LIC Jeevan Anand Calculator 2025 – Best Smart Planner

Nothing in the world of finance is ideal for every single person. It is essential to have a nuanced perspective on Jeevan Anand.

The Advantages (The “Pros”):

1. Lifelong Cover: Its one and only most significant benefit. The psychological and financial value of the certainty that your nominees will get the sum assured regardless of when you pass away is incalculable.
2. Disciplined Savings & Financial Goal Planning: It instills a habit of saving, which makes it a good instrument for accumulating a corpus for the purpose of retirement, the schooling of a child, or the wedding of a child.
3. Safety and Guarantees: In addition to being a standard plan from LIC, it includes sovereign backing and provides capital protection in the form of guaranteed maturity sum assured and vested bonuses over the maturity period.
4. Death Benefit During Term is High: During the years when premiums are being paid, the life cover is greatly improved by paying 125% of the Basic Sum Assured from the very beginning of the policy.
5. Loan Facility: In the event of an emergency, the policy will acquire a surrender value after a predetermined amount of time, at which point it can be utilized as collateral to get a loan from LIC, thus providing liquidity.
6. Tax Benefits: Under Section 80C of the Income Tax Act, premiums paid are eligible for a tax deduction, and Section 10(10D) of the Income Tax Act exempts the proceeds from the maturity and death of the policy from taxation, subject to the tax regulations that are now prevalent.

The Disadvantages (The “Cons”):

1. Lower Returns Compared to Pure Equity Investments: The internal rate of return (IRR) of endowment plans such as Jeevan Anand normally falls within the range of four to six percent. This is typically lower than the returns that are generated by equity-linked instruments (such as mutual funds) over a comparable period of time, particularly when taking inflation into consideration.

2. Complex Cost Structure: There is a considerable amount of the premium that is paid for the first year that is allocated to agent commissions and other charges, which can have an effect on the returns in the previous years.

3. The “Lifelong Cover” is often misunderstood: it is only for the basic sum assured that the complete life insurance is provided; the maturity value is not included. In the case of the ₹25 Lakh example, the lifelong cover is for ₹25 Lakh and not the ₹53 Lakh+ that was received at maturity. When an economy is experiencing inflation, the real worth of ₹25 Lakh decreases by a large amount over a period of 20-30 years.

4. Inflexibility: In most cases, the premium, the money assured, and the term are permanent. Contrary to a unit-linked insurance policy (ULIP), you are unable to change the fund strategy or reroute your premiums.

5. Not a Replacement for Adequate Term Insurance: It is possible that the expense of a substantial Sum Assured under Jeevan Anand will be prohibitive for a young person who has a high number of important financial obligations. For the same amount of money, a pure term insurance plan provides a significantly higher level of coverage.