Jeevan Anand of LIC is most sold whole life endowment plan which provides risk cover and I would say good return on survival. I have been encountered various queries related return or maturity of this plan and some queries simply asked for comparison between Jeevan Anand and pure investment. One of the queries is given below.
"Dear Sir, I have JEEVAN ANAND (WITH PROFITS) WITH ACCIDENT BENEFITS (149) POLICY. I purchased the same on 15 Jan 2010. Sum assured is Rs. 200000 and annual premium is 10922. I feel I should not continue this policy and the premium amount should be invested in some other investment option for greater returns. Is it ok if I surrender this policy? Or stop paying premium. I have already a pure term life plan by ICICI. Would I be able to get full amount of premium I paid in years? Please suggest!!"
Above question is very genuine and worth a discussion on it. Though it is not wise to compare a Life Insurance plan with a pure investment plans like Recurring Deposit, Fixed Deposit, Mutual funds and other plans because objective of both are completely different, but with reference to above query, I have tried to compare above Jeevan Anand case with a Bank’s Recurring Deposit with some assumptions. Two assumptions, tax rebate on premium paid under 80C @10% and tax free maturity under 10(10D) @20% have been taken.
First let’s list out various details including maturity associated with Jeevan Anand as follows.
Sum assured: 2,00,000 (A) Policy term: 21 years (B) Annual Premium: 10,922 (C ) Total Premium Paid (B x C): 2,29,362 (D) Tax saved on total premium paid (10% of D): 22,936 (E) Approximate Maturity: 4,35,800 (F), Click here to Know more Now for comparison, let’s assume that we are going for a Recurring Deposit (RD) for 21 years with annual deposit equal to your premium i.e. 10,922 which is yielding at an interest rate of 8.00% per annum. Calculating maturity of above RD according compound interest it comes as under. The maturity amount of RD: 5,94,776 (G ) Click here to Know more Total Interest earned (G-D): 5,94,776-2,29,362=3,65,414 (H) Income Tax on earned interest (20% of H): 73,083 (I) Effective Difference (G-F-E-I): 5,94,776 - 4,35,800 - 22,936 - 73,083= 62,957 So, as per above comparison we have come to know that Bank’s RD is having edge over Jeevan Anand by 62,957 in our case. But Jeevan Anand provides life cover even after maturity i.e. in case of death nominee will receive 2,00,000. If we surrender the policy after maturity an approximately 60,000 rupees will be available which takes down the difference to 2,957. This difference is not significant because in case of any unfortunate event nominee will be compensated by minimum of Rs. 2,00,000 even a single premium has been paid. So it may be concluded that with above assumption buying Jeevan Anand is a justified decision.
Wrote : 30-11-2016 22:20:14
Sir my D.O.B is 15.-6.1970 app 46 years. I want to take term insurance plan for 25lak with m.age 70 years Amulya jeevan plan823. As there is no return after M.Period for term insurance plans, please suggest which policy /mutual fund(preferably 5lak) should i prefer in combination with term policy(25lak) so that i will get maximum return. please keep in mind that maturity age cover to the maximum extant. Tanking you sir,
Replied : 01-12-2016 23:03:10
Since you are going to have term insurance, so you can divide rest of investment into balance fund and growth mutual funds. Even you may also part your investment to take endowment plans like table 814 or 836.
Wrote : 06-11-2016 12:49:43
Sir, I have a policy Jeevan Saral sum assured 750000 lacs Term 165-21 Premium 36030 from dated 02.10.2011 And New Jeevan Anand sum assured 500000 lacs Term 17 years Premium 35891 from dated 28.08.15 I have financial difficulty to pay both policies so I want to surrender one policy, please suggest me which policy I go to surrender.
Replied : 06-11-2016 20:31:11
I would suggest to surrender Jeevan Saral.
Wrote : 26-09-2016 22:41:19
Hello sir, recently i have opted for jeevan labh policy for 16yrs. I am 26 now. So will the insurance be over by the age of 47? And how does it differ from bank RD? Which is better?
Replied : 26-09-2016 23:22:23
Please use maturity calculator for jeevan labh plan, it is available in maturity calculator. It is an life insurance plan, where some part of your money goes against providing life cover and rest goes into investment whereas all of your deposit, in case of RD, goes into investment only.
Wrote : 30-06-2016 15:55:20
hi sir my husband is working in marine. he is 27 year old. how can i investment money for his retirement time, and protection for family. i planned to opt for new jeevan anand for 10 lakhs and jeevan lakshya for 5 lakh. and another doubt in new jeevan anand after maturity also life cover is there and after maturity also 10 lakh can get after life risk.
Replied : 01-07-2016 13:41:06
Yes, after receiving maturity, he will have insurance of 10L.
Wrote : 10-06-2016 00:51:26
Hi Mr. Ravi, I wanted an advice. I got myself a Jeevan Anand Policy in Nov 2014 (monthly premium: ~8000 (incl. taxes)). I am 39 years now. Premium Paying Term = 16 years. Sum assured = 1200000 My question is two fold. I understand the awesome feature of having long term life risk covered, which is an excellent feature. However, if I compare this policy with a combination of mutual fund SIP + Term Plan, will the mutual fund not give me a better return after 16 years? Pls note that I don't stand to gain any income tax benefit from this. Also, since during withdrawal from mutual fund SIP will enjoy LTCG (hopefully), do you think that an SIP in mutual fund and a term plan combination will give me a better return & an adequate insurance coverage? Thank you for your advice. Regards.
Replied : 11-06-2016 13:20:50
Yes, term insurance and mutual fund will be better.
Wrote : 16-03-2016 00:39:56
Hi I want minimum 13-18% returns on investment plan.please suggest me better plan of lic or any insurance company plan along with risk cover
Replied : 16-03-2016 11:18:27
No insurance Plan will give 13-18% return, you can look for SIP, mutual funds and stocks for your objective.
Wrote : 29-02-2016 13:23:46
hello sir i am 27 year old self employed i want to take a insurance policy for me and my child of 1 year what should be best for both of us for
Replied : 29-02-2016 15:10:26
What is your yearly income? is it girl or boy child?
Wrote : 17-04-2016 11:50:11
Your best policy has table no of lic 833
Wrote : 16-05-2016 19:33:29
Kindly go for jeevan lakshay only.
Wrote : 25-02-2016 23:53:21
Sir i am 28 years old and i work in national insurance company... i have joined as an assistant in november 2015. I have 2 policies one is jeevan labh for 2 lacs n other is jeevan anand for 5 lacs.. was it a good decision to open jeevan labh after already having jeevan anand? Term is 25 yrs for jeevan labh n 30 yrs for anand. Also i want to know how much loan can i avail out of these 2 policies after 3 yrs... monthly premium for both is almost 2500. Can the principal amount of loan be deducted from matrty anount
Replied : 27-02-2016 12:46:39
Labh is a good plan where premium payment will stop after 16 year in your case. You can pay loan amount separately which is charged on half yearly basis or the same will be adjusted from you final maturity amount.
Wrote : 29-01-2016 18:11:59
Dear sir, Hope you are having a good day. I am 43 years old self employed woman and my husband is 48 years old . My children are 18 and 20 years of age. In case of any future contingency, I want to help children by leaving them protection of atleast five lakh of each parent but I am worried that If in future I am unable to pay my premiums what happens then. I am further confused between Jeevan anand and Jeeval Lakshay . Please tell me which one is better or is there any policy in which there is one time investment with coverage of life-risk .
Replied : 29-01-2016 18:33:41
Jeevan Lakshya is not suggested because children are 18 and 20 year old and they will be hopefully start earning in next 4-5 years because it will provide 10% of sum assured every year on death till before year of maturity and maturity at the time of completion of policy term. Since you both are 40 plus so premium will be high for both of you. I would suggest new endowment plan or pure term plan and a RD or SIP.
Wrote : 29-01-2016 18:43:38
Dear sir , Pls tell me which pure term plans would suit my situation .
Replied : 29-01-2016 18:52:26
Pure term plan provides amount in case of death only and its premium is significantly low. LIC has Amulya Jeevan 2(823) plan, details are available on the site.
Wrote : 29-01-2016 19:27:53
Thanks sir . I appreciate the time you devoted for solving my queries .
Replied : 29-01-2016 20:25:38
you may also look jeevan labh 836 plan.
Wrote : 27-01-2016 23:08:11
Hi Ravi, Can you compare with PPF which is almost similar to LIC except insurance part (I mean, we will get tax benefit and won't pay tax on interest for both PPF and LIC), so we can have better comparison? and my second query is which plan you will suggest in LIC which gives me Life cover and good return on maturity. Annual premium 12k
Replied : 27-01-2016 23:13:32
sure and let you know.
Wrote : 09-01-2016 13:14:10
Hi Ravi, I have Jeevan Anand bought in June 2006 for 16 year term. My total accrued bonus is about 169,000 which is until 2014 declared bonus. Bonus declared last year (Aug 2015) has not been added to my accrued value. Do you know when they add the bonus amount each year? Please reply. Thanks.
Replied : 09-01-2016 13:17:20
It will be done automatically in some time. You do not have to do some thing in this regard.
Wrote : 09-01-2016 15:41:50
I would love to have known when exactly is that "sometime". It is so bad that even this information is not transparent with LIC. A public nationalized company behaves like a private chit fund...
Replied : 09-01-2016 16:07:43
Sir, Your accumulated bonus is suppose to be paid at the time of maturity and there is no provision of interest kind of thing on bonus so i would suggest to wait, your bonus will be definitely added to your policy. Bonus is declared that means you will get that amount at the time of maturity that is guaranteed it is matter of showing in to your account.LIC is life insurance company, its return may not be very high but whatever it has declared your are going to get it. as far as transparency is concerned it comes under RTI, you may ask for any info you want under this act.
Wrote : 31-12-2015 16:44:46
DEAR RAVI, WHAT WILL BE YOUR OPINION IF I TAKE PURE TERM PLAN WHICH IS VERY LOW PREMIUM AND HIGH SUM ASSURED AS COMPARED TO ANY TRADITIONAL PLAN. AND REMAINING AMOUNT I INVEST IN SOME OTHER PLAN (EQUITY, MF) WHICH GIVES ME BETTER RETURN HIMANSHU
Replied : 31-12-2015 18:35:10
yes, it will be certainly a good option. do buy more than one equity options ( sip, ppf, shares) to according to risk and return.
Wrote : 05-09-2015 11:25:29
Hello Mr.Ravi, I am 23 years old and i have recently started earning. I am looking for some savings/investment options apart from PPF (I already started that). I am looking to invest around 50K more annualy. Could you please suggest me some appropriate options. On the basis of what i have looked so far, Jeevan Anand looks good.
Replied : 05-09-2015 13:13:37
Yes, Jeevan Anand is a good plan of LIC. you can divide your 50K in Jeevan Anand and jeevan lakshya (833).
Wrote : 02-09-2015 10:29:27
Mr.Ravi, I have a kid of 7 months and i would request you to suggest me some good money back plans for my childrens education and suggest me which age should be better to start the investment so that the returns will be at time of requirement for education. looking forward for a reply. Thank you, Vinay
Replied : 02-09-2015 21:36:06
I would not suggest money back plan rather your can have recurring deposit if your need money at certain time intervals. I would suggest Jeevan Lakshya plan which will ensure financial needs in your presence as well as absence.
Wrote : 25-08-2015 19:45:40
Dear sir i m a 26 yr old lady.i want to buy a plan for up to 25 year in which i want maximum return.kindly suggest me 2 plan which one is term plan and another is lic policy.i can invest maximum 60000 per mnth.kindly mention premium for both plan..please guide.
Replied : 25-08-2015 22:19:27
For term plan you can go for LICs Amulya Jeevan 2 with 1 crore sum assured [yearly premium- 17328] and for rest of the amount you can buy jeevan lakshya of LIC.
Wrote : 24-07-2015 20:06:29
Dear Ravi, Really nice comparison I have "Jeevan Anand(149)" policy for span of 20 yrs. Policy Date : July 2007 Maturity Date : July 2027 Sum Assured : 750000 Request you to guide me, on post maturity Lump-sum Amount = in 2027 ? Also when will I be getting such Lump Sum amount( If policy not surrendered) In 2032 In 2037
Wrote : 04-07-2015 16:37:55
Hi Ravi, I am 23 year old, I want to buy a plan for up to 15 years on which I want maximum return. I can invest maximum 40000 p.a. I have searched for PPF and many other insurance plan. But, I am very confused about buying a plan for up to 15 years. So could you please tell me which plan should I chose?
Replied : 06-07-2015 13:46:18
I would suggest you to buy a term plan with at least 50L Sum Assured and rest amount in plan no 814.
Wrote : 22-06-2015 08:19:39
Hi Ravi, Can you compare with PPF which almost similar to LIC except insurance part (I mean, we will get tax benefit and won't pay tax on interest for both PPF and LIC), so we can have better comparison?
Replied : 22-06-2015 10:53:15
Yes I will write an article on this topic and let you know by email.
Wrote : 03-09-2015 02:53:33
Yes I have same quary
Replied : 03-09-2015 07:31:07
Please write your query.
Wrote : 09-06-2015 19:06:02
You comparison simply shows that for life cover purpose, we can go with term plan and for investment purpose, we can go with only investment plans. If we link both, we are loosing our track. Thanks for your analysis. Pls guide me in choosing best term insurance plan. my age is 30 and I am salaried. pls reply if any other data is required
Replied : 09-06-2015 19:13:22
You can go for lic amulya jeevan 2 (823).
Wrote : 10-04-2015 11:00:44
respected sir, a not well known agent of lic has done my policy jeevan saral (ATM Plan) of span 27 years. he said I would get Rs. 83.00 Lacs approx. after 27 years. is it true., in case true, would I be getting Rs. 83.00 Lacs in one shot or in small instalments or pension regards, please help and guide me kamal
Replied : 10-04-2015 11:56:44
What is your Sum assured?