LIC Plan 715: Are You Losing ₹ Lakhs at Surrender?
LIC New Jeevan Anand Plan 715 offers both maturity payout and lifelong death cover, but surrendering early, missing premiums, or misunderstanding tax rules can cost you lakhs. Here's exactly what you need to know before buying or exiting this plan.
Most LIC 715 holders don't know their 'lifetime cover' vanishes the moment they stop paying — like a Netflix subscription nobody cancelled.
Your family gets nothing if you surrender LIC 715 without understanding these rules
Key Takeaways
Check your policy document to confirm your annual premium is below 10% of Sum Assured — if it crosses this threshold, budget for a tax bill at maturity.
Calculate your current Guaranteed Surrender Value using LIC's online portal or by calling your branch before deciding to exit — compare it against the paid-up value option, which is often better than surrendering early.
If you've paid 3+ years of premiums and are struggling with cash flow, convert your policy to paid-up status instead of surrendering — you keep a reduced cover and bonus rights without paying more premiums.
LIC New Jeevan Anand Plan 715 offers both maturity payout and lifelong death cover, but surrendering early, missing premiums, or misunderstanding tax rules can cost you lakhs. Here's exactly what you need to know before buying or exiting this plan.
Here's what happened: LIC New Jeevan Anand (Plan 715) is an endowment plan that pays a lump sum at maturity AND continues a death cover for the policyholder's entire lifetime after the policy term ends.. Policyholders who miss premiums without paying within the grace period risk policy lapse, losing all bonuses accrued and potentially receiving zero payout if surrender conditions aren't met.. Tax benefits on premiums (Section 80C) and maturity (Section 10(10D)) are conditional — premiums must not exceed 10% of the Sum Assured, or the maturity becomes fully taxable as income..
What you should do: Check your policy document to confirm your annual premium is below 10% of Sum Assured — if it crosses this threshold, budget for a tax bill at maturity.. Calculate your current Guaranteed Surrender Value using LIC's online portal or by calling your branch before deciding to exit — compare it against the paid-up value option, which is often better than surrendering early.. If you've paid 3+ years of premiums and are struggling with cash flow, convert your policy to paid-up status instead of surrendering — you keep a reduced cover and bonus rights without paying more premiums..
Taking a policy loan against Plan 715 (up to 90% of surrender value) costs roughly 9–10% interest but keeps your full cover and bonuses intact — far smarter than surrendering during a cash crunch.
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- [1]“Finance | LIC New Jeevan Anand Plan 715: Maturity, Lifetime Cover, Bonuses, Surrender and Tax” taxguruin · 12 Oct 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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