LIC New Jeevan Anand Plan 715: Detailed Insights and Key Features

LIC New Jeevan Anand Plan 715 – On October 1, 2024, LIC launched its new Jeevan Anand Plan 715 as part of a broader set of revisions in line with the IRDAI Master Circular. The plan has seen several key updates, making it a significant offering both for policyholders and agents. This article delves into the plan’s detailed aspects, covering the changes made, benefits for policyholders, and the financial security it promises during and after life.

Also see: LIC New Jeevan Labh Plan 736 Details

Overview of New Jeevan Anand 715

LIC New Jeevan Anand Plan 715 is a whole-life insurance plan designed to provide protection during the policyholder’s lifetime and extend financial security even after death. Known as the “soul of LIC,” this plan is popular for its lifelong benefits, both during and after the policy tenure, making it a well-rounded investment option for those seeking a secure future for their families.

Also see: 19 New LIC Plans Launched on October 1 2024

Key Changes in Plan 715

This plan brings forward some important changes compared to its predecessor, Jeevan Anand Plan 915. Below are the primary revisions:

Entry Age and Maturity Period

• Minimum Entry Age: The entry age starts at 18 years, as was the case in the previous plan.
• Maximum Entry Age: 50 years remains the maximum age at which the plan can be availed.
• Policy Term: The maximum policy term has been retained at 35 years.
• Maturity Age: The maturity period remains up to 75 years of age. A person who enters the plan at age 50 can take a 25-year term, maturing when they turn 75.

Also see: LIC Amritbaal Plan 774

Minimum Insurance Amount

The biggest revision has come in the minimum insurance amount. While previously the sum assured started from ₹1 lakh, under the new Plan 715, the minimum has been increased to ₹2 lakh. The upper limit, however, remains uncapped, allowing policyholders to choose their coverage based on financial capacity.

Multiples for Sum Assured:

• Between ₹2 lakh and ₹4.5 lakh, the policy can be purchased in multiples of ₹5,000.
• Between ₹4.5 lakh and ₹9 lakh, policies are offered in multiples of ₹50,000.
• For policies above ₹9 lakh, sums are available in multiples of ₹1 lakh.

Risk Cover

The plan offers comprehensive risk cover, with the risk amount being 1.25 times the sum assured. For example, if a policyholder opts for ₹2 lakh insurance, the risk cover would be ₹2.5 lakh. Similarly, for a ₹5 lakh sum assured, the risk cover becomes ₹6.25 lakh. This ensures that in the event of an untimely death, the family receives more than just the basic sum assured.

Also see: LIC Jeevan Utsav Plan 771

Riders and Their Coverage

Policyholders have the option to enhance their coverage through riders. Under Plan 715, LIC has retained a few key riders while discontinuing others:

Available Riders:

• Accident and Disability Benefit Rider.
• LIC New Term Assurance Rider.
• Accidental Death Rider (available until the age of 70).

Discontinued Rider:

• LIC Critical Illness Rider has been discontinued in this new plan. This leaves policyholders with the three riders mentioned above for added coverage.

Guaranteed Surrender Value and Bonuses

One of the most appealing changes in Plan 715 is the revision to the Guaranteed Surrender Value. Unlike earlier policies that required at least three years of completion to offer a surrender value, from October 1, 2024, onwards, LIC will offer guaranteed surrender value after just one year of the policy’s commencement. This provision is a significant shift, making the plan more flexible and attractive to policyholders who may need to surrender their policy early.

• Bonuses: While the Final Additional Bonus (FAB) will no longer be available, policyholders will still benefit from vested bonuses, which accumulate throughout the policy term. This shift aims to reduce mis-selling and aligns with IRDAI’s recommendations for transparency and fairness.

Loan Facility

After completing just one year of the policy, policyholders can avail themselves of a loan against their policy. The loan amount is based on the premium paid over the policy term:

• For the first two years, a loan of up to 50% of the premium paid is available.
• From the third year onward, the loan facility extends to 75% of the premiums paid.

This feature offers policyholders liquidity, providing financial support without the need to surrender the policy. It adds a layer of security for those facing unexpected financial challenges.

Free Look Period and Settlement Option

Under the new provisions, the free look period has been extended from 15 days to 30 days, giving policyholders more time to review the terms and conditions of the policy and return it if they find it unsatisfactory.

The settlement option at maturity allows for flexibility in receiving the maturity benefits. Policyholders can opt to receive the maturity proceeds over 5, 10, 15, or even 20 years, thereby ensuring a steady flow of income over a longer period instead of a lump sum payout.

Commission Structure and Premium Discounts

Another important change involves the agent’s commission structure. Previously, agents received commissions for the first three years of the policy term. However, Plan 715 increases this period to five years, incentivizing agents to sell the policy and assist clients with long-term planning.

Premium Discounts:

• Annual premium payments come with a 2% discount.
• Half-yearly premium payments receive a 1% discount.
• No discount is available for quarterly and monthly premiums.

Additionally, there are premium rebates based on the sum assured. For example:

• NIL Basic Sum Assured (BSA) for amounts between ₹2 lakh and ₹4.9 lakh.
• Rebates of 1.25% for sums assured between ₹5 lakh and ₹9.9 lakh.
• Rebates increase to 1.50% and 1.75% for amounts exceeding ₹10 lakh.

Maturity Benefits and Death After Maturity

When the policy matures, LIC will pay the sum assured along with any accumulated bonuses. Importantly, even after the policy matures, if the policyholder passes away, the nominee is entitled to receive the death claim amount, ensuring that the family is financially secure even after the policyholder’s death.

• In case of death during the policy term, the sum assured plus bonuses will be paid to the nominee.
• In addition, no death benefit will be less than 105% of all premiums paid at the time of death, ensuring that the policyholder’s family receives a substantial payout.

Income Tax Benefits

The plan continues to offer tax savings under Section 80C for the premiums paid and Section 10(10D) for the maturity proceeds. These tax benefits are a key incentive for policyholders, making this plan an attractive long-term investment option.

Government Backed Guarantee

Another key selling point of Plan 715 is the sovereign guarantee under the LIC Act Section 37. This means that any investment made in this plan is backed by the Government of India, ensuring complete safety of the policyholder’s money, which is a significant reassurance for those investing in long-term policies.

Conclusion

LIC New Jeevan Anand Plan 715 is designed to provide financial security not only during the policyholder’s life but also after death. With key updates like the increased minimum sum assured, enhanced surrender value, flexible loan facilities, and a revised commission structure for agents, the plan addresses both customer and agent needs. Coupled with tax benefits and government-backed guarantees, it stands as a robust insurance solution for those looking to secure their family’s future. Whether you are purchasing this policy for its comprehensive risk cover or for long-term wealth creation, Plan 715 offers a compelling blend of security and growth.

FAQs

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. The details of LIC New Jeevan Anand Plan 715 may be subject to changes as per LIC policies or IRDAI regulations. For accurate and updated information, please consult LIC official documentation or speak with a licensed insurance advisor.*