LIC Jeevan Anand 149 – Features, Benefits and Maturity Calculator. Jeevan Anand (Plan 149) is by far one of the most popular insurance
Key Features of LIC Jeevan Anand – Plan 149
- Jeevan Anand plan is a combination of an Endowment Assurance plan and a Whole Life plan.
- Maturity benefit includes Sum Assured + Accrued (Simple reversionary) Bonus + Final addition bonus (If any) and shall be available after the completion of the term.
- Insurance Coverage equal to the Sum Assured shall continue even after the maturity and shall be available for lifetime or 100 years of age whichever is earlier.
- Death coverage during the term of the policy shall include Sum assured + Accrued bonus
- Double accident benefit and extended permanent disability is available as an inbuilt benefit under this plan and shall be available during the term of the plan and also till the age up to 70 years. Maximum DAB & EPDB cover will be Rs. 5 lakhs.
- Critical Illness Rider provides coverage for specified critical illnesses and shall be available as an optional rider.
LIC Jeevan Anand – Plan 149 – eligibility conditions and restrictions
|LIC Jeevan Anand 149 – Conditions and restrictions|
|Age at entry||18 years||65 Years|
|Premium Paying Term||5 Years||57 Years|
|Sum Assured||1,00,000||No Limit|
|Sum Assured Rebate|
|Up to 2.95 lakh||Nil|
|3 lakh to 4.95 lakh||Rs. 1 per 1000 Sum assured|
|5 lakh to 9.95 lakh||Rs. 1.50 per 1000 Sum assured|
|10 lakh and above||Rs. 1.75 per 1000 Sum assured|
|Yearly mode||3% of tabular premium|
|Half-yearly mode||1.5% of tabular premium|
|Quarterly, Monthly and SSS||NIL|
Maturity Benefit of Jeevan Anand 149 plan
Maturity benefit of the plan will be payable after the completion of the premium paying term. You should not confuse between the term and premium paying term. The term of the plan is the period up to 100 years of age. Whereas the premium paying term is the period chosen by the policyholder (between 5 to 57 years).
The maturity benefit shall be the total of the Sum Assured, Accrued bonus and the Final Additional Bonus (as per the declared amount at the year of maturity).
Latest bonus rates – LIC Jeevan Anand 149 Plan
The plan will have two types of bonuses. One is the simple reversionary bonus which is declared every year and is added to the policy account as and when it is declared. And the second one is Final Additional Bonus which is a one-time payment available at the time of exit from the policy by way of maturity or death.
Simple Reversionary Bonus – Declared every year
Latest Simple reversionary bonus rates for the plan (per 1000 sum assured) is provided in the table below.
|Jeevan Anand – 149 Bonus Rates (per 1000 Sum Assured)|
|Term||Bonus Rate 2016 Valuation||Bonus Rate 2016 Valuation||Bonus Rate 2016 Valuation|
|< 11 Years||38||38||38|
|11 to 15 Years||41||41||41|
|16 to 20 Year||45||45||45|
|> 20 years||49||49||49|
Final Additional Bonus – one-time bonus paid on exit by maturity or death.
Final Additional Bonus rates applicable for Jeevan Anand plan is as follows. In case of maturity, the term of the policy is considered and on the other hand, in case of death cases, period till death is considered.
|Final Additional Bonus Rate – Jeevan Anand 149|
|Term for Maturities / Premium paid period for death claims||FAB rate per 1000 SA|
|Below 2,00,000||2,00,000 and above|
Premium and Benefit Calculator – LIC Jeevan Anand 149
Premium, Benefit and Maturity calculator for LIC Jeevan Anand (Plan 149) is an online calculator to understand all the benefits of the plan in an easy manner. This calculator can provide you all the details such as, what you are paying, the pattern of insurance coverage, maturity benefits, etc. You can supply your own details such as Age, Sum Assured, Term, etc and get complete details of the plan in a table format.
If you are unable to view the premium and benefit calculator for Jeevan Anand Plan here, click to open Jeevan Anand -149 – Premium, Benefit and Maturity Calculator.
Death coverage of plan 149
Jeevan Anand 149 offers two types of death coverage.
- Death during premium paying term: Death coverage benefit includes Sum Assured + Accrued bonus (as on the date of death)
- Death coverage after the premium paying term: Jeevan Anand plan provided special additional risk coverage equal to the sum assured of the plan even after the premium paying term.
LIC Jeevan Anand 149 – Example of Benefits.
In order to understand the benefits of Jeevan Anand Plan let us consider an example. Let us assume that a 30 year old person is taking a 10,00,000 policy with term 25 years. The benefits as per the current bonus rates shall be as given below.
|Sum Assured considered||10,00,000||Term of the plan||25 Years|
|Age of the Life Assured||30 Years||Accident Disability Benefit||Yes|
Yearly premium required is Rs.41,206 and the premium has to be paid for 25 years. Total premium paid is Rs. 10,30,150. The maturity benefit* of the plan as per the current bonus rate is Rs. 26,35,000. Additional whole life coverage of Rs.10,00,000 also shall be available.
So the total benefit payable form LIC shall be to the tune of Rs.36,35,000, including the whole life coverage.
The benefits shown above are as per the parameters mentioned above. If you want to get the benefit illustration based on your own details, please use the online calculator.
Disclaimer* The illustrations shown above are as per the current bonus rates of the plan. The amount shown is not guaranteed and the actual returns shown can vary based on the actual experiences of the corporation.
What is the Internal Rate of Returns IRR – Jeevan Anand 149
The best method to find out the interest rate offered by an insurance plan is to calculate the Internal Rate of Returns(IRR) it offers. Jeevan Anand is an insurance product and hence naturally there will be loading for providing the insurance benefits. If you want to compare this plan with other savings plans you should remove this loading and then find out the rate of return it offers.
Further to add there will be an additional life long insurance coverage applicable for this plan. In order to understand this benefit let us consider three scenarios
- Death happens during the premium paying term
- Death immediately after the maturity
- Death at the age of 80 Years.
Let us apply these scenarios for the example considered above.
|Parameter considered||Scenario 1||Scenario 2||Scenario 3|
|Term of Plan||25 Years||25 Years||25 Years|
|Age of the person||30 Years||30 Years||30 Years|
|Death occurs on:||12th Year||25th year||50 Years|
So the Internal Rate of Returns(IRR) offered for the plan can vary from 7.09% to 10.45% in the considered scenarios.
Tax Implications of Jeevan Anand 149
Jeevan Anand plan as other endowment type of plans follow E-E-E (Exempt-Exempt-Exempt) patern as far as income tax is concerned.
- Premium Paid is exempted from income tax as sec 80C of income tax act.
- Maturity amount is income tax-free u/s 10(10D) of income tax act.
- Death coverage including life long coverage also will be tax free u/s 10(10D)
Surrender value of Jeevan Anand Plan 149
This plan can be surrendered during the premium paying term or even after the maturiy. Let us have a detailed look.
Surrender during premium paying period
Jeevan Anand plan can be surrendered for a reduced cash value any time after it has acquired paid up value. Inorder to acquire paid up value , Three year has to be completed from date of commencement and 3 full year premium has to be paid.
For all policies where premium has not been paid for at least three years, nothing will become payable.
While calculating the surrender value of any endowment type plan, following are the formulas that become applicable.
If you are thinking of surrendering the plan,my advise is to consider following point before taking a decision.
- You are losing valuable insurance coverage and that too taken at a lower premium as the policy was started several years ago.
- Surrendering of Jeevan Labh plan can bring in a loss as the surrender value can be lower, especially if the premium paid period is for a shorter period.
- If your policy has lapsed and you are unable to revive your policy, a better option is to keep the policy as paid up and get the maturity amount after the end of the term. You will have insurance cover based on the paid up value and full accrued bonus along with paid-up value of the policy can be availed at the time of maturity.
Surrender of ‘Life Long Coverage’ of Jeevan Anand 149
Jeevan Anand provides free life long insurance coverage even after receiving the maturity amount. Even though it is not advisable to forego the life long insurance coverage, LIC provides a facility to surrender the coverage and obtain the cash value of it.
The amount available on surrender can be calculated from the chart provided above. Surrender value per one lakh sum assured policy is provided in the chart.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.