Life insurance is a relatively frequent item that is included in many people’s long-term financial planning. A life insurance policy is a means to safeguard an individual’s loved ones by giving them the money they might require after his/her passing. For instance, a person might buy life insurance to pay for his/her children’s college education or to assist his/her spouse with paying the mortgage or other regular expenses.
When it comes to the reliable and trustworthy life insurance company in India, LIC (Life Insurance Corporation of India) is a renowned name. The company offers a variety of suitable options that can fit an individual’s requirements. Two of its plans, LIC New Jeevan Anand and LIC Jeevan Lakshya, are specifically designed for an assured future for the policyholder’s family. Since both the plans share somewhat similar fundamental aspects, it might be highly confusing on which one to choose.
Therefore, this post will map out the key similarities and differences between the two plans for a better decision!
What Is LIC New Jeevan Anand Policy?
New Jeevan Anand from LIC is a non-linked, participating, individual life assurance plan that provides the policyholder with the greatest level of protection and savings. The plan’s primary highlight is the fact that it provides two benefits: a complete payout at maturity and ongoing lifelong coverage.
Through the provision of a lump sum payment at the conclusion of the chosen policy term in the event of the policyholder’s survival, this combination offers the policyholder lifetime financial protection against death. The plan also gives the user access to a loan facility.
What Is LIC Jeevan Lakshya Policy?
Jeevan Lakshya plan from LIC is a non-linked, participating, individual life insurance plan with an annual income benefit to protect the policyholder and your family from the uncertainties of life. It is specifically created to produce a consistent stream of income.
Under this policy, the insured may receive a death benefit prior to the maturity date in the unfortunate event of the insured person’s untimely death in addition to the maturity benefit in the form of a lump sum. This plan also offers a tonne of additional benefits to meet the policyholder’s current and future requirements, particularly those of his/her children. Additionally, this plan addresses liquidity requirements via its loan facility.
Eligibility Details Of LIC New Jeevan Anand & LIC Jeevan Lakshya
| Parameters | LIC New Jeevan Anand | LIC Jeevan Lakshya |
| Minimum Entry Age | 18 Years (Completed) | 18 Years (Last Birthday) |
| Maximum Entry Age | 50 Years (Nearer Birthday) | |
| Policy Term | 15 To 35 Years | 13 To 25 Years |
| Minimum Basic Sum Assured | Rs. 1,00,000 | |
| Maximum Basic Sum Assured | No Limit | |
| Maximum Maturity Age | 75 Years (Nearer Birthday) | 65 Years (Nearer Birthday) |
Features & Benefits Of LIC New Jeevan Anand & LIC Jeevan Lakshya: A Detailed Comparison
Though both plans are beneficial in their respective ways, it’s time to dig deep to know the differences and similarities between the two!
Death Benefit:
In case of death of the life assured during the policy term, both plans will offer ‘Sum Assured on Death’, vested ‘Simple Reversionary Bonuses’, and ‘Final Additional Bonus’, if any, provided the policy is in force and all due premiums have been paid.
The ‘Sum Assured on Death’ of both the plans is defined as the higher of as follows:
LIC New Jeevan Anand
- 125% of the Basic Sum Assured
- 7 X Annualized Premium
LIC Jeevan Lakshya
- 7 X Annualized Premium
- Sum of 110% of the Basic Sum Assured
Maturity Benefit:
The “Sum Assured on Maturity” and any vested “Simple Reversionary Bonuses” and “Final Additional Bonuses” will be paid if the life assured survives the policy period and the policy is still in force. The ‘Basic Sum Assured’ is the value of this maturity benefit, which is available under both plans.
Rider Benefits:
For expanding needs, the regular coverage may not always be adequate. As a result, the policyholder can add rider choices to either plan by paying an additional premium. The following are the rider options offered by both plans.
- Accidental Death & Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
- New Critical Illness Benefit Rider
Settlement Options:
The policyholder has the choice to receive death and maturity benefits under both plans as 5/10/15-year installments rather than a lump sum payment.
Rebates:
In case the policyholders of LIC New Jeevan Anand and Jeevan Lakshya have purchased the plans with a higher sum assured, they will receive the following rebates:
| Basic Sum Assured (B.S.A.) | Rebate (In Rs.) |
| LIC New Jeevan Anand | |
| 1,00,000 To 1,95,000 | Nil |
| 2,00,000 To 4,95,000 | 1.50% Of BSA |
| 5,00,000 & 9,95,000 | 2.50% Of BSA |
| 10,00,000 & Above | 3.00% Of BSA |
| LIC Jeevan Lakshya | |
| 1,00,000 To 1,90,000 | Nil |
| 2,00,000 To 4,90,000 | 2% Of BSA |
| 5,00,000 & Above | 3% Of BSA |
Suicide Exclusions:
Both plans have suicide exclusion under the following circumstances:
- The company is obligated to cover the claim if the insured dies by suicide within a year (12 months) of purchasing the coverage. However, if the premium payment was received on time, the corporation would pay 80% of the entire premiums offered.
- In a different case, the company will not pay you anything if he or she dies by suicide within a year of the date of revival. The family members will most likely receive 80% of the premiums paid, but, if he or she has previously made the payment.
Sample Benefit Illustration Of LIC New Jeevan Anand & LIC Jeevan Lakshya
Benefit summaries for each of the two plans are required in order to select the best one. It will be useful in predicting how both plans will perform during the course of their coverage. As a result, this section will provide a thorough explanation of the benefits offered by both policies.
LIC New Jeevan Anand:
Let’s consider Mr. Y, a 30-year-old man, as an example. He bought the New Jeevan Anand life insurance 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 offer 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 | @4% PA | @8% PA | @4% PA | @8% PA | @4% PA | @8% PA | ||
| 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 |
LIC Jeevan Lakshya:
Let’s consider a 30-year-old man, Mr. Dinesh as an illustration. He bought the Jeevan Lakshya life insurance policy from LIC. The plan’s specifics are as follows:
- Policy Term: 25 Years
- Premium Payment Term: 22 Years
- Premium Payment Mode: Yearly
- Basic Sum Assured: Rs. 1,00,000
- Premium (Excluding Taxes): 4,366
He will benefit from the plan in the following way!
End Of Year | Total Premium Paid Till The End Of The Year | Guaranteed Benefit | Non-Guaranteed Benefit | Total Maturity Benefit | Total Death Benefit | |||||
| Sum Assured On Maturity | Sum Assured On Death | (Simple Reversionary Bonus) | ||||||||
| Total Income Benefit Payable In Equal Instalments Over O/S Term After Death | Lump Sum Payable On Date Of Maturity | @4% PA | @8% PA | @4% PA | @8% PA | @4% PA | @8% PA | |||
| 5 | 21,830 | 0 | 2,00,000 | 1,10,000 | 3,500 | 16,000 | 0 | 0 | 1,27,500 | 2,00,000 |
| 15 | 65,490 | 0 | 1,00,000 | 1,10,000 | 10,500 | 48,000 | 0 | 0 | 1,27,500 | 2,00,000 |
| 20 | 87,320 | 0 | 50,000 | 1,10,000 | 14,000 | 64,000 | 0 | 0 | 1,27,500 | 2,00,000 |
| 21 | 91,686 | 0 | 40,000 | 1,10,000 | 14,700 | 67,200 | 0 | 0 | 1,27,500 | 2,00,000 |
| 22 | 96,052 | 0 | 30,000 | 1,10,000 | 15,400 | 70,400 | 0 | 0 | 1,27,500 | 2,00,000 |
| 23 | 96,052 | 0 | 20,000 | 1,10,000 | 16,100 | 73,600 | 0 | 0 | 1,27,500 | 2,00,000 |
| 24 | 96,052 | 0 | 10,000 | 1,10,000 | 16,800 | 76,800 | 0 | 0 | 1,27,500 | 2,00,000 |
| 25 | 96,052 | 1,00,000 | 0 | 1,10,000 | 17,500 | 80,000 | 1,17,500 | 1,90,000 | 1,27,500 | 2,00,000 |
Which One To Choose: LIC New Jeevan Anand OR LIC Jeevan Lakshya?
Both of the policies are suitable for purchasing.
If you want lifelong protection and want the insurance to stay in force after it matures, the New Jeevan Anand from LIC would be a better choice.
If you’re looking for improved maturity benefits, the LIC Jeevan Lakshya insurance is without a doubt the best option. However, the benefits of the plan are not guaranteed, and bonus declarations are subject to change each year, among other negatives.
You can use the comparison on this page to help you decide, or you can compare their policy brochures to evaluate their features, terms, conditions, and more to figure out the pros and cons of each policy.
In the end, the decision is all yours!
