LIC Jeevan Anand vs Jeevan Saral – which one to buy?
LIC as we all know is the hoariest player in our country & hence has a lot of trust amongst the masses. I’ve seen some people confused on which policy they should go for Jeevan Anand or Jeevan Saral. Lets have a quick comparison on basic features of both these policies.
Jeevan Anand is a combination policy with features of endowment & whole life. The life assured is provided a financial protection against death throughout the lifetime of the life assured along with maturity benefit at the end of selected term of the policy. This product participates in the profits of the organisation & share of this profit in the form of bonus is added to the plan every year till the term of plan or till death whichever is earlier. In case of death of the Life Assured during the term of the plan, the Sum assured along with bonus is paid in lump sum. In case of maturity also the Sum assured along with bonus is paid in lump sum. An additional Sum assured is also payable on the death afterwards which is a very good feature in this product. This plan can be surrendered any time after 3 policy years. Surrender value is 30% of the premiums paid excluding the premium paid in first year.
Jeevan Saral on the other hand is an endowment plan where the proposer has to choose the sum assured & accordingly pay the premium amount. Under this plan financial protection is provided only till term of the plan. It offers flexibility to choose the term as well. This plan also participates in profit of the organisation but loyalty additions are payable only after 10 years. In case of death of Life assured the nominee gets 250 times the monthly premium along with loyalty additions also, return of premiums excluding the first year premium is paid in lump sum. Maturity sum assured along with loyalty additions are paid in lump sum. In case the proposer wants to surrender the policy, he can do so after the policy has completed three years. Greater of guaranteed surrender value (30% of premiums paid after deducting first year’s premium & premiums paid for extra benefits/riders) & special surrender value (80% of maturity amount is paid if policy has completed 3 years or more but less than 4 years.90% of maturity sum assured is paid if 4 or more years have been completed but less than 5 years.
In both the plans extra benefits can be added to the policy by paying additional premium. Both the products are good & one can select either according to the need.