Which is the best insurance plan to choose in 2017 in India?

Well, no matter in which day, week, month or year you’re in. As of now, Investing in LIC (Life Insurance Corporation of India) is one of the best way to ensure you and your family that trusts and relies on you completely are safe from any financial crisis in case of any emergency or your absence due to death or any permanent disability!

I would like to share with you one of the LIC insurance plans which I highly recommend. I would like to highlight few important points to be considered which are sufficient to opt this plan and secure yourself and your family based on your capabilities and requirements.

Let me keep this explanation as simple as possible.

Insurance Plan: New Jeevan Anand

  • Minimum Basic Sum Assured: Rs 1,00,000/-
  • Minimum Age at entry : 18 years (completed)
  • Maximum Age at entry : 50 years (nearest birthday)
  • Maximum Maturity Age : 75 years (nearest birthday)
  • Minimum Policy Term: 15 Years
  • Maximum Policy Term: 35 Years

Description: Let me tell this in pointers.

  • It will provide protection to you and your family (provides financial protection against death throughout lifetime of the policy holder).
  • It is also a form of savings (provides lump sum amount you paid as premium, at the end of the selected policy term in case of his/her survival)
  • In case of any emergency in mid of policy term. Then you can also apply and take loan on this LIC Insurance.

There are 3 types of Benefits:

Death Benefit: On death during the policy term.

  • Sum Assured on Death, Simple Reversionary Bonuses and Final Additional Bonus is payable to the nominee.
  • Sum Assured on Death will be 125% of Basic Sum Assured or 10 times of annualised premium.
  • Example: If Basic Sum Assured is Rs. 10,00,000/- and Policy Term is 15 Years.
    • Sum Assured on Death will be 12,50,000/-

Note: Death Benefit will not be less than 105% of all the premiums paid (Excluding Service Tax, Extra Premium and Rider Premium) as on death.

End of Policy Term Benefit: On policy holder survival and completion of policy term with all the premiums paid on time without any due.

  • Basic Sum Assured, Simple Reversionary Bonuses and Final Additional Bonus is payable to the nominee.

Optional Benefit: LIC Accidental death and disability benefit rider.

  • This is an optional benefit which can be availed by paying extra premium amount during the policy term.
  • In case of accidental death during policy, policy holder nominee will receive Accident Benefit Sum Assured + Basic Sum Assured
  • In case of accidental permanent disability occurs due to an accident during policy, policy holder will receive
    • Accident Benefit Sum Assured in equal monthly installments for 10 years
    • All the future premiums = Accident Benefit Sum Assured – Shall be waived off.

Let me explain the Jeevan Anand Lic policy details with example for your better understanding.

  • Policy holder age as on creation of policy: 25 Years
  • Policy Term: 15 Years
  • Basic Sum Assured: Rs 10,00,000/-
  • Sum Assured on Death: Rs 12,50,000/-
  • Accident Benefit Sum Assured: Rs 10,00,000/-

Total Approximate Paid Premium (Inclusive of all taxes): Rs 11,81,781/-

Approximate Lic Jeevan Anand Returns at Maturity Time:

  • Basic Sum Assured: Rs 10,00,000/-
  • Simple Reversionary Bonus: Rs 6,15,000/-
  • Final Additional Bonus: Rs 20,000/-

Total Approximate Return at Maturity Time: Rs 16,35,000/-

+

Life Time Risk Cover: Rs 10,00,000/-

Total Approximate Return: 16,35,000 + 10,00,000 = Rs 26,35,000/-

Take away pointers:

  • Rs 14,53,219/- is total growth of money you had invested for 15 years.
  • It is 122.96% increase from the total amount of investment done for 15 years.

Conclusion: I found this insurance plan to be more beneficial for long-term investment.

By seeing the amount of return on investment it gives. Who on this earth would not want to invest in such kind of investment right?

For further details on eligibility and other restrictions are available on the LIC website.

Hope so this article has helped you in some way!

Do let me know if you have any questions in specific to this?

Disclaimer: This article is meant for general education purposes only. I have not considered your personal risk profile and have expressed my own opinion in this article. Premium shown above is indicative and not exact, actual premium may vary according to various rules applicable. Maturity calculation is approximate calculation done based on current rate of bonus as on today’s date.

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