LIC New Jeevan Anand Plan 715 Detailed Guide
The LIC New Jeevan Anand Plan 715 launched a new plan on the 1st. October 2024 is a renowned Life Insurance Plan offered by the LIC. This plan makes sure your family are financially secured in case of your demise and at the end of the policy term, if you survive, you get some lump sum amount which would help you to achieve your future financial goal benefit.
Who Will Benefit from LIC New Jeevan Anand Plan 715?
This plan is ideal for individuals who:
- Want to save and get insurance coverage: If you want to secure your family and earn some savings.
- Look for a long-term investment: If you want a policy that provides benefits and bonuses for a long period covering investment and life risk coverage up to age 75.
- Want to save Tax: To save tax benefits against premiums paid and at the end of the policy term.
- Need to provide family protection: Provides financial support to your family if you pass away during the policy term.
Plan Features Table
| Feature | Details |
|---|---|
| Plan Type | Endowment with lifelong coverage |
| Plan Number | 715 |
| Entry Age | 18 to 50 years |
| Maturity Age | Up to 75 years |
| Policy Term | 15 to 35 years |
| Premium Payment Term | Matches the policy term |
| Sum Assured | Starts at ₹1,00,000 (no maximum limit) |
| Death Benefit | Sum Assured + Bonuses |
| Maturity Benefit | Sum Assured + Bonuses |
| Bonuses | Simple Reversionary Bonuses annually and a Final Additional Bonus (if declared) |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (via ECS) |
| Loan Facility | Available after a minimum period of premium payments |
| Riders Available | Accidental Death and Disability Benefit Rider (optional), Term Assurance Rider |
| Grace Period | 30 days for yearly/half-yearly/quarterly; 15 days for monthly payments |
| Surrender Value | Available after 3 years of premium payments |
| Tax Benefits | Premiums eligible under Section 80C; Benefits tax-exempt under Section 10(10D) |
| Policy Revival | Can be revived within 5 years from the first unpaid premium |
| Free Look Period | 15 days from receiving the policy document |
Detailed Analysis of LIC New Jeevan Anand Plan 715
The LIC New Jeevan Anand Plan 715 is designed to offer both insurance coverage and a savings component. Here’s how it works:
- Life Insurance Coverage: If you pass away during the policy term, your family receives a death benefit, which includes the sum assured plus any bonuses.
- Savings Component: If you survive the policy term, you receive the sum assured along with accumulated bonuses as a lump sum payment.
- Bonuses: LIC declares bonuses based on its performance, which increase the total benefits you receive.
- Lifelong Coverage: Even after the policy term ends, the life insurance coverage continues until you reach 75 years of age.
Maturity and Death Benefits
- On Survival (Maturity): You receive the sum assured plus bonuses.
- On Death During Policy Term: Your family receives the sum assured plus bonuses.
- On Death After Policy Term: The sum assured is paid out, ensuring lifelong coverage.
Example: Rohit’s Purchase of LIC New Jeevan Anand Plan 715
To better understand how the LIC New Jeevan Anand Plan 715 works, let’s look at an example involving Rohit.
Policy Details
- Policyholder: Rohit
- Sum Assured: ₹3,00,000
- Policy Term: 15 Years
- Policy Purchase Year: 2024
- Age at Purchase: 30 Years
- Yearly Premium: ₹17,000 / ₹16,500
Calculation Details:
Parameter | Value |
Sum Assured | ₹3,00,000 |
Age | 30 Years |
Policy Term | 15 Years |
Policy Purchase Year | 2024 |
Yearly Premium | ₹17,000 / ₹16,500 |
Death Sum Assured | ₹3,75,000 |
AD & DB Sum Assured | ₹3,00,000 |
Term Rider Sum Assured | ₹0 |
Notes:
- Death Sum Assured: Higher of 125% of ₹3,00,000 (₹3,75,000) or 7 times the annual premium (₹1,19,000). Here, ₹3,75,000 is chosen.
- Term Rider: Not selected in this example, so it’s ₹0.
Premium Payment Details
1st Year Premium (Including GST @4.5%):
Payment Mode | Amount (₹) |
Yearly | 17,000 |
Half-Yearly | 8,500 |
Quarterly | 4,650 |
Monthly | 1,935 |
2nd Year Premium Onwards (Including GST @2.25%):
Payment Mode | Amount (₹) |
Yearly | 16,500 |
Half-Yearly | 8,250 |
Quarterly | 4,575 |
Monthly | 1,860 |
Explanation:
- GST Rate: 4.5% in the first year; reduces to 2.25% from the second year onward.
- Payment Flexibility: Rohit can choose to pay premiums annually, half-yearly, quarterly, or monthly based on his preference.
Maturity Details
After 15 years, Rohit will receive:
Component | Amount (₹) |
Sum Assured | 3,00,000 |
Bonus (Approx.) | 2,50,000 |
Final Additional Bonus | 25,000 |
Total Maturity Amount | 5,75,000 |
Total Maturity Calculation:
- Basic Sum Assured: ₹3,00,000
- Accumulated Bonus: ₹2,50,000
- Final Additional Bonus (FAB): ₹25,000
- Total: ₹3,00,000 + ₹2,50,000 + ₹25,000 = ₹5,75,000
Post-Maturity Coverage:
- Rohit remains insured with the Basic Sum Assured of ₹3,00,000 for life (up to age 100 years).
Year-Wise Policy Details
Here's how Rohit’s policy evolves over the 15-year term:
| Year | Age | Paid Premium (₹) | Normal Life Cover (₹) | Accidental Life Cover (₹) |
|---|---|---|---|---|
| 2024 | 30 | 17,000 | 3,75,000 | 6,75,000 |
| 2025 | 31 | 16,500 | 3,91,500 | 6,91,500 |
| 2026 | 32 | 16,500 | 4,08,000 | 7,08,000 |
| 2027 | 33 | 16,500 | 4,24,500 | 7,24,500 |
| 2028 | 34 | 16,500 | 4,41,000 | 7,41,000 |
| 2029 | 35 | 16,500 | 4,57,500 | 7,57,500 |
| 2030 | 36 | 16,500 | 4,74,000 | 7,74,000 |
| 2031 | 37 | 16,500 | 4,90,500 | 7,90,500 |
| 2032 | 38 | 16,500 | 5,07,000 | 8,07,000 |
| 2033 | 39 | 16,500 | 5,23,500 | 8,23,500 |
| 2034 | 40 | 16,500 | 5,40,000 | 8,40,000 |
| 2035 | 41 | 16,500 | 5,56,500 | 8,56,500 |
| 2036 | 42 | 16,500 | 5,73,000 | 8,73,000 |
| 2037 | 43 | 16,500 | 5,89,500 | 8,89,500 |
| 2038 | 44 | 16,500 | 6,06,000 | 9,06,000 |
| 2039 | 45 | 16,500 | 6,22,500 | 9,22,500 |
| 2040 | 46 | 16,500 | Maturity Amount: 5,75,000 | |
Explanation:
- Normal Life Cover: Increases each year with accumulated bonuses.
- Accidental Life Cover: Provides higher coverage due to additional accidental benefits.
- Final Year: Rohit pays a final premium of ₹16,500 to receive the maturity amount of ₹5,75,000.
Year-Wise Policy Details
If Rohit passes away in 2035 (Age 41):
- Total Paid Premium till 2035: ₹2,42,500
- Normal Life Cover: ₹5,73,000
- Accidental Life Cover: ₹8,73,000
- Total Payable to Nominee (Tax-Free): ₹8,73,000
Plan Benefits for Rohit
Benefit | Amount (₹) |
Guaranteed Sum Assured | 3,00,000 |
Bonus | 2,50,000 |
Final Additional Bonus (FAB) | 25,000 |
Total Maturity Returns | 5,75,000 |
Post-Maturity Coverage:
- Lifetime Insurance: After maturity, Rohit remains insured with the Basic Sum Assured of ₹3,00,000 until the age of 100 years.
Plan Benefits for Nominee/Family
| Benefit Category | Amount (₹) |
|---|---|
| On Death Before Maturity: | |
| - Guaranteed Sum Assured | 3,75,000 |
| - As on Death Bonus Paid | 2,53,000 |
| - Total Payable to Nominee | 6,28,000 |
| If Accidental Death (DAB Paid): | |
| - Accidental Death Benefit (ADB) | 3,00,000 |
| Total Payable to Nominee (Tax-Free): | 6,28,000 |
Explanation:
- Guaranteed Sum Assured: ₹3,75,000 (higher of 125% of Sum Assured or 7 times the annual premium).
- Bonus on Death: ₹2,53,000 accumulated until the year of death.
- Accidental Death Benefit (ADB): Additional ₹3,00,000 if death is accidental.
- Total Payable: All benefits are tax-free under current tax laws.
Important Notes
- Loan Facility: Rohit can take a loan against his policy after paying premiums for at least 2-3 years.
- Policy Revival: If the policy lapses due to non-payment of premiums, Rohit can revive it within 5 years from the first unpaid premium.
- Free Look Period: Rohit has 15 days from receiving the policy document to review and cancel the policy if it doesn’t meet his needs.
Frequently Asked Questions On LIC New Jeevan Anand Plan 715
Q1: What is the minimum age to buy the LIC New Jeevan Anand Plan 715?
You must be at least 18 years old to purchase this plan.
Q2: Can I cancel (surrender) the LIC New Jeevan Anand Plan 715 before maturity?
Yes, you can surrender the policy after paying premiums for at least three consecutive years.
Q3: What happens if I miss a premium payment?
There’s a grace period of 30 days for yearly/half-yearly/quarterly payments and 15 days for monthly payments. After that, the policy may lapse, but you can revive it within five years.
Q4: Is there a loan option available with this plan?
Yes, you can take a loan against your policy after paying premiums for a minimum period (usually 2-3 years).
Q5: What is the maximum duration I can choose for the policy term?
The policy term can be chosen between 15 to 35 years, depending on your age and preference.
Q6: Can I add extra coverage (riders) to my policy?
Yes, you can add optional riders like the Accidental Death and Disability Benefit Rider to increase your coverage.
Q7: Does the policy provide coverage after the policy term ends?
Yes, you can add optional riders like the Accidental Death and Disability Benefit Rider to increase your coverage.
Q8: How are bonuses calculated in this plan?
LIC declares bonuses based on its financial performance. These bonuses are added to your sum assured and accumulate over the policy term.
Q9: Are there any tax benefits associated with this plan?
Yes, the premiums you pay are eligible for tax deductions under Section 80C, and the benefits you receive are tax-exempt under Section 10(10D) of the Income Tax Act.
Q10: What if I want to change the premium payment mode?
You can choose to pay premiums annually, half-yearly, quarterly, or monthly based on what suits you best.