The Life Insurance Corporation of India (LIC) remains a synonym for trust for millions of Indians. If you’re looking for an investment that not only grows your savings at a rapid pace but also provides a strong financial security shield for your family in your absence, LIC’s Jeevan Anand (Plan No. 915) is the best option for you. This policy is a unique combination of endowment and whole life insurance, providing you with a maturity benefit while you’re alive and an additional death benefit to your nominee upon your death.
Extremely Low Premiums and Returns
People often shy away from insurance due to the fear of high premiums, but the Jeevan Anand policy doesn’t put a strain on the common man’s pocket. The biggest advantage of this policy is its affordable premium rates.
Suppose you’re 35 years old and choose a 35-year term with a Sum Assured of ₹5 lakh. In this case, your annual premium would be approximately ₹16,300. Every month, this translates to just ₹1,400, meaning a daily investment of just ₹45 to ₹46.
How will ₹5 lakh become ₹25 lakh
Over the course of 35 years, you pay a total premium of approximately ₹5.70 lakh. But when the policy matures, you receive a substantial sum assured due to LIC’s robust bonus rates. With a basic sum assured of ₹5 lakh, you receive a Vested Simple Reversionary Bonus of approximately ₹8.60 lakh and a Final Additional Bonus of approximately ₹11.50 lakh. This leaves you with a solid corpus of ₹25 lakh upon maturity, sufficient for your retirement planning.
With Life and Beyond
LIC’s tagline, “Enjoy Life,” perfectly captures this. While regular policies expire upon maturity, this policy continues to operate. In the example above, your policy remains in effect even after receiving the ₹25 lakh maturity amount.
The policyholder continues to receive a free risk cover of ₹5 lakh for life. If the policyholder dies even at the age of 100, an additional ₹5 lakh will be paid to their nominee. Simply put, this policy pays twice: once during your lifetime and once to your family after your death.
Tax Exemptions and Loan Facilities
Along with investing, this plan is also a solid tool for tax savings. Premiums are tax-deductible under Section 80C of the Income Tax Act. Furthermore, the maturity and death benefits are completely tax-free under Section 10(10D).
This policy also comes in handy during difficult times. You can take a loan against the policy after two years of inception. If you forget to pay your premium, there’s a 15-day grace period for monthly and 30-day grace periods for annual coverage. To further enhance your security, you can add riders like accidental death and critical illness.