LIC New Jeevan Anand (Plan No. 715) is one of the most popular and unique financial products offered by the Life Insurance Corporation of India (LIC). It is a non-linked, participating, individual, life assurance plan that offers a powerful combination of protection and savings under its signature tagline: "Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi" (With you during life, and after life).
Its standout feature is the dual benefit: you receive a lump sum maturity amount at the end of the policy term, but your life insurance cover does not end there. It continues as a free life cover for the rest of your life (up to age 100).
ð Eligibility Criteria & Restrictions
Before purchasing, verify that you meet the following absolute parameters:
- Minimum Age at Entry: 18 years (completed)
- Maximum Age at Entry: 50 years (nearer birthday)
- Maximum Maturity Age: 75 years (for the premium-paying term)
- Policy Term: 15 to 35 years
- Minimum Basic Sum Assured: ₹1,00,000
- Maximum Basic Sum Assured: No limit (subject to underwriting and your income limits)
ð Key Financial Benefits
1. Guaranteed Maturity Benefit
If you survive till the end of the chosen policy term and have paid all premiums regularly, you will receive a substantial lump sum:
- Calculation: Basic Sum Assured + Accrued Vested Reversionary Bonuses + Final Additional Bonus (if any).
- Once this amount is paid, the regular premium-paying portion of the contract closes, but the lifetime security clause activates.
2. Lifelong Protection Benefit (Post-Maturity)
Unlike standard endowment plans where the relationship ends after the maturity payout, Plan 715 keeps a permanent safety net active. After your policy matures, you pay ₹0 in premiums, yet you hold a lifelong insurance shield. Upon the eventual death of the life assured at any time post-maturity (up to age 100), the nominee receives the Basic Sum Assured once again in full.
3. Death Benefit (During the Policy Term)
If the policyholder passes away during the active premium-paying term, the family is financially protected. The death benefit is defined as the "Sum Assured on Death" plus accumulated bonuses.
- Sum Assured on Death is defined as the higher of:
- 125% of the Basic Sum Assured
- 7 times the annualized premium
- Note: This overall death benefit will never be less than 105% of the total premiums paid up to the date of death.
ð Practical Financial Framework (Simulated Example)
- Proposer Age: 30 Years
- Chosen Policy Term: 21 Years
- Selected Sum Assured: ₹5,00,000
The individual will pay premiums for 21 years. At age 51, assuming all conditions are met, they will receive an estimated maturity sum of roughly ₹10,00,000 to ₹11,00,000 (composed of the ₹5L base + accumulated LIC performance bonuses).
After cashing this check, they pay nothing further. However, a ₹5,00,000 life insurance plan stays locked in place completely free. If they live to age 85 and pass away, their nominee receives an additional fresh cash payout of ₹5,00,000.
⚠️ Wealth-Degrading Guardrails & Market Realities:
- Bonus Fluctuations: LIC declaration rates fluctuate annually based on sovereign fund performance. The final maturity is a variable projection, not a mathematically fixed guarantee.
- Surrender Penalties: If you exit or stop paying premiums before completing at least 2 full years, you will suffer severe financial penalties and may lose a major portion of your invested principal.
ðĄ Hidden Costs, Taxes, & Utilities
- Loan Availability: After completing 2 full years of active premium payments, you can leverage the policy's Surrender Value to take out a low-interest loan directly from LIC for liquidity emergencies.
- Tax Optimization: Premiums paid qualify for deductions under Section 80C, and the maturity/death proceeds are fully tax-exempt under Section 10(10D) of the Income Tax Act.
- Rider Customization: You can enhance the policy by attaching paid riders like the Accidental Death and Disability Benefit Rider or the New Critical Illness Benefit Rider.
To help map out a concrete premium schedule and calculate your exact projected maturity returns, please specify:
- Your exact age
- Your desired Policy Term (how many years you want to save/pay)
- Your target Sum Assured or your maximum annual budget for premiums
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