LIC Jeevan Anand Policy : Get 25 Lakhs Cover by Depositing Rs 45 Daily : Comprehensive Guide

LIC Jeevan Anand Policy : Life insurance has become a crucial part of financial planning for individuals and families alike. Among the many life insurance providers in India, the Life Insurance Corporation (LIC) stands out as the most trusted and popular. For decades, LIC has offered a wide array of policies catering to diverse needs and income brackets. One of its most favored and well-known plans is the LIC Jeevan Anand Policy, which combines the benefits of both endowment and whole-life insurance.

The plan is especially attractive because, by saving a small amount daily, policyholders can secure significant financial benefits in the long term. In fact, by depositing just ₹45 daily, one can ensure coverage of up to ₹25 lakhs over a span of 35 years.

This essay will delve into the nuances of the LIC Jeevan Anand policy, explore the benefits it offers, examine the mechanics of saving ₹45 per day to achieve ₹25 lakh coverage, and discuss the broader advantages of long-term investment planning.

Understanding Life Insurance and Its Role in Financial Security

Life insurance is essentially a contract between the insurer (insurance company) and the insured (policyholder). Under this contract, the insurer promises to pay a predetermined sum of money to a designated beneficiary in the event of the insured’s death, or after a certain period (maturity), in exchange for regular premium payments. The fundamental purpose of life insurance is to provide financial protection and security to the policyholder’s family or dependents after their demise. Over the years, life insurance has evolved to offer more than just death benefits, becoming a versatile tool for wealth creation, retirement planning, and securing one’s financial future.

The LIC Jeevan Anand policy embodies these broader goals. Not only does it provide life insurance coverage, but it also serves as a savings instrument, allowing policyholders to accumulate a large corpus over time, with bonuses added at various stages. This combination of insurance and investment makes the LIC Jeevan Anand policy a standout choice for those looking to secure both short-term financial stability and long-term wealth creation.

LIC Jeevan Anand Policy: Features and Benefits

The LIC Jeevan Anand policy is designed as a non-linked, participating endowment policy, which means that it offers a guaranteed sum assured along with additional bonuses throughout the policy term. The plan provides comprehensive coverage to the policyholder, even after the premium-paying term ends, ensuring a lifetime of financial security. This distinctive feature separates it from most other insurance policies that cease to provide coverage once the policyholder stops paying premiums.

The key features of the Jeevan Anand policy are as follows:

1. Life Cover with Bonuses: The policy provides both life cover and regular bonuses. These bonuses are declared by LIC every year based on the corporation’s profits. At the end of the policy term, the total sum assured, along with bonuses, is paid out to the policyholder.
2. Coverage Beyond the Term: One of the unique features of this plan is that the life insurance cover continues even after the policy term ends. This means that even after receiving the maturity benefit, the policyholder remains insured for the rest of their life.
3. Death Benefit for Nominee: In the unfortunate event of the policyholder’s death, the entire sum assured is paid to the nominee, providing financial support to the family.
4. Accidental Death and Disability Benefit Rider: The policy offers an additional rider that provides coverage for accidental death or disability. In case of accidental death, an additional sum of ₹5 lakh is paid to the nominee. If the policyholder suffers a permanent disability due to an accident, the sum assured is paid out in installments to meet the financial needs of the policyholder and their family.
5. Loan Facility: The policyholder is eligible for a loan against the policy after paying premiums for three consecutive years. This provides liquidity in times of financial need, without having to terminate the policy.
6. Rebates and Discounts: LIC offers rebates on the premium for high-value policies. For example, there is a 2% rebate for annual premium payments and 1% for half-yearly payments.
7. Eligibility Criteria: The policy can be purchased by individuals between the ages of 18 and 50. The policy term can range from 15 to 35 years, depending on the policyholder’s preference.

These features make the Jeevan Anand policy an attractive option for individuals seeking both financial protection and a long-term savings plan. Let us now explore how saving ₹45 per day can translate into a significant corpus of ₹25 lakhs over 35 years.

How Saving ₹45 a Day Can Lead to ₹25 Lakhs

The LIC Jeevan Anand policy allows individuals to build a substantial financial corpus by making small, regular investments. By saving just ₹45 per day, which amounts to approximately ₹1,358 per month, a policyholder can ensure coverage of ₹25 lakhs over 35 years.

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This modest daily saving, when accumulated over decades, can create significant wealth due to the power of compounding and the bonuses provided by LIC.

Let’s break down how this works:

• Monthly Contribution: ₹45 per day equals ₹1,358 per month.
• Annual Contribution: ₹1,358 x 12 months = ₹16,296 annually.
• Total Contribution Over 35 Years: ₹16,296 x 35 years = ₹5,70,360.

Thus, over the course of 35 years, the policyholder would have contributed a total of ₹5,70,360. However, this is not the end of the story. The LIC Jeevan Anand policy offers several bonuses that significantly boost the maturity value of the policy.

1. Reversionary Bonus: The reversionary bonus is declared annually by LIC based on its performance. This bonus is added to the policy every year and is paid out at the end of the policy term. Assuming a reversionary bonus of ₹8.60 lakhs, this amount is added to the total corpus.
2. Final Additional Bonus: In addition to the reversionary bonus, LIC also declares a final bonus at the end of the policy term. This bonus is paid out as a lump sum along with the maturity amount. In this case, the final additional bonus is assumed to be ₹11.50 lakhs.

Therefore, the total maturity value for the policyholder would be:

• Base Sum Assured: ₹5 lakhs.
• Reversionary Bonus: ₹8.60 lakhs.
• Final Additional Bonus: ₹11.50 lakhs.

Thus, the total amount received at the end of the policy term is approximately ₹25 lakhs.

Why LIC Jeevan Anand is an Ideal Investment for Long-Term Financial Security

The LIC Jeevan Anand policy is an ideal investment for individuals who want to secure their financial future while ensuring life insurance coverage for their family. There are several reasons why this policy stands out as a long-term savings instrument:

1. Long-Term Wealth Creation: By consistently saving a small amount daily, policyholders can accumulate a substantial corpus over time. This approach to savings is manageable for most individuals and allows them to build wealth without significantly impacting their monthly budget.
2. Guaranteed Returns with Bonuses: The policy offers guaranteed returns through the sum assured, and the bonuses add a significant boost to the overall maturity value. This makes Jeevan Anand an attractive option for risk-averse individuals looking for stable, predictable returns.
3. Dual Benefit of Insurance and Investment: The Jeevan Anand policy serves as both an insurance and investment plan. This dual benefit ensures that the policyholder’s family is financially protected in case of their untimely demise, while also providing the policyholder with a lump sum at the end of the policy term.
4. Flexibility with Loan Option: The policyholder can take a loan against the policy if they need funds for emergencies or other financial needs. This flexibility is a valuable feature that ensures liquidity without terminating the policy.
5. Accidental Death and Disability Coverage: The additional rider for accidental death and disability offers an extra layer of protection, ensuring that the policyholder’s family is financially secure in case of unforeseen events.
6. Tax Benefits: Premiums paid toward the LIC Jeevan Anand policy are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity proceeds and death benefits are tax-exempt under Section 10(10D).

The Psychological and Financial Benefits of Long-Term Savings

Long-term savings plans like the LIC Jeevan Anand policy not only provide financial security but also instill a disciplined approach to saving. By committing to regular contributions, individuals develop a habit of saving, which can lead to better financial planning and management. The knowledge that their future is secure can reduce financial stress and provide peace of mind, knowing that they are building a substantial financial safety net.

Moreover, long-term savings plans like Jeevan Anand take advantage of the power of compounding. As bonuses are added to the policy year after year, the total amount grows exponentially, creating significant wealth over time. This demonstrates the importance of starting to save early and consistently, as the longer the policy term, the greater the benefits.

LIC Jeevan Anand Policy – Conclusion

The LIC Jeevan Anand policy is an excellent option for individuals looking to secure both their present and future. By saving a small amount of ₹45 daily, policyholders can ensure coverage of ₹25 lakhs over 35 years, while also enjoying life insurance protection and bonuses that significantly enhance the maturity value. The combination of insurance, investment, and additional riders for accidental death and disability make Jeevan Anand a comprehensive financial solution for long-term wealth creation and security.

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The key takeaway from this policy is the importance of consistent, disciplined saving over time. As the old saying goes, “Rome wasn’t built in a day,” and neither is financial security. But by making small, manageable contributions regularly, individuals can build a substantial corpus that will serve them well in the future. Whether you’re a young adult just starting your career or a seasoned professional looking for long-term security, the LIC Jeevan Anand policy is an investment worth considering for your financial journey.