Understanding LIC Plan 915 (New Jeevan Anand): The Ultimate Financial Legacy
The LIC New Jeevan Anand Plan (Plan 915) is widely considered one of the most successful and popular insurance-cum-savings plans ever designed by the Life Insurance Corporation (LIC) of India. Marketed under the tagline "Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi" (With you in life, and after life), this plan provides a unique combination of disciplined, participating endowment savings and lifelong financial security. Unlike standard endowment policies that terminate completely and leave you without cover once the maturity payout is made, Plan 915 continues to provide basic life insurance cover for the rest of your life at ₹0 premium.
As a participating policy, Plan 915 allows policyholders to share in LIC’s profits in the form of annual Simple Reversionary Bonuses and a one-time, slab-based Final Additional Bonus (FAB). Using this advanced LIC Plan 915 Calculator, policyholders can model how much maturity wealth they will receive, how the reversionary bonuses compound, what high Sum Assured discounts they are eligible for, and how the lifelong cover benefit secures their family's legacy.
Eligibility Criteria and Actuarial Boundaries
To secure a policy, you must meet the actuarial parameters set by LIC. These limits are designed to balance risk management with healthy wealth accumulation:
| Actuarial Parameter | Minimum Requirement | Maximum Allowed Limit |
|---|---|---|
| Proposer Entry Age | 18 Years (Completed) | 50 Years (Nearer Birthday) |
| Maturity Age Capping | 33 Years (18 Entry + 15 Term) | 75 Years (Last Birthday) |
| Policy Term (PT) | 15 Years | 35 Years |
| Premium Paying Term (PPT) | Equal to the Policy Term (PT) selected | |
| Basic Sum Assured (SA) | ₹1,00,000 | No Limit (Subject to underwriting & income) |
| Rider Options | Accidental Death & Disability Benefit, Term Assurance, Critical Illness | |
Premium Mode Rebates and High Sum Assured Rebates
LIC encourages larger, more systematic investments by offering rebates (discounts) on your premium rate. Our calculator automatically applies these discounts:
- Premium Mode Rebates: Choosing the Yearly premium frequency gives you a 2.0% discount on the tabular base rate. The Half-Yearly mode gives you a 1.0% discount, while Quarterly and Monthly frequencies receive no discount.
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High Sum Assured Rebates (SA Rebate): Investing in higher cover levels reduces the premium cost per ₹1,000 Sum Assured:
- ₹1,00,000 to ₹1,95,000 SA: Nil discount
- ₹2,00,000 to ₹4,95,000 SA: ₹1.50 discount per ₹1,000 SA
- ₹5,00,000 to ₹9,95,000 SA: ₹2.50 discount per ₹1,000 SA
- ₹10,00,000 and above SA: ₹3.00 discount per ₹1,000 SA
Accrued Bonuses: Simple Reversionary and Slab-Based FAB
Plan 915 is a participating policy, meaning the final maturity payout is significantly enhanced by bonuses declared by LIC:
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Simple Reversionary Bonus: This bonus is declared annually per ₹1,000 Sum Assured and accumulates in the policy. It is determined by the selected policy term:
- Term 15 to 20 Years: Typically ₹40 per year.
- Term 21 to 25 Years: Typically ₹45 per year.
- Term 26 to 35 Years: Typically ₹48 per year.
- Final Additional Bonus (FAB): A one-time loyalty bonus added to the policy at maturity or death, provided the policy has run for at least 15 years. The FAB rate is highly slab-sensitive, increasing substantially with both the policy term and the Sum Assured level. For example, for a policy term of 35 years and a Sum Assured over ₹10 Lakhs, the FAB rate can be as high as ₹450 per ₹1,000 SA (amounting to ₹4,50,000 of extra wealth!).
Actuarial Formulas for Payouts & Claims
LIC Plan 915 calculates payouts using the following actuarial formulas:
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Maturity Survival Benefit (End of Term): Payable upon surviving the complete policy term, provided all premiums are fully paid.
Maturity Benefit = Basic Sum Assured + Vested Reversionary Bonuses + Final Additional Bonus (FAB) -
Death Benefit during Policy Term: In the unfortunate event of demise during the policy term, the nominee receives:
Death Claim = Sum Assured on Death + Accrued Reversionary Bonuses + Final Additional Bonus (FAB)
*Sum Assured on Death is the higher of: 125% of Basic SA OR 7 times the annualized premium. This amount is guaranteed to be at least 105% of all premiums paid. -
Death Benefit after Maturity (Post-Term Cover): After the maturity benefit is paid, the whole-life cover continues for free. Upon the policyholder's demise at any later age, the nominee is paid:
Demise Payout = 100% Basic Sum Assured
Tax Security: Section 80C & Section 10(10D) Exemptions
LIC Plan 915 provides excellent tax protection under current Indian income tax laws:
- Section 80C Deductions: Annual premiums paid are fully deductible from your taxable income up to ₹1,50,000 per financial year.
- Section 10(10D) Tax-Free Maturity: The entire maturity payout (including basic Sum Assured, accumulated bonuses, and FAB) is completely tax-free.
- Section 10(10D) Tax-Free Death Claims: Both the death claim paid during the policy term and the whole-life death claim paid to the nominee post-maturity are 100% tax-exempt.
LIC New Jeevan Anand Plan 915 - Frequently Asked Questions
Q1: Can I surrender my Plan 915 policy early?
Yes. Policyholders can surrender the policy after successfully paying premiums for at least 2 full policy years. However, surrendering early will reduce the value of your accumulated bonuses and result in the loss of the lifelong whole-life cover benefit, which makes keeping the policy in-force for the full term highly recommended.
Q2: What is the loan facility under New Jeevan Anand?
Policyholders can secure a loan against their Plan 915 policy after completing 2 policy years, provided the policy has accumulated a surrender value. You can borrow up to 90% of the surrender value for active policies and up to 85% for paid-up policies, with interest payable half-yearly.
Q3: How does the Accidental Death and Disability Benefit (AD&DB) Rider work?
By paying a small extra premium, you can add the AD&DB Rider. In the event of accidental demise during the policy term, the nominee is paid an additional Sum Assured (doubling the life cover payout). If the accident causes permanent disability, all future premiums are waived, and the rider Sum Assured is paid out in 10 equal annual installments.
Q4: What is the maximum age up to which whole-life cover continues?
Under Plan 915, there is no maximum age limit for the whole-life cover benefit. The risk cover for the basic Sum Assured remains active for life. Whether the policyholder passes away at age 80, 90, or 100, the basic Sum Assured is paid to the nominee upon submitting the claim.
Q5: What happens if I stop paying premiums after 3 years?
If you stop paying premiums after paying for at least 2 full years, the policy does not lapse completely but becomes Paid-Up. The Sum Assured is reduced proportionately based on the number of premiums paid vs the total due, and the accrued bonuses remain attached. Both the reduced maturity value and the reduced lifelong death benefit will be paid out accordingly.
Q6: How does Jeevan Anand compare to New Endowment Plan 914?
LIC New Endowment (Plan 914) is a pure endowment plan that ends completely upon paying the maturity benefit at the end of the term. LIC New Jeevan Anand (Plan 915) is a superior alternative for long-term legacy planning, as it provides the same maturity payout but also includes the free lifelong whole-life risk cover.