LIC Jeevan Anand Review (Policy No. 149)

LIC Jeevan Anand Key Features

Here are the key features of the Jeevan Anand policy

1. At Maturity you get sum assured + All bonuses
2. After maturity you are still covered and your nominee will get Sum assured after your death
3. Extra Accident benefit of upto a maximum of Rs 5 Lakh untill the age of  70 years

LIC Jeevan Anand Surrender Value

The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

LIC Jeevan Anand Analysis

For Example suppose a 30 year old invests in an LIC Jeevan Anand policy with Sum Assured: Rs 5,00,000 ( 5 Lakhs ) Term: 25 years Yearly Premium: Rs 20,978 Then He will pay a total of Rs 5,24,450 over a period of 25 years. Now let us try and figure out the rate of return for the policy

LIC Jeevan Anand Rate of Return

If We calculate at the current yearly bonuses offered by LIC which is Rs 46 per 1000 sum assured then he will get approximately Rs 10,75,000 + Final Additional bonus. This works out to a rate of return of approximately 8.2% at Maturity assuming bonuses at current rates

LIC Jeevan Anand Review

Overall this is a good policy worth buying and is expected to give you a rate of return between 8 to 9.64 % depending on the bonus announced by LIC but it gives you good return only if your premium term is greater than 21 years.