LIC's Jeevan Anand -- `Endowed' with optionsFor people (with gross total income of less than Rs 1.5 lakh) who still enjoy a 20 per cent tax rebate and are looking for an insurance package, Jeevan Anand may be useful because the tax benefits lead to a relatively high return.
Poli
- Moderate Premiums
- High bonus
- High liquidity
- Savings oriented.
- Premiums are usually payable for the selected term of years or until death if it occurs during the term period.
- This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time.
cy Parameters
|
|
| Age (Yrs) | Annual Premium (Rs) |
| 20 | 4,089 |
| 25 | 4,200 |
| 30 | 4,346 |
| 35 | 4,535 |
| 40 | 4,772 |
| 45 | 5,063 |
| 50 | 5,432 |
|
| |||||||||||||||||||||||||||||||||||||||||||||
|
Features: In order to give wider choice to our customers, it has been decided to introduce with effect from 1 February, 2002, ‘Jeevan Anand’, a With Profit Assurance Plan. Basically, the plan is a combination of the Whole Life Plan and the most popular Endowment Assurance Plan. The plan provides the pre-decided Sum Assured and Bonuses at the end of the stipulated premium paying term, but the risk cover on the life continues till death.
Suitable For: Being an endowment assurance + whole life policy, this plan is apt for people of of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. Benefits: BENEFIT ILLUSTRATION Accident Benefit: The double Accident Benefit is available during the premium paying term and thereafter up to age 70. The premium for this has been built into the tabular premium rates. Maximum Accident Cover available under this plan will be Rs. 5 lakh ( this limit excludes accident benefit taken under other plans). Premium Stoppage: If payment of premiums ceases after at least THREE years' premiums have been paid , a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in the policy.. Bonus: Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but only if it is a ‘with profits’ policy. Every year the Life Insurance Corporation distributes its surplus among policyholder to ‘with profits’ polices in the form of bonuses. Substantial bonuses have been declared in the past after each valuation of policy liabilities. Rebates for High Sum Assured:
In addition to the above, a rebate as per details given below will be available on Sum Assured in excess of Rs. 5 lac reduced by the Accident Benefit availed under this plan earlier. (e.g.) If Rs. 2 lac Sum Assured has been taken in Jeevan Anand earlier and Rs.5 lac is currently being proposed, then the Total Sum Proposed (including previous policy) under Jeevan Anand would be Rs. 7 lac. However, as the Maximum Accident Benefit available under this plan is Rs. 5 lac, this rebate will applicable on the excess of the Total Sum Proposed (Rs. 7 lac) over Rs. 5 lac i.e. Rs. 2 lac. (e.g) If Rs. 7 lac Sum Assured has been taken earlier and Rs. 7 lac is being proposed now, the Rebate will apply on the full Rs. 7 lac.
Survival benefits: Sum assured along with all vested bonuses payable at the end of the premium paying term ( Endowment term). Death Benefits: Sum Assured along with vested bonuses are payable on death during the premium paying term and policy ceases. An amount equal to the Sum Assured is payable if death occurs after the premium paying term. Simple Reversionary Bonus accrues during the premium paying term and is payable at the end of the premium paying term or on earlier death along with Final Additional Bonus, if any. No Bonus is paid on death after the premium paying term. Plan Parameters:
| |||||||||||||||||||||||||||||||||||||||||||||
Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in
For the year 2003-04 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.
Product summary
This plan is a combination of Endowment Assurance and Whole Life plans. It provides financial protection against death throughout the lifetime of the life assured with the provision of payment of a lump sum at the end of the selected term in case of his survival.
Premium :
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the selected term of the policy or till earlier death.
Bonuses:
This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period.
Benefits in case of death during the selected term:
The Sum Assured along with the vested bonuses is payable on death in a lump sum.
Benefits in case of survival to the end of selected term:
The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the end of the term. An additional Sum Assured is payable on death thereafter.
Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on death due to accident up to age 70 of life assured. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in instalments.
Supplementary/Extra Benefits : These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded.
Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.
The Corporation’s surrender value will be reviewed from time to time and may change depending on the economic environment, our experience and other factors.
Note : The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.
Benefit Illustration :
Statutory warning
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.”
Age at entry: 35 years
Premium paying term: 25 years
Mode of premium payment: Yearly
Sum Assured: Rs.1,00,000/-
Annual Premium: Rs.4,535 /-
|
End of Year |
Total premium paid till end of year |
Benefit payable on death during the selected term | ||||
|
Guaranteed * |
Variable |
Total | ||||
|
Scenario 1 |
Scenario 2 |
Scenario 1 |
Scenario 2 | |||
|
1 |
4,535 |
1,00,000 |
1500 |
5100 |
101500 |
105100 |
|
2 |
9,070 |
1,00,000 |
3000 |
10200 |
103000 |
110200 |
|
3 |
13,605 |
1,00,000 |
4500 |
15300 |
104500 |
115300 |
|
4 |
18,140 |
1,00,000 |
6000 |
20400 |
106000 |
120400 |
|
5 |
22,675 |
1,00,000 |
7500 |
25500 |
107500 |
125500 |
|
6 |
27,210 |
1,00,000 |
9000 |
30600 |
109000 |
130600 |
|
7 |
31,745 |
1,00,000 |
10500 |
35700 |
110500 |
135700 |
|
8 |
36,280 |
1,00,000 |
12000 |
40800 |
112000 |
140800 |
|
9 |
40,815 |
1,00,000 |
13500 |
45900 |
113500 |
145900 |
|
10 |
45,350 |
1,00,000 |
15000 |
51000 |
115000 |
151000 |
|
15 |
68,025 |
1,00,000 |
22500 |
76500 |
122500 |
176500 |
|
20 |
90,700 |
1,00,000 |
33000 |
113000 |
133000 |
213000 |
|
25 |
1,13,375 |
1,00,000 |
41500 |
141000 |
141500 |
241000 |
|
End of Year |
Total premium paid till end of year |
Benefit payable on survival to the end of selected term | ||||
|
Guaranteed |
Variable |
Total | ||||
|
Scenario 1 |
Scenario 2 |
Scenario 1 |
Scenario 2 | |||
|
25 |
1,13,375 |
1,00,000 |
41500 |
141000 |
141500 |
241000 |
|
26 onwards |
1,13,375 |
1,00,000 ** |
- |
- |
1,00,000 ** |
1,00,000 ** |
* In addition to the benefits given in the column, an Accident Benefit of Rs. 1,00,000 /- will also be available without payment of extra premium in case of death/disability due to accident.
** Benefit payable on death after the selected term. If the death occurs due to accident up to
age 70 an additional Rs. 1,00,000/- will also be paid.
i) The above illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.
ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.
iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.
iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed