LIC New Jeevan Anand 815 Maturity Calculator: Lifetime Coverage Explained
When it comes to life insurance plans that offer both protection and savings, LIC’s New Jeevan Anand Plan 815 stands out as a popular choice among Indians. What makes this plan special is its unique feature of providing coverage even after the policy term ends. But how much exactly will you get at maturity? And is it the right plan for your financial goals?
In this comprehensive guide, we’ll explore everything you need to know about LIC Plan 815 and provide you with an easy-to-use maturity calculator to estimate your returns accurately. Whether you’re considering this plan or already have one, this article will help you make informed decisions about your financial future.
What Makes LIC New Jeevan Anand Plan 815 Special?
LIC New Jeevan Anand (Plan 815) is a traditional participating whole life plan that offers a unique combination of protection and savings. Unlike other endowment plans that provide coverage only during the policy term, Plan 815 continues to provide life cover even after the policy matures.
This means you get the dual benefit of receiving a lump sum amount on survival up to maturity date, while your family remains protected with life cover for your entire lifetime. It’s like having both an investment plan and a permanent insurance policy rolled into one.
Key Feature: The “Anand” in Jeevan Anand translates to “joy” or “bliss” in Hindi, reflecting the peace of mind this plan offers by ensuring your family’s financial security continues throughout your life, not just during the policy term.
How Does LIC Plan 815 Work?
When you purchase LIC New Jeevan Anand Plan 815, you choose a specific policy term (15 to 35 years) and pay regular premiums throughout this period. The plan offers multiple premium payment options including yearly, half-yearly, quarterly, and monthly.
Here’s what happens in different scenarios:
- On Survival till Maturity: You receive the Sum Assured along with accrued bonuses and final additional bonus
- On Death during Policy Term: Your nominee receives Sum Assured + accrued bonuses + final additional bonus
- On Death after Policy Term: Even after maturity, if you pass away, your nominee receives the basic Sum Assured (without bonuses)
This triple-layer protection makes Plan 815 one of the most comprehensive traditional plans offered by LIC.
Key Benefits of LIC New Jeevan Anand Plan 815
Let’s explore the standout benefits that make this plan worth considering:
Lifetime Coverage
The most significant advantage of Plan 815 is the lifelong insurance cover. After paying premiums for the selected term, you enjoy life coverage for your entire lifetime without paying any further premiums.
Bonus Participation
As a participating policy, Plan 815 is eligible for Simple Reversionary Bonuses declared by LIC annually. These bonuses are added to your policy and become guaranteed once declared.
Loan Facility
After paying premiums for at least 3 years, you can avail a loan against your policy. This provides financial flexibility during emergencies without disrupting your insurance coverage.
Tax Benefits
Premium payments qualify for tax deduction under Section 80C, and the maturity proceeds and death benefits are tax-free under Section 10(10D) of the Income Tax Act.
Understanding the Maturity Calculation
Calculating your maturity value in LIC Plan 815 involves several components. Our calculator simplifies this process, but it’s helpful to understand what goes into the calculation:
| Component | Description | When It’s Paid |
|---|---|---|
| Basic Sum Assured | The guaranteed amount you selected at policy inception | At maturity or on death |
| Accumulated Bonuses | Simple Reversionary Bonuses declared yearly by LIC | At maturity or on death during policy term |
| Final Additional Bonus | One-time bonus paid for policies completing the full term | At maturity or on death during policy term |
| Lifetime Cover | Basic Sum Assured (without bonuses) | On death after policy maturity |
Breaking Down the Bonus System
Bonuses play a crucial role in enhancing your returns from LIC Plan 815. LIC declares bonuses annually based on the performance of its participating fund. While future bonuses cannot be guaranteed, LIC has maintained a consistent bonus declaration history.
There are two main types of bonuses in Plan 815:
- Simple Reversionary Bonuses: Declared per ₹1,000 Sum Assured each year and added to your policy. Once added, they become guaranteed.
- Final Additional Bonus: A one-time bonus paid at maturity or on death during the policy term, provided the policy has run for the full term.
Our calculator uses current bonus rates to provide you with a realistic estimate of your maturity value.
Who Should Consider LIC New Jeevan Anand Plan 815?
LIC Plan 815 is particularly suitable for:
- Family Breadwinners: Who want to ensure their family’s financial security continues even after they stop earning
- Long-term Planners: Looking for a plan that combines savings with lifelong protection
- Risk-averse Investors: Who prefer guaranteed returns over market-linked volatility
- Tax Savers: Seeking tax-efficient investment options under Section 80C
- Retirement Planners: Who want a lump sum at maturity for retirement while maintaining life cover
Comparing Plan 815 with Other LIC Plans
How does New Jeevan Anand compare with other popular LIC plans? Here’s a quick comparison:
| LIC Plan | Coverage Period | Maturity Benefit | Death Benefit | Best For |
|---|---|---|---|---|
| New Jeevan Anand (815) | Lifetime | SA + Bonuses | SA + Bonuses (during term) or SA (after term) | Lifetime coverage seekers |
| Jeevan Labh (836) | Policy Term | Lump sum + bonuses | SA + bonuses | Limited premium payment |
| Jeevan Amar (827) | Policy Term | No maturity benefit | Sum Assured | Pure protection |
| Jeevan Umang (845) | Up to 100 years | Annual income + SA | SA + bonuses | Retirement income |
As you can see, New Jeevan Anand’s unique selling proposition is the lifelong coverage it provides after the policy term, which isn’t available in most other LIC plans.
Maximizing Your Returns with Plan 815
If you decide that LIC New Jeevan Anand aligns with your financial goals, here are some strategies to optimize your returns:
- Start Early: Younger entry age means lower premiums for the same sum assured
- Choose Longer Term: Longer policy terms generally result in higher bonus accumulation
- Opt for Yearly Premiums: Annual payment mode usually has lower premium charges
- Maintain Policy Continuity: Avoid lapses to ensure you receive the final additional bonus
- Consider Riders: Add-ons like Accident Benefit can enhance coverage at minimal extra cost
Common Mistakes to Avoid with Plan 815
Many policyholders make these errors that reduce the effectiveness of their LIC Plan 815:
- Inadequate Sum Assured: Choosing a sum assured that doesn’t account for inflation and future needs
- Premium Payment Issues: Missing premium payments and risking policy lapse
- Early Surrender: Surrendering in initial years when surrender value is minimal
- Not Updating Nominees: Failing to keep nominee information current
- Ignoring Policy Review: Not reassessing if the plan still meets changing financial needs
Pro Tip: Always calculate the internal rate of return (IRR) of your insurance plans to compare them with other investment options. Our calculator provides an approximate IRR to help with this comparison. Remember that the lifelong coverage after maturity adds significant value beyond the financial returns.
FAQs About LIC New Jeevan Anand 815 Maturity Calculator
If you surrender your LIC New Jeevan Anand policy, the lifetime cover ceases immediately. You will receive the surrender value, which typically consists of a percentage of premiums paid (Guaranteed Surrender Value) plus the vested bonuses (Special Surrender Value). However, surrendering in the initial policy years usually results in significant financial loss, so it’s advisable only in case of genuine financial emergencies.
Generally, you cannot change the Sum Assured in LIC New Jeevan Anand Plan 815 after policy issuance. The Sum Assured is fixed at the beginning based on your premium paying capacity and insurance needs. If you need higher coverage, you would need to purchase an additional policy. However, some minor adjustments might be possible during the free-look period immediately after policy purchase.
If the policyholder passes away after the policy has matured, the death benefit payable to the nominee is equal to the Basic Sum Assured (without any bonuses). For example, if your Sum Assured was ₹10 lakhs and you received ₹15 lakhs at maturity (including bonuses), your nominee would still receive ₹10 lakhs as death benefit whenever you pass away, regardless of how many years after maturity. This is the unique lifetime coverage feature of Plan 815.
LIC Plan 815 offers tax benefits under the following sections:
- Section 80C: Premiums paid are eligible for deduction up to ₹1.5 lakh per financial year
- Section 10(10D): Both maturity proceeds and death benefits are tax-free, provided the premium doesn’t exceed 10% of Sum Assured for policies issued after April 1, 2012
- Section 80D: Premiums for critical illness riders, if any, may be eligible for deduction
It’s always recommended to consult with a tax advisor for the most current information based on your specific financial situation.
After paying premiums for at least 3 full years, you can avail a loan against your LIC New Jeevan Anand policy. The maximum loan amount is typically up to 90% of the surrender value. The current interest rate on LIC policy loans is competitive compared to personal loans, and you have the flexibility to repay the loan in installments or as a lump sum. The outstanding loan amount and accrued interest will be deducted from the claim amount in case of death or maturity.
Making the Right Decision for Your Financial Future
Before committing to LIC New Jeevan Anand Plan 815 or any other financial product, it’s essential to evaluate how it fits into your overall financial plan. Consider your insurance needs, investment horizon, risk tolerance, and financial goals.
Use our calculator with different scenarios to understand how changing the sum assured, policy term, or premium amount affects your maturity value and lifelong coverage. This will help you choose the combination that best meets your family’s protection needs and financial objectives.
Conclusion
LIC New Jeevan Anand Plan 815 offers a unique proposition of combining savings with lifelong insurance coverage. While the returns might be moderate compared to market-linked options, the guaranteed benefits and the peace of mind from permanent protection make it a valuable addition to a balanced financial portfolio.
Remember that insurance should primarily address your protection needs, with investment being a secondary benefit. If you need substantial life cover, you might consider supplementing with a pure term plan. Use our calculator, understand the numbers, and make an informed decision that secures your family’s financial future while aligning with your overall financial strategy.
Disclaimer: The calculator provides estimates based on current bonus rates and assumptions. Actual maturity values may vary based on LIC’s future bonus declarations. This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making investment decisions.