Unpredictable life situations like medical emergencies or accidents can place financial strain on families. Therefore, everyone needs to buy a life insurance policy to provide for their family’s financial future.
Though there are a plethora of life insurance companies in India, a prominent player in the landscape is the Life Insurance Corporation of India (LIC). It holds the distinction of providing top-notch life insurance solutions. LIC Jeevan Labh and LIC New Jeevan Anand plan are two such policies that are worth discussing!
What Is LIC Jeevan Labh Plan?
LIC Jeevan Labh plan is a non-linked, limited premium-paying, and endowment plan that offers a wide range of benefits for its customers. The policyholder will be secure and able to save money effectively because of the mixture of protection and savings it offers.
Additionally, it offers the family the necessary financial help in the terrible event of the insured’s passing. It is a simple endowment plan in which one must pay premiums for a brief period of time before receiving maturity benefits at the conclusion of the policy term. The nominee will also receive the death benefit in the form of bonuses and the sum assured in the event that the policyholder passes away at any point throughout the policy term.
What Is LIC's New Jeevan Anand Plan?
New Jeevan Anand Plan from LIC is a non-linked, participating, individual life insurance plan that combines protection and savings in a compelling way. With the option of receiving a lump sum payment at the conclusion of the chosen policy term in the event of the policyholder’s survival, this combination offers financial protection against death throughout the policyholder’s lifetime.
Eligibility Conditions Of LIC Jeevan Labh & LIC New Jeevan Anand
| Parameters | LIC Jeevan Labh | LIC New Jeevan Anand |
| Minimum Entry Age | 8 Years (Completed) | 18 Years (Completed) |
| Maximum Entry Age |
| 50 Years |
| Policy Term | 16/21/25 Years | 15 To 35 Years |
| Minimum Basic Sum Assured | Rs. 2 Lakhs | Rs. 1 Lakh |
| Maximum Basic Sum Assured | No Limit | |
| Maximum Maturity Age | 75 Years | |
Comparing Features & Benefits Of LIC Jeevan Labh & LIC New Jeevan Anand Plan
Although LIC Jeevan Labh and LIC New Jeevan Anand have quite different characteristics from one another, there are some areas where they are similar to each other. A thorough comparison of the two will give a clear idea of the similarities and differences between the plans.
Death Benefit:
Both plans, LIC Jeevan Labh and LIC New Jeevan Anand offer death benefits or ‘Sum Assured on Death’ to the nominee in case the policyholder dies during the policy period. The benefit comes with a condition that all due premiums have been paid.
In both the plans, the ‘Sum Assured on Death’ is defined as a higher of the following:
LIC Jeevan Labh
- Basic Sum Assured
- 7 X Annualized Premium
LIC New Jeevan Anand
- 125% of the Basic Sum Assured
- 7 X Annualized Premium
This death benefit under both plans must equal at least 105 percent of all premiums paid up to the date of death.
Maturity Benefit:
Under both plans, if the life assured survives to the specified date of maturity and the policy is in force, meaning all due premiums have been paid, ‘Sum Assured on Maturity’ will be paid along with any vested ‘Simple Reversionary Bonuses’ and ‘Final Additional Bonuses’ that may apply.
Rider Benefits:
The policyholders can enhance both policies with the help of choosing various rider options that are available by an extra premium amount.
LIC Jeevan Labh
- LIC’s Accidental Death & Disability Benefit Rider
- LIC’s Accident Benefit Rider
- LIC’s New Term Assurance Rider
- LIC’s New Critical Illness Benefit Rider
- LIC’s Premium Waiver Benefit Rider
LIC New Jeevan Anand
- LIC’s Accidental Death & Disability Benefit Rider
- LIC’s Accident Benefit Rider
- LIC’s New Term Assurance Rider
- LIC’s New Critical Illness Benefit Rider
Settlement Options For Death & Maturity Benefit:
Death and maturity benefits under both policies may be received over a period of 5, 10, or 15 years rather than all at once. At any point during their lifetime, the life assured may choose to use this option to obtain all or a portion of the death and maturity benefits offered by the policies.
Rebates:
Both plans also offer rebates on high sum assured. Let’s take a look at them!
| LIC Jeevan Labh | |
| Basic Sum Assured (BSA) (In Rs.) | Rebates (In Rs.) |
| 2,00,000 To 4,90,000 | Nil |
| 5,00,000 To 9,90,000 | 1.25% Of BSA |
| 10,00,000 To 14,90,000 | 1.50% Of BSA |
| 15,00,000 & Above | 1.75% Of BSA |
| LIC New Jeevan Anand | |
| Basic Sum Assured (BSA) (In Rs.) | Rebates (In Rs.) |
| 1,00,000 To 1,95,000 | Nil |
| 2,00,000 To 4,95,000 | 1.50% Of BSA |
| 5,00,000 To 5,95,000 | 2.50% Of BSA |
| 10,00,000 & Above | 3.00% Of BSA |
Loan Facility:
Both policies offer loan facilities to the policyholders subject to some terms and conditions that the company may specify from time to time. The maximum loan that can be taken under both the policies, as a percentage of surrender value, are as follows:
- For in-force policies: Up to 90%
- For paid-up policies: Up to 80%
Benefit Illustration Of LIC Jeevan Labh & LIC New Jeevan Anand Plan
- Policy Term: 25 Years
- Premium Payment Term: 16 Years
- Premium Payment Mode: Yearly
- Basic Sum Assured: Rs. 2,00,000
- Premium: Rs. 9,134
| End Of Year | Total Premiums Paid Till The End Of The Year | Guaranteed Benefits | Non-Guaranteed Benefits | Total Maturity Benefits | Total Death Benefits | ||||
| Sum Assured On Maturity | Sum Assured On Death | @4% PA | @8% PA | @4% PA | @8% PA | @4% PA | @8% PA | ||
| 5 | 45,670 | 0 | 2,00,000 | 4,000 | 30,000 | 0 | 0 | 2,04,000 | 2,30,000 |
| 15 | 1,37,010 | 0 | 2,00,000 | 12,000 | 90,000 | 0 | 0 | 2,12,000 | 2,91,000 |
| 20 | 1,46,144 | 0 | 2,00,000 | 16,000 | 1,20,000 | 0 | 0 | 2,16,000 | 3,25,000 |
| 25 | 1,46,144 | 2,00,000 | 2,00,000 | 20,000 | 1,70,000 | 2,20,000 | 3,70,000 | 2,20,000 | 3,70,000 |
LIC New Jeevan Anand
Let’s take the example of Mr. Y, 30 years old male, who has purchased the LIC New Jeevan Anand plan with the following details:
- Policy Term: 35 Years
- Premium Payment Mode: Yearly
- Basic Sum Assured: Rs. 1 Lakh
- Premium: Rs. 3,165
The plan will give the following benefits to Mr. Y.
| End Of Year | Total Premiums Paid Till The End Of The Year | Guaranteed Benefits | Non-Guaranteed Benefits | Total Maturity Benefits | Total Death Benefits | ||||
| Sum Assured On Maturity | Sum Assured On Death | Scenario 1 | Scenario 2 | Scenario 1 | Scenario 2 | Scenario 1 | Scenario 2 | ||
| 5 | 15,825 | 0 | 1,25,000 | 2,000 | 16,000 | 0 | 0 | 1,27,000 | 1,41,000 |
| 20 | 63,300 | 0 | 1,25,000 | 8,000 | 64,000 | 0 | 0 | 1,33,000 | 1,91,500 |
| 30 | 94,950 | 0 | 1,25,000 | 12,000 | 96,000 | 0 | 0 | 1,37,000 | 2,45,000 |
| 35 | 1,10,775 | 1,00,000 | 1,25,000 | 14,000 | 1,12000 | 114000 | 256000 | 1,39,000 | 2,81,000 |
| 36 Onwards | 1,10,775 | 0 | 1,00,000 | 0 | 0 | 0 | 0 | 1,00,000 | 1,00,000 |
- Scenario 1: @4% PA
- Scenario 2: @8% PA
Which One To Choose: LIC Jeevan Labh OR LIC New Jeevan Anand Plan?
It’s critical to take into account your unique circumstances, financial goals, and risk tolerance while choosing the best LIC plan out of the two. Each plan has a unique combination of features and advantages.
LIC New Jeevan Anand can be a better option if you desire lifelong coverage and want the policy to remain in effect once it reaches maturity. On the other hand, LIC Jeevan Labh can be a better option if you choose a plan with restricted premium payments and require coverage for a defined timeframe.
To make an informed decision, you can take the help of the comparison done in this post or you can also compare their policy brochures for analyzing their features, terms, conditions, and more.
The choice is ultimately yours!
