LIC of India : Jeevan Anand

THE LIFE Insurance Corporation (LIC) has been popping up in the news quite regularly during the past few weeks. This time around, though, it is not for pulling out policies or rethinking on the returns offered that the Corporation is back in the news. Soon, LIC will launch a new product Jeevan Anand.

The two-in-one plan
This policy is distinct because of two aspects. One, it combines both endowment and whole life policy which can be availed by a small load of premium in addition to the normal premium of a running or a new policy. Two, it offers cover to the policyholder till death -- even after the contracted term of a policy is already over. So what does that mean?

For example, assume that you buy a policy of Rs 1 lakh for 20 years when you are 25 (paying an annual premium of Rs 6,000). Now, with an additional premium of, say, between Rs 500 and Rs 1,000, you remain covered for one lakh till death even if the initial policy matures after 20 years and you receive the usual sum assured and bonus amount after 20 years. This means even if you take the original sum assured of Rs 1 lakh, you will get another Rs 1 lakh in case of death even if it is immediately after the period when you had encashed the original sum assured. However, in case of death during the period the policy is running (in this case 20 years), you only get the sum assured of Rs 1 lakh.