Summary: LIC’s New Jeevan Anand (Plan 715; UIN 512N279V03) is a participating, non-linked individual life savings policy. It combines a maturity payment at the end of the selected term with a defined life cover continuing thereafter. Its return is not a fixed-deposit rate: participating bonuses depend on LIC declarations. Buyers should compare the premium commitment, protection gap, surrender terms and post-tax outcomes with a separate term plan and investments. The following analysis is based on LIC’s official product materials and does not quote a personalised premium or projected maturity amount.
What the Product Offers
The official LIC brochure describes a minimum entry age of 18 completed years, maximum entry age of 50 years (nearer birthday), maturity age ceiling of 75 years, policy terms of 15–35 years and minimum Basic Sum Assured of ₹2 lakh. Eligibility and underwriting apply. Premium payment ordinarily continues for the selected policy term.
It is a participating policy, not a unit-linked investment. Simple reversionary bonuses, once vested under the contract, differ from future discretionary bonus declarations; a final additional bonus may or may not be declared.
Death Benefit During and After the Term
For an in-force policy, death during the term generally pays the Sum Assured on Death plus vested simple reversionary bonuses and any final additional bonus. The official policy wording defines the Sum Assured on Death as the higher of 125% of Basic Sum Assured or seven times annualised premium; the total death benefit is subject to a minimum of 105% of total premiums paid as defined in the contract.
After the stipulated maturity date, the contract specifies a death benefit equal to the Basic Sum Assured. Do not assume that the original term-period bonuses are paid a second time after maturity. Check exclusions, nomination and claim conditions in the issued policy.
Maturity, Bonuses and Illustration
At maturity, an in-force policy pays Basic Sum Assured plus vested simple reversionary bonuses and any final additional bonus declared. A sales illustration is not a guarantee of future bonus rates.
Illustrative calculation only: if Basic Sum Assured is ₹5,00,000 and vested bonuses total ₹2,00,000, maturity proceeds before any final additional bonus would be ₹7,00,000. These bonus figures are hypothetical and are not LIC quotations. Evaluate the annualised internal rate of return using every actual premium and expected payment date.
Surrender, Loan and Liquidity
Early surrender can materially reduce realised returns, especially in initial years. Paid-up value, surrender value, loan eligibility and interest follow policy-specific terms. Ask for a year-wise guaranteed and non-guaranteed benefit illustration and surrender table before buying.
A long premium-paying term creates a continuing cash-flow obligation. Consider whether emergency savings and adequate pure life cover are already in place.
Income-Tax Considerations for FY 2026-27
Section 80C deduction under the earlier Act, where applicable, depends on the chosen tax regime, overall ₹1.5 lakh ceiling and the qualifying premium-to-sum-assured conditions. For FY 2026–27, the corresponding provisions of the Income-tax Act, 2025 must be applied; the new regime generally does not permit the equivalent deduction.
Exemption of life-insurance proceeds, formerly governed by section 10(10D), depends on statutory conditions, including applicable premium thresholds, policy issue date and exclusions. For certain non-ULIP life policies issued on or after 1 April 2023, the aggregate annual premium threshold of ₹5 lakh is material, subject to statutory conditions; death proceeds receive distinct treatment. Do not infer exemption solely from the plan name.
If proceeds are taxable, compute the amount and relevant head of income under the applicable provisions, including the successor to section 56(2)(xiii) where applicable. Review TDS on non-exempt life-insurance proceeds under the law applicable to the payment year. Tax rules should be checked against the policy issue date and actual premiums.
Who Might Consider It and Who Should Compare Alternatives
A buyer seeking disciplined long-term saving and a traditional participating contract may find the structure useful, provided the premium is affordable and the illustration is understood. A buyer primarily seeking maximum life cover at low cost should compare a pure term policy.
Before committing, obtain a signed personalised benefit illustration, policy wording, rider terms, charges, free-look conditions and insurer’s latest bonus declarations. Compare after-tax cash flows rather than headline maturity values.
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Disclaimer: This article is intended solely for general educational and informational purposes and is not an insurance solicitation, personalised financial advice or a recommendation to purchase, surrender or replace any policy. LIC’s New Jeevan Anand Plan 715 is subject to the insurer’s current brochure, policy document, underwriting requirements and individual contract terms. Eligibility conditions, available riders, premium rates, benefit calculations, paid-up provisions, surrender values, loan terms, exclusions and claims procedures must be checked against the policy actually issued. Participating bonuses are dependent on declarations by LIC and future bonuses are not guaranteed. The numerical illustration is hypothetical and does not represent an official LIC quotation, promised return or estimate of an individual policy’s maturity value. The annualised return depends on actual premium amounts, payment dates, bonuses, taxes and other relevant cash flows. Income-tax treatment depends on the policy issue date, annual and aggregate premiums, the nature of the benefit, the taxpayer’s selected tax regime and the law applicable in the relevant tax year. References to provisions of the Income-tax Act, 1961 are historical where the Income-tax Act, 2025 applies from 1 April 2026; readers should confirm corresponding current provisions before claiming deductions or exemptions. Changes in law, administrative guidance and judicial interpretation may affect outcomes. Prospective buyers should obtain the latest official LIC product documents and a personalised benefit illustration, assess their insurance protection and liquidity needs, and consult a qualified insurance adviser or tax professional where appropriate. Neither the author nor TaxGuru accepts responsibility for decisions based solely on this article.
