New Jeevan Anand (Plan 915) of Life Insurance Corporation of India is such a policy, which is considered to be the best combination of both savings and insurance. This plan is especially for those who want a large corpus and lifelong protection for a long term at a low premium.
Small savings daily, big benefit on maturity
In this scheme, a big fund can be created with a small investment. For example, if a 35-year-old person takes a 35-year policy with a sum assured of Rs 5 lakh, he will have to pay a premium of around Rs 16,300 annually. That means a saving of about Rs 1,359 every month or about Rs 45 per day.
The total investment for the entire period is around Rs 5.70 lakh, but on maturity, depending on the current bonus, you can get an amount of up to Rs 25 lakh. This includes sum assured along with revisionary and final bonus.
Insurance will continue even after maturity
The most important thing about this policy is that the insurance cover does not end even after maturity. Even after receiving the amount, the life cover of Rs 5 lakh continues for the entire life, which provides additional security to the family.
Tax exemption and loan facility
Investments in this scheme are exempt under Section 80C of the Income Tax Act, while maturity and death benefits are tax-free under Section 10(10D). Also, the policyholder can also take a loan if needed after two years and gets a grace period of 15 to 30 days for premium payment.
Beneficial for whom
People in the age group of 18 to 50 years can invest in this scheme for a period of 15 to 35 years. As per need, protection can be increased by adding riders like accidental death or critical illness. This plan of LIC can prove to be a reliable option for those who want big fund and lifetime protection in less investment.