LIC New Jeevan Anand 815 Review, premium, and Maturity Calculator

(Last Updated On: May 24, 2019)

New Jeevan Anand (815) is one of the most popular Endowment Assurance plans from LIC of India. The highlight of the plan is the additional risk coverage it provides even after maturity. The plan becomes even more attractive with Accident and Disability Benefit rider,  additional Term Insurance, Critical Illness Benefit rider, etc.

This article will provide you comprehensive information on premium, maturity and insurance coverage benefits of LIC’s New Jeevan Anand Plan. Note: Learn more on the previous version of New Jeevan Anand plan – Jeevan Anand -149 Review benefit and calculators.

Eligibility Conditions and Restrictions

Plan Details – LIC New Jeevan Anand
Age at entry18 to 50 years
Premium payment modesYearly, Half Yearly, Quarterly, Monthly(NACH and SSS)
Policy Term15 to 35 years
Basic Sum Assured100000 and above in multiples of 5000
Mode Rebate2% for Yearly,1% for Half Yearly Nil for other modes
Sum Assured Rebate
1,00,000 to 1,95,000 Nil
2,00,000 to 4,95,0001.50 / thousand of basic sum assured
5,00,000 and 9,95,0002.50 / thousand of basic sum assured
10,00,000 and above3.00 / thousand of basic sum assured
Other details
LoanAfter 3 years
SurrenderAfter 3 years of full premium payment
Revival of lapsed policyUp to two years from date of lapsation

LIC New Jeevan Anand Plan-815 – A quick overview

New Jeevan Anand Plan 815 Benefit Pattern
  • New Jeevan Anand is an Endowment type of policy, where the maturity benefit is provided as a single lump sum payment after the completion of the premium paying term.
  • Maturity benefit of New Jeevan Anand plan is the sum total of
    1. Sum Assured,
    2. Bonus
    3. Final Addition bonus (if any).
  • Normal death coverage during the premium paying term shall be the sum of ‘Sum Assured on Death‘ and the vested bonus and Final Additional Bonus. Where Sum Assured on Death is the higher of
    1. 1.25 times the basic Sum Assured and
    2. 10 times of annualized premium.
  • Life long insurance coverage equal to the (basic) sum assured of the plan shall be available after the premium paying term of the policy.
  • Accidental Death and Disability Benefit (AD & DB) rider provide additional coverage equal to the Accident Benefit Sum assured on accidental death. It also provides Extended Permanent Disability Benefit (EPDB) which is explained later in this post.
  • Critical Illness Benefit rider can be opted to get coverage for critical illnesses under this plan.
  • Loan facility can be availed after payment of at least 3 full years premium.

LIC New Jeevan Anand (815) – Online Benefit Calculator

New Jeevan Anand 815 – Calculator is a powerful online tool to get a comprehensive idea on premium, maturity and insurance coverage benefits, in a simple and user-friendly manner. Riders such as Critical Illness Benefit Rider (CIR), and Accident and Disability Benefit (DAB) has been incorporated into this calculator.

If you are unable to view the Premium calculator here (This can happen if you are viewing the site in a mobile device) please click the link to open Jeevan Anand Premium and Benefit Calculator.

Benefits Available – New Jeevan Anand (Plan 815)

Maturity benefit

On survival to the end of the premium paying term, Basic Sum assured along with the vested simple reversionary bonuses and Final Additional bonus(FAB) is paid as the maturity benefit. Read the post on bonus rates to understand the latest bonus rates of Jeevan Anand plan.

How bonus is calculated in LIC policy New jeevan Anand 815

*Actual bonus rates may vary depending on the experiences of the corporation.

Death Benefit

(1) Death benefit during the premium paying term shall be the sum of ‘Sum Assured on Death‘ and the vested bonus and Final Additional Bonus. Where Sum Assured on Death is the higher of

  1. 1.25 times the basic Sum Assured and
  2. 10 times of annualized premium.

If Accidental Death and disability benefit rider has opted and the death is due to accident, an additional amount equal to the rider sum assured also shall be paid along with the normal death benefit.

(2) Death Benefit after maturity. If Death occurs after the premium paying period and maturity of the policy, an amount equal to basic sum assured shall be paid.

Let us consider an example where the sum assured is 10,00,000 and term of the plan 25 Years. Death coverage at various years is given below.

Death Benefit payable at various years
Year and Premium PaidBenefit PayableCalculationNormal Death AmountAccident Death amount
First Year (after payment of one half yearly premium)(1.25 times Sum Assured + Bonus)- One half yearly premium.
((1000000*1.25)+49,000) – one half yearly premium12,99,000 – 0ne Hly premium22,99,000 – one Hly Premium
Fifth year (after payment of one quarterly premium)(1.25 times Sum Assured + 5 Year Bonus)- 3 quarterly premium((1000000*1.25)+(49,000* 5)) – 3 Qly premium14,95,000 – 3 Quarterly premium24,95,000 – 3 Quarterly Premium
Death After 10 years from MaturityBasic Sum Assured10 Lakh10,00,00010,00,000

Riders Available

Accidental Death and Disability rider

AD & DB rider is available on payment of extra premium and provides additional coverage for accidental death and disability during the premium paying period of the policy. On accidental death, an additional amount equal to the Accident Benefit Sum assured is paid.

Extended Permanent Disability Benefit (EPDB) becomes applicable in case of ‘accidental permanent disability’ within 180 days from the date of the accident. An amount equal to the accident benefit sum assured will be paid in equal installments spread over a period of next 10 years. Future accident benefit premiums and premium for the sum assured equal to the accident benefit Sum Assured will be waived.

Critical Illness Benefit Rider

In case the life assured is diagnosed as suffering from any of the pre-specified critical illnesses, critical illness sum assured is paid irrespective of the treatment expenditure. Read more on critical illness rider and online critical illness premium calculator.

If at least three full years premium have been paid and even if subsequent premium are not paid, the policy will get reduced to a value called Paid-up Sum Assured. Benefits such as coverage and maturity benefit will continue for that reduced sum assured. Paid up value can be defined as the sum assured reduced to the ratio of total premium paid to the total premium payable.

Surrender calculation of LIC New Jeevan Anand 815

Surrender Value

A new Jeevan Anand policy can be surrendered any time, provided, the policy has acquired paid-up status by completing at least three full years premium payment.

Guaranteed Surrender Value is a percentage of the sum of premiums paid and the bonus accrued, excluding the rider and extra premiums. The percentage will vary depending on the term and premium paid period.

Special Surrender Value: is the discounted value of the paid-up value and the vested bonus. The actual surrender value will be the higher of guaranteed surrender value and special surrender value.

Loan – New Jeevan Anand Plan.

Loan facility is available after the completion of three years from the date of commencement and payment of at least three full-year premium. The maximum loan amount available is 90% of the surrender value for a term up to 23 Years. Refer to the chart below for more information.

Policy Term (Years)% of Surrender value(In force Policies)% of Surrender value (Paid-up policies)
up to 2390 %80 %
24 to 2780 %70 %
28 to 3170 %60 %
32 to 3560 %50 %

Latest bonus rates – LIC Jeevan Anand 815 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 – 815 Bonus Rates (per 1000 Sum Assured)
TermBonus Rate 2016 ValuationBonus Rate 2016 ValuationBonus Rate 2016 Valuation
15 Years414141
16 to 20 Year454545
> 20 years494949

Final Additional Bonus – one-time bonus paid on exit by maturity or death.

Final Additional Bonus rates are not yet declared for New Jeevan Anand plan. But I am giving the FAB Rates of the previous version of Jeevan Anand 149 to get a better Idea. In case of maturity, the term of the policy is considered and on the other hand, in case of death, period till death is considered.

Final Additional Bonus Rate -Jeevan Anand 149
Term for Maturities / Premium paid period for death claimsFAB rate per 1000 SA
Below 2,00,0002,00,000 and above
Below 1500
151020
162035
173550
185075
1975100

Read more : Bonus rates declared by LIC for the year 2018-19.

Rate of return offered – LIC New Jeevan Anand

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

  1. Death happens during the premium paying term
  2. Death immediately after the maturity
  3. Death at the age of 80 Years.
Parameter consideredScenario 1Scenario 2Scenario 3
Sum Assured10,00,000 10,00,000 10,00,000
Term of Plan25 Years25 Years25 Years
Age of the person30 Years30 Years30 Years
Death occurs on:12th Year25th year50 Years
Maturity Benefit*NA26,75,00026,75,000
Download this Internal Rate of Returns Chart

Internal rate of returns can vary considerably based on the scenarios.

New Jeevan Anand Vs Endowment – Comparison

New Jeevan Anand can be considered as New Endowment Plan Table 14 with the add-on benefit of life long coverage. So there is an extra premium element for the additional benefit of life long coverage provided.

Read this article to know the difference between Jeevan Anand and Endowment and how much extra amount you are paying for the additional benefit.

New Jeevan Anand (Plan-815) – Example of benefits

In order to get a clear idea on the benefits of LIC New Jeevan Anand Policy, let us take an example of a person with the following details and assume that he is taking the policy.

Plan Details Considered for Illustration
Sum Assured10,00,000
Age25 Years
Premium Paying Term25 Years
Yearly Premium44035
Total Premium Paid10,81,771
New Jeevan Anand 815 Example of benefits
Download software used to create this info-gram

Click here to download New Jeevan Anand calculation software used to create the info-gram shown above.

Please note: Illustration shown here is just an example to understand the benefits of New Jeevan Anand Policy, If you want to know the actual benefits as per your details, please use the New Jeevan Anand Calculator provided above.

Three possibilities after taking a New Jeevan Anand policy are,

  1. Policyholder survives the term of the policy of 25 years and receives the maturity benefit – (scenario 1)
  2. Death occurs before the completion of 25 years – (scenario 2)
  3. Death  occurs after receiving the maturity benefit – (scenario 3)

Scenario 1 – The policyholder receives maturity

Maturity benefit is available after the completion of the premium paying term which is 25 years in this case. Latest bonus rate declared for Jeevan Anand Plan is Rs.49 per 1000 sum assured. Latest final addition bonus rate applicable for the 25-year term policy is Rs 450 per 1000 Sum Assured.

Read the article on the latest bonus rates applicable for LIC policies here to understand more on bonus rates and how bonus rates are calculated.

Maturity Benefit of New Jeevan Anand Policy (An Illustration)
Term Of The Policy25 Year
Maturity Year2042
Sum Assured(A)10,00,000
Bonus(B)* (49000X25)12,25,000
Final Addition Bonus*(C)4,50,000
Total Maturity (A+B+C)26,75,000
Life Long Coverage10,00,000
Total Benefit*36,75,000

So the approximate maturity benefit available for the example considered is Rs. 26,75,000 as per the latest bonus rates* applicable. Please note that these rates are not guaranteed and can vary based on the experiences of the corporation.

Scenario 2 – Death occurs before the completion of Premium Paying Term

If death occurs before the completion of the policy term, normal life coverage is paid to the nominee. Normal Life coverage includes 125 % of the basic Sum Assured + Bonus accrued till date + Final Addition Bonus. If the death occurs due to an accident, an additional basic sum assured is paid along with the normal life coverage.

The table provided above will help you to get a clear idea of the insurance coverage available on various years.

Scenario 3 – Death occurs after receiving maturity

Life long insurance coverage is one of the most important features of LIC’s New Jeevan Anand plan. If the death occurs after completion of premium paying term and after receiving the maturity amount, an amount equal to basic Sum Assured is paid to the nominee. In our example, the life long coverage will be Rs 10,00,000 which is the basic sum assured of the plan.

Read more: New Jeevan Anand (T-815 ) a critical review and comparison with other plans.

*Benefit Illustrations provided here are as per the latest bonus rates declared for the policy. Final Addition rates used are based on the experience in similar plans. please read the information provided at LIC web site for more information.