Jeevan Anand - Unique insurance plan

Difference between term insurance and endowment plans:

Term insurance plans are like the insurance for motor vehicle and mediclaim. Insurance company pays full Sum Assured when risk occurs. Otherwise premium paid will be with the insurer.

Two important term assurance plans offered by LIC are"
a) Anmol Jeevan – 1 (Plan 164)
b) Amulya Jeevan – 1 (Plan 190)

In India life insurance is treated more as a saving instrument than being viewed from pure insurance point of view. Therefore, though plans are designed to provide risk cover when the policy is in force, they also give a big chunk at the time of maturity.

Such plans are called endowment plans. Most of the insurance plans in India are endowment plans. For a given sum assured, premium of endowment plan is more than any term assurance plan because they cover the risk of death as well as survival benifit.

At the time of maturity for endowment plans LIC pays the following
• Sum Assured
• Bonus
• Final Additional Bonus (for certain policies)
• Guaranteed additions (for certain policies)
• Loyalty Bonus (for certain policies)

As per IRDA regulation all insurance companies have to distribute 90 % of their profit to the policyholders in the form of bonus. LIC gives 95 % of its profit to the policyholders. Unlike private insurance companies, LIC invests the money in secured avenues and its marketing cost is much lower when compared with private players.

Now let me brief a popular endowment plan and their unique features.

Jeevan Anand (Plan 149)

 Example:
Age 32
Sum assured Rs 5,00,000
Term 16 years

Scenario 1:

If death occurs between 32 & 48 years of age, nominee gets Rs 5 lakhs + bonus. If the death was caused by an accident, nominee gets Rs 10 lakhs + bonus

Scenario 2:
Insured person lives through policy period of 16 years. At the time of maturity he gets sum Assured Rs 5 lakhs + bonus

In other plans, life cover ends with the maturity. In Jeevan Anand, life cover continues even after the maturity period when the policyholder will not be paying any premium at all.

If death occurs in at the age of 49 years or 70 years or 95 years, nominee will get Rs 5,00,000. If death is caused by accident, nominee will get Rs 10,00,000. (age limit for double accidental benifit is 70 years)

Uniqueness about Jeevan Anand is that it is a combination of whole life and end assurance plans.

For further details please contact Selva at insurance.selva22@gmail.com

or

call 9941924240 / 9941258394