LIC comes with a new policy – Jeevan Ankur

January 25, 2012   ·   6 Comments

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LIC Jeevan Ankur Plan is a Traditional Plan with profits. This is a child benefit Endowment Plan where the parent is the Life Insured and the http://stockssavvy.comchild is the nominee. This plan has been especially designed so that the benefits are payable for the child’s future even if the parent does not survive till the end of the policy tenure. Let us find out.

How it works – In this plan, premium needs to be paid till the end of the policy tenure. The Sum Assured + the Loyalty Additions would be paid as Maturity Benefit irrespective of whether the Life Insured is alive or not.

However, if the Life Insured, i.e. the parent dies within the policy tenure, the basic Sum Assured is paid as Immediate Death Benefit and the policy continues. There is a further payment of 10% of the Sum Assured every year from the date of death of the Life Insured till the end of the policy tenure as Income Benefit. The Maturity Benefit is paid when the policy tenure is over. This policy has 2 additional riders available.

 

Key Features of LIC Jeevan Ankur Plan

  • This is a endowment plan with Loyalty Additions
  • In case of death of the Life Insured within the policy tenure, Sum Assured is paid immediately and 10% of the Sum Assured is paid every year till the end of the Policy Tenure as Income benefit facility
  • When the policy matures, the Maturity Benefit is paid irrespective of whether the Life Insured is alive or not.
  • This policy offers Loyalty additions on the policy maturity irrespective of whether the Life Insured is alive or not.
  • There is large Sum Assured rebate in this plan
  • There are 2 additional riders available in this plan.

 

Benefits you get from LIC Jeevan Ankur Plan

Death Benefit – In case of death of the Life Insured, i.e. the Parent, immediate Death Benefit of the Sum Assured is paid to the nominee + 10% of Sum Assured is also paid on every policy anniversary till the end of the policy term as Income Benefit

 Maturity Benefit – When the policy matures, the Maturity Benefit is paid irrespective of whether the Life Insured is alive or not.

Maturity Benefit = Basic Sum Assured + Loyalty Additions, if any.

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. The maturity benefit is tax free under section 10(10)D provided all conditions have been fulfilled.

Eligibility conditions and other restrictions in LIC Jeevan Ankur Plan

Minimum Maximum
Sum Assured (in Rs.)

1,00,000

No Limit

Policy Term (in years)

Higher of (18 – Age of Child) or 8

25 – Age of Child

Premium Payment Term (in years)

Equal to Policy Term

Entry Age of Life Insured (in years)

18

50

Age at Maturity (in years)

75

Entry Age of Child (in years)

0

17

Premium (in Rs.)

Payment modes

Single, Yearly, Half-Yearly, Quarterly, Monthly & SSS

 

Sample illustration of premium of LIC Jeevan Ankur Plan

 

Age of Life Insured = 20/30/40 years

Policy Term = 25 years, Yearly mode

Premium Paying Term = 20 years

Sum Assured = Rs 1,00,000

Additional Features and Benefits of LIC Jeevan Ankur Plan

Riders – There are 2 additional riders available in this policy

1.     Accidental Benefit rider

2.     Critical Illness rider

 

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 Paid Up value would be payable on maturity or on earlier death.

You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up for Regular Premium Policies and 1 year for Single Premium Policies.

Guaranteed Surrender value for Regular Premium Policies = 30% of total basic premiums paid – 1st year premium

Guaranteed Surrender Value for Single Premium Policies = 90% of the total basic premiums paid

 

You want a loan against your policy – Loan is not available under this policy.

Alternate Child Plans from different insurance companies

ICICI Prudential SmartKid Regular Premium Plan

Tata AIG Life Insurance Gyan Kosh

Aviva Young Scholar Secure Plan

Source – Myinsuranceclub

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Rajesh Singla

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  • Bimalgandhi

    i can get the same information from LIC’s site… where are your views on it?

  • Anonymous

    @Bimalgandhi

    We advise people to not to buy Jeevan Ankur as Traditional Endowment plans yields much low returns as compared to Systematic investment in mutual funds Though this plan will continue to do great as Jeevan anand because of good amount of commission involved for the agents.

  • Bimalgandhi

    Yeah so mention it in your review and why should i not invest in Jeevan Ankur?? I invested in Mutual Funds before 1.5 years and the returns are still in negative. Better to have low returns than negative returns.

  • Anonymous

    @Bimalgandhi,

    I can understand your apprehension here. I will though like to point out the investment in market should not be done with a horizon of 1.5 years. Equity investment should always be taken for long term investment of more than 5 years.

    I dont offend you but reality is for 15-20 year investment time horizon, Equity outperform all other investment avenues. Hence, should always be part of once portfolio.

    Ideally, one should take a term insurance plus a SIP of the rest of the amount. Jeevan ankur should only be taken if one wants to invest in PPF account. It will certainly yield a better return than PPF.

    Regards,
    Rajesh Singla
    http://stockssavvy.com

  • gan

    i do not think you have calculated correctly.. Jeevan ankur will return much less than PPF. If i am wrong please share the calculation details

  • rajsingla

    @Gan

    I also deduce the same. Returns of Jeevan ankur will be less than PPF. Check out this link for calculation details with Jeevan Anand:

    http://stockssavvy.com/editors-column/public-provident-fund-jeevan-anand/

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