The Life Insurance Corporation (LIC) of India’s Jeevan Anand policy combines the benefits of both an endowment plan and a whole life plan. It offers financial protection against death throughout the lifetime of the policyholder, with the provision of lump sum payment at the end of the selected policy term in case of survival. A critical tool for anyone holding or considering this policy is the LIC Jeevan Anand Maturity Calculator. This calculator enables policyholders to estimate the maturity amount they can expect to receive, taking into account the sum assured, accrued bonuses, and any final addition bonus declared by LIC. This helps in financial planning and ensures that policyholders have a clear understanding of their future benefits.
Formula
The maturity amount of the LIC Jeevan Anand policy is calculate using the formula:
Maturity Amount = Sum Assured + Bonuses + Final Addition Bonus (if declared)
Variables Used:
- Sum Assured: The fixed amount chosen at the inception of the policy.
- Bonuses: Additional amounts declared by LIC, including:
- Simple Reversionary Bonus (SRB): Declared annually and added to the policy value.
- Final Addition Bonus (FAB): A one-time bonus at maturity.
Calculating Bonuses (estimated):
- SRB:
SRB Amount = (Declared SRB per Rs. 1,000) * Sum Assured * Number of Policy Years - FAB:
FAB Amount = (Declared FAB per Rs. 1,000) * Sum Assured
These components collectively determine the total maturity amount, helping policyholders estimate their returns.
Table for General Terms
| Term | Definition |
|---|---|
| Sum Assured | The guaranteed amount that the policyholder opts for at the start of the policy. This amount is a key factor in determining both the death benefit and the maturity benefit. |
| Simple Reversionary Bonus (SRB) | An annually declared bonus, which is a percentage of the Sum Assured. It accumulates every year and is added to the maturity benefit. |
| Final Addition Bonus (FAB) | A one-time bonus that may be declared by LIC at the time of maturity. It is in addition to the SRB and significantly enhances the total maturity benefit. |
| Policy Term | The duration for which the insurance coverage is provided under the policy. The policy term is crucial in calculating the total bonus accumulation. |
| Premium Amount | The amount paid periodically by the policyholder to LIC in exchange for the coverage provided. The premium amount is based on the Sum Assured, the policyholder’s age, and the policy term. |
This table encapsulates the essential terminology and their implications in the context of the LIC Jeevan Anand policy, making it easier for policyholders to navigate their insurance plans and anticipate their benefits accurately.
Example
Consider a policy with a Sum Assured of Rs. 5,00,000, an SRB of Rs. 50 per Rs. 1,000 sum assured, and a policy term of 20 years. Assuming an FAB declared at maturity:
SRB Amount = (50 * 5,00,000 * 20) / 1,000
FAB Amount = (Declared FAB Rate * 5,00,000) / 1,000
Maturity Amount = 5,00,000 + SRB Amount + FAB Amount
This example illustrates how to utilize the formula to calculate the maturity benefit.
Most Common FAQs
The Sum Assured is the guaranteed amount the policyholder chooses at the beginning of the policy. It forms the base of the maturity benefit and the death benefit.
Bonuses, including the Simple Reversionary Bonus and Final Addition Bonus, are declared by LIC annually. The SRB is a percentage of the Sum Assure and accumulates annually, whereas the FAB is a one-time bonus pay at maturity.
Yes, the maturity amount can vary depending on the bonuses declared by LIC over the policy term. These bonuses are dependent on LIC’s performance and profitability.