Irrespective of whether you have a life insurance policy or not, LIC is one household name that you could not have missed. Considering that LIC is the oldest public-sector life insurance provider in the country, the insurer has gained quite a lot of popularity. However, as financial requirements, goals, and interests evolved, the newer generation of potential policyholders kept looking at new possibilities to invest, save, and gain future financial protection for themselves and their families. Catering to this transforming financial goal, new life insurance providers emerged. The policies offered by such insurers hosted lucrative cutting-edge features and perks. Additionally, these top life insurance providers upped their game in terms of overall operational proficiency.
Subsequently, LIC has now taken a back seat in terms of popularity. Although it still takes pride in its vast client pool and annual average business volume, which has been gained over the years. One of the primary reasons why LIC lost the game with the younger generation was the lack of comprehensiveness regarding its various types of life insurance policies.
Yet, building on its age-old reputation, some LIC products still remain in discussion. Today, we have taken up one such policy - the New Jeevan Anand Plan 915 and crafted a customised review to ensure that in case you are planning to opt for this policy, it will be the best-possible financial decision.
LIC's New Jeevan Anand Plan 915: A Customised Review
If you are looking for a comprehensive life insurance policy, the LIC Jeevan Anand Plan 915 is far from it. The plan has been marketed as a dual combination of offering twin benefits on maturity and continued lifelong coverage after that. The truth is, the policy offers assured payouts for either maturity benefits or death benefits. Among its rare highlighted perks are - loans against policy, instalment perks for death and maturity benefits, participation in company profits, and surrender perks.
Unfortunately, there are only 4 riders (only 3 can be availed), so the sum assured convergence starts pretty low. There is also the issue of LIC being a public sector insurer with definite hurdles in its overall operational proficiency.
Our recommendation: shop around for better policies from credible insurers.
Heads Up: It takes an average person up to 5 hours to read & analyse a policy, and 10 hours or more to compare different plans and make a decision.
This is why we propose a better alternative - taking a 30-minute FREE consultation with Ditto’s certified advisors. We have a spam-free guarantee, and we’ll never push you to buy a plan. Don’t delay this - we have limited slots every day, so book a quick call here before they run out.
LIC New Jeevan Anand Plan 915 Plan Brief
Life insurance policies, in all their variety, have kept getting popular, thanks to the sudden realisation of the fragility of mortality during COVID-19, multiple health scares over increasing lifestyle ailments, and growing financial savviness among the masses. However, despite this increasing popularity, Life Insurance Corporation of India (LIC) is losing the battle. If you take a look at the data of the metrics used to measure an insurer’s credibility (average of 3 years - 2020 to 2023) -
- Claim Settlement Ratio (CSR) of 98.71% (the industry average is 97.74%)
- Amount Settlement Ratio (ASR) of 95.1 (the industry average is 90.9%)
- Complaint Volume of 10.5 (the industry average is 72.8)
- Annual average business volume of ₹205,137 crores (the industry average is ₹14,204 crores)
-you will feel that the insurer is doing quite well. However, LIC is a public sector insurer and while its complaint volume might not be skyrocketing. Its current number is alarming, considering the general expectation from an insurer of this scale is to maintain an industry-best number. This reflects poorly on its overall operational efficiency - one hurdle that you wouldn’t want your nominees to face in the event of your unfortunate absence when it’s time for claim settlement.
Keeping this in mind, let’s examine the details of the LIC New Jeevan Anand Plan 915.
LIC New Jeevan Anand Plan 915 is a non-linked, participating life assurance savings plan. The policy offers a lucrative combination of financial protection and savings. The plan offers guaranteed payouts -
- Death benefit - in case the policyholder passes away during the tenure of the plan
- Maturity benefits - if the policyholder survives the policy tenure.
Apart from this, the plan also offers liquidity perks by offering opportunities to opt for loans against the policy if the policyholder requires them (multiple conditions must be met).
Unfortunately, this is where the perks end - the policy has 4 limited riders and misses out on add-ons like Waiver of Premium. This limits the capability for customisation of the plan, which is a niche requirement for all financial products recently. The presence of guaranteed payouts also spikes the premiums comparatively (against standard term insurance policies).
Despite all of this, if you are still looking ahead to purchase the LIC New Jeevan Anand Plan 915, here’s a detailed look into the features of this policy -
LIC New Jeevan Anand Plan 915: Table of Features
| FEATURES | DETAILS |
|---|---|
| Coverage | ₹1 lakh minimum - maximum is based on the discretion of the underwriting team & your eligibility |
| Entry age | 18 years to 50 years |
| Maximum Maturity Age | 75 years |
| Minimum Policy Term | 15 years |
| Maximum Policy Term | 35 years |
| Available Riders | Accidental Death and Disability Benefit Rider | Accident Benefit Rider | New Term Assurance Rider | New Critical Illness Benefit Rider |
Should You Buy LIC New Jeevan Anand Plan 915?
- LIC as an insurer: Founded in 1956, the Life Insurance Corporation of India (LIC) is one of the oldest and largest public sector life insurers in the country. It boasts a large client base and provides a wide range of financial products, including whole life insurance, term insurance, endowment plans, ULIPs, and more.
However, LIC has struggled to keep pace with changing financial trends. Today, there are many reputable life insurance providers offering comprehensive, customisable, and affordable policies. As a result, LIC’s products are less popular and less recommended. LIC’s plans tend to lack thorough coverage and affordability, and they offer very few term insurance riders, making them a less attractive option.
2. In-built features of the plan: Here’s a look at the various built-in features of LIC New Jeevan Anand Plan 915 -
- Death Benefit: Under the New Jeevan Anand Plan 915, there are two kinds death benefits involved -
CASE 1: If the insured person dies before the policy matures
The death benefit will be the higher of 125% of the Basic Sum Assured or 7 times the annual premium, plus any Simple Reversionary Bonuses and Final Additional Bonus, if applicable. This amount will be at least 105% of the total premiums paid up to the date of death. Such premiums do not include taxes, extra premiums, or rider premiums.
CASE 2: If the insured person dies after the policy matures
Only, the Basic Sum Assured will be paid.
- Benefit on maturity: If the insured person survives until the policy matures and all premiums have been paid, they will get the Basic Sum Assured along with any Simple Reversionary Bonuses and Final Additional Bonus, if applicable.
- Participation in Company Profits: As long as the policy is active, it will earn Simple Reversionary Bonuses from the Corporation's profits. Additionally, a Final Additional Bonus may be included if the policy matures or if the insured person dies, provided the policy remains active. This bonus is not applicable for paid-up policies. The allocation of surplus to policyholders is regulated and approved by the Central Government under the LIC Act of 1956.
3. Option for paying Death Benefit in instalments: You can receive the death benefit in instalments over 5, 10, or 15 years instead of a lump sum. This can be chosen based on whether the policy is active or paid up. The insured person can make this choice while they are still alive and can apply it to the full or partial death benefit. You can choose the instalment amount as a specific amount or a percentage of the total benefit. Payments can be made yearly, semi-annually, quarterly, or monthly, with minimum amounts set for each payment option.
| Death Benefit Instalment Frequency | Amount |
|---|---|
| Monthly | ₹5k |
| Quarterly | ₹15k |
| Half-Yearly | ₹25k |
| Yearly | ₹50k |
4. Settlement Option for Maturity Benefit: With the Settlement Option, you can opt to receive your Maturity Benefit in instalments over 5, 10, or 15 years instead of a single lump sum. This choice is available for both active and paid-up policies. You can choose to receive the entire Maturity Benefit or just a portion of it in instalments. The payment amount can be set as a specific sum or a percentage of the total benefit. Instalments can be scheduled annually, semi-annually, quarterly, or monthly, with minimum amounts required for each payment frequency.
| Maturity Benefit Instalment Frequency | Amount |
|---|---|
| Monthly | ₹5k |
| Quarterly | ₹15k |
| Half-Yearly | ₹25k |
| Yearly | ₹50k |
5. Surrender Benefits: You can surrender your policy anytime after you've paid premiums for two full years. When you do, you'll get a higher amount between the Guaranteed Surrender Value and the Special Surrender Value. The Corporation updates the Special Surrender Value regularly, with approval from IRDAI. The Guaranteed Surrender Value is determined by taking the total premiums you've paid (not including extra premiums, taxes, or rider premiums) and applying a factor based on your policy term and the year you surrender the policy.
6. Loans against policy: After paying premiums for at least two full years, you can take a loan against your policy. You can only borrow up to 90% of the Surrender Value for active policies and up to 80% for paid-up policies. The Corporation will set the interest rate periodically, following IRDAI guidelines. Any outstanding loan balance and interest will be deducted from your claim proceeds when you exit the policy.
7. Available Riders: While the New Jeevan Anand Plan 915 offers only 4 riders, policyholders can opt for either an Accidental Death and Disability Benefit Rider or an Accident Benefit Rider. Thus, an insured can opt for only 3 riders, which significantly limits the plan's customisation potential.
- Accidental Death and Disability Benefit Rider - You can add this rider to your active policy any time, provided both the policy and rider have at least 5 years remaining and it’s before the policy anniversary when the insured turns 65. The rider offers coverage for the policy term or until the insured turns 70, whichever comes first. If the insured dies in an accident, he/she is paid a lump sum. If the insured becomes disabled due to an accident (within 180 days), the rider pays benefits in equal monthly instalments over 10 years. It waives future premiums for both the rider and the equivalent portion of the base policy.
- Accident Benefit Rider - You can add this rider to your current policy at any time, provided there are at least 5 years remaining on both the policy and the rider before the insured reaches age 65. This rider will be effective until the policy term ends or the insured turns 70, whichever comes first. If the insured dies in an accident, the rider will pay a lump sum amount.
- New Term Assurance Rider - This rider can only be added when you purchase the policy. If selected, it will pay out the Term Assurance Rider Sum Assured if the insured person dies during the policy term.
- New Critical Illness Benefit Rider- This rider is only available when purchasing the policy. It provides coverage throughout the policy term. If you’re diagnosed with one of the 15 specified critical illnesses, you’ll receive the Critical Illness Sum Assured. The premium for this rider, combined with any Accident Benefit or Accidental Death and Disability Benefit riders, cannot exceed the premium of the base policy. Additionally, the total cost of all riders combined cannot exceed 30% of the base policy’s premium. The coverage for each rider cannot exceed the basic sum insured by the base policy.
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What’s Unique About the LIC New Jeevan Anand Plan 915?
The LIC New Jeevan Anand Plan 915 doesn’t have many unique features apart from instalment options for maturity and death benefits and the scope of liquidity perks via options to avail loans against this plan.
