LIC New Jeevan Anand Plan 715, launched on 1st October 2024, is a non-linked, participating, life insurance plan designed for individual savings with a blend of protection. This plan is a modified version of its predecessor (Plan No. 915), with several new features aimed at enhancing family security and long-term benefits. Known for its slogan “Jeevan ke saath bhi, Jeevan ke baad bhi,” the plan continues to provide benefits during the policyholder’s lifetime and even after their death. In this article, we will dive into the detailed features, modifications, eligibility, maturity benefits, death benefits, and more.
Also see: LIC Revised Bima Jyoti Plan 760
Major Modifications in Plan 715
The key changes made to Plan 715 compared to its predecessor (Plan No. 915) include:
- Minimum Basic Sum Assured: The minimum basic sum assured has been increased from ₹1 lakh to ₹2 lakh in the new plan.
- Revised Premium Rates: Policyholders will now see an increase in premium rates compared to the previous version of the plan.
- Surrender Policy: The policyholder can surrender the policy at any time, but surrender benefits will only be available if at least one full year’s premium has been paid.
- Death Benefit in Paid-Up Category: If the policy becomes paid-up due to missed premiums, and the policyholder passes away, the nominee will receive more than 105% of the total premiums paid.
- Loan Modifications: Changes have been made to the surrender value, which affects the loan amount calculation. A separate video will explain how surrender value and loan amounts are now determined.
- Rider Modifications: Three riders are available in Plan 715: Accidental Death and Disability Benefit Rider, Accident Benefit Rider, and New Term Assurance Benefit Rider. Policyholders can opt for any one of these riders with an additional premium.
- Free Look Period: The free look period has been extended from 15 days to 30 days, allowing the policyholder more time to decide if they wish to keep the policy.
Eligibility Conditions and Key Features
| Basic Details | New Jeevan Anand Plan 715 |
|---|---|
| Minimum Entry Age | 18 years (completed) |
| Maximum Entry Age | 50 years (nearest birthday) |
| Minimum Policy Term | 15 years |
| Maximum Policy Term | 35 years |
| Maximum Maturity Age | 75 years (nearest birthday) |
| Minimum Basic Sum Assured | ₹2 lakh |
| Maximum Basic Sum Assured | No limit, determined by the policyholder’s income and financial underwriting |
Sum Assured Multiples
- For policies between ₹2 lakh and ₹4.5 lakh: basic sum assured in this range.
- For policies between ₹4.5 lakh and ₹9 lakh: multiple of ₹50,000.
- For policies above ₹9 lakh: multiple of ₹1 lakh.
Also see: LIC Jeevan Umang 745 vs LIC Jeevan Utsav 771
Premium Payment Modes
- Four modes are available for paying the premium: Yearly, half-yearly, quarterly, and monthly. The monthly premium is deducted from the policyholder’s bank account via NACH (National Automated Clearing House). If NACH is not activated within 3 months, the policy converts to quarterly mode.
Premium Paying Term
The premium paying term is equal to the policy term.
Other Optional Benefits
Maturity Benefit
The policyholder will receive the basic sum assured along with the simple revisionary bonus and final addition bonus. Additionally, even after maturity, the policyholder continues to have risk coverage of the basic sum assured for their lifetime (up to 100 years of age). If the policyholder passes away after maturity, the sum assured will be paid to the nominee.
Sum Assured on Death
In the event of death, the nominee will receive either 125% of the basic sum assured or 7 times the annual premium, whichever is higher. The death benefit will not be less than 105% of the total premiums paid, ensuring a minimum guaranteed payout.
Surrender Facility
The policyholder can surrender the policy anytime after paying at least one full year’s premium. Surrender benefits will be calculated based on the number of premiums paid and the policy’s surrender value.
Loan Facility
The loan benefit under the policy allows the policyholder to avail a loan after one year, provided that at least one year’s full premium has been paid.
| Policy Status | Before Payment of Two full year premium | After Payment of Two full year premium |
|---|---|---|
| Under In-force Policies | 50% | 75% |
| Under Paid-up Policies | 40% | 65% |
And here LIC will also charge a percentage of interest on whatever amount it gives in the loan.
Revival Benefit
If the policy lapses due to non-payment of premiums, it can be revived within 5 years by paying the outstanding premiums along with any applicable interest.
Paid-Up Value
Talking about paid-up value, LIC has recently introduced some changes. Earlier, a policy would convert to paid-up after two years, but now it happens after just one year.
If you’re interested in understanding how a policy is converted to paid-up and the exact calculation process,
To calculate the paid-up value, here’s the simple formula:
Paid-up Value = (Number of premiums paid / Total number of premiums payable) × Sum Assured
For example, if your policy sum assured is ₹10 lakhs, and you’ve paid 10 premiums out of a total of 20, the paid-up value will be:
Paid up Value = (10 / 20) × 10,00,000 = ₹5,00,000
Grace Period
A grace period of 15 days is available for monthly mode policies, while a 30-day grace period is provided for quarterly, half-yearly, and yearly policies.
Free Look Period
The free look period has been extended to 30 days, during which the policyholder can review and return the policy if unsatisfied.
Income Tax Benefits
Premiums paid under the policy qualify for deductions under Section 80C of the Income Tax Act, and any survival, maturity, or death benefits are tax-free under Section 10(10D).
Rebate
In LIC New Jeevan Anand Plan 715, the following rebates are available:
Mode Rebate:
| Yearly mode | 2% Tabular Premium |
| Half-yearly mode | 1% of Tabular Premium |
| Quarterly, Monthly (Nach) | NIL |
High Basic Sum Assured Rebate:
| Basic Sum Assured (BSA) | Rebate on tabular premium (Rs.) |
| 2,00,000 to 5,00,000 | NIL |
| 5,00,000 to 10,00,000 | 2.50% BSA |
| 10,00,000 and Above | 4.00% BSA |
Optional Benefit Riders
This plan offers a variety of optional benefit riders to enhance coverage.
The first rider available is the Accidental Death and Disability Benefit Rider, and the second is the LIC Accident Benefit Rider. However, policyholders cannot opt for both riders simultaneously. If a policyholder wishes to add additional coverage, they can choose the New Term Assurance Benefit Rider alongside either of the two previously mentioned riders. It’s important to note that selecting any rider will require an additional premium.
Additionally, the plan provides two settlement options:
- Settlement Option for Maturity Benefit: The maturity amount can be taken in instalments.
- Option to Take Death Benefit in Instalment: The policyholder or nominee can choose to receive the death claim in instalments.
In both cases, the instalments can be spread over 5, 10, or 15 years. Payments will be made according to the mode selected—monthly, quarterly, half-yearly, or yearly—based on the policy’s status (in-force or paid-up) at the time of claim.
Maturity Benefit Example
let’s consider Mr. Shyam, aged 25, who chooses a sum assured of ₹10 lakhs and an additional accidental death and disability rider of ₹10 lakhs. The policy term is 25 years, and Mr. Shyam will be paying premiums throughout this term.
In the first year, the annual premium he pays is ₹46,738 plus 4.5% GST. For comparison, under the previous plan, Plan No. 915, the premium would have been ₹44,353, making for a slight difference of ₹2,385 under Plan No. 760 in the second year. From the second year onward, the annual premium will be ₹45,731 plus 2.25% GST, continuing until the end of the policy term. Over 25 years, Mr. Shyam would pay a total of ₹11,44,282 in premiums.
At maturity, Mr. Shyam will receive the following:
- Sum assured: ₹10 lakhs
- Bonus: ₹11,25,000
- Final addition bonus: ₹4.5 lakhs
This totals approximately ₹26 lakhs at maturity.
In addition, even after maturity, the policyholder will continue to have a risk cover of ₹10 lakhs until the age of 100. If Mr. Shyam passes away after maturity, his nominee will receive an additional ₹10 lakhs.
Death Benefit Example
The policyholder pays the premium for 25, 26, 27, 28, and 29 years, and unfortunately, dies at the age of 29. In the case of natural death, the nominee would receive 125% of the basic sum assured, along with the accrued bonus and final addition bonus, amounting to approximately ₹14,80,000. After this payment, the policy terminates.
However, in case of accidental death, the nominee would receive an additional ₹10 lakh, bringing the total death claim amount to approximately ₹26,80,000, and the policy would then be closed.
This illustrates how both natural and accidental death benefits work under the plan
Commission Structure
If you are an LIC agent, here’s the revised commission structure for intermediaries under this plan:
| Premium Paying Term | 1st Year | 2nd to 5th Year | Subsequent Year |
|---|---|---|---|
| 10 to 14 Years | 15% | 7.5% | 5% |
| 15 Years & Above | 20% | 7.5% | 5% |
Additionally, agents receive a 40% bonus on the first-year commission.
Conclusion
LIC New Jeevan Anand Plan 715 offers a well-balanced combination of savings and protection. With modifications like an increased minimum sum assured, revised premiums, and improved loan and surrender value terms, this plan is ideal for individuals looking to secure their future and ensure lifelong protection for their families. Whether purchased online or through an LIC agent, this plan caters to diverse financial needs while ensuring long-term benefits.
FAQs about LIC Jeevan Anand Plan 715
What is LIC Jeevan Anand Plan 715 and how is it different from Plan 915?
LIC Jeevan Anand Plan 715 is a non-linked, participating endowment plan offering both savings and protection. It provides a lump sum maturity benefit along with lifelong risk cover. Plan 715 replaces the previous Plan 915 with key modifications, such as an increased minimum basic sum assured from ₹1 lakh to ₹2 lakh and revised premium rates. The free look period has also been extended to 30 days, and new riders have been introduced for enhanced protection.
What are the key benefits of LIC Jeevan Anand Plan 715?
Key benefits of Plan 715 include a combination of savings and protection. It offers a lump sum maturity benefit (basic sum assured + bonuses) at the end of the policy term. After maturity, the life cover continues for the policyholder’s lifetime (till 100 years). In case of death after maturity, the nominee receives the basic sum assured. Other benefits include optional riders, tax exemptions under sections 80C and 10(10D), and loan facilities based on the surrender value.
What are the premium payment modes available in LIC Jeevan Anand Plan 715?
LIC Jeevan Anand Plan 715 offers multiple premium payment modes: yearly, half-yearly, quarterly, and monthly. For monthly mode, the premium is automatically deducted through NACH (National Automated Clearing House). If NACH is not activated within three months, the policy automatically shifts to the quarterly mode.
Can I take a loan against my LIC Jeevan Anand Plan 715 policy?
Yes, you can take a loan against your LIC Jeevan Anand Plan 715 policy after paying at least one full year’s premium. The loan amount depends on the surrender value. For in-force policies, up to 50-75% of the surrender value can be borrowed. For paid-up policies, up to 40-65% of the surrender value can be taken as a loan, depending on how long the policy has been in force.
What is the death benefit in LIC Jeevan Anand Plan 715?
In case of death during the policy term, the nominee receives 125% of the basic sum assured or 7 times the annualized premium, whichever is higher. This amount will be at least 105% of the total premiums paid. Even after maturity, the nominee gets the basic sum assured upon the policyholder’s death, providing lifelong risk cover.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial or professional advice. LIC policies, terms, and benefits may be subject to changes as per regulatory updates. Please consult with an authorized LIC agent or visit the official LIC website for the most accurate and up-to-date details before making any decisions.