LIC New Jeevan Anand (Plan 715/915): ₹5.35 Lakh Invested Over 25 Years Yields ₹11.5 Lakh — Check Real XIRR & How Jeevan Labh (Plan 736) Compares
- On a ₹5,00,000 Basic Sum Assured over a 25-year policy term, LIC New Jeevan Anand (Plan 715/915) accrues ₹5,75,000 in Simple Reversionary Bonus (@ ₹46/₹1k) plus ₹75,000 in Final Additional Bonus (FAB) = ₹11,50,000 maturity payout.
- Following the 0% GST reform on individual life insurance (Notification No. 16/2025-Central Tax Rate), total 25-year premium outflow drops by ~₹13,500, lifting net maturity XIRR from 5.62% to 5.84% (before counting the free post-maturity life cover).
- Unlike standard endowment plans, New Jeevan Anand continues a 100% free ₹5,00,000 death benefit even after you collect the ₹11.50 Lakh maturity cheque ("Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi").
- Policyholders seeking higher cash-flow IRR without post-maturity life cover can opt for LIC Jeevan Labh (Plan 736 / 936 25/16 option), where paying premiums for only 16 years still earns bonuses for all 25 years.
Compare Your Exact LIC Jeevan Anand (715) vs Jeevan Labh (736) Maturity
Calculate exact Simple Reversionary Bonus, Final Additional Bonus (FAB), 0% GST premium savings, and free post-maturity whole-life cover across all LIC plans.
Deconstructing the ₹5.35 Lakh to ₹11.50 Lakh LIC Jeevan Anand Math (25-Year Term)
LIC’s New Jeevan Anand (modified Table 715, formerly Table 915 and legacy Table 149) remains India’s most widely held participating endowment-cum-whole-life assurance policy because it combines two distinct payouts in a single contract: a lump-sum maturity corpus at the end of the policy term AND a paid-up whole-life death benefit that stays active until Age 100.
Consider a 30-year-old policyholder who selects a ₹5,00,000 Basic Sum Assured (BSA) for a 25-year policy term. Under the post-September 2025 0% GST regime, the annual tabular premium (after the 2% annual payment mode rebate) is approximately ₹21,400 per year—totaling ₹5,35,000 over 25 years.
At the end of Year 25, the maturity cheque is calculated across three statutory buckets:
1. 100% of Basic Sum Assured (BSA): ₹5,00,000 guaranteed principal.
2. Accrued Simple Reversionary Bonus (25 Years): At LIC’s declared valuation rate of ₹46 per ₹1,000 BSA for 21+ year terms, annual bonus is (₹5,00,000 ÷ 1,000) × ₹46 = ₹23,000/year. Over 25 years, total vested bonus equals ₹23,000 × 25 = ₹5,75,000.
3. One-Time Final Additional Bonus (FAB): For a 25-year term on ₹5L BSA, the loyalty FAB slab adds roughly ₹150 per ₹1,000 BSA = ₹75,000 (scaling up to ₹2,25,000 on larger sum assured brackets).
Adding all three buckets yields ₹5,00,000 + ₹5,75,000 + ₹75,000 = ₹11,50,000 tax-free under Section 10(10D)—plus a second ₹5,00,000 tax-free payout to your nominee upon death after maturity.
| Policy Parameter | New Jeevan Anand (Plan 715 / 915) | Jeevan Labh 25/16 (Plan 736 / 936) |
|---|---|---|
| Basic Sum Assured (BSA) | ₹5,00,000 | ₹5,00,000 |
| Policy Term vs Premium Paying Term (PPT) | 25 Years Term / Pay for 25 Years | 25 Years Term / Pay for ONLY 16 Years |
| Approximate Annual Premium (0% GST) | ₹21,400 / yr for 25 yrs | ₹23,100 / yr for 16 yrs (9-Yr Holiday) |
| Total Premiums Paid | ₹5,35,000 | ₹3,69,600 (Saves ₹1.65L in outlay!) |
| 25-Year Simple Reversionary Bonus | ₹5,75,000 (@ ₹46/₹1,000) | ₹6,25,000 (@ ₹50/₹1,000) |
| Final Additional Bonus (FAB) | ₹75,000 – ₹1,12,500 | ₹1,12,500 – ₹2,25,000 |
| Lump-Sum Maturity at Year 25 | ₹11,50,000 | ₹12,37,500 – ₹13,50,000 |
| Post-Maturity Free Life Cover (Age 55–100) | YES (₹5,00,000 Free Cover Continues) | NO (Policy Terminates at Year 25) |
| Effective Tax-Free Cash XIRR | ~5.84% (6.35% incl. Whole-Life Cover) | ~6.78% – 7.12% Tax-Free XIRR |
What Is the "Real Return" (XIRR) When You Factor in the Free ₹5 Lakh Whole-Life Cover?
Critics who look only at the ₹5.35 Lakh outflow and the ₹11.50 Lakh Year-25 payout calculate a pure cash-flow XIRR of ~5.84% p.a. However, that calculation ignores two major financial components built into New Jeevan Anand:
1. 25 Years of 125% Mortality Risk Cover: During the 25-year policy term, if the policyholder passes away, the family receives 125% of Basic Sum Assured (₹6,25,000) PLUS all accrued bonuses to date. Buying a standalone ₹6.25L term cover for 25 years would cost ~₹1,600/year out-of-pocket.
2. The Free Post-Maturity ₹5,00,000 Estate Payout: After you collect ₹11.50 Lakhs at Age 55, you never pay another rupee of premium—yet LIC guarantees to pay an additional ₹5,00,000 to your nominee whenever you pass away (or at Age 100). When discounted into the cash-flow stream, the second ₹5,00,000 payout elevates the true actuarial internal rate of return to ~6.35%–6.55% tax-free—equivalent to a 9.10% pre-tax bank FD for an investor in the 30% tax bracket!
Why LIC Jeevan Labh (Plan 736 / 936) Beats Jeevan Anand on Pure Maturity IRR
If your primary goal is maximizing the Year-25 maturity cheque rather than leaving a post-maturity whole-life cover, LIC’s Jeevan Labh (Plan 736 / 936) is mathematically superior due to its "9-Year Premium Holiday":
• Pay for 16 Years, Earn Bonus for 25 Years: Under Jeevan Labh’s 25/16 option, you stop paying premiums after Year 16 (total outlay ~₹3.69 Lakhs instead of ₹5.35 Lakhs), yet LIC continues crediting the full Simple Reversionary Bonus (₹50 per ₹1,000 BSA) every single year from Year 17 to Year 25!
• Higher Bonus Slab: Because Jeevan Labh does not have to fund a post-maturity whole-life reserve, LIC declares a higher annual bonus rate (₹47–₹52 per ₹1,000 BSA) than New Jeevan Anand (₹42–₹46 per ₹1,000 BSA). You can test your exact age and sum assured on our dedicated LIC Jeevan Labh Calculator (/finance/lic-jeevan-labh-calculator/).
How the Post–Sept 2025 0% GST Reform Boosts Both Existing and New LIC Policies
Prior to 22 September 2025, every LIC endowment premium attracted 4.50% GST in Year 1 and 2.25% GST from Year 2 to Year 25—silently eroding 25 to 35 basis points from your maturity XIRR.
Under Notification No. 16/2025-Central Tax (Rate), individual life insurance policies are now 100% exempt from GST (0%). Whether you are paying renewal installments on an older Table 915 / 936 / 149 policy bond or buying a new Table 715 / 736 policy in FY 2026–27, 100% of your GST surcharge is eliminated immediately.
Frequently Asked Questions (FAQs)
Is the ₹11.50 Lakh maturity amount from LIC New Jeevan Anand completely tax-free?▼
Yes. Under Section 10(10D) of the Income Tax Act, as long as your annual premium does not exceed 10% of the Basic Sum Assured and your aggregate annual premium across traditional policies issued on or after 1 April 2023 does not exceed ₹5,00,000 per year, the entire ₹11.50 Lakh maturity payout and the subsequent ₹5 Lakh whole-life payout are 100% tax-free.
Does the ₹5 Lakh post-maturity life cover in Jeevan Anand continue to earn bonuses after maturity?▼
No. Once the policy term ends and you receive the maturity lump sum (BSA + Accrued Bonuses + FAB), the policy converts into a paid-up whole-life cover equal to 100% of the Basic Sum Assured (₹5,00,000). No further bonuses accrue after the maturity date.
Can I surrender my post-maturity free life cover in New Jeevan Anand for immediate cash?▼
Yes. Even after collecting your maturity proceeds, the paid-up post-maturity risk cover carries an actuarial cash surrender value that increases with your age. However, most families retain it as a guaranteed, tax-free legacy payout.
What changed when LIC renumbered Table 915 to Table 715 and Table 936 to Table 736?▼
Following the IRDAI (Insurance Products) Regulations 2024 overhaul effective October 2024, LIC renumbered its core endowment suite into the 700-series (915 → 715, 936 → 736) with enhanced Special Surrender Value (SSV) eligibility after just 1 full policy year and adjusted minimum sum assured entry slabs.