LIC Jeevan Anand policy is a discontinued policy. LIC has replaced this with New Jeevan Anand policy. Then why I have listed this policy on top of my website? Actually this is one The Most Selling Product of LIC ever and also the most visited article on my website ever. Besides that the information and example with which I have reviewed this policy can be used for the New Jeevan Anand policy as well. So if you want a complete review of LIC Jeevan Anand Plan then you have to read both the articles.
To Read LIC New Jeevan Anand Policy, Click Here. But finish this article first or else you have to come back to this again.
LIC Jeevan Anand Policy
LIC Jeevan Anand policy is mixture of endowment and life insurance. You will also get bonus amount. The main feature of this policy is the double death benefit option. Means policy holder’s life will not only cover till the end of policy tenure , but till policy holder dies. But in case policy holder dies in between the term tenure, then the policy sum assured with bonus amount will be paid to nominee of the policy. In that case policy will be terminated immediately. Accidental Death and Disability Benefit is payable till 70 years of age of the life insured.
Although like any other policy this policy is also very attractive. But the actual benefit can be understood after a through analysis only.
A simple example to expose LIC Jeevan Anand policy long term Return
For more details about this policy, you can refer to this page. The picture and data reference is taken from that page here to analyse further.
The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs 1,00,000 and Policy Term = 25 years respectively.
Now we will take the example of premium = Rs. 4346 / year.
Term period = 25 years
Total payment from your side = 4346 X 25 = Rs 108650/-
Bonus rate as 0.055. (approx data for analysis purpose)
The final Bonus amount will be = 0.055 X 1,00,000 X 25= Rs 137500/-
So on maturity the total amount will be = Rs 100000 + Rs 137500 = Rs 237500 /-
You will also get Final Addition Benefit(FAB) with this amount (if any). Now if you die after completing the premium term (after 25 years), then your family will also get Rs 1,00,000 more as Double death benefit plan.
Now let’s invest this Rs 4346 per annum in a monthly recurring deposit scheme. In such case monthly amount equivallent to the premium will be 4346/12 = 362 and tenure will be 25X12 = 300 month
Now try this calculator for accumulated money after 25 years. Its around Rs 343605, which is far more than what Jeevan Anand policy will provide you.
But LIC Jeevan Anad is an insurance policy too. So how can we compare with recurring deposit? Actually we can do the investment in such a way so that our insurance and savings, both requirement can be fulfilled.
You can do a complete term insurance plan, in which you have to pay a very less premium. And side by side invest in other savings options to earn a good interest. This will fulfill your future requirement and also make your money capable to fight with inflation after 25 years. You can read the article below regarding best term plans in India.
Hope this small calculation will help you to understand LIC Jeevan Anand Policy concept. This is same for the LIC New Jeevan Anand policy as well. This data might be wrong, kindly correct me here in case any of the figure is calculated wrongly.