LIC New Jeevan Anand (Plan 715): Meaning, Benefits, Returns & Who Should Buy It

LIC New Jeevan Anand: The Endowment Plan That Refuses to Say Goodbye

The Policy That Outstays Its Own Ending

A typical endowment plan makes a tidy promise. Pay for a fixed number of years, collect a lump sum, and the file closes. The cover vanishes the moment the cheque clears. New Jeevan Anand breaks that script. At maturity you collect your money, and the cover stays.

A little context explains why that matters. On 1 September 1956, Parliament nationalised life insurance in India and merged more than 245 insurers and provident societies into the Life Insurance Corporation of India, with ₹5 crore of government capital and a brief to take cover to every corner of the country. LIC remains state-owned, is headquartered in Mumbai and has been listed on the exchanges since May 2022. Its shelf carries term, endowment, money-back and whole life plans, and each solves a different problem.

New Jeevan Anand sits between two of those shelves. It is an endowment plan, with a fixed term and a maturity payout, wearing a whole-life tail. “Par, non-linked” completes the description. Participating means the policy shares in LIC’s surplus through bonuses. Non-linked means no market units are involved. The sum assured is fixed, and only the bonuses move.

One note on names. This is New Jeevan Anand (plan 715). The original Jeevan Anand, sold from 2002 to 2014 under Table 149, is a different policy. If that older one is the policy in your drawer, LIC Policy Check can work out what it would pay today and what it earns a year. 

New Jeevan Anand at a Glance

Note: interest rates quoted in LIC’s literature are for 2024-25 and reset every May, so confirm the current figure before you commit.

If this gets too complex or overwhelming, reach out to a CoverSure advisor!

The Features, One at a Time

A Term You Choose, a Premium You Keep Paying

Policy terms run from 15 to 35 years, and unlike limited-pay plans, premiums continue for the whole term. Maturity age cannot pass 75, so the longest terms belong to younger entrants. Rohan, 30, picks ₹10 lakh on a 35-year term. The sample rate scales to roughly ₹34,800 a year before rebates, paid until 65. Thirty-five years of due dates is a long relationship, and the Insurance Portfolio feature in the CoverSure app keeps every policy and renewal date in one dashboard.

Death Benefit During the Term

With the policy in force, the nominee receives the higher of 125% of the basic sum assured or seven times the annualised premium, plus vested bonuses and any final additional bonus. The total never falls below 105% of premiums paid. Rohan’s cover therefore opens at ₹12.5 lakh. To test whether a figure like that fits your own household, run it through CoverSure’s CoverRisk Calculator.

Maturity Benefit and the Bonus Layers

Survive the term and you receive the basic sum assured plus vested simple reversionary bonuses and any final additional bonus. Reversionary bonuses are declared at the end of each financial year and, once declared, become guaranteed. The final additional bonus arrives only at death or maturity, and never on paid-up policies. Anything above the sum assured depends on LIC’s experience. Rohan’s premiums total about ₹12.2 lakh before rebates, against a ₹10 lakh guaranteed sum, so bonuses decide whether he gains.

Cover After Maturity: The Signature Feature

After the term ends, the policy does not close. If Rohan dies at 80, his nominee receives the basic sum assured of ₹10 lakh, with no premiums due and no bonuses added. The cover shrinks from ₹12.5 lakh to ₹10 lakh at maturity and then holds steady. It is modest and fixed, but permanent, which few savings plans offer. The final sum can settle last expenses or leave a small legacy.

Rebates and Premium Modes

Paying yearly earns a 2% rebate on tabular premium, and half-yearly earns 1%. Quarterly, monthly and salary deduction earn none. The high sum assured rebate is nil below ₹5 lakh, then ₹2.50 per ₹1,000 of cover from ₹5 lakh and ₹4 from ₹10 lakh. Sample premiums for ₹2 lakh run from ₹19,914 (age 50, 15-year term) down to ₹6,517 (age 20, 35-year term). Short terms cost far more per year, and long terms cost far less.

Riders, Including Critical Illness

Four riders exist: Accidental Death and Disability Benefit, Accident Benefit (pick one of these two), New Term Assurance and a Critical Illness Health Rider, with three the maximum in all. The critical illness rider is available only at inception and offers 15 illnesses, or 40 with an assisted living benefit, for up to 25 years. On a ₹5 lakh rider with the 40-illness option, seven named conditions also trigger ₹5,000 a month for 36 months, or ₹1.8 lakh. Its premium may reach 100% of the base premium, while other life riders are capped at 30%.

Instalment Options for Maturity and Death Benefits

Maturity money can arrive in instalments over 5, 10 or 15 years if you opt at least three months before the date. Say a ₹14 lakh maturity arrives and you route 50% into ten yearly instalments. The ₹7 lakh keeps earning interest while it waits, so each instalment exceeds ₹70,000, and the first is paid on the maturity date. Minimum instalments are ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly and ₹50,000 yearly. The death benefit can be paid in instalments too, if you choose that during your lifetime.

Surrender Value and Policy Loans

Year one returns nothing. Year two guarantees 30% of premiums paid, year three 35%, and years four to seven 50%. On a 35-year term, the guaranteed value reaches about 53% by year ten. Rohan, surrendering then with ₹3.5 lakh paid, would see a guaranteed floor near ₹1.9 lakh, plus a factor on vested bonuses. A loan is the gentler exit: up to 75% of that surrender value, about ₹1.4 lakh, at 9.5% compounded half-yearly for loans sanctioned in 2024-25.

Missed Premiums, Paid-Up Status and Fine Print

Grace is 30 days, or 15 for monthly mode. After one full year of premiums, a lapsed policy turns paid-up with benefits cut in proportion. If Rohan stops after seven years, his maturity paid-up sum assured is ₹10 lakh x 7/35, or ₹2 lakh. After three full years of premiums, a death within six months of the first unpaid premium still pays the full sum assured less dues, and after five years that window stretches to twelve months. Suicide within 12 months of risk start limits the payout to 80% of premiums. Know Your Policy turns the policy document into plain language.

Pros and Cons

What works

• Cover continues after maturity with no further premiums.
• Death cover during the term starts at 125% of the sum assured.
• Declared bonuses become part of guaranteed benefits.
• The death benefit has a 105%-of-premiums floor.
• Instalment options and loans add flexibility.
• A critical illness rider can be added at inception.

What to weigh

• Premiums run for the full term, 15 to 35 years.
• The guaranteed sum alone does not return the premiums paid, so bonuses carry any gain.
• Early surrender is costly, and year one returns zero.
• Both the sum assured and the post-maturity cover are fixed, so inflation erodes them.
• Cover is modest next to a pure term plan.
• It is sold offline only.

Who It Suits: Use Cases and Profiles

The young earner making a long promise to themselves. Someone at 30 on a 35-year term matures at 65. A lump sum arrives as working life ends, and a permanent layer of cover stays behind.

The late starter. Take Neha, 40, with ₹8 lakh on a 25-year term. The sample rate scales to about ₹42,800 a year, and she matures at 65. A 50-year-old on a 15-year term with ₹6 lakh pays roughly ₹60,000 a year, close to ₹9 lakh in total against a ₹6 lakh guaranteed sum. Short terms compress the commitment and inflate the cost, so run the numbers first.

The household that wants permanent, modest cover. Lifelong cover can fund final expenses or a small legacy. Because it outlasts decades of paperwork, tell your family where it sits. Family Share in the CoverSure app shows chosen relatives which policies exist.

Who may look elsewhere: buyers who need large cover per rupee, buyers who prefer limited-pay plans, and anyone seeking returns that comfortably beat inflation.