance & loans & I like very much to write insurance articles.