LIC Jeevan Anand Plan- This is an endowment cum whole life policy along with bonus facility. Jeevan Anand is a double death benefit plan if the life insured survives till the end of the policy term. Jeevan Anand has average premium, high rate of bonus and great liquidity features.
What Insured receives: Any Individual who takes LIC Jeevan Anand, receives the Sum Assured with Bonus as maturity benefit but the cover continues till his death. An additional Sum insured is paid whenever the Insured dies.
So LIC Jeevan Anand is both an Endowment plan and a whole life plan. In case the insured dies in Jeevan Anand policy tenure the entire sum assured with Bonus is paid to the nominee and policy would terminate. An additional accidental death and disability benefit is payable under Jeevan Anand till 70 years of age.
Why to buy Jeevan Anand: Jeevan Anand is amazing plan for guaranteed returns with high coverage and suits people who do not want to take much risk in their lives . Also the coverage continues till death.
Key Features of LIC Jeevan Anand:
- LIC Jeevan Anand is a Endowment cum Whole life plan.
- Maturity benefit is Sum Assured + Bonus and the life cover continues till death.
- Death benefit after policy maturity is only Sum Assured.
- Death benefit before policy maturity is Sum Assured + Accured bonus.
- Simple reversionary bonus is payable on maturity or earlier death under Jeevan Anand.
- Accidental death and disability benefit is an inbuilt feature of Jeevan Anand plan.
- Jeevan Anand provides critical Illness benefit.
- In Jeevan Anand plan additional premium can be given to people with hazardous occupation.
Benefits Of LIC Jeevan Anand
Income Tax Benefit under section 80C :
Life Insurance premiums paid under for Jeevan Anand, is allowed as a deduction from the taxable income each year under section 80C up to Rs. 1,00,000.
The maturity amount you get under LIC Jeevan Anand is also tax free under section 10(10)D provided all conditions have been fulfilled.
Death Benefit under Jeevan Anand:
In case of death of the Life Insured of Jeevan Anand
· Before the end of the Policy Term, the Sum Assured + accrued Bonus is paid
· After the Policy Term, Sum Assured is paid as Death Benefit whenever the Life Insured dies.
Maturity Benefit of Jeevan Anand:
At the maturity of the JEevan Anand policy, the insured will get Sum Assured + accrued Bonus + Final Additional Bonus
Additional Features & Benefits of LIC Jeevan Anand Plan
There are 2 in built riders available under Jeevan anand:
Accidental death benefit rider – an additional sum assured is paid if death is due to accident till 70 years of age.
Accidental disability benefit rider– additional sum assured is payable in installments. Additional rider available : Critical Illness rider.
Tax treatment of LIC Jeevan Anand — FY 2025-26
Most pages about this policy cover the returns and the bonus. Far fewer explain how it is actually taxed, and that is where people lose money. Here is the position for FY 2025-26 (AY 2026-27).
1. Deduction on the premium — Section 80C
Premiums paid qualify for deduction under Section 80C, within the overall ₹1,50,000 ceiling shared with PPF, EPF, ELSS, home loan principal and tuition fees.
The condition people miss: for policies issued on or after 1 April 2012, the deduction is allowed only to the extent the annual premium does not exceed 10% of the sum assured. Pay more than that and the excess simply is not deductible.
| Sum assured | Annual premium | Deduction allowed under 80C |
|---|---|---|
| ₹10,00,000 | ₹80,000 | ₹80,000 — fully allowed (under 10%) |
| ₹5,00,000 | ₹80,000 | Only ₹50,000 — capped at 10% of sum assured |
⚠️ Under the new tax regime there is no 80C deduction at all. The new regime is the default for FY 2025-26. If you are on it, your Jeevan Anand premium gives you no deduction whatsoever. Buying a policy purely to save tax only makes sense if you have consciously opted for the old regime.
2. Maturity proceeds — Section 10(10D)
The maturity amount is exempt under Section 10(10D), subject to two tests:
- The 10% test. For policies issued on or after 1 April 2012, exemption applies only if the annual premium never exceeded 10% of the sum assured in any year. Breach it and the entire maturity amount becomes taxable as income from other sources.
- The ₹5 lakh test (policies issued on or after 1 April 2023). Where the aggregate annual premium across all your non-ULIP life policies exceeds ₹5,00,000, the maturity proceeds of the excess policies are taxable. This is a relatively recent change and it catches people holding several traditional plans.
Death benefit is always exempt under Section 10(10D), regardless of either test. The restrictions bite only on maturity and survival benefits.
3. TDS on payout
Where proceeds are not exempt, the insurer deducts TDS under Section 194DA on the income component — that is, the payout minus the premiums you paid. If your PAN is not updated with the insurer, TDS applies at a higher rate. Check Form 26AS before filing so you claim the credit.
4. What to report in your ITR
- Premium paid — Schedule VI-A under 80C, old regime only
- Exempt maturity proceeds — Schedule EI (Exempt Income). Reporting these matters: the insurer reports the payout in your AIS, and an unexplained credit is a common notice trigger
- Taxable proceeds — Income from Other Sources, with TDS credit claimed against it
Should you buy an endowment policy to save tax?
Speaking as Chartered Accountants rather than as agents: an endowment plan bundles insurance with a low-return savings product. A term plan plus a separate investment usually produces both more cover and better returns for the same outlay. Under the new regime, where no 80C deduction exists, the tax argument for endowment policies largely disappears. Buy insurance for protection and invest separately — and if a tax deduction is the goal, compare the alternatives first.
Need help with the tax side?
Whether your maturity proceeds are exempt, whether the ₹5 lakh rule catches you, and whether the old regime is worth choosing at all — these are calculations specific to your policies and income. Our CAs will work them out and file accordingly. Send us your details →
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Disclaimer: Tax position stated for FY 2025-26 (AY 2026-27) as understood in August 2026. Policy features and bonus rates are set by LIC and change over time — confirm current terms with LIC or your agent. Consult a Chartered Accountant before acting on your own facts.