LIC New Jeevan Anand (Plan 715): Features, Cash Flows, Risks and Tax Implications

LIC’s New Jeevan Anand, Plan 715 (UIN 512N279V03), is positioned as a long-term savings-cum-protection contract that blends an endowment-style payout at maturity with an additional layer of life cover that remains in force even after the maturity amount has been received. This write-up walks through the formal product structure as per LIC’s brochure applicable from 22 September 2025, and then evaluates the economic, tax and risk-management angles that an assessee should understand before committing to the policy.

The discussion is purely explanatory. It is not an investment recommendation, and it does not certify the suitability of this product for any specific person or situation.

1. Product Identification, Eligibility and Core Contract Papers

1.1 Correctly Identifying the Product Version

The commercial label “Jeevan Anand” has been used by LIC for more than one generation of plans. The currently marketed version discussed here is:

• Plan number: 715
• UIN: 512N279V03
• Brochure effective date: 22 September 2025 (English version)

Earlier variants of Jeevan Anand carried different plan numbers and may have materially different terms. An assessee must always:

• Match the plan number and UIN printed on the policy schedule with the current brochure, and
• Confirm the date of issue to ensure that the right policy wording and bonus rules are being read.

1.2 Documents an Assessee Should Keep on Record

A brief description on a website or an agent’s sales pitch does not constitute the contract. The binding documents are:

• Signed proposal form (with all health, occupation and income declarations)
• Benefit illustration (showing guaranteed and non-guaranteed components separately)
• Policy schedule (sum assured, premium amount and frequency, policy term, commencement date, riders, and UIN)
• Policy bond / policy wording (detailed terms, definitions and conditions)
• Customer information sheet / KFS (where provided)

Among these, the policy schedule is the primary reference for the individual contract variables such as basic sum assured, rider coverage and premium due dates.

1.3 Eligibility Conditions and Basic Parameters

The brochure currently records the following key parameters for Plan 715:

• Minimum entry age: 18 years completed
• Maximum entry age: 50 years (nearer birthday basis)
• Maximum age at maturity: 75 years (nearer birthday basis)
• Policy term: 15 to 35 years
• Minimum basic sum assured: ₹2,00,000
• Nature of plan: Participating, non-linked

A few practical points arise from these headline numbers:

• The maximum entry age must be distinguished from the maximum maturity age. A 50-year-old cannot choose every possible term if that would push maturity beyond age 75.
• Premium is usually payable for the entire selected policy term (unless the policy lapses or is surrendered earlier).
• As a participating plan, bonuses are dependent on LIC’s surplus distribution policy for the participating fund. There is no pre-declared fixed rate of return such as 6% or 8% per annum built into the contract.

2. Distinction Between Maturity Benefit and Post-Maturity Life Cover

2.1 What Happens on Survival to Maturity

If the life assured survives the stated maturity date and the policy is in force with all due premiums paid, LIC’s brochure states that the maturity benefit consists of:

• Basic sum assured;
• Plus vested simple reversionary bonuses;
• Plus any final additional bonus, if declared.

Key interpretational points:

• Only bonuses that have been actually declared and vested under the policy rules form part of the maturity proceeds.
• Any future bonus amounts, including potential final additional bonus, are not guaranteed, even if they appear in an illustration.

2.2 Life Cover After Maturity Is a Separate Benefit

Plan 715 is structured such that life cover does not cease at maturity. After the maturity amount has been paid, the contract continues to provide a death benefit.

According to the brochure, where death occurs after the maturity date, the amount payable is:

• Basic sum assured (as stated in the policy schedule).

This must be clearly separated from the earlier maturity proceeds:

• The post-maturity death benefit is not a second maturity-type payout with all bonuses.
• It is not a second investment return; it is a risk cover limited to the basic sum assured.
• Beneficiaries should understand that only the basic sum assured is typically payable on post-maturity death, not the previously vested bonuses all over again.

3. Death Benefit During the Policy Term: Formula and Protections

3.1 Structure of Death Benefit Before Maturity

Provided the policy is in force and all necessary premiums up to the date of death have been paid, death during the policy term entitles the nominee to:

• “Sum assured on death”;
• Plus vested simple reversionary bonuses;
• Plus final additional bonus, if declared.

The brochure defines “sum assured on death” as the higher of:

• 125% of basic sum assured; or
• 7 times annualised premium,

and in addition prescribes a minimum floor of:

• 105% of total premiums paid up to the date of death.

The actual death benefit is then this “sum assured on death” plus eligible bonuses.

3.2 Importance of Defined Terms

The expressions “annualised premium” and “total premiums paid” have specific contractual meanings. Typically, they:

• Exclude GST, rider premiums and any extra loading for health or occupation, unless explicitly stated otherwise.
• Are not to be re-engineered based on a bank account statement alone. The policy wording and LIC’s calculation methodology must be followed.

3.3 Illustration Caveat

Suppose a policy has a basic sum assured of ₹5,00,000. Then:

• 125% of basic sum assured = ₹6,25,000.

This does not by itself reveal:

• The annualised premium amount;
• The cumulative premiums paid; or
• Any bonus figures.

Therefore, any example using a basic sum assured value is only for explaining the formula, not for inferring actual pay-outs or returns.

3.4 Snapshot of Main Events

4.