LIC New Jeevan Anand (715) Calculator

LIC New Jeevan Anand (715) Calculator

What this calculator does

LIC's New Jeevan Anand (Table No. 715) is a non-linked, participating (with-profits) endowment assurance plan with a distinctive twist: it is part endowment, part whole life. You pay premiums for the Policy Term, and at maturity you receive the Basic Sum Assured plus all vested bonuses. But unlike a plain endowment plan, the risk cover on your life does not end at maturity - the Basic Sum Assured continues as a paid-up whole life cover, payable to your nominee whenever you die after maturity, with no further premiums required.

This calculator gives you an indicative estimate of:

• the annual premium (and per-installment premium for your chosen payment mode) you would pay throughout the policy term
• the Accident Benefit Rider premium, if you opt for it
• the Sum Assured on Death - the guaranteed minimum payable if the life assured dies during the policy term
• the Simple Reversionary Bonus that vests every policy year, and the Final Additional Bonus (FAB) paid only at maturity for longer-running policies
• the total maturity benefit - Basic Sum Assured plus all vested bonuses plus the FAB, paid out at the end of the policy term
• the whole-life cover after maturity - the Basic Sum Assured that stays payable on death any time after maturity, without any further premiums
• a year-by-year schedule showing how the accrued bonus, and the benefit payable on death, grow over the policy term

based on your entry age, Basic Sum Assured, Policy Term, payment mode, and whether you add the Accident Benefit Rider.

Formula Used

Eligibility. Entry age must be between 18 and 50 years, the Policy Term between 15 and 35 years, and the age at maturity (entry age plus policy term) cannot exceed 75 years:

$$MaturityAge = EntryAge + PolicyTerm \le 75$$

Premium. The illustrative tabular annual premium rate (₹ per ₹1,000 Sum Assured) combines a savings component that shrinks as the policy term lengthens with a mortality component that grows with entry age:

$$BaseRate(age, term) = \frac{1000}{term} \times 0.9 + \big(1.8 + age \times 0.055\big)$$

Policies with a larger Sum Assured earn a small per-mille rebate on the tabular rate - a "High Sum Assured Rebate":

$$Rebate(SumAssured) = \begin{cases} 3 & SumAssured \ge 10{,}00{,}000 \\ 2 & SumAssured \ge 5{,}00{,}000 \\ 0 & \text{otherwise} \end{cases}$$ $$AnnualPremium = \frac{SumAssured}{1000} \times \big(BaseRate(age, term) - Rebate(SumAssured)\big)$$

If you opt for the Accident Benefit Rider, an additional ₹0.50 per ₹1,000 of Sum Assured (capped at a Sum Assured of ₹50,00,000 for the rider) is added:

$$RiderPremium = \frac{\min(SumAssured,\ 50{,}00{,}000)}{1000} \times 0.50$$

The total is then split by your chosen payment mode (yearly, half-yearly, quarterly, or monthly), using LIC's standard modal factors (yearly 1.00, half-yearly 0.510, quarterly 0.260, monthly 0.0875):

$$InstallmentPremium = (AnnualPremium + RiderPremium) \times ModeFactor$$

Sum Assured on Death (during the policy term). The guaranteed minimum payable immediately on death during the policy term, before any vested bonus is added, is the higher of 125% of the Basic Sum Assured or 7 times the annualized premium:

$$SumAssuredOnDeath = \max\big(1.25 \times SumAssured,\ 7 \times AnnualPremium\big)$$

Simple Reversionary Bonus. An illustrative bonus of ₹48 per ₹1,000 Sum Assured vests at the end of every completed policy year, right up to maturity:

$$VestedBonus(year) = year \times \frac{SumAssured}{1000} \times 48$$

Final Additional Bonus (FAB). An illustrative one-time bonus of ₹1,600 per ₹1,000 Sum Assured, paid only at maturity, and only if the Policy Term is 20 years or longer:

$$FAB = \begin{cases} \frac{SumAssured}{1000} \times 1600 & term \ge 20 \\ 0 & \text{otherwise} \end{cases}$$

Maturity Benefit (paid once, at the end of the policy term):

$$MaturityBenefit = SumAssured + VestedBonus(term) + FAB$$

Whole-life cover after maturity. This is what sets New Jeevan Anand apart from a plain endowment plan: after the Maturity Benefit is paid out, the policy does not end. The Basic Sum Assured continues as a paid-up cover for the rest of the life assured's life, with no further premiums, and is paid to the nominee whenever death occurs after maturity:

$$WholeLifeCoverAfterMaturity = SumAssured$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate table, which is IRDAI-approved and can change over time. The real plan's death benefit during the term is also subject to a floor of 105% of total premiums paid to date, which this calculator does not model exactly. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter your Age at Entry in years (18 to 50).
2. Enter your desired Basic Sum Assured (minimum ₹1,00,000).
3. Choose your Policy Term in years (15 to 35) - remember entry age plus term cannot exceed 75.
4. Choose your Premium Payment Mode - yearly, half-yearly, quarterly, or monthly.
5. Choose whether to add the Accident Benefit Rider.
6. Click Calculate Benefits to see your premium, Sum Assured on Death, bonus schedule, maturity benefit, and the whole-life cover that continues after maturity.

Worked Example

Suppose you are 30 years old, choose a Basic Sum Assured of ₹5,00,000, a 20-year Policy Term, yearly payment mode, and no rider.

$$BaseRate(30, 20) = \frac{1000}{20} \times 0.9 + (1.8 + 30 \times 0.055) = 45 + 3.45 = 48.45$$

Since the Sum Assured is ₹5,00,000, a rebate of 2 per mille applies:

$$AnnualPremium = \frac{5{,}00{,}000}{1000} \times (48.45 - 2) = 500 \times 46.45 = ₹23{,}225 \text{ per year}$$

Over the 20-year term, total premium payable is 23{,}225 \times 20 = ₹4{,}64{,}500.

The Sum Assured on Death is \max(1.25 \times 5{,}00{,}000,\ 7 \times 23{,}225) = \max(6{,}25{,}000,\ 1{,}62{,}575) = ₹6{,}25{,}000.

At maturity, the vested Simple Reversionary Bonus is 20 \times 500 \times 48 = ₹4{,}80{,}000, and since the term is 20 years (≥ 20), a Final Additional Bonus of 500 \times 1600 = ₹8{,}00{,}000 is also paid. The total maturity benefit is:

$$MaturityBenefit = 5{,}00{,}000 + 4{,}80{,}000 + 8{,}00{,}000 = ₹17{,}80{,}000$$

After this maturity payout, the plan does not end - a whole-life cover of ₹5,00,000 (the Basic Sum Assured) continues, payable to the nominee whenever the life assured passes away, at no further premium cost.