Jeevan Anurag

LIC’s Jeevan ANURAG is a with profits plan specifically designed to take care of the educational needs of children. The plan can be taken by a parent on his or her own life. Benefits under the plan are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. In addition, this plan also provides for an immediate payment of Basic Sum Assured amount on death of the Life Assured during the term of the policy.

Assured Benefit
Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. At maturity, 40% of the Basic Sum Assured along with reversionary bonuses declared from time to time on full Sum Assured for the full term and the Terminal bonus, if any shall be payable. For example, if term of the policy is 20 years, 20% of the Sum assured will be payable at the end of the 17th,18th, 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus, if any, at the end of the 20th year.

Death Benefit
Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured.

LIC Jeevan Anurag Plan is a plan designed specifically to take care of your child’s education needs. In this plan, you get an Assured Benefit and Death Benefit. On death of the Life Insured, the Sum Assured is paid immediately to the nominee and all future premiums are waived off, but the policy continues. Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity, and on maturity the remaining 40% of the Sum Assured along with the bonus would also be paid, irrespective of whether the life insured is alive or not.

Key Features of LIC Jeevan Anurag Plan

• Double Benefit Plan.
• On Maturity the remaining 40% of the Sum Assured along with the bonus would be paid.
• Premium needs to be paid till maturity and in case of an early death, future premiums are waived off.
• Various riders available.
• Large Sum Assured Rebate available in this LIC plan.

  

Benefits you get from LIC Jeevan Anurag Plan

Death Benefit – In case of death of the Life Insured, the nominee would get the Sum Assured immediately. The future premiums would be waived and again 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity and then the Maturity Benefit would also be paid.

Survival Benefit – On Survival of the Life Insured, he receives 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity.

Maturity Benefit – On maturity, the life insured or his nominee gets the remaining 40% of the Sum Assured plus the Bonus.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.

Eligibility conditions and other restrictions in LIC Jeevan Anurag Plan

	Minimum	Maximum
Sum Assured (in Rs.)	50,000	No Limit
Policy Term	5 years for Single Premium, 10 years for Regular Premium	25 years
Entry Age of Policyholder	20 years	60 years
Age at Maturity	-	70 years
Payment modes	Single, Yearly, Half-Yearly, Quarterly & Monthly

Sample illustration of LIC Jeevan Anurag Plan

Premium = Rs.4,606/-

Age = 35 years

Policy Term = 25 years, yearly mode

Premium paying term = Regular Pay

Sum Assured = Rs 1,05,000

Total Investment = Rs 4,606 X 25 = Rs 1,15,150/-

Bonus Assumptions :

Regular Bonus - Rs.21 per thousand S.A at 6% rate of return

                            Rs.55 per thousand S.A at 10% rate of return

Terminal Bonus - Rs. 170 per thousand S.A at 6% rate of return

                             Rs. 450 per thousand S.A at 10% rate of return

Guaranteed Returns :

Beginning of Year 23 = Rs 21,000/-

Beginning of Year 24 = Rs 21,000/-

Beginning of Year 25 = Rs 21,000/-

Maturity Benefit at the End of Year 25 = Rs 42,000/- + Bonus (Variable)

  

Additional Features and Benefits of LIC Jeevan Anurag Plan

Riders – Premiums Waiver Benefit is an inbuilt rider. Other 3 optional additional riders available are

1.     Accidental Death and Disability Benefit rider

2.     Critical Illness rider and

3.     Premium Waiver Benefit rider for Critical Illnesses.

                                  

What happens if?

You stop paying the premium – The policy will lapse if the premium stops. However, if at least 3 years’ premium shave been paid then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first unpaid premium.

You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up. For regular premium, the Guaranteed Surrender Value is 30% of basic premiums paid excluding the first year’s premium and the additional premium paid for the rider benefits. In c ase of single premium mode, the guaranteed surrender value will be 90% of the premium paid excluding all extra premiums and the premiums paid for optional / rider benefits. The cash value of any existing vested bonus additions will also be payable on surrender.

You want a loan against your policy – Loan is available under this policy after it acquires a paid-up value but before starting of payment of assured benefits. The present rate of interest is 9% p.a. compounding half yearly but it may change from time to time.