LIC (Life Insurance Company Limited) is an Indian owned insurance company. It is headquartered in Mumbai and is the largest insurance company in India with an asset value of 1,560,482 INR. An amalgamation of 245 insurance and societies evoked the inception of Life Insurance Company.
It was founded in the year 1956. Today Life Insurance Company has a fully computerized branch office around 2048 in number, around 113 divisional offices, 8 zonal offices, 1381 corporate and satellite offices.
Being the most trusted insurance company in the country, the Life Insurance Company provides a number of products to policyholders with facilities and services as per customer’s requirements. There are number of policies that LIC provide to its policyholders. Two such important policies are LIC Jeevan Saral and LIC New Jeevan Anand. People may be in dilemma when it comes to choosing either of them.
LIC Jeevan Saral Vs LIC New Jeevan Anand
LIC Jeevan Saral and New Jeevan Anand are two popular and most sought after policies by customers from Life Insurance Company India. They are both schemes for coverage against death and are efficient policies for savings. These two policies have interesting features that appeal customers. Though they both may seem to come with the same requirements and providence, there are differences between them for certain requirements of the policyholder.
LIC Jeevan Saral:
LIC Jeevan Saral is a plan that comes with a lot of flexibility and freedom in premium payment mode. The policyholder may receive remunerations against death of a person based on the premium amount paid. But there are some features and reasons that make LIC Jeevan Saral stand out as A-1 policy.
A huge sum is granted to the family of the policyholder. The amount is 250 times more than the premium amount paid. There are benefits for policyholders in terms of profits on business investments. The policyholder receives profits in terms of loyalty points. In addition, there are other profits throughout the policy terms which is remunerated after the 10th year of the policy term.
Maturity And Additional Benefits:
The Premium returned on the maturity of policy comes with the premium as well as the sum assured with loyalty benefits. Other beneficial features are added to the policy to maximize life insurance and protection.
The LIC Jeevan Saral assures 80% of the ‘sum assured’ after the completion of 3 years with premiums repaid. 90% of the sum assured after the completion of 4 years. 100% of the sum is assured in the case of completion of 5 years and above the premium paid amount.
Benefit Of Special Surrendered Value:
The Special Surrendered Value is basically higher than the ‘Guaranteed Surrendered Value’. Although, the Special Surrendered Value is applicable for only the policies that are set for particular period of time and the premium must be done without fail.
Rider Benefits and Loan Facility:
This policy grants policyholders a rider-benefit policy that offers minimum sum assured of 1lakh INR and maximum of 25 lakh INR. The scheme also grants accidental death or disability benefits to the beneficiary in case of these two reasons. An extra sum is assured to the policyholder.
The LIC Jeevan Saral also grants loan facilities to the policyholder.
LIC New Jeevan Anand:
LIC New Jeevan Anand is a ‘Whole Life Endowment Plan’ with many advantages. This scheme provides death coverage to the insured and continues to grant facilities even after maturity period. There are special features and benefits that makes LIC New Jeevan Anand stand out.
Simple Reversionary Bonuses:
The Simple Reversionary Bonus is granted to the policyholder along with the sum assured or death benefit after the maturity of the policy. This scheme simply accumulates bonuses by taking part in the profit of the company.
The sum assured on ‘Death’ is basically higher. 125% is provided to the policyholder as basic sum assured as per policy term. It is subjected to minimum of 105% of the total premium on the death date. On the death of the insurer, the benefit of the sum assured is granted to a nominee and the policy terminates soon after.
If the insurer survives the tenure than a reversionary bonus and the sum assured is granted to the policyholder as the maturity is achieved.
Accidental And Disability Benefits:
The LIC New Jeevan Anand grants the insurer the benefit of covering the costs of accidents. It also covers the costs for disability expenses of the insurer. In this policy the insurer is provided with the sum assured and extra sum for the coverage of accidental and disability reasons. In case of permanent disability, the scheme provides benefit in the same interval of time.
LIC New Jeevan Anand grants tax benefits under section 80C and 10D on the ‘Income Tax Act’.