LIC New Jeevan Anand Plan 715: Maturity, Lifetime Cover, Bonuses, Surrender and Tax

Summary: LIC’s New Jeevan Anand, Plan 715 (UIN 512N279V03), is a participating, non-linked individual savings life-insurance policy that combines an end-of-term maturity benefit with life cover that continues after maturity. LIC’s sales brochure applicable from 22 September 2025 describes eligibility from age 18, a maximum entry age of 50 years (nearer birthday), policy terms of 15 to 35 years, maximum maturity age 75, and a minimum basic sum assured of ₹2 lakh. The maturity amount is the basic sum assured plus vested simple reversionary bonuses and any final additional bonus; death during the policy term uses a separate formula, while death after the maturity date generally results in the basic sum assured. Benefits depend on premiums being paid and the policy remaining in force. Surrender and paid-up treatment are not the same as the full maturity benefit. The tax position depends on premium, policy issue date, insurance-to-premium ratio, aggregation rules and the applicable income-tax regime, while individual life-insurance GST treatment must be checked against operative notifications. This article explains the contractual terms, practical financial implications, evidence requirements and principal risks without making an investment recommendation.

Product Identity, Eligibility and Contract Documents

The product should be identified by its current plan number and unique identification number, not merely by the commercial name “Jeevan Anand”. Older withdrawn versions carried different plan numbers and terms. The current LIC product page lists Plan 715 and UIN 512N279V03, and the brochure dated from 22 September 2025 is the relevant current marketing document. A purchaser should obtain the signed proposal, benefit illustration, policy schedule, policy wording and customer information sheet; the schedule controls the individual sum assured, premium, dates and riders. A website summary is not a substitute for the actual contract. The brochure describes a participating policy, meaning bonuses depend on LIC’s declared surplus rather than a predetermined annual investment yield.

Maturity Benefit Is Not the Same as Lifetime Death Cover

On survival to the stipulated maturity date, an in-force policy pays the basic sum assured plus vested simple reversionary bonuses and any final additional bonus, if declared. The phrase “maturity benefit” therefore does not mean that every bonus illustration is guaranteed. LIC states that bonuses declared and vested under its terms form part of benefits, whereas future bonuses remain dependent on experience and declarations. Importantly, the plan continues to provide a death benefit after the selected policy term. Where the life assured dies after the stipulated maturity date, LIC’s brochure states that the basic sum assured is payable. That post-maturity cover should not be confused with a second payment of all maturity bonuses or a second investment return; policyholders should examine the timing and beneficiary provisions carefully.

Death During the Policy Term: Formula and Safeguards

Provided the required premiums have been paid, death before maturity produces the “sum assured on death” plus vested simple reversionary bonuses and any final additional bonus, if declared. The brochure defines the sum assured on death as the higher of 125% of basic sum assured or seven times annualised premium, and provides a floor of 105% of total premiums paid to the date of death. “Annualised premium” and “total premiums paid” are defined terms and exclude specified taxes, riders and extra premiums; they should not be reconstructed from an account statement without checking the contract. For a policy with ₹5 lakh basic sum assured, 125% is ₹6.25 lakh, but the actual death sum assured still requires the annualised premium comparison and the applicable floor. No premium or bonus amount is inferred from that illustration.

Premium Frequency, Grace Period and Cash-Flow Discipline

The current brochure permits annual, half-yearly, quarterly and monthly premium modes, with monthly collection through NACH, and also refers to salary deduction. It provides 30 days of grace for yearly, half-yearly or quarterly modes and 15 days for monthly premiums. During the grace period the risk cover continues subject to the contract, but non-payment beyond it can cause lapse. A long-duration premium commitment should be stress-tested against household liquidity, emergency reserves and other fixed obligations. Comparing a policy’s illustrated maturity amount with total nominal premiums without adjusting for the timing of cash flows can be misleading. Internal-rate-of-return analysis, if undertaken, must use actual dated cash flows, exclude assumed future bonuses from guaranteed returns, and distinguish protection value from investment value.

Bonuses and the Risk of Treating Illustrations as Guarantees

A participating policy is entitled to simple reversionary bonuses declared by LIC while it remains in force. Once vested under the brochure terms, those bonuses are part of the contractual benefit; nevertheless, a future year’s bonus declaration and any final additional bonus are not assured merely because a past illustration shows them. LIC may publish illustrative benefit scenarios for standard lives, but these should be interpreted alongside the policy’s guaranteed and non-guaranteed columns. For audit or personal planning, the conservative case should identify premiums payable, the guaranteed base benefit, and a separate sensitivity for non-guaranteed bonuses. A policyholder should not present a projected maturity figure as an assured deposit-like yield, nor assume the same bonus rate throughout a 15–35-year term.

Paid-Up Status, Revival and Surrender

The brochure distinguishes lapse, paid-up continuation and surrender. If at least one full policy year’s premiums have been paid, discontinuance can produce a reduced paid-up policy under the contractual formula; otherwise benefits may cease after grace expiry. A paid-up policy does not continue earning future bonuses, although previously vested bonuses remain attached subject to terms. LIC describes revival within five consecutive complete years from the first unpaid premium, before the policy term ends, subject to arrears, applicable interest and evidence of continued insurability. The insurer may accept, modify or decline revival. Surrender is permitted after the first policy year if one full year’s premiums were paid; guaranteed surrender value requires at least two full years’ premiums, while special surrender value may apply earlier under specified conditions. The surrender amount is the higher of the applicable values and can be substantially less than the total premiums paid.

Loans, Riders and Instalment Options

LIC describes a policy-loan facility subject to its terms and a range of optional riders at additional cost. The brochure includes accident-related riders, a term-assurance rider and a critical-illness rider, with eligibility, coverage and premium limits that differ by rider. Accident riders are alternatives to one another rather than automatically cumulative; the maximum rider combination must follow LIC’s rules. The plan also provides options for death or maturity benefits to be paid in instalments over five, ten or fifteen years, subject to the prescribed minimum instalments and election procedure. These options alter timing of cash receipt and should not be treated as equivalent to immediate cash availability. Any outstanding policy loan, interest or policy charge may affect settlement; obtain a current loan statement and LIC’s written calculation before surrender or claim.

Income-Tax Treatment: Premium Deduction and Maturity Exemption

Income-tax treatment must be tested against the year of payment or receipt and the law governing that tax year. For older assessment years under the Income-tax Act, 1961, section 80C may allow qualifying life-insurance premiums within its overall limit and subject to premium-to-sum-assured restrictions; that deduction is generally not available merely by holding a policy if the taxpayer uses the default new regime. Under the Income-tax Act, 2025 for tax year 2026-27, the corresponding applicable deduction and exemption provisions and transitional treatment must be checked directly rather than assuming section numbers from the repealed Act. The exemption historically associated with section 10(10D) is conditional: premium ratios, issue dates and the aggregate ₹5 lakh annual-premium rule for specified non-ULIP policies issued from 1 April 2023 can affect maturity proceeds, while death benefits receive distinct treatment. The ₹5 lakh test is not a universal tax-free ceiling on every payout; examine all relevant policies, issue dates and exceptions.

GST on Individual Life-Insurance Premiums

The GST Council’s 3 September 2025 recommendations included exemption for individual life-insurance policies, including term, ULIP and endowment categories. A Council recommendation is not itself a charging or exemption notification; the operative notification and its effective date determine the treatment of a particular premium. Policyholders should check LIC’s actual premium receipt and tax invoice for the payment date, and should not apply a historical GST rate to a current premium simply because an older illustration included tax. Distinguish the individual base policy from separately invoiced services, charges or group arrangements, whose classification may require separate analysis. An exemption can also have insurer-side input-tax-credit consequences; it is not proof that the underlying base premium has been reduced by the full previous tax percentage.

Financial Planning, Accounting and Risk Controls

From a household-finance perspective, the decision combines life cover, long-term savings discipline and an illiquid contractual asset. An insurance policy is not a fixed deposit: premiums can be lost or surrender value reduced on early exit, and bonuses depend on declaration. A fair comparison separates pure risk-cover requirements from savings needs and tests the policy against emergency liquidity and existing protection. For business-paid policies, accounting treatment depends on the beneficiary, employment arrangement, ownership and substance of the contract; an employer cannot automatically capitalise every premium as an investment or assume employee benefits are tax-free. Maintain the policy schedule, proposal disclosures, nominee records, premium receipts, annual bonus statements and correspondence. Check medical disclosures, occupation details and claim documentation carefully because misstatements may produce avoidable disputes.

Primary Sources and Verification

The principal product source is LIC’s official New Jeevan Anand Plan 715 (UIN 512N279V03) page and the English sales brochure applicable from 22 September 2025, reviewed on 12 October 2026. Regulatory and tax background was cross-checked against the Income Tax Department’s Income-tax Act, 2025 transition guidance and the GST Council’s 56th meeting press release dated 3 September 2025. Product-specific eligibility and benefit formulae were taken from the LIC brochure, not from promotional comparison websites. Readers must verify later LIC endorsements, updated tax rules, GST notifications, and the exact policy schedule before making any transaction.

LIC official product page: https://licindia.in/lic-s-new-jeevan-anand-715%09512n279v03

GST Council press release: https://www.gstcouncil.gov.in/sites/default/files/2025-09/press_release_press_information_bureau_0.pdf

Income Tax Department: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/income-tax-returns

Frequently Asked Questions

Is LIC New Jeevan Anand Plan 715 a term-insurance-only product?

No. It is a participating, non-linked savings life-insurance plan with an end-of-term maturity benefit and continuing death cover after maturity. Premiums, bonuses and surrender rules make it materially different from pure term cover.

What is the minimum basic sum assured?

The current LIC brochure specifies ₹2 lakh, subject to its required sum-assured multiples, underwriting and policy issuance terms.

Does life cover end when the maturity benefit is paid?

No. LIC states that on death after the stipulated maturity date, the basic sum assured is payable, subject to the policy terms. This is distinct from the maturity proceeds already received.

Are future simple reversionary bonuses guaranteed?

No. Future bonus declarations depend on LIC’s participating-fund experience. Vested bonuses and any final additional bonus must be interpreted according to the brochure and policy wording.

Can a policyholder surrender after paying one premium?

Surrender is allowed after completion of the first policy year provided one full year’s premium was paid, but guaranteed surrender value requires at least two full years’ premiums. Early exit can lead to a significant shortfall.

Are all maturity proceeds tax-free?

No. Exemption depends on the relevant tax law, policy issue date, premium-to-sum-assured conditions, the applicable aggregate-premium rule and other statutory exceptions. Death claims are treated differently.

Is GST payable on premiums in October 2026?

Check the operative exemption notification and the actual individual-policy premium receipt. The GST Council recommended exemption in September 2025, but the binding position is determined by notifications and transaction classification.

Does a missed premium immediately terminate cover?

The brochure provides a grace period of 30 days for annual, half-yearly and quarterly modes, and 15 days for monthly mode. Non-payment after grace can cause lapse, with revival or paid-up consequences depending on premium history.

Key Takeaways

Plan 715 is a participating, non-linked insurance contract rather than a deposit; distinguish maturity, death during term and death after term. Check the current LIC brochure and personal policy schedule for eligibility, premium and riders. Never treat unvested future bonuses as guaranteed. Review surrender, paid-up, revival and loan terms before committing cash. Test premium deductions and maturity exemptions under the correct income-tax year and conditions; verify the operative GST notification for the premium date. Keep records of nominations, disclosures, premium payments and benefits, and seek advice for fact-specific tax or accounting consequences.

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Disclaimer: This article is general educational and editorial information based on LIC’s official Plan 715 brochure and public tax/GST materials reviewed on 12 October 2026. It is not a recommendation, solicitation, personalised insurance, financial, investment, tax, legal or accounting advice, and does not guarantee any bonus, return, surrender value, deduction, exemption or claim outcome. Actual eligibility, underwriting, rider terms, premium, dates, benefit calculations, GST treatment and tax consequences depend on the policy contract and current law. Readers must independently verify official documents and obtain professional advice before acting. TaxGuru, its owners, editors, authors, management, employees and affiliates accept no responsibility or liability for any loss, damage, tax, interest, penalty, missed deadline, rejected claim or other consequence arising from reliance on this publication.