Jeevan Saral and Jeevan Anand are two most popular individual plans from LIC of India. Both plans are well design for great savings and risk cover against death. These are combinations of whole life and endowment plans and have some unique features that attract people. We will compare both policies in all relevant aspects.
Both plans are attractive for great savings and risk cover. Let’s compare benefits and drawbacks of these two policies:
Maturity Benefit: Jeevan Anand and Jeevan Saral offer maturity sum along with bonuses as a maturity benefit. Both policies are with-profit plans. It means the policies will participate in the earning of corporation business and each eligible stakeholder will get the loyalty additions. Jeevan Saral provides bonus only after 10 years but Jeevan Anand plan declares bonus on each year end. First bonus of Jeevan Saral will be declared in 2014.
Death Benefit: Death Cover in Jeevan Saral is 250 times of monthly premium, plus premium paid excluding first year premium, plus loyalty addition, if any. At the same time death cover in Jeevan Anand depends upon the SUM assured decided at the beginning + bonus, if any.
In case of accidental death Jeevan Anand has provision of one additional SUM assured payment (subject up to 5 Lacs) till age of 70 years without paying any extra premium / charges. Jeevan Saral provides accidental death cover 500 times of monthly premium on paying extra premium as DAB.
Surrender Value: Surrender value is better in Jeevan Saral than Jeevan Anand. Jeevan Saral offers special surrender value, which provides 100% of Maturity Sum Assured return in case policy has completed 5 years. Same will be 80% and 90% for the cases where policy has completed 3 years and 4 years respectively. Jeevan Anand provides guaranteed surrender value of 30% of total premium paid excluding first year premium.
Tax Benefits: Both plans have tax benefits on premium paid and death benefits.
Other: There are several other features in both plans. Jeevan Saral is also known as an ATM plan and allows partial or full withdrawal of maturity amount after 10 years. Policy can be continuing even after partial withdrawal after 10 years. The risk cover will also remain unchanged. Jeevan Anand has minimum short term of 5 years and it gives lifetime risk cover against death.
Loan against policy facility is available in both insurance policies. Premium paid in Jeevan Saral and Jeevan Anand yearly, half-yearly, quarterly or monthly. Premium payment through ECS deduction is available in both policies.
Eligibility: Minimum premium in Jeevan Saral is Rs. 250 /month for age up to 49 and Rs. 400 /month for age 50 and above. In Jeevan Anand minimum SUM assured is Rs. 1,00,000. Jeevan Saral Policy can be taken at age 12 minimum wherein Jeevan Anand Plan can be taken at age 18 and above. Both plans have no maximum premium cap. Jeevan Saral Covers up to 70 years of age wherein Jeevan Anand provides life time cover.