LIC Policies-How to calculate returns?

A few months back when I wrote about “LIC Bonus rates for 2012-13 and comparison“, I flooded with lots of queries about doubts to calculate return on LIC policies. So thought to sum up all those issues and write an article on that.

In LIC there are basically two type of plans either With Profit Plans or Without Profit Plans. First we will look at what do you mean by without profit plans. In such plans there will be no bonus, LA or GA payable to you and on the date of maturity, only the sum assured will be paid.

Rest of all policies come under with profit plans. Examples of the few are Endowment Plan (Table-14), Money Back Plans, Jeevan Anand, Jeevan Saral, Jeevan Ankur or Komal Jeevan.

In with profit policies you get returns based on the declaration of bonus, loyalty addition or final additional bonus of LIC. So first let us understand each component of these  in detail.

1) Bonus-Bonus is the return what LIC include into your policy account on yearly base. LIC usually declares bonus rate for all policies on yearly base. Note the point that, even though it is accumulated on yearly base but you get this return only either on maturity or on death claims. Hence don’t be happy now itself that you got high bonus. Will make you familiar with bonus calculation from below example.

Suppose Mr.X take Jeevan Anand policy at the age of 30 yrs. The term of the Plan is 25 yrs and the Sum Assured opted is Rs.10,00,000. So from start to maturity period he is entitled to the bonus which LIC declares. It will get paid on maturity. If something happens to him during the period of the policy term then his nominee will receive Sum Assured+Accumulated bonus till that period. Calculation of bonus is as below.

Suppose if LIC declares bonus as Rs.40 for particular year then what it mean? It means that for Sum Assured of Rs.1,000 LIC will pay you Rs.40 as bonus for that particular year. Hence in the above example Mr.X opted Rs.10,00,000 as Sum Assured, so he will get a bonus as Rs.40,000 {(Rs.10,00,000*Rs.40)/Rs.1,000}. Now the interesting point here is, as I said above this will be included in your policy account for that particular year but will not be paid to you. The same way they calculate for each year bonus and will pay you either on maturity or on death.

Below is the list of policies which are entitled to receive bonus.

1) Whole Life Plans, 2) Endowment Plans, 3) Jeevan Mitra double and triple cover, 4) Jeevan Saathi, 5) Marriage Endowment Plans, 6) Jeevan Chhaya, 7) Jeevan Shree-1, 8) Jeevan Anurag, 9) Money Back plans etc.

2) Guaranteed Addition (GA)-In few plans bonuses is guaranteed where LIC obliged to pay a fixed amount of bonus till the agreed period. It is usually called as Guaranteed Addition. Few of such plans are Komal Jeevan and Jeevan Shree-1.

3) Loyalty Addition (LA)-This is one time payment which will be given to you only after completion of certain period (either maturity or death). As the name suggests, this is given to you by being loyal to LIC. So if for any particular plan LIC declares LA as Rs.250 for those all policies who completed 25 years then the calculation will be as below.

We again take Mr.X’s example, in his case he will be entitled to receive Rs.2,50,000 {(Rs.10,00,000*Rs.250)/Rs.1,000}. In all policies usually LA will be for each Rs.1,000 Sum Assured. But exception to this is Jeevan Saral, where LA will be on each Rs.1,000 Maturity Sum Assured.

This Maturity Sum Assured is differ from Sum Assured for Jeevan Saral. This Maturity Sum Assured is calculated based the age, term and premium.

4) Final Additional Bonus (FAB)This is same as Loyalty Addition. Usually paid to policies whose term is more than 15 years. The calculation of this FAB is same as that of LA. This is calculated for each Rs.1,000 Sum Assured (Jeevan Saral not have FAB). Policies which have long term will usually have higher FAB.

These above four are the components which constitutes your return on LIC policy. But do remember that each policy has its own feature. Hence never believe that your policy has all the above return features. But almost all policies have either bonus or GA. LA and FAB depends on policy feature. Hope this above explanation made easy in calculating



  1. AdityaAditya says


    I have a endowment policy and have been paying 45657 as yearly premium. Policy Term is 21 years.
    I have paid 7 premiums till now.

    I wanted to what will be return if i cancel the policy now? Will waiting till half term (i.e. 11 year) be advantageous?
    The vested bonus shown is 288000.

    I have purchased a pure term policy and would like to invest this amount somewhere else with a higher return.

    Thanks and Regards!!!

  2. RajRaj says

    I have Jeevan mithra Sum Assured _+ Vested bonus ie on surving on date of maturity.

    I am paying premium from 1998 , Since Prathan manthri insurance has come I do not want to continue LIC policy , in such case how much I will get bonus on closing the policy.

    I pay premium of 6200 , Sum assured mentioned is : 150000. , Right now in the portal says loan elibible is 138000.

    is it wise idea to take loan or close the policy.

    I am not interested for Death Benifit option.

  3. Prashant ChothaniPrashant Chothani says

    Dear Sir,

    Good day

    self is intending to start a limited endowment policy of LIC (830) for the sum insured of 10 lacks

    please guide how much return should i expect at maturity of 16 years

    awaiting yours please.

  4. soumita makhalsoumita makhal says

    BasuNivesh ,
    I run one policy JEEVAN SHREE-I (Table No. 162) per year i pay 36000 for 12 year but will mature after 20 year .
    sum assured is 500000 . I start at 2008 . but will mature at 2028. can u please tell me how much i will get after 20 year . please.

  5. Noel SamuelNoel Samuel says


    I have a bhima gold and saral jeevan plan and i pay my premiums every month. This month both the policies have completed three years. My june premium is not deducted as i pay them through ECS and i hsve received a mesg stating that my june premiums have been adjusted. I dont hsve a clue with wht have my premiums been adjusted. Can you let me know would there be any bonus accured?

  6. JugeshJugesh says


    I am running two jeewan Saral Policies, Each sum assured is Rs. 250,000 since 2010…

    Kindly let me know how much amount i will get on maturity….it means on 2030

    Pls. reply, i am so much confused weather this policy should be continue or not…


  7. Ankur SaxenaAnkur Saxena says

    Hi Sir,

    my query is i have taken a education load at the time of my graduation start’s, at the same time my banks wants a secure money so bank suggest to make a secure policy at that time my parents take the Plan 14(The Endowment Assurance Policy) Policy Term -25 Premium Paying Term -25 yrs & i have submitted my premium amount of Rs.10145/– i want to know the exact mature value & at what age i got this.

    Awaited your valuable response.

    Ankur Saxena
    Mob:+91 9717474930

  8. AashishAashish says


    I got call from one company to suggest to avail my vested bonus after 3 years into my saving account. As per him, If I do not get so then 40% of amount will be given to LIC agenyt + rest to the company. Therefore, he suggested me to get all vested bonuses into saving account. Once it is done then every time it will be credited to my saving account automatically. Shall I proceed the same means :

    1). Will that agent get amount of my bonus if I do not proceed.
    2). If I proceed then what is loss of doing same?

    I also dont want to share my bonus or any type of commission to agent. I know they get some amount. But, I am investing my money then why shall he get profit without investing anything.

    Awaiting your response.


    • Basavaraj Tonagatti says

      Aashish-I feel it some spam call. Inform the same with insurance company regarding the same. Because there is no such system or product which the caller shared with you. Also, no insurance company will share buyers bonus either with an agent or on it’s own. It is a fake call.

      • AashishAashish says

        Thanks Basavaraj. I have noted your suggestion. Can you please guide on after maturity will I get my complete amount (SA + Bonuses etc) from LIC without any deduction. OR some percentage will be given to agent. If so, then what will be percentage from my account ?

        • Basavaraj Tonagatti says

          Aashish-After maturity you will receive all SA+Bonus etc to you without any deduction. There is no agent’s sharing on bonus. He will earn commission only on the premium you pay but not on the accumulated amount.

          • AashishAashish says

            Thanks a lot again. Also, is there any term like “lock vested bonus” in LIC else it will be canceled for first year if it is not locked. It is considered that 10% of LIC policies is not locked, therefore customer looses additional extra bonus though at maturity,he gets all amount as suggested. But, for first year locking of vested bonus is must. Is there any such process/concept. ???

            • Basavaraj Tonagatti says

              Aashish-There is no such facility which you may call “lock vested bonus”. This is first time I am hearing it. As I said, the person who is informing you completely misguiding you. Either believe me, LIC or the fellow who introduced to the new concept called “lock vested bonus”.


    I had purchased lic policy jivan mitra table on 88 for 25 yrs of rs. 25000.00
    what will be amount back on maturity?

  10. Yogesh NimonkarYogesh Nimonkar says

    I am planning to insure and invest 25,000/year for my daughter, please advice me that my below direction is correct.
    For investment i am planning to put in PPF (rate of interest is 8.75%)
    And for insurance which family floater scheme is good pl suggeest. Also i am not a smoker.
    also want professional indemnity isurance (doctor)
    pl guide me which is better.
    Both the above will come under 80C and hence i can save my tax also.

    I am not sure whether my direction is correct so please advice me your thoughts, please.
    Dr Yogesh Nimonkar

    • Basavaraj Tonagatti says

      Yogesh-When you say insurance, first clarify which insurance. Life Insurance or health insurance? In Life Insurance, there is no such plan called family floater. It is an individual plan. Also PPF is good, but I suggest to restrict around 30% of your investment to this, rest you have to invest in equity mutual fund.

  11. Asutosh PatnaikAsutosh Patnaik says

    Hello Sir,

    I have taken one LIC policy – New Jeevan Anand ( T No. 815 )

    Sum Assured ( SA) = 5,000,00
    Policy Term = 25 years
    Premium Payable = Rs . 5425 Quarterly
    Policy Status : Normal Premium Paying Policy

    I have two question .
    1. In LIC website , I can see vested bonus amount as 0.0 ( ZERO ) . What does that mean ?
    2. What would be the return on maturity after 25 years. ( I have gone through some sites and found out it would be nearly 11,000,00 ) . But i want to have a statistics from you Sir.

    Could you please answer to my queries , so it will be clear for me for investing in LIC more in near future.
    Thanks in Advance.. :)

    • Basavaraj Tonagatti says

      Ashutosh-Bonus details get updated after completion of 3 years of a policy period. What your agent told about maturity value? Have you cross-checked before buying? If he shared that with you then please comment here to discuss further.

      • Asutosh Patnaik says

        Thanks a lot Sir for clarifying queries.

        At the time of policy enrollment, the maturity return was not been discussed as I was not aware of all. But i can remember , Agent was saying nearly double the money i invest,where it should be nearly 10,000,00.

        Can you please clarify it , what would be the maturity value if i continue the policy for its full term.

        Awaiting your reply .. :)

        • Basavaraj Tonagatti says

          Asutosh-I understand your eagerness. But I am making you to learn few things on your own. Ask your agent once again by calling how much you get and how he arrived at the maturity value. Share the same, we discuss further.

          • Asutosh PatnaikAsutosh Patnaik says

            Hello sir,

            I tried to reach my agent , but he is out of city for 15 days. But I had a talk with my friend who had taken similar policy and he shared me the calculation what his agent shared during the policy enrollment.

            S.A =5,000,00
            Policy term = 25 years

            As per bonus table , if Policy term > 20 years, then bonus rate is 48 per Rs. 1000 S.A
            So here S.A = 5,000,00 , then Bonus for 25 years = (5,000,00 * 48) / 1000 = 24,000 * 25
            = Rs. 6,000,00

            Total amount = S.A + Bonus + ( some final bonus which i and my friend are not sure )
            = 5,000,00 + 6,000,00 + Final bonus = Rs. 11,000,00 +

            This is the calculation that has been shared sir. Is this the above calculation correct for my policy enrollment. :)

            Thank you ..!!

              • Asutosh Patnaik says

                Yes Sir. The % of return on investment is less than 8 %. Could you please guide me about any plan which can have good % of “guaranteed” return.

                Thank you for the clarification. :) Really it is a great help from you . :)

                • Basavaraj Tonagatti says

                  Asutosh-Again do not commit a same mistake by asking me a good % of guaranteed return. First understand your requirement like when you need or how much you need then finally go for product selection.

                  • Asutosh PatnaikAsutosh Patnaik says

                    Sure Sir.. Thank you so much for all the valuable information that you shared. I will have a analysis before i go for any product . And for any query, I will keep posting. Thank you once again. :)

  12. SanjaySanjay says

    Hello Sir,

    I have gone through your comments and I am sure you can help me with my investment.
    I have Rs 50,000 cash and wanted to invest in Insurance policy with Good returns. I have gone through the LIC website, its all confusing. Can you suggest some policies wherein I can invest?

  13. GaudhamGaudham says

    I am new to LIC policy. I have bought money back policy. The agent said i have to pay 12300 half yearly. The payment needs to be continued for 20 years. He also said i will be getting some % of amount every 5 years. The policy amount is 4 lacs. How much returns will i get after 20 years sir? Any further details required apart from these?

    Thanks & Regards

  14. NihalNihal says


    I am paying Rs. 31,250 annually for Jeevan Shree (112) since 2003. Sum insured is Rs. 5,00,000. I am really keen to know what would be the amount at maturity in 2027-28. I am not sure what parts of GA, LA and FAB s my policy qualified for. Can you please shed some light on it for me. I am overseas and my policy documents are in India so cannot refer to them. Your expert help will be greatly appreciated.

    Thank you,

  15. DeepaDeepa says

    Hello Sir,
    I have taken a LIC Endownment Plan (table no. 14) in 2010 at the age of 28. There are 7 policies, each sum assured 2,00,000 and term is 20, 22 , 24, 26, 28, 30 and 32 yr with total premium of 50k yearly.
    I have below queries:
    1. which bonuses are applicable to my policies at maturity? (from above GA, LA, FAB)
    I can see only vested bonus online. Can you please help me to calculate maturity amount?
    2. how surrender value is calculated in this case as i have paid 5 premiums?
    3. Is it ad visible to surrender theses policies and reinvest the money to get better returns?

    Your advise is valuable.
    Thanks in advance!


    • Basavaraj Tonagatti says

      Deepa-1) You are eligible for simple reversionary bonus and FAB. By following the above method, you can calculate yourself. It is not that much difficult. 2) Please contact to LIC branch to know about surrender value. 3) Advisible to surrender if you are not satisfied with returns of around 5% to 6%.

  16. ArumugamArumugam says


    I have New Jeevan Suraksha I (Table no 147) policy running from 2003 onwards for a period of 31 years.

    My annual premium is around 10050(Age at that time 27) . So far i have paid 12 premiums & need to pay 19 more as per policy term.

    My questions are.

    1) What would be the NCO amount. I don’t see any figure on the policy.
    2) What would be the approximate maturity benefits?.
    3) My 80C benefit is crossed by other means & this policy doesn’t help in any way. Shall i continue paying the policy OR surrender the policy. How much will be the surrender amount.
    4) Reason i ask is if i invest the same amount for rest of the term in PPF i feel the returns will be much more than that, since insurance coverage is very small.

    What are your opinions.


  17. SantoshSantosh says

    Dear Sir,

    Thanks a ton for explaining the LIC feature in short and simple understading word.

    Please advise me my LIC policies are ok for me in long term benefits or i am investing too much or too less. my current salary is 50 to 70 K/- P.M and i am looking now as per future benefit for my family.

    please have a look my policies.

    Policy Name Premium Enroll. Date

    901(Health Plus) 1,500.00/-PM 04/2010
    901(Health Plus) 500.00/-PM 02/2010
    196(Jeevan Varsha) 8,092.00 /- half yearly 04/2010

    103Jeevan Chhaya 1,086.00/-PM 11/2012
    108Jeevan Surabhi1 1,508.00/-PM 11/2012

    I am also bought the LIC for my Wife (103Jeevan Chhaya (1,029.00/-PM), 108Jeevan Surabhi (1,087.00/-PM), enroll date is 02/2012.

    Once again thanks a ton.


  18. Arun YadavArun Yadav says

    dear sir,

    1st of all, thanks for all of your articles you shared with us.
    sir, my queries are:
    1. about my LIC policy Jeevan Saral. I am paying 15162 half yearly and my sum assured is 625000 for the policy term of 15 years. I have started it in 2009. so how much amount should I assume to receive after maturity.

    2. kindly suggest a term plan for me. My annual income is 4 lac and age is 26.. currently i am with aegon religare- iterm which provide me SA of 50 lac with an rider and premium is 4560. but this policy is in grace period as I have not renew it fearing of its Claim settlement ratio. thats why I approaches to HDFC c2p + but they rate up my policy on financial ground and reduced my SA from 75 lac to 50 lac with lesser premium (5728) .. they harassed me a lot while giving policy as well as giving reply to any mail/complaint so I decline their policy rate up. Now sir, kindly give me an solution that should I continue with Aegon religare or switch to Bharti axa or someone else.

    thanks in advance.

    • Basavaraj Tonagatti says

      Arun-1) Please go through below comments. You find my answer. 2) If you are not ready to pay higher premium then better to continue. Do remember that your insurance also depends on your income.

  19. PrakashPrakash says

    Hello sir,
    I had taken a policy for my son in year 1994.
    Plan 102-25.
    Sum assured 50,000.
    yearly premium 2226.
    May you please tell me what maturity amount can I expect from it?
    Do Reply sir.
    Thank you.



  21. pavanpavan says

    Sir, the article was very informative. Thanks for sharing.

    Currently I am invested in money back policy of LIC for 20 yrs, wherein sum assured is 500000/- and they return 100000 (20%) every 5th year. Yearly premium is 31292/-.

    In 20th year(maturity) 40% amount will be paid (200000/-) with “accrued bonus”

    1) What is accrued bonus?
    2) how much can i expect to get after 20years.
    3) I had taken this policy only because someone had requested. From financial angle is it advisable to hold on? Are there better policies available in market?

    Please advise i am confused.

  22. prasadprasad says

    sir please tell me calculation formula for lic premium for example my term is 20 then sum assured 100000 age 18 the calculate yearly premium formula i required formula how this calculate

  23. Mohd Amin WaniMohd Amin Wani says

    My Jeevan Surbhi Policy (tab.106) is going to mature on 12th May, 2015. The details are as below:-
    Sum Assured:- 100000
    Premim term=12 years
    Maturity = 15 years
    Return which i received= 30000+30000+40000.

    Plz let me know what amount i will get on maturity.

  24. BilalBilal says

    I took lic policy jeevan annand(149) for the twenty year starting from 2011 paying 2788 HLY. how much my maturity will be .Table,term and premium paying term are 149,75,20
    how much i will get after maturity.

  25. Sabha MahadevanSabha Mahadevan says

    Thanks for saving me and many B :-)

    I am planning to insure and invest 35,000/year for my family, please advice me that my below direction is correct.

    For investment i am planning to put 30,000/year in PPF (rate of interest is 8.75%) and hence at the end of 15 years i will get nearly 9 lacs .

    And for insurance i am planning to take ICICI prudential term insurance (30 years) for 50Lacs at rupees 5500/year so if something goes wrong in next 30 years for me then my family will get 50lacs. Also i am not a smoker.

    Both the above will come under 80C and hence i can save my tax also.

    I am not sure whether my direction is correct so please advice me your thoughts, please.

    Thanks for your time!!!

    – Sabha Mahadevan

  26. riteshritesh says


    my policy details :
    Premium : 3218
    Sum Assured : 200000
    DOC : 04 Jun 2008
    Plan :149
    Term : 74
    mode : QLY

    If i surrender the policy now then how much money I will get. Can you plz help to calculate the receiving amount.

    Thanks in advance

  27. Sabha MahadevanSabha Mahadevan says

    Hello B,

    Your posts are really awesome and very helpful, thanks and congrats for doing such a service!!!

    I am 29 and planning to put some LIC endowment plan(16 years) to cut my tax under 80C.

    My agent said the below details,

    24,000*16years = 3,84,000 SumAssured

    Finally at the end of 16th year i will get nearly 10,59,840, he said. Can i believe his words?

    Sum assured (A) = 3,84,000
    Revisonary bonus (B) = 60/1000*16*3,84,000 => 3,68,640
    Final Additional Bonus (C) = 800/1000*3,84,000 =>3,07,200

    Total return after 16 years is A+B+C = 10,59,840 rupees

    Will i really get 10,59,840 rupees after 16 years? I cannot able to believe his words and hence i am writing this, Please respond ASAP.

    Thanks in advance!!!!

    – Sabha Mahadevan

    • Basavaraj Tonagatti says

      Sabha-First let him show the plan which provides Rs.60 bonus every year :) His all calculations are exaggerated to lure you. Do you feel LIC endowment plans are best choice to save tax? What about your financial goals? For sake of tax saving, are you ready to scarify your goals? Think and decide, because it is your hard earned money.

      • Sabha MahadevanSabha Mahadevan says

        Thanks for saving me and many B :-)

        I am planning to insure and invest 35,000/year for my family, please advice me that my below direction is correct.

        For investment i am planning to put 30,000/year in PPF (rate of interest is 8.75%) and hence at the end of 15 years i will get nearly 9 lacs .

        And for insurance i am planning to take ICICI prudential term insurance (30 years) for 50Lacs at rupees 5500/year so if something goes wrong in next 30 years for me then my family will get 50lacs. Also i am not a smoker.

        Both the above will come under 80C and hence i can save my tax also.

        I am not sure whether my direction is correct so please advice me your thoughts, please.

        Thanks for your time!!!

        – Sabha Mahadevan

        • ICICI Prudential Life InsuranceICICI Prudential Life Insurance says

          Dear Sabha,

          Thank you for your interest in ICICI Pru Life. If you need any details on our term plans, you can fill your details here and we will have one of our experts contact you to assist you with your queries.

          ICICI Prudential Life Insurance

  28. SamSam says


    I have a Jeevan Anand (T. No. 149) plan. Policy Term 73 (Premium Payment term: 24) taken in 2005.

    Premium is 34190/- paid yearly.

    Sum assured is 8,00,000/-

    Vested Bonus: 331200/-

    I’d like to know what is the amount receivable if I were to pass away before 2029. Subsequently, what is the amount thereafter.

    I’ve been reading conflicting views on the same and would like to have some clarification.

    Would appreciate if you can help in this regard.

    Many thanks,

  29. SandySandy says

    Dear Sir,

    I Had a Jivan Anand Policy.

    Purchased in 2012 ( at the age of 23 year )

    Policy Amount : 200000/-
    yearly Premium : 10311/-

    Policy term : 21 year

    Please tell me how much return i can Expect after 21 year????

  30. SonamSonam says


    I have a money back policy dated : 28/03/12 of 200000/-. I would like to know that i am paying it qty i.e 3217/- ( i.e yearly 12868/- so for 20 years i will be paying Rs .257360/- . Now out of which i will get 40000 +40000 +40000 for 5 + 10+ 15 years i.e 20% of SA , and remaining 40% for 20th year + vested bonus…… so i will receive around 200000 only + v.b , but il be paying Rs. 257000/-. Loss of Rs around 57000/- ….

  31. Raja ShahRaja Shah says

    Hi Basu,
    Any idea where I can find the FAB rates of LIC, I can’t seem to find them online.

    Also, I read online (in a 2012 circular) that for 35 years term the FAB is 2200/- per 1000. So for a SA of 10L that comes to a bonus of 23L – that seems way tooo much, if you ask me…

      • Raja ShahRaja Shah says

        Hi, Yes that’s so so very confusing! 2200 per 1000 SA. I can send you the link from where I got it if you want…

      • Prashant KhedikarPrashant Khedikar says

        Above FAB rates are correct
        for 15 years Rs 20/- for 20 yrs 70/- 25 yrs 450/- 30yrs 1100/- 35 yrs 2300/- and for 40yrs 3550/- per thousand and it is paid on only maturity or death.
        for example policy of Rs 10 lac for 40 years term then final addition bonus is Rs 35,50,ooo/-as per todays rate,actualy it is paid as on maturity date (what ever rate increases and it is fact rates are increases every 10 years 3 times)with sum assured and revisonery bonus and interiam bonus
        ie toatal maturity is 65,18,000/- Sum Assured 10 lac + Bonus Rs 19,20.000/-(48 X 1000)+Interiam bonus Rs 48,000/- + Final Additional Bonus Rs 35,50,000/-

  32. keshav patwalkeshav patwal says

    dear sir
    I want the know regarding application for double accidental benefit. last 6 month ago my elder brother die to accidental by unknown truck till date case is open we get single claim from LIC . when we going for double accident benifit documents to LIC department they always taking about the written application form police station verification regarding accidental death but police station person we have already written in FIR please help for application which we return as document for death due accident.
    i just want only application which we return for lic dept for double accident benefie

  33. sudhesh nairsudhesh nair says

    Hi Sir, i have been paying a endowment plan for past 10 years and its maturing this year
    As per LIC agent they amount received will be apprx 13 lakhs(which was a 10Lakhs plan)
    He had promised 18Lakhs plus earlier and now he says its not true

    as there is document, what shall we do
    and advice if its correct?

  34. samisami says

    Sir i am holding a jeevan anand policy and its yearly premium is rs 1200/- . now i have paid premium for 3 years and i want to surrender the policy. how much money will i get back

  35. RavinderRavinder says

    sir i have taken a Jeevan Shree 1 in 2001. it will mature in 2026. sum assured is 500000. what will be the maturity amount approximately?

  36. AmitAmit says


    I have a LIC Policy named JEEVAN ANAND. Its details are as follows: –

    Annual Premium – Rs. 82,015/-
    Sum Assured – Rs. 10,00,000/-
    Accidental Benefit – Rs. 5,00,000/-
    Tenure – 16 Years

    Now, my questions are as follows: –

    1) What will the amount that I will receive at the end of tenure of 16 years???
    – As per the LIC agent who gave me such policy, I will get a sum assured of Rs. 10,00,000/- plus a bonus of Rs. 8,00,000/- plus some F.Bonus of Rs. 60,000/- which totals to Rs. 18,60,000/-. Further, he states that this policy covers lifetime risk & so my family members will be AGAIN receiving a sum of Rs. 10,00,000/- after my death, which totals to Rs. 28,60,000/- against my investment of Rs. 13,12,240/-. SO IS HE RIGHT, WILL I GET A BENEFIT OF RS. 28,60,000/- AGAINST MY SUCH INVESTMENT OF RS. 13,12,240/-??

    2) What is the reason that the LIC Department do deduct the amount of 1st premium at the time of paying surrender value?? Is it so because the policy holder is not liable to pay the very 1st premium & such liability is of the LIC agent or for some other reason??

    3) How can I get to know the details of BONUS VESTED, for such policy, till yet, into my LIC Account?

    4) Can I withdraw such amount of BONUS VESTED till yet, in order to invest such amount in any other option so as to get a better return on such BONUS Amount?? Or do I get any benefit if I do let such BONUS amount with the LIC Department??

    5) Am I missing with any benefits which I should receive but I am known about it ??



    • Basavaraj Tonagatti says

      Amit-1) It will be around 6%. 2) It is based on IRDA formula. The only reason is not to promote any surrender but to continue. 3) You can check it online by creating login to LIC site or visit nearest branch to know more. 4) You can’t withdraw. It will be kept there for the next 16 years only adding each year’s bonus. But no interest on this amount. 5) Unable to understand what you are asking.

  37. SiddharthSiddharth says

    Hi Sir,

    I have taken new Bhima Gold (T.No. 179).

    Total Monthly premium is 3051.

    Tenure 16 years.

    Sum Assured – 700,000.

    Can you please tell me – is this beneficial? What will I get in total at the end of 15 years?

    I will get 105000 at the end of 4th, 8th and 12th year. That makes a total of 3,15,000. At the end of 16th year – I will get the remaining 55%. Which means – I am getting back the total amount I am putting in – correct?

    What is the funda on the bonus calculation? Request you to please explain.


  38. debasish ghoshdebasish ghosh says

    Dear LIC,
    I got a New Bima Gold Plan taken on 2011 for 20 yrs. And the premium is 29800 pA. SA= 800000. So could you please tell me what will be the return on maturity time which I can expect from LIC?

    And please mention ASAP !!

  39. sunil tamrassunil tamras says

    Hi Basavraj,
    I am an avid reader of articleson your site basunivesh and find it really helpful. Thanks to guys like you, Ashal Jauhari,Manish Chauhan thousands of professionals like us are been shown the right path.
    I wanted some assisstance regarding my investments.
    I am a merchant navy professional age 34 yrs with annual income of 30 lakhs and i do not have tax issues as i complete my NRI days every year.My wife doesnt work30 yrs old and I have a daughter who is 2.5 yr old.
    I have a term cover of 50lakhs which i plan to increase to 1.5cr…planning to buy LIC Amulya Jeevan for 1 crore. I have PPF a/cs in my and wife’s name and i am putting 3 lacs(1.5 lacs each).
    I have equity exposure with SIPs around 15000 p.m. Direct stocks around 4.5 lacs.
    MF exposure about 10 lacs(accumulated by existing SIP’s).
    I plan to increase SIPs in MF’s to around 35000p.m.
    My monthly expenses after accounting all insurance premiums, home loan EMI et..etc comes to 160,000.
    I can still invest around 40k.
    When i told this to my LIC agent he suggested I take a endowment plan wherein my premium would be 193000and insurance cover of 1 cr approx. and would get 1cr at 60 yrs of age.
    The premium of my Jeevan Amulya plan is around 53,000 anually. This includes around 25,000 extra as I work on oil and gas tankers and risk associated to the job.

    Should i go for endowment plan or the term plan..
    Kindly suggest other avenues of debt investment other than PPF and post office
    Kindly suggest if 35000p.m in SIPS is ok or should i increase .
    Is LIC endowment policy as a debt investment a bad option??
    Would u suggest me anyother avenues forinvestment or should I increase my equity exposure. I have a long term view atleast 5-7 yrs and have moderate risk appetite

    Thanx in advance

    • Basavaraj Tonagatti says

      Sunil-Do you still feel endowment plans are too good? Choosing debt, equity or other product must align with your goals. Again in debt category your investment a lot of time must match with debt fund’s style. So hard to specify any one particular product plainly. Rs.35,000 enough or not again depends on your goal time, return you expected and the goal amount. So it needs calculation which how can I say is enough or not. Yes you can consider LIC endowments as debt, but at the same time I am a strict NO category person to such products.

  40. biplob kumar birbiplob kumar bir says

    Dear Sir,
    Sir, I want to have a health plan on my life, my wife and my son. Is jeevan arogya of lic a good choice. I have observed that LIC does not figure in the elite list of Health insurance provider in your blog( based on IRDA report). I am a resident of rural area where LIC is the only operator- be it life or health- so I am putting my bet on LIC but would welcome any suggestion from your end . Thanks a lot Sir.

    • Basavaraj Tonagatti says

      Biplob-LIC’s plan is a typical investment+insurance+health benefit product. But not pure health insurance product. So I have not listed. For your information Health Insurance will be provided by general insurance companies but not life insurance companies. Discuss with your agent how the claims will be settled and how LIC health insurance is different with general insurance health insurance companies, then you notice the difference. Rest is left with you.

  41. joydeep choudhuryjoydeep choudhury says

    It is never wise to advise any policy holder to discontinue his insurance policy if the policy has continued for 3 years and has qualified for section 80 c, which is very vital aspect of life insurance. I am an LIC agent and often come across people who would like to discontinue their policies bought from pvt insurance cos on the ground that LIC has impressive claim settlement figures, but I warn them- you have qualified for sec 80c and hence, you are in safe zone. I trust this info proves useful to all. Qualifying for section 80c is the greatest feat for any life insurance policy.

    • Basavaraj Tonagatti says

      Joydeep-Sec 80C is vital aspect or insurance coverage to one’s life is vital? Wow….what do you mean by qualification to be eligible to Sec 80C?? How sad it is that selling can also be done through this message.

      • joydeep choudhuryjoydeep choudhury says

        Dear Basav,
        Merely purchasing an insurance policy to ensure financial security of loved ones does not mean that ‘ my job is over’. When a policy runs for > 3 years from date of acceptance of risk , the policy is eligible for hassle free claim payment.- this means the policy holder has qualified for sec 80c of insurance act 1938. Hence, when I see that a person has got over the 3 year barrier – I advise him not to discontinue and trust the insurer. I think you deeply understand the sec 80c of insurance act 1938. Will be more benefited if you throw more light on this. Thanks.

  42. SaurabhSaurabh says

    Hello Sir, I have Jeevan Anand policy since 5 years and i have been paying premium . I have now moved to Singapore(most probably for long term), Is this policy still valid for me ? do i need to inform/update my whereabouts to LIC ? Am i still covered under this policy. Thanks in advance

  43. AparnaAparna says

    Hello, we bought Jeevan Dhara (old) policy and it ahs matured and started getting annuity payments for the same every month. Is it possible to exercise the Notional cash option on this policy once it has started paying annuity payments? Also, I have another Jeevan Dhara policy which is yet to mature and also Jeevan Suraksha policy which is also not yet matured. Can you please advise if it would be better to exercise notional cash option on these or get the annuity payments till life and after death return of principal? Also, how can I know what is the principal component in each monthly annuity installment I am getting? Your article is very informative.
    Thanks and regards, Aparna

    • Basavaraj Tonagatti says

      Aparna-I don’t think you can exercise the NCO for the policy which is already paying you. But to rest of policies you can do so. Whether it is best or not depends on your financial requirement. First understand whether such pension makes you to sustain for life long?

  44. ManoharManohar says

    Hi Sir,
    I’m planning to take LIC Policy(New Jeevan Anand).I need more details about this policy.


  45. SiddalingaSiddalinga says

    Dear Basu , I have taken Komal jeevan policy T.No-159 . Year-2005 . When I checked for Vested Bonus it is showing Zero .
    1 lac is sum assured , Half yearly premium.
    Please may I know whats the reason ?

      • JAINU JACOB says

        Dear sir,
        I have a Jeevan Komal Policy 2 lakh sum assured since 2007. (7 premiums paid) Is it wise to surrender the policy before the commencement of risk ie before 7th birthday of child. I will get 90% of all premiums less fist premium. I can invest this in SIPs so that I get a good money after 11 years. Very late i realized that i get the final maturity amount after 26 years.

        • Basavaraj Tonagatti says

          Janu-First understand yourself how much loss you can bear and whether such loss can be accumulated by investing in other instruments. Then only proceed for cancellation. In my view it is better to continue as you already completed 7 Years.

  46. sudhasudha says

    Hello Sir, I have chosen Jeevan Anand last 2 year. I am now 28, and made a decision to invest nearly 36000 per year on this policy on guidance with some agent and he is regretting for the same. so I want to know that which type of profit & how many rupees gain after complete my maturity,

    policy- jeevan Anand, Policy Term: 16 years ; Sum Assured: 5,00,000 ; Premiums Paid: half yearly ; Premium Amount: 17774.

    Kindly guide us a best option here.


  47. MaqsoodMaqsood says

    Hi Sir How r u

    I Buy one Education LIC policy here in Dubai in 2009 for My Son its a 5 Years plan & Sum assured Rs, 226,850/- I Paid until Jan 2014 now the policy payments are over, as per the policy documents we will get back between 18 to 22 Years each year 20% and on 23rd Year he will get bonus I would like to know how much bonus he will get?

    Thanks & Regards

  48. Harpreet KaurHarpreet Kaur says

    In PPF can I withdraw my whole maturity after 15 yrs.
    Eg In 2014 Starting invest rs.30000/yr,
    After 2029 The maturity will be around 9 Lac.Then Can I withdraw my whole maturity and close the PPF account?Will am be able to do so?
    Pls answer me

  49. ImranImran says

    Hi Nivesh,

    This is Imran here, age = 36 yrs (1978). I am an NRI & live in Kuwait (Middle East).

    I have taken JEEVAN SARAL Policy in Aug 2013 through an LIC Agent in Hyderabad. That’s the only policy I have & nothing else.

    The agent said you will get around 44 lakhs if you invest 60000 per year for 21 years. He showed me the chart that agents normally show to other people to lure the customers like if you invest some X amount you will get some Y amount back from LIC in Z no. of years & so on? Is this true?

    Policy details are as follows:

    Age = 35 yrs when this policy was taken Aug 2013.

    JEEVAN SARAL 165 (With Profits)
    Policy Term – 21 years

    Premium = Rs.60050 yearly payment.
    Premiums Paid – 1 (Aug 2013-July 2014)

    Sum Assured = Rs 12,50,000
    Maturity Sum Assured = Rs 13,93,200
    Death Benefit Sum Assured = Rs. 12,50,000
    Accident Benefit Sum Assured = Rs. 12,50,000

    Date of Commencement= Aug 17 2013
    Date of Maturity = Aug 17 2034

    I have gone through your site regarding the questions that people have asked & I am happy there is someone out there like you to answer the questions.

    1. As an NRI, which insurance policy or investment or mutual fund should I invest the money in, which gives good & high returns? I am new to this kind of stuff.

    2. What is a Term Insurance Plan & Risk Coverage?

    3. Have I taken the right LIC Plan or made a mistake? Is the money too much for this policy?

    4. How much Loyalty Addition will be added to the policy after 21 yrs ( 6% or 10%)?

    5. If I surrender the policy say after 5 yrs or 10 yrs how much amount am I going to get? Should I opt out the plan or continue?

    6. Should I take a health insurance plan as well & which is the best?

    7. I have a son aged 1 yr 6 months, which plan or investment is best for him to take so that his future is secured?

    Kindly advise me. I need your guidance in this.

    Thanks & Regards,
    Email: [email protected]

    • Basavaraj Tonagatti says

      Imran-What your agent showed you as return are actually indicative returns but not actual.
      1) Investment usually depends on goal you have. So choose a product based on time frame of your goal.
      2) Term insurance is pure risk coverage plan.
      3) To be frank you made a mistake. Because return from this policy will be around 5%.
      4) I already answered.
      5) Better to discontinue after 5th year. Return will be marginal.
      6) Health insurance plan is most equally important like term insurance. So buy it.
      7) As I said above, suggesting a product involves lot of data sharing from you and a proper planning process. Hence unable to guide you at this juncture.

  50. M GopalM Gopal says

    Hello Sir, My Dad has chosen Jeevan Anand by mistake last year. He is now 65, retired and made a decision to invest nearly 50,000 per year on this policy on guidance with some agent and he is regretting for the same. Here are the policy details and we are looking to surrender this next year as we need to pay premiums for at least 3 years for surrender. Could you please let us know an approx. Surrender value and any guidance you can give us?

    Policy Term: 10 years ; Sum Assured: 3,00,000 ; Premiums Paid: 2 ; Premium Amount: 48,472.

    Kindly guide us a best option here.


  51. R SivaR Siva says

    Hello sir,

    Appreciate the great work you are doing.
    I have two LIC policies
    1. Rs 17000 PA for 20 yrs . sum assured is 375000. Maturity date is 2028. How much can I expect at the time of Maturity?
    2. Rs 25000 PA for five yrs ( 2011 – 2015). Sum assured is 250000. How much return can I expect in this policy and
    when can I withdraw the amount .

  52. Malkeet SinghMalkeet Singh says

    Hello Sir,
    I want to know about ELSS.

    1.In ELSS how to invest and when?
    2.Is it safe?
    3.What will be the return?
    4.Can anyone invest in it?(Like,Farmers,Individual, Students)

    I i invest 10000 in it, then how much will I get in WHAT period…..?
    Pls answer…

    Thanx in advance…….

    • Basavaraj Tonagatti says

      Malkeet-ELSS means equity investment attached with tax benefit. So if your time horizon is more than 7+ years then definitely you can test. I think I answered your first, second and third question. Yes the basic investment requirement for mutual fund applies to ELSS too. But do remember that it is tax saving tool.

  53. Malkeet SinghMalkeet Singh says

    Dear Sir,
    Thanx v much for ur suggestion.
    Now I want to take NSC for 10 yrs worth rs. 50000.
    After 10 yrs the maturity will be 234350 at rate 8.70%.
    It gives high return.
    My question is that If I have to invest only once at opening or year wise?
    And who can buy this product?
    Pls suggest…
    With warm thanx…

  54. Malkeet SinghMalkeet Singh says


    I am non working…. pls give me the suggestion to choose policy with
    high return with bonus… I am confused to choose the policy. I can pay 5000 to
    7000 half yearly and I want Rs. 8 to 12 Lac in 15 to 20 years.I am 27 yrs old.

    With thanx…

      • Malkeet SinghMalkeet Singh says

        Dear Basavar Sir,
        I have agri farm from which my annual income is about 4-5 Lac…
        Then Still i can’t take policy.?
        Pls reply ….. the best policy…
        And can i take PPF with It.And if yes then pls suggest.

        • Basavaraj Tonagatti says

          Malkeet-In previous comment you said not working. So I felt no income. Considering your income then I suggest you to have around Rs.75 lakh to Rs.1 Cr insurance coverage. So my only suggestion is to buy PURE INSURANCE product rather than a policy which combines insurance+investment. Choosing a product depends on your financial goals. You seems to be running behind product rather than understanding whether they actually match your need or not. So without knowing you properly I will not suggest you to go for PPF or any investment.

        • deepadeepa says

          Hi Mr.Basavachari,

          Your blog is a one time stop for all financial queries. Thankyou. Can you please suggest me a single premium investment plan in LIC with highest return. I want to hold it only for one year,however if returns are good i dont mind keeping it for a longer priod, basically i am compelled to take the policy only from LIC, hence want the best option only from LIC.

          Regards – Eagerly awaiting your reply

          • Basavaraj Tonagatti says

            Deepa-My name is Basavaraj but not Basavachari :) Insurance for one year? Please don’t enter even if you are planning to wait for long run. If you are very much comfortable with return of around 5% then go ahead with such LIC policies. Otherwise no need to combine your investment need with insurance. I know the person who is compelling you to buy LIC ONLY may be your friend, relative or neighbour. But it is your hard earned money, so if they compensate your expectation of more than 5% (return you receive from this plan) from their pocket then go ahead.

  55. Prabir DattaPrabir Datta says

    I had invested in two nos of LICI MARKET PLUS-1 JEEVAN ANAND bond scheme for 1 lakh during 2008.
    Recently I had availed the maturity benefit of the said bond from LIC to cater my some urgent financial need.
    Please confirm me whether the said additional matured amount shall be taxable under Indian Income tax act.
    Please advise.

  56. NareshNaresh says

    On 09/01/2011, plan is NEW BHIMA GOLD 16years. i have paid the first premium and started the Policy. Can you explain clearly.. What does it mean “after completing 4 years” ??
    After paying the 4 premiums – 09/01/2014 (or)
    After completing the 4 years i.e., after paying the 5th premium – 09/01/2015
    Please answer.. Might be most of the people getting same doubt
    Thanks in Advance!

    • Basavaraj Tonagatti says

      Naresh-It is money back policy. So after the completing of 4 years from start of policy, you receive some lumpsum which is % of sum assured you opted. Policy need to complete 4 years that is start of 5th year.

  57. shlloshllo says

    jeevan shree w/o profiy (w/o accident benefit)
    this policy belongs to my mother
    i am handling her portfolio and i seem confused in terms of returns and benefits
    seeking for help !
    details as follows
    date of commencement -19-12-2002
    date of maturity-19-02-2020
    dare of proposal-31-01-2002
    premium- 36959
    sum assured-500000

  58. Sandeep KumarSandeep Kumar says


    I took one policy of Money Back 20 years and quaterli Premium is 1662, and I want Know How much Amount I will get on Maturity



  59. Arvind MishraArvind Mishra says

    I have two policies, how much I will get on maturity?

    1. Jeevan anand- yearly payment 53208 from 2012 for 20 years, sum assured 100000/-.

    2. Jeevan Saral- yearly payment 12010 from 2010 for 20 years, sum assured 250000/-

    Please help.

  60. pradeeppradeep says

    i have a JEEVAN SHREE without profit ( without accident benifit) from 2002 premium to be paid is till 2017 date of maturity is 2027. I am interested to know whether i would be able to withdraw it after 2017 or have to wait till 2027 & what would be the amount available by that period.

  61. azbootazboot says


    Thanks for the informative blog.

    i have the following plan:

    – Jeevan Anand (149)
    – commencement date- 2011
    – Premiums paid – 4
    – commencement age- 26
    – Policy Term- 74 (Premium payment term – 21)
    – Premium – 25319/- yearly
    – sum assured- 5,00,000/-

    Can u please tell me how much i will get on maturity.
    Also what will i get if i withdraw now


  62. rajraj says

    Dear Sir,

    I want purchase policy please let me know which is the best policy for return money after 10 to 15 year

  63. DhinesshDhinessh says

    I have Plan – 815 – 21years
    SA – 300000
    D.o.c – 11/04/2014
    D.o.M – 11/04/2035

    Amount – 4306

    What will be the return amount during maturity period?

  64. Atul KhareAtul Khare says

    Hello Sir,

    I have three LIC policies via agent as below started on Sept 2013:

    1) Jeevan Anand : Premium Payment Term 21 yrs, Policy Term – 66, – Monthly EMI Rs 2067- Sum Assured – 4.45 Lks
    2) Jeevan Saathi : Premium Payment Term 26 yrs, Policy Term – 26, Monthly EMI Rs 1236- Sum Assured – 3.00 Lks
    3) Jeevan Tarang (for my kid 1 yr old) – Premium Payment Term 20 yrs, Policy Term – 99, – Monthly EMI Rs 1086- Sum Assured – 2.5 Lks

    My age is 34 yrs. Please advice after Prem payment term period what will be the expected amount these will return? Does these investments are good or not? Should continue ? if not then how to come out from the bad once?

  65. Basabjit GhoshBasabjit Ghosh says

    Hi Basu,

    I am having 2 nos LIC policy . 1 Jeevan Anand Policy. policy term 73( premium Payment term – 25). The monthly EMI is 5517. The Sum assured is Rs 1500000. The Commence ment date is 27/7/2010 and my age at that time was 27.

    2 Jeevan Anand Policy. policy term 73( premium Payment term – 25). The half yearly EMI is 10226. The Sum assured is Rs 500000. The Commence ment date is 18/6/2008 and my age at that time was 24.

    Can you please help me with the projected maturity amount and what is the tenure and when can the policy be surrendered?

  66. vaheedvaheed says

    Dear Sir,

    i Have Jeevan anand policy took froom july 2010,know almost 4 year complete.know my qustion i am login in lic website their showing vested bonus 70000 .can i get this bonus .if i need wht the installement is 21 year.pls give clarification in vested bonus

  67. ShobanShoban says


    Policy plan – Jeevan Saral. Commencement date March-2010. Sum assured 12,50,000. Premium payment 5104 monthly, term 21 years.

    A quick question’s – If i redeem my policy in the 5th year (2015) what would be my returns.
    if i redeem at the 10th year (2020) what would be my returns.
    Also can please elaborate on the sum assured and the bonus and how much I would be getting.
    I guess my agent conned me into into this policy.

    Thank you.

  68. ANUANU says

    Hi. What is the approx IRR one can expect on LIC’s Jeevan Dhara 1/ Jeevan Suraksha 1 ?? I know, it depends on factors like the bonuses declared every year, but would appreciate if you could give a rough estimate for a term of 15 years. Thanks !

  69. SelvaganeshSelvaganesh says

    I want to know the policy maturity return amount i get as, Plan- LIC New Bima Gold, Table No.179, Sum Assured- Rs.5 Lakhs, Date of Join: 26/12/2008. Term- 20 years. i got rs.50000 as money back for 4th year. So i want to how much get the loyalty bonus for this policy and also total amount i will get after 20 years maturity. Waiting for your response.

  70. dineshdinesh says

    If i pay 4 lakh LIC policy for 18 years, then how much will be the return amount to me.And tax will be .

  71. VijayVijay says

    Thanks a billion for this detailed review, Basu.
    Can you please let me know about policies which have no profit and no accident benefits?
    I have the below policy which I am not sure of what applicable benefits (LA, GA, FAB etc.)

    – Jeevan Shree taken in 2001 (Table No. 112 20 12 without bonuses, without accident benefit)
    Sum Assured – Rs. 5,00,000
    12 terms with Rs. 35,651 annual premium
    maturity in 2021

  72. shileshshilesh says

    Hi Basu,

    My parents have a lic health plus plan and they are paying a premium of 7,500/yr.

    They started the policy on 2009.

    My dad is 54 years old now and my mom is 51 years old.

    Can we continue this policy till their age 65 ( ie till the policy matures)?

    Will we get the actual amount paid at the end of the policy ? is it fine to continue the policy till the end?

      • shileshshilesh says

        He told like we will be having the health coverage throughout this policy period and the total money paid during these days will be paid back at the end of the policy..

          • shileshshilesh says

            i dont understand your question.. But then Claim benefits will be available .. that too percentage of claim amount will be based on the criteria (like the list of diseases and treatment expenses ) which they mentioned..

            We havent apply for any claim till now.. We thought of closing the plan now.. but then the agent told we wouldnt get the total amount paid now and the deduction is due to the age risk. But , At the end of the plan, we would be getting the total amount..

            Is it true? if we surrender the policy now, we wouldnt get the amount paid for these 5 years??

            • shileshshilesh says

              Also, As per the policy, the money we pay will also be invested in health funds. so ideally we should get more money than what we paid na??

              • Basavaraj Tonagatti says

                Shilesh-Let us separate the issue, how about buying health insurance separately and investing the rest in Postal RDs or Bank FDs…let me know which will give good return? I am asking so many questions to make you to think twice :)

                • shileshshilesh says

                  Its obvious that Fds and RDs will give good returns..

                  We had bought this one because of health benefits and the amount returns.

                  But now as per the agent’s sayings, we are anxious that the preclosure of this policy gives only lesser amount than what we paid and is due to the age risk of my parents.

                  So in this situation, we are not sure if we can continue this one or to close this one?

                  Also, is it true that we will get atleast the actual amount paid at the end of the policy?

                  • Basavaraj Tonagatti says

                    Shilesh-Now let us discuss further. This is a typical ULIP (market linked) policy which offers few health protection. Suppose you are paying Rs.100 as premium then in first year only Rs.70 get invested, rest Rs.30 will be expenses. From second year onward expenses will be 6%. Apart from these charges there are other charges like fund management charges like 1.25%, admin charges are Rs.75 for first year and Rs.25 afterward and mortality charges.
                    Why you buy any health insurance? To protect yourself in case of health emergencies. But does LIC have such set up to make such claims cashless? A Big NO. Second thing as it is market linked and with high expenses, your return on this policy depend on market volatility. Why to complicate your life?
                    Simply buy health insurance for your parents and rest put it in safer products (as your parents can’t take risk).

  73. neerajneeraj says

    hi Basu,

    Can you pls let me know what does JeevanAnand provides (out of – Bonus, GA, LA, FAB) at maturity?

  74. Snigdha PatroSnigdha Patro says

    One of my policy has got matured,in which the return ,which I’m getting is not satisfactory.Now I want to invest 2,000 /month for 15 years .So where should I invest to get good returns.

    With regards.

  75. SatyaSatya says

    Hello Basavaraj,

    I have taken Term Plan from Aviva for 50Lakhs for a duration of 35yrs and premium amt as Rs.4494/-.

    Started this in April 2013, but later after paying first premium i felt it might not be that useful.

    Could you please suggest me whetehr to continue this policy or stop paying.

    If possible could you please let me know what is the claim % in AVIVA?

  76. sunil says


    • sunil says

      i have taken 2 policies of jeevan saral for ten years of rupees 766/quqterly and 1225/quaterly at the time of taking this the agent siad me that for 766/quaterly for ten years i get rupees 53227/- and for 1225/quaterly i get rupeese85254/- is it correct or not becoz i lernt someone saying the jeevan saral polivy not giving the said amount plz sujjest me in this regard

  77. MosMos says


    I have taken 3 policies (Jeevan anand etc.,) with LIC and have been paying the premium for the past 3 years. Due to various commitments I would want to stop the policies and go for a term insurance instead. If I surrender the money I get back is very minimum. I also heard that I can stop paying the premium and not surrender the policy and can wait till the tenure which will give a better money back for the premium that I have already paid.

    so my question is
    1. Is it possible that I just stop premium payments and not surrender the policy asking for withdrawal and wait for 17 years (tenure of 20 minus 3 years gone by).
    2. What is the process to achieve this.


    • Basavaraj Tonagatti says

      Mos-Yes possible only if you paid 3 years full premium. But that too less. Instead I suggest you to surrender and come out. Because paid up will be useful when you are at end of term but not at beginning. Having Rs.80 now in your pocket is worth than having Rs.100 after 17 years. You visit your nearest LIC branch they will guide you regarding the process or surrender.

      • MosMos says

        Thanks Very much Sir,

        Yes, I have paid full 12 quarterly installments adding upto Rs. 2,30,000 and surrender value is working out to be around Rs, 40,000. (i.e., (total premium paid – 1st year’s premium ) * 30% …. so like you said, even If I am getting 50% more after 17 years it would be just 60k after 17 years which may not mean as much as 40k would mean now :-)

        I would go for withdrawal.


  78. piyush srivastavapiyush srivastava says

    dear sir,,
    thankyou 4 ur valuable feedbeck 4 all.
    sir,my quaries are as follow- 2013 i had taken jeevan aanad (profit+insurance)policy of 10,00000 my premium is 50102 p.a..completed date of policy in 2033..i want to know,how much amount i ll get after maturity,
    2.another 5 lakh policy i had taken in 2014 of jeevn anand of rs 5,00000 and my prem is 29155 p.a….for 20 yrs
    should i continue both policy or i can surrender any one..plz clear my doubt

      • piyush srivastavapiyush srivastava says

        no sir,m nt satisfy with this return,,,bt 4 insurance and some return i want to continue any one of them,,
        m planning to continue 50103 p.a premium for 20 yrs,,
        my age is 27,and i took dis policy on last yr,my maturity date in 2033,,,
        so,i want to know hw much amount i ll get at that time..
        and for second policy for jeevan anand,5lac, i will surrender,when i ll pay 3 yr of premium,my premium is 29155,at that time hw much amount i ll recv,,should i leave for maturity

  79. S JaganathanS Jaganathan says

    Age 41; planning to go for New Jeevan Anand (T-815) with accidental benefit
    Sum assured: 15 lacs
    Term : 15 years
    per annum: INR 130000 (approx)

    Is it worth to go (or) suggest any other plan

    Till now I don’t have any policies whatsoever.


    Dear Basu

    One lic agent suggest me for JEEVAN ANAND(WITH PROFITS)(WITH ACCIDENT BENEFITS). plan149

    sum assured : 20lac
    premium yearly : 91296
    for 25yrs
    means i am investing near about 22.83lac
    what will be the return after 25yrs.
    is it pension plan?

    • Basavaraj Tonagatti says

      Pravin-Your agent’s first wrong advice was claiming to be this as pension plan. Second thing return from this plan will be around 6% to 7%. So by investing 25 long years you satisfied with kind of return then you can go ahead. My strong advice is to stay away.

  81. Mutahir AfaqMutahir Afaq says

    Dear Sir,

    I am aged 30 years and I recently took a LIC policy namely New Endowment Assurance Plan 814 with a sum assured of 12 lacs. The agent through whom i took the policy is known to me. He told me that I will get 45 lacs after 30 years i.e., by completion of 60 years of my age and that this amount can be converted into pension at that time at a rate of 24-25 k per month depending on the choice of the policy holder whether to take the amount in hand or covert the said amount in pension plan. Now many friends and articles on web say that this is not a good plan, but I think its okay keeping in view that I want this sum in a distant future, although i am aware of the fact that here the benefit rate is only 5.8% which is less compared to other policies.

    Please suggest if the above claims made by the agent are true, or I am just cheated.


    • Basavaraj Tonagatti says

      Mutahir-They are totally false. But strange to know that you are satisfied with 5.8% of return :) Why to invest with LIC, simply keep it in your savings account (where banks offer around 5% to 6% return)? Is it so simple right??

    • Mutahir AfaqMutahir Afaq says

      Thanks. I just want to know the amount that I will get at maturity of New Endowment Assurance Plan 814 with a sum assured of 12 lacs and an annual premium of 36000 and if the amount can be converted in pension or not

      • Basavaraj Tonagatti says

        Mutahir-How can I say you? It is typical traditional plan. Your agent totally misguided you. Even if it fetches you around Rs.25,000 per month pension after 20-25 years then what is the value of that amount? Please do serious thinking on your investment.

  82. Sandeep PanghalSandeep Panghal says

    Hello Sir,

    I’m confused about LIC policy. I just want to know which plan should I take and how much amount should be invest per month to get best return after 20 yers.

    • Basavaraj Tonagatti says

      Sandeep-None of them are good. Better to buy term plan (if you want then go with LIC and buy online) and rest invest according to your financial goals. This will give you more return than a typical traditional plans.

  83. C ShekarC Shekar says

    Dear Basu,

    Kindly advice me the appx. amount that I am going to get on maturity of my Jeevan Anand (149) policy in April 2015.

    Sum Assured : Rs. 12 Lacs
    Half Yearly Premium : Rs. 62,489
    Policy Started on : October 2003
    Policy Maturity on : April 2015
    Policy Term : 12 years

    Thanks & Regards


  84. sakthisakthi says


    My self holding Jeevan Tarang started from May 13 & paying premium hly, hope its profit plan. But while checking in net bonus is mentioned as zero. Any minimum period of commencement date is there to provide bonus? how can I check it, its in profit plan?

  85. krishnakrishna says

    Hi Basu sir,

    Please help me on this. I have taken two LIC Jeevan Anand-149 plans with SA of 4Lc(2011) and 5Lc(2013) respectively on my 22nd & 24th Age. Premium for both are paid Half Yearly. Is there any possibility for me to reduce the amount insured in it, so I can go on invest in any other viz.,PPF

    Your assistance much appreciated Sir.

  86. Praveen KumarPraveen Kumar says

    I took a jeevan anand policy in the year 1995 for 20 years for Rs. 5 lakhs. How much amount I will get in 2015?

  87. AshishAshish says

    Dear Basu,

    Following is my investment in LIC Plans

    Age at time of commencement – 26 Y during 2011-12

    Policy Name Policy No Term of Policy SA Enrollment Year Premium Frequency
    Amulya Jeevan 190 30Y 50L 2011-12 6962 Half yearly

    Wholelifetime Policy 5 35y covering 54Y 10L 2011-12 12182 Halfyealy

    Jeevan Saral 165 35Y 13L 2011-12 31538 Half yearly

    I would like to understand few things here
    1. My coverage according to the working of LIC agent during the time of purchase said that my coverage goes in excess of 1 Cr over a period of time

    2. At the age of 60, i am suppose to get another 1Cr plus based on 6% return.

    How much of all this is really true??

    Also how are these plans performing really and are they good to hold till maturity

    • Basavaraj Tonagatti says

      Ashish-1) Calculating the insurance requirement depends on your income, your dependents goals, your current debt and so many things. But plainly speaking, it should be around 15-20 times of yearly income+any existing debt.
      2) I am unable to understand your second question. What do you mean by getting 1 Cr from term plan??
      Except Amulay Jeevan, I am not a big fan of other two plans :)

  88. RamRam says

    hi Basu,
    Have been reading a lot on insurance vs investment and more on jeevan anand here – I have one specific Q regarding this. If Jeevan Aannd is considered as a pure investment instrument and assuming there is no risk to the life in the term, then would Jeevan Anand not be a better choice. Understand that Term insurance covers the risk but what is the planning in case of no risk ?

    Considerations :
    Term : 16 years
    SA: 5 Lc
    Policy : New Jeevan Anand
    Annual Premium : 37313
    PPF : 8.5%
    As suggested on this portal many a times, I am considering to take a term insurance for a premium of Rs.11,000 and invest the remaining amount in PPF. Rs. 11000 term insurance in lic would cover a policy of ~25 lc while for other online insurance providers it will be a lot more. However, we are considering the cover here as the assumption is no risk in 16 years .

    My Understanding of Numbers :
    Total Amount Deposited in PPF : 421008 ( 26313*16 )
    Total Cash with interest via PPF : 903081.44
    Net Gain via PPF : 306073.44 ( TotalCashAsAbove – PPFInvestment(26313*16) – TermInsuranceCost(11000*16) )
    Total Premium Paid in Jeevan Anand : 597008
    Total Cash via Jeevan Anand : 844000 ( SA(500000) + Bonus( 344000 = @4300/lc/yr*16) )
    Net Gain via Jeevan Ananad : 246992 ( TotalCashAsAbove – Premiums(597008) )

    So, the difference in these two options is only 59,081 ( <60K )
    However, Jeevan Anand provides a 5lc return at risk after the policy term while PPF will not.

    Assuming no risk, should one not invest in Jeevan Anand now and keep the risk cover later ( hoping that all will be well ) . However, I agree to have a term insurance to cover any kind of risk in any stage of life.
    This query is mostly on basis of investment with no risk in PPT.

    BTW, this blog gives a good understanding of ideas that readers bring up and your explanations obviously. Good.


    • Basavaraj Tonagatti says

      Ram-Thanks for your valuable feedback. From your analysis we find that PPF have edge over this plan for about Rs.59,000. Is it not good return? Second thing you are claiming to neglecting for insurance but again pointing towards 5 lakh insurance benefit from Jeevan Anand. Where as if you opt for term insurance your dependents are secured. In both the case Jeevan Anand will provide you lesser return than PPF with lesser life risk coverage than actual in need. So in what way this holds good. Also if my waiting period is 16 years why can’t I stay away from equity?

      • RamRam says

        I am not claiming the 5lc from jeevan anand as a risk claim but just as a ROI.

        ~60K is an immediate return. Term plan is max for 70 years. Age at whcih Jeevan Anand ends = 50 ( 34 + 16 ).
        In this case, there will be a term insurance cost for the next 20 years.

        Term Insurance cost = 2,20,000 ( 20yrs * 11000 ) No Risk coverage after 70 years.

        At the end of 16 years, PPF yielded ~60K more. Even if I invest ~60K for the next 20 years @ 8.5% this will yield Rs. 306722.00.
        Net Gain = ~86,000.00 ( 306722 – TermInsuranceCost_220000 ). I am investing only 60K as I have tried to bring PPF and Jeevan Anand at par after 16 years.

        However, Jeevan Anand would give Rs. 5lc at Risk any time after 50 yrs. Especially, in this case when the person is active until 70 years then I feel there is no real gain.

  89. HarishHarish says

    I am taking lic policy(Jeevan saral-with profits-plan no.165) for my father name, nominee is my mother and my father age is 49 . Every three month i am paying Rs.2450 ,
    And this is 16 years of policy. Maturity sum assured -Rs.130352 Death benefit sum assured 20000, I have started to paying from 20/11/2012. Then i need to pay till 19/8/2028 . When I login to online lic policy account there is vested bonus showing Rs.0(zero). how to see my bonus amount till now? Or after 16 years i can able to get only Rs.130352 -MAS or DBA – 20000 or Accident benefit sum assured – 20000. ? I am little bit confused to calculate for this amount and how to know about bonus till now..Is this rite policy which i am taking now for my father’ name?

      • harishharish says

        1. I have gone through your link , I cannot understand the things fully. but i got little bit idea about this policy now. i am grateful to you. One more question is LA will be provide based on MSA, I know my fathers MSA when i took this policy. if i understood correctly about your point which you mentioned in the link above reply, MSA is rs.130352 Which is mentioned in policy paper, Every 3 month once i am paying rs.2450 , then the policy period is 16 year, For 16 years i am paying around Rs.156800(if the policy get matured after 16 years). What is benefit over this , Even i cant get my original amount amount what i am going to pay till 16 years rite? can u clarify about this …
        2. In that link you said LA will be calculated each Rs.1000 of MSA , that means , (130352 * 300)/ 1000 as per your link, then total amount will comes around rs.39105 (Total LA after 16 yeara)+ rs.130352 (MSA), this is what i will get? Note: LA for 16 year policy may rs.300 for every rs.1000(you mentioned )

        • Basavaraj Tonagatti says

          Harish-1) Yes you will receive more than what you paid. But how much is the question after investing so long period of 17 years. Return from this policy will be around 6-7%.
          2) If I consider your MSA as Rs.1,30,352 and LA at Rs.500 per Rs.1,000 MSA (I considered Rs.500 LA because your plan is for 17 years but not 12 years like what you did and premium range is within Rs.50,000 per year). So total LA will be Rs.65,176. Within LA you also receive the said MSA.

          • harishharish says

            I invest every three month Rs.2450 that is Rs.830 per month or rs.10000 per year (totally 17 years of investment). The same amount if i Invested in PPF i will get more amount rather than what i am investing in lic
            after 15 years(basic terms of ppf), Is it rite to do that?, Moreover if ppf is good one means i have planned to invest more money in that instead of lic in feature ? may i know your opinion about this?

            • Basavaraj Tonagatti says

              Harish-Certainly PPF holds good than these typical traditional plans. But do remember that maximum limit is Rs.1 lakh and at the same time don’t forget to buy the pure term insurance plans for your life risk coverage. Also investing all your savings in a single product is not a prudent way. Spread it across other asset classes based on your goal and risk appetite.

              • harishharish says

                Thank you for your kind reply and opinion , last but not least one final question” pure term insurance plans for your life risk coverage” the statement you mentioned in your reply sir, what is meant by this? can you say some sample lic plan which comes under this category.

                  • harishharish says

                    Thanks a lot …Now got some ideas about these lic policy after gone through links what and all you sent and your legitimate explanation. Now I feel Sharing knowledge is billion dollar worth after reading your website and blog. I am using your website whenever I feel stuck with financial related info. I know it is not a simple thing to understand all financial sector related information overnight. But you are doing great job through this website. I wish all success. I have lots and lots of doubt related to these types of investment . With your permission can i ask those question whenever i stuck with these things?. why i am asking this is because i have already asked too much question . I don’t know whether these questions silly or worthy one.But for me it is initial stage and more worthy i feel.

  90. KiranKiran says

    Hello Basu,

    I have taken Jeevan Anand LIC plan in 2013 for 25yrs for sum assured of 15lacs

    So in the year 2038 I will get Sum assured+FAB= Rs.31,87,500.And adding LA to it, I will get upto Rs.35lac in the year 2038 right.

      • KiranKiran says

        Hello Basu,

        Last year bonus rate was Rs.47/Rs.1000 of sum assured.

        I hav considered Rs.45 as average bonus.
        (Rs.15lac * Rs.45 )/ Rs.1000 = Rs.67,500

        As my plan is for 25 yrs.Bonus will be Rs.67,500 * 25 = 16,87,500

        Now (Sum assured + Bonus) that is Rs.15lacs + Rs.16,87,500 = Rs.31,87,500

        So in the year 2038 I will be getting Rs.31,87,500 right.

        Is my understanding correct.

        • Basavaraj Tonagatti says

          Kiran-Your calculation is correct. Now the question is how much % of return you receive from this investment. Can you do this for yourself and let me know, else I will do it and let you know. If that said return % satisfy you then go ahead.

          • KiranKiran says

            Hello Basu,

            I don’t have idea as how much % of return I get.
            But I want answer for two things from you.
            1.According to the calculation I will definitely get Rs.31,87,500/- + LA for sure right and there won’t be any variation in this right?
            2.Can you please tell me how calculate % of returns?

                • Basavaraj Tonagatti says

                  Kiran-In that case if I consider term as 25 years, yearly payment as Rs.60,000 and return on investment as Rs.31,87,500 then return on investment will be 5.77%. This is less than any post tax return on normal FDs or even from PPF. Now decision is your’s. I left LA as I don’t think it will change your return drastically even around 0.50% also.

                  • KiranKiran says

                    Hi Basu,
                    Thanks a lot for the info.

                    Just curious to know incase if I keep same 60,000/- every year inPPF how much money will I get back after 25yrs.
                    If this makes big difference then its ok for me still loose my first premium of LIC as I can’t claim it now right

                    • kaustubhkaustubh says

                      Hi Kiran,
                      Sorry Basu Sir & Kiran to interrupt your communication. I am not a financial Planner. I get info by searching on internet. When you invest in PPF a/c you will get 8.7% interest.

                      If you invest Rs 5000/- per month then after 25 years you will get Rs. 5284273/- tax free amount. This amount is about 65% more than Jeevan Anand amount. So please think again. Am I right Basu Sir?


                    • Basavaraj Tonagatti says

                      Kaustubh-You are always welcome to share your knowledge on this platform. Even I too eager to learn from all of you. Whatever you said is true and that is why I always recommend PPF over LIC when people think of security and tax saving.

  91. RaghavRaghav says

    Hi Basu,
    I have Jeevan Anand T149, 20 bonds of 100000/- each with yearly premium of 61036/- for 23 yrs. I have already paid 9 yrs of premium. I had taken this plan without really going into detail. After 3-4yrs I realised that this is not a very good plan at the same time I thought LIC is not a medium to invest money and expect returns its basically a insurance policy, so I open a RD account every year with 5000/month and pay the premium after RD maturity (Ofcourse I lose on tax but I gain something).
    Do you think the way I see it is correct and should still continue till maturity? Please give me your opinion on this.

    • Basavaraj Tonagatti says

      Raghav-You still need to go for another 14 years in committing this mistake. So in my view it is better to come out (I know surrender will be less but think that you are paying penalty for wrong investment decision). Start a fresh.

      • RaghavRaghav says

        Hi again,
        If I surrender it now I will lose a lot, I have paid 549324/- and will get only 146486/-.
        I just want to put in these words so that people read it…
        The 20 bonds that I have do not mature at once, the 1st bond matures at 23 yrs the 2nd at 24 yrs so on…I can close the bonds as it matures or allow it till all my bonds mature ie at age 65.
        From the date of first bond maturity I will start getting bonus payouts every month this is where the calculation start getting messier… The print given to me by the agent said it will be roughly 20000/- monthly….
        Since inception the bonus has increased from 44 to 48 so worst case consider 48 till maturity ie 2027.
        Lets consider the bond which matures at 2027 which has a yearly premium of 4483/-
        The total bonus accrued = 108600/-
        Premium paid for the bond till 2027 = 103109/-
        Total value of the bond on maturity = 211709/-

        Now if I do a RD @ 8.25% for 23 yrs for 4483 annually the maturity value will be 305614/- which will get a tax cut of 30% for me, hence in hand I will get 213929/-
        In all I will lose around 2000/-

        My financial advisor who is not an LIC agent tells me to continue the plan….as he sees that I will not lose a lot as the plan is well laid out.

        • kaustubhkaustubh says

          Hi Raghav,
          I am not a Financial Planner. I googled around and get information about PPF. If you invest annually in PPF account Rs. 4483/- ( At this time int rate @8.7%, if you invest 9 yrs ago rate was higher) you will get after 23 yrs Rs. 3,26.000/- . This amount is totally tax free. So please keep in mind before investing. The agents are misleading us ( I am also get mislead by agent) dont believe them.


      • kaustubhkaustubh says

        Hi Basu,
        I am having 10 lic policies (details of them mailed to you). I want to stop paying premiums. But my problem is I take loan on each policies. So is it possible to stop paying premiums and receive paid up value or surrender with minimum loss?
        Also what is the difference between LIC Amulya Jeevan & HDFC Click2 Protect.

        So please reply

    • geethageetha says

      Hi Basavaraj,

      i have 2 doubts .

      1. i am inversting Rs.30000 in LIC samruthi plus on Oct 2009, can i surrender now is better? or can i wait few yrs? which one is get more maturity value?
      2. for LIC policy annual premium, hw much percentage of Late fee ( delay paid) they will chage it ?

      plz reply

  92. RishikeshRishikesh says


    I am planning to purchase new Endowment policy from LIC,
    Sum Assured: Rs: 10 L
    Premium : Rs: 47280
    Policy Term : 21 years

    However I am not able to calculate realistic approximate returns.

    One agent told me On Maturity I will get :
    Rs: 10 L + ((45-50)*1000)+ FAB = 23 -25 L

    One agent told me On maturity I will get :
    Rs: 17L (According to Illustration Benefit)

    I am confused, Could you please shade some light on this?

    Thank You!!!

    • Basavaraj Tonagatti says

      Rishikesh-Well it is good that you planned to by INSURANCE but I am totally against buying the product which combines INSURANCE+INVESTMENT. Whatever the return from this policy according to difference source you got, let us consider that total return from this policy is Rs.23 lakh itself. Then do you know the return from this investment? It is around 7%. So do you think this is a good return for such a long term investment? A simple product like FDs (interest earned is taxable) or PPF (more tax efficient than any other) will work wonders than such dummy product. If I consider the inflation of around 6% then do you know the current value of Rs.23,00,000 which you will get after 21 years from now? It is around Rs.6,76,000. For how many years will you survive with this amount? Also if something happens to you middle then for how many years your financial dependent will survive with Sum Assured you receive from LIC (Rs.10 lakh+Bonus till death)? You need to think seriously and decide. Because it your hard earned money not your agent’s or mine.

  93. kishor joshikishor joshi says

    Dear Mr Tonagatti,

    I have a TATA AIG maha life insurance policy under my wife’s name. And all the installments are over now. As per the projection illustration, policy promises:

    1. Annual cash dividend: Which I am getting regularly
    2. Coupons
    3. Cash surrender value.

    kindly advise me What are these “Coupons” and also is it advisable to claim for Cash Surrender value now….


    • Basavaraj Tonagatti says

      Kishor-It is typical traditional whole life plan+Money Back Plan. Coupons means once your policy premium paying maturity ends then you start to receive 5% of Sum Assured till your death or 100 years of age (whichever is earlier). On death or attaining 100 years of age SA along with final coupon of 5% will be provided. I don’t think it neither value inflation or insurance need. Rest is depend on your decision.



  95. pradeeppradeep says

    Hi Mr Basu,
    I’m sorry but I am still a bit confused on the Jeevan Anand 149 policy. I took up the policy in May 2005 (fully paid for 9 years now). The premium is Rs15,595 for a Sum assured (SA) of Rs5lac. The premium payment term is 30 years. Kindly clarify the following:
    (1) Apart from Revisionary bonus, are the Final Additional Bonus/ Guaranteed Addition/Loyal Additions applicable for Jeevan Anand?
    (2) On my death (within 30 year term), would my family receive only SA (or) SA plus bonus’/additions in Question 1.
    (3) On maturity (no death) , would I receive SA plus bonus’/additions in Question 1.
    (4) On my death after maturity, would my family receive any amount?
    (5) As of today, how much loan can I get on this policy ?
    (6) As of today, what would be the approximate surrender value if I discontinue the policy ?
    (7) My current vested bonus is Rs1,83,000 (FY:12 – Rs1,59,000) as per the bonus declared for Jeevan Anand (less than 10 years) of Rs37. As per calculations, my current vested bonus should be 1,59,000 + ((5,00,000*37)/1,000) = 1,59,000+18,500 = Rs1,77,500. Could you kindly explain as to why there is a difference in my current vested bonus (183000 -177500).

    Apologies for the long list of questions.

    • Basavaraj Tonagatti says

      Pradeep-1) This plan only offers Bonus+Final Additional Bonus, apart from this no other benefits.
      2) SA along with accrued bonus till that period.
      3) I already answered to your question.
      4) Yes if within 70 years of age and death occurs due to accident then double of sum assured (but maximum amount set as Rs.5 lakh) and for natural death equal to sum assured. But if death occurs after 70 years of age (either normal or accidental) then your nominee will receive sum assured.
      5) For loan, you need to visit your nearest LIC branch or service branch. They will guide you in better way.
      6) For surrender values, you need to visit your nearest LIC branch or service branch. They will guide you in better way.
      7) Term you considered is wrong, you need to consider the policy term, but not how many years you completed.

  96. Rajiv KumarRajiv Kumar says

    Hello ,

    I have 11000 UTI ULIP units and its maturing on 31-03-2014 (15 year Plan). Pls suggest whether I should redeem this or I can wait for better NAV.


  97. Vani Anurag Dutta.Vani Anurag Dutta. says

    Dear Mr.Basu Nivesh,
    I am planning to take Jeevan Anand policy for the Sum Assured 20,000,00 + 20,000,00 + 10,000,00 = 50,000,00 Rs.
    3 (Three) policy. For the term of 18 yrs, Like to know the yearly premium and the final Amount after the maturity.
    Note:- 50,000,00 + Bonus + F.A.B = ( Total Amount ). Even I want to know what shall be the commission for the Agent for this. 1st yr __%, 2nd yr __%, 3rd yr __%, 4th yr __%, 5th yr__%, till flat %.
    I am bit confused, so I want to know the above details for my clarification.

    • Basavaraj Tonagatti says

      Vani Anurag Dutta-Let us first discuss, like how you arrived at Rs.50,00,000 insurance is sufficient for you? May I know the reason behind splitting the sum assured? This is typical endowment plan where returns will be around 7% and your agent’s commission will be like 35% in first year, 7.5% in second and third year and 5% for rest of period. I think your agent recommended this plan, advised you to split the plan (to increase his number policies in a year) and offered you commission sharing. Am I right??


    START DATE: – 31/1/2013
    POLICY 230000

    • eugene mundoleugene mundol says

      i have a jeevan anand 149 with profits policy. Started this on the 28th of Dec 2005 and have been paying a premium of 51775 every year with an assured sum of 8,00,000. My last data of payment is 28-12-2021.

      Could you help me understand what this policy is worth now ? (not from a surrender point view)

      • Basavaraj Tonagatti says

        Eugene-It is a typical traditional plan wherein you are totally under insured (ideal insurance cover should be 10-15 times of your yearly income) and return from this plan hover around 7%. Then let me know in what it suites your need??

  99. hardik kachahardik kacha says

    hello sir
    enter plan name :……..
    enter age:………….
    enter term:……….
    enter Sum Assured:…………..
    then how to calculate this formula please tell me about the process
    like how to calculate monthly and year and etc …….. calculate amount its how to calculate as soon as possible tell me

    • Basavaraj Tonagatti says

      Hardik-Each plans are unique and premium varies from age and term. Hence you need to do lot of calculation settings in sheet. I think you are knocking the wrong door friend. Consult any excel expert on this matter.

  100. A.AdhikaryA.Adhikary says


    I had a money back policy of Rs. 30000/ in the year of 1996. It will mature on 2016.
    I already received 18000. Would you mind to tell me what will be the expected maturity amount !!

    Also I had another money back policy of Rs. 50000/ in the year of 1998. It will mature on 2018. I already received 30000. Would you mind to tell me what will be the expected maturity amount !!

    Thanks in Advace

  101. varghese scariavarghese scaria says

    Hello sir,

    am planning to take a single premium endowment policy regarding to my daughter. i would like to know your valuable information regarding this

    thanking you

    • Basavaraj Tonagatti says

      Varghese-Let me know first one answer from you. If something happens to you (death) then who will suffer financial burden? Your kid right? Same way if something happens to you (death) to your kid then will suffer financially? No right? Then why insurance for your kid? Better to cover your life risk by buying proper term plan and rest invest in a plan which you feel can easily beat inflation. Sorry using harsh realities, but when you are planning then you need to consider such situations. So I don’t think you are in right move by buying single premium endowment policy.

  102. Sanjib RoySanjib Roy says

    I have purchased an Lic policy from L.I.C.I. table term 14-11(11). It is an endowment policy. sum assured 25000. time 11 years on 28-5-2003. My yearly premium is 2345. What will be my maturity value?,

    • Basavaraj Tonagatti says

      Sanjib-Period is already over and there is no way to think and calculate so many times just for your satisfaction. Hence visit your nearest LIC branch they will inform you the EXACT amount you will receive at maturity.

  103. rajraj says

    Hi Basu,

    I have bought a New Bima Gold LIC for 2 lakhs for 16 years. I understand that there will be money back of 15% at the end of 4th, 8th and 12th year. If the date of commencement is 28/12/2010, when exactly will the money be returned. I am little confused over that. Would it be 28/12/2014 ? But then I will have paid 5 premiums. Please explain. Thanks !

    • Basavaraj Tonagatti says

      Suppose you bought the policy on 28th Dec 2010 then your 4th policy year will complete on 28th Dec 2014. So at the end of this period you will receive your first survival benefit. You are right, you paid 5 installments.

      • rajraj says

        Thank you.

        I use to pay the amount online but don’t see any option to add my account to receive the amount.
        Is there any way I can update my account online or going in person is the only way …

          • rajraj says

            Hi Basu,

            Probably I was not very clear in my question … sorry for that ! and yes the link you shared is really informative and helpful.
            I wanted to know how to update my account with LIC so that they can transfer the money.
            I know they used to send cheques earlier but it is also possible to update account and they do direct transfer to that account.
            Is there any way I can update my account with LIC without having to visit their office ?

            • Basavaraj Tonagatti says

              Raj-Sorry for mis-understanding your doubt. As of now there is no such facility for you to update your banking details online. Hence visit your servicing branch and update the bank details for future money transfer smoothly.

  104. Venkat PVenkat P says

    I enrolled in 2 LIC policies and here are the details:

    1.Plan: Jeevan Tarag (T.NO:178)
    Started in 07/Mar/2007
    policy term:72(premium Payment Term:15)
    Sum Assured:500000

    2.Plan:Bima Gold (T.No:174)
    Started in 28/Mar/2006
    policy term:12(premium Payment Term:12)
    Sum Assured:200000

    Can i stop paying these and surrender the policies or continue these policies. Please advice.

    • Basavaraj Tonagatti says

      Venkat-Stopping or continuing will depend on are you ready to absorb the return of around 7% from these policies if you continue till the end. So let me know how much you are ready for the kind of return? On what base or with what expectation you bought these policies?

  105. saumilsaumil says

    Hi basu,

    I enrolled jeevan saral plan with SA – 500000 , yearly paying premium around 25000 rs.
    however my maturity policy tenure is 35 years… Already paid 9 yearly premiums. i would like to surrender policy post 10 years..Can you calculate how much return i will get?

  106. dipankar pauldipankar paul says

    i have taken LIC JEEVAN SHREE plan-1 ,table no 162. since 2010. with a premium of 6419 rs quarterly and having SA 500000. whats ur opinion that should i continue with the policy or to stop it. if to stop it then when i.e. what will be the perfect time to redeem it.

      • dipankar pauldipankar paul says

        here i am giving you the whole information regarding my policy
        my date of birth is 07.08.1987
        age 24 yrs as on date of policy taken
        date of commencement : 11.03.2011( sorry for the wrong information as on earlier).
        date of maturity : 11.03.2036( maturity term is 25 yrs)
        date of last payment : 11.12.2026.( premium paying term is 16 yrs).

        sum assured for main plan Rs 500000.
        accidental benefit sum assured Rs 500000.

        premium for main plan Rs 6237.75
        premium for accidental benefit Rs. 181.25

        i.e total premium is Rs. 6419/ quarterly

        so please suggest me that whether i should to continue or to stop it.

        • Basavaraj Tonagatti says

          Dipankar-Better to close this plan, as this is typical traditional plan with only difference is, in first five years of plan you will get guaranteed addition. After that based on LIC bonus declaration you will receive the returns. Hence better to stop it once you complete 5 years. I don’t think it will generate more than 7% return in long run.

          • Poorvottar Sampark KrantiPoorvottar Sampark Kranti says

            Sir when you advise someone to close the plan what is ur suggestion?Because closing an LIC plan means only 30% of the premiums paid will be refunded,so 5 years premiums which is already paid if closed all of a sudden then there is a huge loss incurred almost of a lakh.On the next blog you may advise him to invest the same amount in attractive products & for insurance purpose invest in term plans. But its known to everyone that Term Plans are the most dangerous product to buy because their premiums are too low to have a faith on the corporation(especially other than LIC).Also to recieve the death claim,we should not expect our near & dear ones to be harassed by the Insurance Co. which is almost inevitable in case of Term Plans.So closing a plan means what is the next alternative so that a person may recover from such huge loss? Please suggest a meaningful plan & not any cheap term insurance product.Please excuse me for the rude words because I really admire ur financial knowledge.
            Moraghat Tea Estate,Banarhat

            • Basavaraj Tonagatti says

              Poorvottar-I know it is painful to have negative return from closing the plan (But I am unable to your logic like how you arrived at only 30% of premiums will be payable in case of surrender), but committing the same mistake for the life long is not worth. Even if you continue with PPF then you earn and may be compensate the loss what you are getting now. Coming to insurance plan, I don’t feel anything wrong in pricing. When you buy any traditional plan then do you know how much you are actually paying for the life risk your insurance company offering (including LIC)? It is very low part of premium. So if you disclose all facts properly then I don’t think any insurance company have guts to reject your claim. LIC premium is costly not because to create faith among policy holder, but due to other issues like adopting old mortality table, their underwriting rules and some other issues. So don’t be so secured only with LIC. There is someone to guard all which is called IRDA.

              • Poorvottar Sampark KrantiPoorvottar Sampark Kranti says

                For policies which dont have any FAB,Bonus etc & only amt payable as LA & running for 20 yrs…do u expect LA to be 250-350?

                • Basavaraj Tonagatti says

                  Poorvottar-LA rates again depend on policy you bought, age at which you bought, term of policy and premium amount. Hence it is not a wise decision to say that all policies will pay you LA of Rs.250-300.

                  • Poorvottar Sampark KrantiPoorvottar Sampark Kranti says

                    My Policy is New Bima Gold(T-179)
                    Premium:35776(payable yearly)
                    Term:20 years
                    Extended Term:10 yrs
                    Extended Term SA:5,25000
                    Age when bought:21 yrs
                    Present Age:23 yrs.
                    Please calculate the sum of Loyalty Addition as this is the only amount to be recieved from Company’s With-profit business other than the premiums paid(which will be returned to me)

  107. Dinesh CDinesh C says

    Dear Basav

    Another policy which I would like to discuss is Jeevan Shree (T.No.112)
    Policy Term: 15 (Premium Payment Term : 10)
    Sum Assured: Rs.5,00,000
    I took this policy in December 98 and paid a premium amount of Rs.50,468 for the full term.
    The policy has now matured with a maturity value of Rs.11, 87,500
    As a layman, I think this is a good return.
    But as an expert, what do you think?
    Has the policy beaten inflation?


    • Basavaraj Tonagatti says

      Dinesh-This was the best golden product, do you know one this about this plan? None of them new about this plan until LIC declares that it is closing. Suddenly there was a huge rush to buy this product as this policy is attached with high guaranteed bonus rate. So no other opinion from my end about this plan as you will get a definite good return :) Sadly none of current LIC product match to this plan.

  108. Dinesh CDinesh C says

    Dear Basav

    I have taken a Jeevan Anand (T No. 149) in 2004.
    Policy Term 69 (Pemium Payment Term 16)
    I have been regular with my payments for the past 10 years without fail. So 6 more payments to go.
    Please advice if it best to keep up with the payment or let the policy lapse.


  109. Dinesh CDinesh C says

    My LIC Agent has given me the below details about loyalty additions (LA)

    The loyalty additions will depend on the profit LIC will earn out of the funds collected under the plan. For a traditional plan , LIC will invest the funds in Govt. Securities, Bonds & the returns will commensurate with prevailing bank rates from time to time. The loyalty additions will improve year over year depending on the year of investment & rate of interest prevailing during these period. The loyalty additions mentioned in our spread sheet is the expected return keeping in view of the rates prevailing now. Having said that this value can vary according to the rate of return LIC will earn out of this funds in future from Bonds, Govt. securities etc.

    My question is does LIC declare the LA for every related policy each year which you follow until your policy matures to see how its doing?

  110. RijuRiju says

    Dear Basu,

    I have LIC Jeevan Anand which have completed 5 years now. The half yearly premium is Rs. 26,368, sum assured is 10 Lacs. The maturity date is 5th Feb’2030. My Questions-
    1> If I stop paying anymore premium, but do not withdraw the money now and wait till maturity, how much I can expect ?
    2> Will it make sense to continue it because of the fact that it has an Insurance coverage even after maturity ? Or will it be better to stop paying anymore premiums and start afresh Bank RD or Invest in SIPs and take a term insurance plan now ?
    3> If I withdraw the money now LIC said I will get 1 Lac, 69 K only, whereas I have already paid 2 Lac, 63 K. I have already closed all other traditional investment cum insurance policies, but continuing with Jeevan Anand as many people said it is better as the insurance will continue for life long ? But as an expert what will you suggest ? If I have to incur loss at this time, but by investing the same money till 5th Feb’2030 in some other investment mode (RD, SIP etc.), if I am likely to get a big difference in profit, I will close Jeevan Anand and chose any other modes even if it is a big loss at present.

    Request you early response please.
    Appreciate your suggestion whether to continue or discontinue keeping in mind present loss and long term profits.


    • Basavaraj Tonagatti says

      Raju-1) It will be in paid up condition and you will loose insurance coverage too as the policy considered “LAPSED”. This amount will no longer participate in future LICs benefit. Regarding valuation, contact your LIC branch. They have calculation and based on that they will give you the exact amount.
      2) In what way it fulfills your needs? Whether the insurance coverage this plan provides suffice your insurance need? What if you die today then for how many years your dependents will survive after the receive of maturity from policy? Please review your thoughts on this. Also when we consider return, then too it is too bad to get around 7% return by investing so long like 15-20 years.
      3) If you are inclined to continue then treat this as any low yielding product and it must be around 10% of your portfolio investment. I know by surrendering now you may receive less. But committing the same mistake for life long is not worth than paying penalty now and start a fresh. Decision is your’s

      • RijuRiju says

        Dear Basu,

        Thank you for your clear response, really appreciate. I think my attraction towards LIC Jeevan Anand is more emotional than practical. But at the same time I do not want to commit the same mistake by choosing another similar product available in the investment market. I was thinking about bank RD with close to 8.5 % return for 10 years, but the bank person is suggesting a better option (as per him)-
        “HDFC Life Sanchay -Guaranteed Savings Insurance Plan”
        Features are :
        Non Participating Traditional Plan with Guaranteed Benefits
        Limited premium paying term of 5, 8 or 10 years
        Flexibility to choose the policy term of 15 to 25 years
        Guaranteed Additions of 8% or 9% of Sum Assured to your maturity benefit, accrued at simple rate for each completed policy year
        The total Guaranteed Maturity Benefit will be between 220% to 325% of Sum Assured provided all due premiums have been paid
        The flexibility to choose premium payment frequency i.e. monthly/quarterly/half-yearly/annually
        EMI available for HDFC Bank Credit Card holders.

        Now the question is is this not very similar to LIC Jeevan Anand – another insurance + investment plan

        Rather than this why not no take term insurance and invest in RD + SIPs per month ?

        Your comments please.


        • Basavaraj Tonagatti says

          Raju-HDFC guys are typical insurance agents and they are more dangerous than these insurance agents. How they are luring is the example that for a one investment they are promoting one more product called EMI :) Simply superb selling trick. My suggestion will be of what you said in last line of comment “Rather than this why not no take term insurance and invest in RD + SIPs per month ?”. Never run behind product or agents or the “New Avaatar” of so called relationship managers of your bank. Instead first understand your requirement then finally go for product. Never match your goal to product you are buying, instead product must match your goals.

  111. S.KarupuS.Karupu says

    Sir. I am having LIC Endowment policy ( Table 88) Quaterly Premium Rs 1175/- Term – 25 years. Matured during March’14
    Will you please tell me the total amout with bonus and other benefits

  112. PrabirPrabir says

    Sir one thing I’ve noticed is that for most of the queries you’re replying that for traditional money back plans return will be somewhere close to 6-7% as per CGAR calculator.
    Now my Policy details:
    Plan:New Bima Gold(T. 179)
    Comm Date:25/08/11
    Policy Term :20 yrs
    Now if I dont want to go into the complications of how much will be the accrued bonus & all..& simply calculate 6.24% as per ur theory can I expect 2,400,000 as money back?
    PS:Within the time period LIC will return me 4,20,000 in various installments so that I can pay the premiums with those installments. So Final amt can be close to 20L?

    • Basavaraj Tonagatti says

      Prabir-New Bima Gold is money back. Hence if we consider the cash flow it generate by paying survival benefits and the last payment (which includes bonus and remaining survival benefit) then definitely it will be less than 7%. So in that case you need to consider the cash flows you received during your survival. Hence plainly calculating that at end you will receive 7% return without considering the money received during survival is wrong. If my answer is satisfied you then OK, otherwise I will discuss further.

      • PrabirPrabir says

        Sir as already I told you that during the policy tenure at the 4th,8th,12th & 16th year,LIC will repay Rs 105k each totalling upto if I deduct this amt from the SA(1050k),then it adds upto 630k.This is the final maturity amt I’m supposed to get.Now considering 41 bonus per 1000 SA,how much it can add upto? Is this policy worth to be continued?Actually the policy was started by my parents through an agent & they’ve already paid the total premiums for the 1st 4 yrs..Now it is from 2015 that I’ve to start giving the premiums…Also when will I recieve the first cheque of 105k?Is it 2015 or 2016?

        • Basavaraj Tonagatti says

          Prabir-Based on your data (Policy Term 20 yrs and SA Rs.10,50,000), You are eligible to receive Rs.1,05,000 on completion of 4th year, 8th year, 12th year and on 16th year. On maturity you will not entitled to receive the left out SA part i.e Rs.6,30,000, instead it clearly mentioned in this plan that on maturity you will receive the total premiums paid during the policy period, less survival benefit already paid+LA. So in your case, you paid total premium of Rs.7,15,520 (Rs.35,776*20 yrs). So at maturity you will receive Rs.2,95,520 (Rs.7,15,520-Rs.4,20,000)+LA.
          Now coming back to your presumption of Rs.41 bonus (which is not payable in this plan) is not required for consideration. Because unlike bonus which will be declared on yearly base and will be included to your policy yearly, LA is one time payment which is on SA. Hence your calculation not holds good. Also as of now LIC not declared any LA for this plan. But by considering the typical traditional plan LAs, we may presume that return from this policy also around 6% to 7%.
          It is now your call to decide, whether to continue or stop. In my view, investing for such long period and getting around 7% return seems to be totally a negative investment idea.

          • PrabirPrabir says

            so other than Loyalty Addition there is nothing much which I’ll get out of this policy !! not even the SA neither any bonus..!! but I can clearly remember the agent had told something around Rs 12-16 lac in maturity…also 6-7% means on which basis are u calculating? is this as per the CGAR calculator? Then based on CGAR if I suppose 6.24% returns also,it stands close to 24L,but ur last reply shows only 2,95000+LA? So which one should I consider…Is there any official LIC helpline who can clearly sort out my prob? Their website doesnt have any such helpline :(

            • Basavaraj Tonagatti says

              Prabir-This is the reality of this plan. You can check it out with LIC helpline or read fully the bond document which LIC sent you. All details about this particular plan will be available on Bond document itself. Regarding my assumptions on return generation from this plan, when you invest somewhere and your middlemen himself eating around 35% in first year, 7.5% in next second and third year and after that 5% per year till the end of policy period, then do you still feel that this product will generate at least 7% return, being a traditional investment style of LIC?? Here I am disclosing only agents commission but it also includes some other expenses which no endowment or traditional plan will disclose fully like current ULIPs. So in my view, traditional plans are most dangerous than the old ULIP plans when it comes to expenses. Think and decide.

              • PrabirPrabir says

                Would you suggest me to leave this plan after receiving the first payout & invest in Postal Life Insurance? in PLI,at least 10 lac is guaranteed for 10 lac SA(premium amt only 25k for 20 yrs).Though Bima Gold is having extended life coverage of 10 yrs.

                • Basavaraj Tonagatti says

                  Prabir-Choice is your’s and I am not expert on PLI. By having separate term plan from now to till that extended term will suffice to come out of this mentality that because of this extended cover you need to pay hefty penalty of getting low return.

  113. Roger BinnyRoger Binny says

    Hi Sir,
    As I am paying Rs.50k p.a to my personal ppf account and continuously running a RD account, is it advisable to go for any LIC policy. Because I only want to invest for savings purpose and I am confused because I am not sure weather these policies give more returns(>8.5%), than I get on ppf or rd account?

    • Basavaraj Tonagatti says

      Roger-Your PPF and RD will fetch you more than LIC traditional plans. Hence I don’t think it is necessary to go with any of such plans. Instead I suggest you have pure insurance to cover your life risk. Then based on your financial goals start investing.

  114. Gobind BhagatGobind Bhagat says

    I want to invest Rs 1000 – Rs 2000 every month, please advise where should I invest so that I can get the maximum return after 15 – 20 years . I am 32 years old now.

  115. Lakshmi. SLakshmi. S says

    Dear Sir,

    I have a New Jeevan Dhara / New Jeevan Suraksha Plan (with Profit) : The details are:-
    Table / Deferment period : 147/29
    Notinal cash option : 395000
    Premium: 10000
    Date of vesting annuity : 2034
    Could U please help me in arriving the Pension Amount post the term after 29years in case I dont avail Cash Option.
    Thanks & Regards

  116. Surendra DahalSurendra Dahal says

    My LIC Plan = 165, Term = 20, D.O.C. = 02/06/2012, Premium = Rs 3,063.00 (QLY), Sum Assured = Rs 2,50,000.00
    Please advise the approx amount that I’ll be getting after my policy matures.

  117. siddalingappasiddalingappa says

    Dear Basu ,

    I have taken

    Jeevan anand plan -15 years/3886 Half yearly . –> 1 lac sum assure.

    Jeevan Surabhi – 21 years / 10188 -Yearly –> 2 lac sum assure.

    Money back – 15 years /20184 -Yearly –> 2 lac sum assure.

    After reading your article on this subject , Now i am releasing i am paying more , What i am getting after maturity.

    Kindly advise me. What I have to do now?

    • Basavaraj Tonagatti says

      Siddalingappa-The solution in front of you now is, either to continue or close the plans and start a fresh with better understanding of each product you are investing. Let me know which you want to proceed.

  118. Roshan WRoshan W says

    Sir I have 2 plans –

    1. Jeevan Samridhi T-156; Policy Term – 20 yrs, Premium – 10,447 (Commencement – 2005) SA – 1,25,000
    2. Bima Gold T-174; Policy Term – 16 years, Premium – 14,220 (Commencement – 2006); SA – 3,00,000

    Could you please advise when the above policies will mature and their maturity value, the ROI. Also if there are any interim benefits (like bonuses etc.) and any suggestions / observations that you’d like to share –

    Thanks in advance –

    • Basavaraj Tonagatti says

      Roshan-Both are typical money back traditional plans. You can expect around 6% return from both the plans (may be lesser in case of Jeevan Samridhi, due to higher premium payment). Maturity will be at the end of policy term.

  119. PankajPankaj says

    Sir I have a lic plan (the endowment assurance policy

    commencement date = 28/12/2000 age 13 (-)
    sum assured = 150000
    Policy term = 16 yr
    premium = 9,172

    What will be the maturity amount and how to calculate FAB

  120. JyothsnaJyothsna says

    By reading your valuable suggestions, I thought this is the right place to ask my question.
    I have a Birla sun life gold plus insurance policy. they have mentioned Sum assured amount 3,75,000/- for premium of 75000/- per year for 3 years and I have to wait till 8 yrs completed. so my question is – is this sum assured amount paid only on death case or also on maturity of the plan?

  121. Sanjay PadalkarSanjay Padalkar says

    POLICY START DATE-28/02/2005
    PREMIUM-11378 (Yearly)
    SUM ASSURED=100000
    Term -11 Years
    PLS CALCULATE MY MATURITY AMOUNT and when i got maturity amount

  122. SunilSunil says

    I have taken the following policy,
    Jeevan Shree-112
    POLICY START DATE-13/02/2002
    SUM ASSURED=500000
    Policy paying term-16years

      • Deepak NigamDeepak Nigam says

        HI Basu,

        I’m a silent reader of your blog and just trying to learn before investing :).

        I read you comment for the same plan above, where you ave mentioned that JEEVAN SHREE was a good plan presented by LIC. Also, from the example what Mr Dinesh C has said above that by paying Rs. 50,468 for the full term, he received Rs.11, 87,500 on maturity, which seems a very good amount. then how there will be only 6-7% in this. I understand that there could be a difference due to single full payment and part payment but don’t you think that this difference is too high :)

        Please help me in understanding the same.

        Deepak Nigam

        • Basavaraj Tonagatti says

          Deepak-The plan which I said best was the old Jeevan Shree plan which have guaranteed addition of Rs.75 per year per Rs.1,000 SA, which you will not get from any existing plans. After closure of this plan (I think in the year of 2000) they launched New Jeevan Shree where you will get guaranteed addition of Rs.65 per Rs.1,000 SA per year for the first five years. Afterward this policy bonus will depend on the LIC declaration. Hence I said old Jeevan Shree is good and you can continue (as policy is about to close and you will not get such return from existing plans). Again I said New Jeevan Shree as bad because I felt there is nothing special to continue in this plan.
          I hope you understood the difference now :)

          • DharmeshDharmesh says

            Dear Basav

            New Jeevan Shree with GA and LA
            SA 500,000
            Commenced 20-03-2003
            Plan 151/15/10
            Premium fully paid up

            Is it better to foreclose now or wait till maturity date 20-03-2018 to take advantage of additional GA & LA?
            What about tax on foreclosure pls?

  123. Lakshmi. SLakshmi. S says

    Dear Sir,

    I have a New Jeevan Dhara / New Jeevan Suraksha Plan (with Profit) : The details are:-
    Table / Deferment period : 147/29
    Notinal cash option : 395000
    Premium: 10000
    Date of vesting annuity : 2034
    Could U please help me in arriving the Pension Amount post the term after 29years in case I dont avail Cash Option.
    Thanks & Regards

  124. Arti KudalkarArti Kudalkar says

    POLICY START DATE-23/11/2013
    PREMIUM-2295 (Monthly)
    SUM ASSURED=900000
    Term -25 Years

  125. kamalkamal says

    i took jeevan saral (Table No. 165) plan. i took this plan for ten years. can you please tell me how much money i will get after ten years.
    i paid premium half yearly and my premium is 6065Rs.
    My age is 27 years old. currently i paid only two premium.

  126. Rajiv KumarRajiv Kumar says

    Hello Mr Basu,
    I have following Jeevan Sree Policy , could you please let me know how much approx maturity amount I’ll get on maturity.
    Policy Name: Jeevan Shree without Profit (with Accident Benefit)
    Sum Assured: Rs 500000
    Yearly prm: Rs 24666
    Table : 112-25-16
    Start Date: 01-09-2001
    Maturity Date : 01-09-2026


    • Basavaraj Tonagatti says

      Rajiv-I hope this plan is New Jeevan Shree, where in LIC providing you guaranteed addition only for first 5 years. Afterward bonus will be based on LIC performance. So I don’t think this is a unique plan which can generate you more than around 7% return. This is a typical traditional plan.

      • Rajiv KumarRajiv Kumar says

        I Think its old plan as new plan came in 2002 and I invested in 2001, but I dont understand anything from the certificate other than table no 112-25-16 and Policy Name: Jeevan Shree without Profit (with Accident Benefit) . Can you pls let me know rough maturity amount.

        • Basavaraj Tonagatti says

          Rajiv-Yes, you are right. This is the old Jeevan Shree where you are entitled for Rs.75 GA per Rs.1,000 Sum Assured per year. So better to continue, as you will not get such guaranteed amount for such long period for any of the current plans.

  127. amit kumar singlaamit kumar singla says

    Sir I have taken Jeevan Aastha for Sum assured Rs 25000 for five years in Jan 2009.Now it is under process of Maturity.What will be total maturity Value

  128. MukeshMukesh says

    Dear Sir,

    i have taken jeevan saral plan as on 30 december2013

    Annual installment Rs.12000/-


    kindly advice me regarding Maturity Amount bonus etc

  129. MukeshMukesh says

    Dear Sir,

    i have taken jeevan saral plan as on 30 december2013

    Annual installment Rs.12000/-

    kindly advice me regarding Maturity Amount bonus etc

  130. rishikeshrishikesh says

    POLICY START DATE-28/01/2007
    SUM ASSURED=100000
    MATURITY DATE-28/07/2021

  131. rishikeshrishikesh says

    Sir ,
    maine jivan anand policy 2007 me liya hai 15 saal term hai 3817 premium half yearly hai maturity 2021 hai total amount kitna milega pls sir

  132. SreejeshSreejesh says

    Dear Basavaraj,

    I have taken 4 LIC polices. I am 34 years old ( DOB : 05/09/1979 ) Details are as under

    1) Plan: Jeevan Shree -1 ( Table No: 162 )
    DOC: 27/02/2009
    Sum Assured – 5,00,000
    Policy Term: 15
    PPT: 8
    Premium: 56,588 (yearly)
    Vested Bonus 82,000 ( as of date )

    2) Plan: 48 ( The Endowment Assurance Policy- Limited Payment )
    DOC: 28/09/2011
    Sum Assured: 10,00,000
    Policy Term: 15
    PPT: 10
    Premium: 88,725 ( yearly )
    Vested Bonus: 40,000 (as of date)

    3) Plan: Jeevan Anand ( Table No: 149 )
    DOC: 09/05/2008
    Sum Assured: 2,00,000
    Policy Term: 74
    PPT: 17
    Premium: 13,337 ( yearly )
    Vested Bonus: 33,600 ( as of date )

    4) Plan: Jeevan Anand ( Table No: 149)
    DOC: 25/04/2010
    Sum Assured: 5,00,000
    Policy Term: 72
    PPT: 21
    Premium: 25,634 ( yearly )
    Vested Bonus: 47,000

    Sir, What is your opinion of the above 4 policies ? Can you please tell me what will be the maturity amount for all these policies ? Of all these policies, which are eligible for GA ,LA , FAB in addition to sum assured & bonus ? Are these these policies good and profitable enough to continue with ? If not so, which policies should I give up / discontinue ?
    Expecting your reply

    Thanking you in advance

    • Basavaraj Tonagatti says

      Sreejesh-None of the plans will fetch you more than 8% returns. You need to your homework going by the above procedure I mentioned to know how much you can get at the end. Only Jeevan Shree-1 will be eligible for GA for first five years. Regarding FAB, I don’t think it is a big game changer in your return. My suggestion will be to go through the policy bond which is with you and all details about the same is mentioned over there. If I say none of the policies will be good then will you discontinue? On what bases you bought these policies? Will they serve any purpose to your financial life? Think and answer to these questions, then we discuss further.

  133. Mukesh UniyalMukesh Uniyal says

    Hi..I have taken LIC Jeevan Saral (T. No. 165) with premium 3032 hly for a term of 35 years. What will be the maturity amount after 35 years?

    Please reply.
    Thanks in advance.

  134. KannanKannan says

    Dear Basavaraj,

    Thanks for your quick response.

    CTC for Monthly only. My Retirement Age is 60 and it will comes by May 2019.
    One LIC Policy Plan 88/20 for Rs.25000/ – Matured and got money of 45000/- Plus savings available 80000/- with me
    Another LIC Policy in my name with Plan 88/20 for Rs.75000/- Commence from 1997.
    I need to get a nominal amount of Pension for my survival and need a policy for my son in future.

    Please do the needful.

    Thanks & Regards

    • Basavaraj Tonagatti says

      Kannan-Goal seems too short, left out time is just 6 years from now (60 Yrs-54 Yrs=6 Yrs). So I don’t know how you can plan. But apart from these investments do your employer have any option of pension? Forget about your son’s future. You are in the wrong situation of retirement planning. Please reply to my comment.

  135. KannanKannan says

    Dear Sir / Madam,

    Reg: Good Policy for our Future & Pension

    I completed 54 Years(May 1959) and a family of four as below.

    1. Mother – Aged – 78 Years
    2. Self – Aged – 54 Years
    3. Wife – Aged – 53 Years
    4. Son – Aged – 16 Years

    I need to take two good policies for me
    One is for my Pension and another is for my family.

    Request you to suggest me Good Policy to suit for my Salary.
    Now my CTC around 20000/-

    Thanks & Regards

      • KannanKannan says

        Dear Basavaraj,

        Thanks for your quick response. My Retirement age will be at 60 in 2019. CTC is for monthly.

        Last Month one of LIC Policy in Plan 88/15 Matured and got an amount of Rs. 44000.00 and one policy in 88/20 commence from 1997 for Rs.75000/- in force.

        My savings at present will be around 90000/- and wants to invest the same.

        I need a regular income after my retirement and also to give a policy to my son for his future. Kindly do the needful.

        Thanks & Regards
        Kannan G

  136. Ravikumar KRavikumar K says

    Hi Basu –

    Thanks for the detailed write up on the LIC return calculation. My additional query is, let us i have taken a policy of 10.0 lacs with BONUS option with a period of 25 years. Will i be getting my return after 25 years as per the below calculation?


    Ex: If I have paid 9 lacs towards premium and 9.0 lacs got accumulated in BONUS along with 3 lacs in LB, will i be getting 21.0 lacs after 25 years?

    currently i have 10.0 lacs insurance (endowment policy) and paid close to 4.0 lacs premium since 2003 and have got 4.5 lacs in BONUS component.

    • Basavaraj Tonagatti says

      Ravikumar-If you plan to surrender the policy before the term of the plan then it is treated as surrender and calculation will be done based on the surrender value calculation formula. If you end till maturity then yes, you will be entitled to SA (not the premium you paid)+Bonus+ LA or FAB (if eligible for that plan).


    i want to surrender my lic policy . i want to knoe my surrnder amount


  138. G IyerG Iyer says

    Hi Mr. Basavaraj,
    I need your valuable guidance on two my LIC policies which I wish to surrender :
    A. Endowment Policy (Table No. 14), SA-6 Lacs, Maturity period is 30 yrs. DOP – 10/2006. I have paid total premium of Rs. 143100/- (close to 7 yrs) and vested bonus is shown as 172800.
    B. Bima Gold Policy (Money Back), SA-10 Lacs, Maturity period is 20 yrs. DOP – 10/2006. I have paid total premium of Rs. 264750/- (close to 7 yrs) and i have withdrawn Rs. 1 lac after the expiry of the 4th yr.

    Kindly advise what would the surrender value of the above policies. Further, whether it will be more beneficial just to stop paying any more premiums and wait until maturity and in such case, then what will be the maturity amounts.


    • Basavaraj Tonagatti says

      G Iyer-For exact surrender values, I suggest you to visit any nearest LIC branch. They will guide you in a better way. The second option you are asking is called paid up value. Again it depends on the calculation. The decision to have paid up and surrender will be based on which one is favorable for you. So I am unable to advise you.

  139. AjinkyaAjinkya says

    @Sandip… you cannot have a SA of 5L for a premium of just Rs. 1.39L over 10 years in this policy. Currently, for 20 years, Jeevan Anand has a SA of 5L for a premium of Rs. 5L over 20 years.

    @Basavaraj … your calculations for the return and the future payment have gone haywire. 13.16L return on 1.39L investment over 10 years is a whopping 40% p.a. return compounded. Also, your bonus calculation itself is wrong. @4.8% of 5L = 24k per year = 2.4L and not 8.16, as you assumed.

    • Basavaraj Tonagatti says

      Ajinkya-I suggest you to read once again about the data provided Mr.Sandip. Term of the plan is 34 years, SA Rs.5,00,000 and yearly premium of Rs.13,900. I calculated the return what he will receive at the end of policy term i.e 34 years. Now coming back to bonus calculation, Rs.24,000 per year is correct and you need to multiply this with the term of the policy which is coming at Rs.8,16,000. Now with a yearly premium of Rs.13,900 for term of 34 years if return is Rs.13,16,000 then let me know how much compounding return this product will generate? Hope I cleared what I did :)

  140. sumisumi says

    Hi Basu,

    I have a Endowment assurance plan from LIC with PPT as 16 yrs and SA of 8lac. Currently i’m paying a premium of 50k yearly and after paying since 3years i’m seeing the vested bonus accumulated in my policy is around 33k. Recently I saw that LIC is withdrawing this policy from DEc,2013. I sit due to the reason this policy yields less bonus. i’m worried if the returns will be worthy to keep on paying premiums for 13 more years. Please suggest if i should continue with this or get a new policy which will yield more benefits.

    In the case of me sticking with the Endowment plan can you please help me with an approximate bonus that I might get at the end of 16years. When in enrolled in 2011 the agent informed the total amount will be around 12lac including SA. Please let me know if the amount given by him is right or it might reduce.


  141. rashmi sharmarashmi sharma says


    I am 38 and I have a 13 year old daughter.

    I have 5 policies , 4 from LIC and 1 from birla sunlife. I feel that these policies are not enough to hedge
    against infaltion and will not be able to fulfil my needs for my child education and other things.

    I Need your advise if I should :

    1) Surrender these policies ?
    2) Take term plan (which one is most reliable)?

    Following are the policy details:

    POLICY START DATE:14/02/2005
    SUM ASSURED:200000
    MATURITY DATE:14/02/2022

    2 ) JEEWAN AASTHA (195)
    POLICY START DATE:07/01/2009
    PREMIUM: 48975 -ONE TIME
    SUM ASSURED: 50000 ( Rs 300000 in case of death)
    MATURITY DATE :07/01/2019

    POLICY START DATE :28/07/1997
    SUM ASSURED:100000
    MATURITY DATE :28/07/2017

    4) JEEWAN CHAYA 103( with profits+ acc benefits)
    POLICY START DATE :28/04/2003
    SUM ASSURED : RS 100000
    DATE OF MATURITY :28/04/2023

    POLICY START DATE :28/12/2009
    DATE OF MATURITY : 01/12/2018



    • Basavaraj Tonagatti says

      Rashmi-None of the above said policies will give you more than 7% return. So they are totally redundant when you consider the education and marriage inflation of your kid. The best option is to surrender them. But at the same time never ever forget to buy pure term plan immediately. Ideal coverage should be 15 times of your yearly income (I am saying ideal, but it depends on individual financial life). As you mentioned your daughter is currently 13 years and for higher education you have only 5 years left. So you need to accumulate good enough within these 5 years. Goals is short hence equity investment is not a wise decision. Instead more saving to secured products will be the answer to achieve this goal. Regarding opting term plan, you can choose anyone from ICICI, HDFC,SBI or LIC’s offline plan (costliest among). But buying online will be cheaper for you.

      • rashmi sharmarashmi sharma says

        hi ,

        Highly appreciate your prompt guidance.

        Please suggest should I surrender BIRLA SUNLIFE as well, even though the return is around 84,000 against 1,00,000 which has gone towards the policy

        Also any child plans you have on top of your mind for my 13 yr old kid for education


        • Basavaraj Tonagatti says

          Rashmi-Please provide me the exact name of Birla Sunlife Insurance product then only I can guide you. As I mentioned in the above comment, the time left for your kid’s higher education is too short. Hence stay away from these plans and once you receive the surrender amount then start a fresh investment in any non risky product with a time frame of 5 years.

          • Rashmi sharmaRashmi sharma says

            Hi dear ,

            Following are the details of birla Sunlife policy:
            Birla sublife insurance classis life premier plan( CL PR 2006 BASE WHOLE LIFE PAY10)
            Policy date : 28th dec 2009
            Investment fund option : maximiser
            Annual Ploicy premium : Rs 25000
            Sum assured : 7,50,000
            It is a unit linked life insurance policy
            Maturity benefit : Fund value

            I visisted their off yesterday ,as per them i will get around 86000 after dedcutions.

            Please suggest what shall be a non-riskey product which I should take?

            Do u mean that i should invest in PPF( i have invested in PPF as well) / FD/ ?


            • Basavaraj Tonagatti says

              Rashmi-This is the whole life plan but not a child plan. I don’t know how your agent sold you. Coming to plan features, expenses looks high and it cost you when you receive returns. Premium allocation charges are 7.5% in the first year, 6.5% in the second year and from third year onward 5%. So in my view let policy complete 5 years then withdraw the amount. Because there are no discontinuities charges from 5th year onward.

  142. Kailash MouryaKailash Mourya says

    Dear Mr. Basu,

    I want to Purchase Jivan Saral Policy monthly Preium Rs.2000/- My age is 44 year Old & Policy term is 25 Year, how much amount I will get at the time of Maturity

  143. HemanthHemanth says

    JEEVAN ANAND – Instead of investing a lumpsum of 4lac for 18 yrs I am planning on investing 4 x 1lac for 16,17,18,19 yrs ..Is it advisable and any way beneficial??

  144. JayakrishnanJayakrishnan says

    Thanks for explaining the Insurance terms in simple manner.
    I need your advice on taking a child plans.My Son is two year old and I want to make his future secure.Somebody advised me to go for KOMAL JEEVAN and others ask to opt Child career plan.I would like to have your comment on this.BTW in LIC sites there is column “Min Maturity Rs” ?.Is this a Guaranteed amount I will get on completion of maturity date.

    Waiting for your advise.

    • Basavaraj Tonagatti says

      Jayakrishnan-None of the plan mentioned by you can actually fulfill your kid’s education or marriage expenses. Reason for my such wild claim is, return from such policies are around 7% and they never beat the education cost of inflation. Minimum maturity is the minimum amount you will get from this plan. Will you share the link of the same to look into it once again.

  145. SandipSandip says

    Hi Basavaraj Ji,
    First thanks for your valuable guidance on such complex subject — insurance & investment.
    I have a LIC policy ‘Jeevan Anand’, purchased on 2004 at the age of 24 for SA of Rs. 5,00,000 with term of 34. Till date I have paid all premiums (Yearly premium of Rs. 13,900). LIC portal shows my vested bonus is Rs. 2,11,700.
    On reading sentiments against ‘Jeevan Anand’ for its low yielding product as investment as well as insufficient insurance value from this as well as from other platforms, I find myself in confusion. You are heartily requested to put some light on my following queries:

    1) Considering total paid premium of Rs. 1,39,000 & vested current bonus of Rs. 2,11,700, how much returns(in %) this policy made as on date? & if this amount of bonus add consistently, what will be the returns (in %) after maturity?

    2) I recently bought AVIVA term insurance for Rs.1 Crore. I am thinking to buy health insurance for family also. Till date, I have not bought any investment policies other than CPF. Considering this, should I surrender this policy & invest in other good investment products or to make it paid up. In both cases what is my loss.

    Please suggest & help.
    Thanks in advance.


    • Basavaraj Tonagatti says

      Sandip-Below are my answers.
      1) Misconception about this realized bonus is that, if you surrender this policy today then you will not get the full value of accrued bonus+SA or paid premium. Also it is not compounded. Yearly they just keep it aside in your account and will pay you at maturity. Hence calculating how much your return from this policy will not hold good. So we can’t assume that today LIC will give you Rs.1,39,000+Rs.2,11,700 or we can’t assume that it will give you Rs.5,00,000 (SA)+Rs.2,11,700. But considering the bonus trend of Rs.48 for more than 20 years plan we can definitely presume the future payment after maturity of 34 years. Which stands to be Rs.5,00,000+Rs.8,16,000 (Bonus @ Rs.48 per Rs.1,000 SA per year)=Rs.13,16,000. Return on investment will be 5.53%.
      2) Aviva term insurance is a good choice. But which policy you want to surrender? Jeevan Anand or Aviva Term Insurance? If Jeevan Anand then my suggestion will be YES. For Aviva no surrender value as it is a pure term plan. So continue. Regarding loss calculation, first you ask for surrender value by visiting your nearest LIC branch. Then you are in a better position whether you are in loss or profit.

      • AjinkyaAjinkya says

        Guys, please recheck your numbers!

        As on date, Jeevan Anand gives 9L Sum assured for 10L invested over 20 years (i.e. 50k per year for 20 years). You are saying that you have been promised 5L Sum Assured for just 1.39L over 10 years (13.9k per year for 10 years).

        If your total is 13.16L for a total investment of 1.39L over 10 years, then you’ve already made a killing… your return is not 5.53%. Instead its a whopping 40% compounded per annum.

  146. Kishore MKishore M says

    Hi BasavaRaj,

    I am 27 years old with 6.8 LPA salary. I am saving 55,000 yearly in the form of EPF. I don’t have any savings apart from this. I have health insurance offered from my employer. I wish to take an insurance policy for tax saving purpose. I can invest around 30,000 yearly purely for tax saving purpose.

    Can you share the best policies? Apart from insurance, how I can invest money for better earnings targeted for 15-20 years?

    • Basavaraj Tonagatti says

      Kishore-So your main purpose of buying insurance policy is only for tax saving right? Then a big NO. Please do understand you have left the option of Rs.45,000 for Sec 80C. You can easily achieve it by proper planning. The only insurance I can recommend is pure term insurance of around Rs.1 Cr (recommending by your earning figures), which I think will not cost you more than Rs.10,000 per year. Rest diversify your investment based on your financial goals like PPF (not EPF), Bank FDs or equity mutual funds.
      Health Insurance-Currently good that your employer is providing you. But what if in a future employer cancel this facility or new employer not providing this facility? Have your own health insurance for you and your family. Never depend on employer health insurance.
      Create An Emergency Fund of at least 6 months of your expenses into some liquid fund. Then start thinking about investing.

      • Kishore MKishore M says

        Thanks for your prompt reply. So how can I fill the 45,000 gap in 80C without any life insurance policy?

        One of my friend suggested me to choose Jeevan Anand policy(149) with 5,00,000 SA and 21 years policy period. Can I have your thoughts on this?

        Regarding term policy, I have seen around 12,000 as the premium for 50 lakhs from LIC.

        Can you suggest me the right term policy vendor with good claim settlement history?

        • Basavaraj Tonagatti says

          Kishore-You can buy a term plan online. LIC has that plan but the problem is costly because of the agent’s commission and some other issues. Hence my suggestion will be to buy it online either with HDFC, ICICI, SBI or of your choice. Start PPF (maximum yearly contribution is Rs.1,00,000). But don’t over invest here also. You may also opt for ELSS for your long term goals as well as tax saving avenue.
          By doing this, your insurance need will get fulfilled and you will have diversified investments for your long term goals. Again I am cautioning you that you must include both taxes as well as your financial goals into each investment.

  147. Anil KumarAnil Kumar says

    Dear Basavaraj,
    Thanks for the information. So what i do should i continue this policy or discontinue after 5 or 10 years. Plz suggest me.

      • Anil KumarAnil Kumar says

        So sir where i invest our money.Could i invest in PPF OR FD.

        Dear sir,
        I want to know my another policy.Sir, My age is 30 years. I have invested Rs.15608/- per year(3902 Quartely) in the Jeevan Ankur Policy for a term of 21 years( For our kids) on a sum assured of Rs.4,00,000/- at this age. I paid only first premium in this policy. Could you please say me the approximate amount i will get on maturity also suggest me is it best policy for return or not.

        • Basavaraj Tonagatti says

          Anil-You can invest some % of your portfolio into such fixed products like PPF or RD. But do remember that equity is the only asset class which have power to beat inflation in long run. So my suggestion will be to start investing monthly in a well diversified large cap mutual fund. With combination of PPF (tax efficient like LIC plans) or RD (interest earned is taxable)+Mutual Funds in equity will actually earn you more than these LIC plans. But the important point before cancelling these LIC plans is to have a term insurance for SA equal to 15 times of your yearly income.

          Apply the same comment for your another policy too :)

  148. Anil KumarAnil Kumar says


    • Basavaraj Tonagatti says

      Anil-Even if we consider as you will receive Rs.10, 00,000 then the return on your quarterly investment will be less than 6%. So think twice before proceeding further that with the kind of a return from this policy, will you able to fulfill your kid’s educational or marriage basic needs? If we consider inflation of 6% then return from this policy will ZERO (6%-6%).So you need a serious review of your investment.

  149. Anil KumarAnil Kumar says

    Sir, My age is 30 years. I have invested Rs.15608/- per year in the Jeevan Ankur Policy for a term of 21 years on a sum assured of Rs.4,00,000/- at this age. Could you please say me the approximate amount i will get on maturity

  150. Kotesh PKotesh P says

    Dear Basavaraj,

    I have following LIC policy. I paid 3 installments. Do you know what is best thing to do with this policy? Continue again Vs Surrender?

    Jeevan Anand With Profits (149 ) Tenure :: 16 year :: Yearly Premium = Rs. 1,82,200.00 Commencement Date : 12/24/2008

    Vested Bonsus: 312500

    I appreciate your reply ASAP.




  152. Anubhav KumarAnubhav Kumar says

    Dear Mr. Basu Nivesh,

    Greetings !

    I have two insurance from LIC

    1. Jeevan Anand With Profits (149 ) Tenure :: 21 year :: Yearly Premium = Rs. 25464 Commencement Date :: 05/08/2008 Maturity Date :: 05/08/2028.

    2. Jeevan Saral With Profits ( 165 ) Tenure :: 20 Year :: Yearly Premium = Rs. 24020 Commencement Date :: 31/08/2011 Maturity Date :: 28/08/2031

    Now my main concern is how which will i receive when these policy matures. Also please guide me shall i continue with them or discontinue ..

    Please guide

    Thanks & Regards


        • Basavaraj Tonagatti says

          Anubhav-Wow :) Will they give in official writing that they will definitely generate a 8.5 % return and expecting 10% from these products? I will challenge that they will not. They may show you the illustrative examples by considering 8% and 10% returns (which is according to IRDA guideline), but it is only for illustrative purpose but not to claim that they will definitely generate.

  153. raj kumarraj kumar says

    Dear basuNivesh,

    I have seen a valuable suggestions about JEEVAN SARAL.
    I have taken endowment-14 LIC policy in year 2000 for 14 years SA 40,000/-, it is going to mature in NOVEMBER-2014. What is the amount will get on maturity.

    kindly give details.

    Best regards,


  154. bhaskarbhaskar says

    suggest me a good plan for my mother she is 59 yrs, i can pay maximum 50,000 to 60,000 yearly what will be the return and etc please let me know in détails.

    • Basavaraj Tonagatti says

      Bhaskar-If I understand PLAN mean any INSURANCE PLAN, then a big NO. Life insurance is required to someone who have financial dependents. In my view I don’t think someone is dependent on your mother financially. So no need to go for any life insurance. Now investing Rs.50K to Rs.60K, may i know what is your expectations and why you want to invest?

  155. MeenuMeenu says

    Hello Sir,

    I wanted to buy a Retirement Pension Plan but I am confused with LICs and other Private Bank Plans actually.

    Could you please let me know what will be a good option for me to go for good benefits after retirement.

    I am currently 28yrs old and would like to retire at around 60yrs. For which I want I should get around 1L/month of Pension at that time (as that time inflation will be very high as well). Please suggest what plan should I go for.

    • Basavaraj Tonagatti says

      Meenu-My suggestion will be to first have term insurance to cover your life risk till 60 years of age. Start investing in a well diversified mutual fund. If you do so then definitely you will earn more than these plans. But I have a few questions for you, how you arrived at Rs.1, 00,000 is suffice for you? for how many years will be your life expectancy post retirement?

      • MeenuMeenu says

        Hey Thanks for reply Sir.

        1L is just a round about figure I am taking. For life expectancy I can go till 70yrs and by 60yrs I want to retire.

        I already have a Jeevan Saral Plan with me for 35yrs which will cover life risk till my age is 60.

        Please suggest some well diversified mutual funds so that I can check their quotes and how much returns can I make from them.

        Thanks in advance

        • Basavaraj Tonagatti says

          Meenu-Random consideration may some time cost you more. Because currently Rs.1 lakh may be a huge amount for you. But at your age of 60 years this may not suffice. So calculation based on your current expenses+commitments with inflated value will give you the future expenses, which again must be inflated yearly till your 70 years of age.
          Ideal insurance coverage should be around 10-15 times of your yearly income (additional insurance coverage equal to your loans must be added to this, if any). So considering this, do you still feel the Jeevan Saral plan will actually suffice your insurance need? But at the same time I am not pitching you to buy such Insuance+Investment plans. Instead go for pure term insurance plans.

          First do your basics like insurance, emergency funding and health insurance for your family. Then think about mutual funds or any further investments. True to say, you need to work more on your finance and solution will be getting right knowledge.

  156. prasanth123mprasanth123m says

    Basavaraj Tonagatti – sir i am going to join New money back 93 plan for 25 years… my policy is of 300000 … they are saying 45000 for 4 years then at the maturity 120000 +bonus … sir kindly help me to knw hw much excatly i get at the maturity with all benifits..

      • prasanth123mprasanth123m says

        Basavaraj Tonagatti – Sir , am a bank clerk with 2years of work experience … For the past few weeks i was thinking of joining a policy with maximum benifit …. actually am in a learning phase on all type of policies.. I found you
        are helping everbody with Good ideas regarding policy matters… Sir i would like to ask you which plan is the best for me for getting maximum benifit in short period of time .. i can go for maximum of Rs.300000 policy for 15 to 20 years period … please help me out with your sugesstions … am 26 years old … Hope you will help me out ……………
        thank you

  157. RonakRonak says

    Thanks Sir, but how? calculation of 500,000 Rs + ( 500,000/1000*48*21=504,000 Rs is ok) 504,000 Rs = 10,04,000 Rs.
    so i am bit confuse about 11,00,000 Rs. could you please explain me with the calculation.

    • Sandeep SapreSandeep Sapre says

      Ronak, my calculation goes this way..( I have considered the bonus rate as Rs.47/- per thousand per year.)

      Bonus: 500,000/1000 *47 * 21 = 4,93,500/-
      F.A.B. @Rs.100 per thousand = 50,000/-
      Original Sum Assured = 5,00,000/-
      Total 10,43,500/- . Even after getting this amount on maturity, your risk cover for Rs.5,00,000/- continues. In case you decide not to continue with this cover and surrender it at the time of maturity itself, you get an additional amount of Rs.1.12.250/- making the total as Rs.11,55,750/-. If you calculate bonus @ 48/-, this amount would be Rs.11,66,250/- However there is no point in surrendering the policy cover on maturity. It is better to keep the cover after maturity as it is.

  158. RonakRonak says

    I have taken a Jeevan Anand plan 149 Policy in 2013 Nov. At that time I was aged 28 years. My Policy term is 21 years. The premium I pay is Rs.25, 634/- Yearly). The Sum Assured mentioned in my Policy Bond is Rs. 5, 00,000/- . I would like to know how much I would receive after 21 years during my Policy Maturity. Kindly let me know please. at my email address is( [email protected] )

  159. SADUNSADUN says

    in reality, i went thru child plans of kotak too..

    I then talked with the agent, (a friend of mine) and also the development officer of that LIC Branch and he showed me the calculations like this..

    policy of BSA 20,00,000 for 20 yrs. ppt for 20 yrs.

    accidental death benefit-40lkhs
    premium waiver benefit with BSA or Accidental Benefit in case with all due maturity benefits after 20 yrs.

    maturity details as showed to me-

    on 17th yr i receive 20% of bsa- 4lkhs
    on 18th yr too, 20% of bsa- 4lkhs
    on 19th yr too, 20% of bsa- 4lkhs
    on 20th yr remaining 40% of bsa-8lkhs.

    bonus- per 1000,rs.45 (approx.)-for 20 yrs,-18lkhs
    fab – per 1000,rs.50(approx.)-for 20 yrs-20lkhs ( also said that fab will be much more in the coming yrs.)

    waiting in anticipation to hear from u..
    thanks nd regards!

    • Basavaraj Tonagatti says

      Sadun-I have a few questions for you. Will you work on these to discuss further?

      1) You mentioned everything but missed the major part i.e premium you need to pay. Can you please share that to arrive at how much return this plan can generate?
      2) Please confirm whether accidental benefits will be available post maturity or during the policy term only.
      3) FAB is the one time payment payable at the end of maturity which is again based on SA. In your case you are claiming that SA is Rs.20,00,000 so FAB will be Rs.1,00,000 (if we consider @ Rs.50 per Rs.1,000 SA). So your return will not be Rs.20,00,000 additionally as FAB. Check this also with your agent.
      Looking eagerly to hear from you.

  160. Shridhar NShridhar N says

    Dear Sir,

    I have been recommended to purchase a Komal Jeavan plan for my 6 months old son as below:
    Rs 5Lac with single premium of approx 3.4Lac
    Rs 5Lac with annual premium of approxs 35K.

    I need advice here if this is the right way to go. My age is 38years.

    Warm Regards,
    Shridhar N

    • Basavaraj Tonagatti says

      Shridhar-Even though it seems wonderful plan with GA, but premium is high and return from this plan will hover around 7%. So I don’t think it will be a wise decision to go for such a long term goal of your kid’s education or marriage.

      • Shridhar NShridhar N says

        Thanks Sir,
        So what is your recommendation on what i should do to secure funds for my child education and future. Is there any other plan which i can look at.?

        Thanks in advance.

        Shridhar N

        • Basavaraj Tonagatti says

          Shridhar-First priority should be to have sufficient term insurance on your name, have health insurance for your family, build 3-6 months emergency amount then finally start investing based on goals. As your kids’ educational goal is long term, I strongly recommend you to invest around 30% into PPF and rest 70% into well diversified large cap mutual fund.

          • Shridhar NShridhar N says

            Thanks Sir,

            I am already invested into all of the above for self and spouse and have all kinds of insurance and contingency fund, still recommend not to go for Komal Jeevan?

            Any good MF for 10 years / 15 years term? May be a stupid question but sire i have it.

            Shridhar N

  161. SADUNSADUN says

    hello basu..
    BSA-20,00,000/- FOR 20 PPT.
    [ INCLUDING ALL THE BENEFITS- 20%,20%,20%,40% +BONUS+FAB ]


    • Basavaraj Tonagatti says

      Sadun-It is the traditional plan wherein return may be around 6% to 7%. So is it suffice to fulfill your kid’s education need with the kind of education inflation and marriage inflation? Have you thought whether this is the plan you chosen or your agent? Please let me know the reasons behind choosing this plan. Then we discuss in detail about the return.

  162. VaidhyaVaidhya says

    Hi Basavaraj

    I have a Jeevan Anurag policy, 20 years, yearly premium of 51381, S.A 10 Lacs.
    Just completed 3 years..I want to surrender this policy now
    Any idea how much the surrender value would be
    The lic portal says the vested bonus is 88000


  163. RajeshRajesh says

    Dear Basu, I have paid 10 yearly premium of Rs. 7821 each towards plan 14 (endowment assurance policy). Policy will mature in the year March, 2014. Sum assured 75000
    Please let me know approximate maturity amount i get in the year 2014

  164. AmitAmit says

    Hi Basu, I have purchased the money back policy – 20 years ( 75) Sum insured 5 lac. I want to how much amount I’ll be getting on maturity. I’m paying premium 31,292.

    Thanks in advance!


  165. sureshsuresh says

    dear mr basu, i have taken jeevan saral policy of lic in 2009 with annual premium of 60,000. pl tell me what will be my expected total return after 15 years. and also how much amount i expect if i surrender the policy after 5 years annual premium payment. thank you.

    • Basavaraj Tonagatti says

      Suresh-If you wait till 15 years then your return on investment will be around 6% to 7%. Regarding the valuation of surrendering after 5 years, I don’t have data to suggest you. Hence you may contact your nearest LIC branch.

  166. harendraharendra says

    dear mr basu,the fund type is growth only. pl let me know the expected return. i can not understand the chart. what if i surrender my policy now.

    • Basavaraj Tonagatti says

      Harendra-It is continuously underperfoming funded. Also when you look at pure investment post the expenses then it needs to work wonderful magical returns to give you positive returns. Regarding future performance, I am not sure how the fund performs. Hence my suggestion will be to come out of this plan.

  167. harendraharendra says

    dear mr basu, i have taken lic profit plus plan(T188). i have paid all of my premium terms of 5 years of 20,000 each. i have sum assured amount as 200,000 rupees at the end of 20 years i.e. in jan 2029. pl kindly let me know how much return should expect? thank you.

  168. manishamanisha says

    hello sir , can u pls tell me about lic’s market plus-1 (table no 191) and lic money plus , is it good policy or not , these policies have taken by my dad on the base of advisor , but i’ve doubt , that these polices are not very good in consideration of security pls help me and give reply soon

    • Basavaraj Tonagatti says

      Manisha-Yes your guess is correct. Because in these plans costs are more. So to get a positive return you need to wait for the long term. Also considering the cost it is very hard to get good return over the long term also. Hence my suggestion will be to come out of these plans if the minimum period is over. Instead the cheapest option is to go through mutual fund direct plans if you really need the equity investment.

  169. manishamanisha says

    hello sir, i have lot of queries regarding lic’s plan ans so on pls pls help me,
    my first query is … i’ve taken lic profit plus plan (plan no . 188) , what is benifit under this plan , and how i calculate maturity amount ,

  170. chetnachetna says

    Mr. Basu can you tell me how is single premium whole life plan of LIC ?
    My agent says if I take this for my son who is 18 years old the single premium( I have to pay only once ) will be approx. 1,61,000 for the SA of 5,00,000. the history of bonus LIC has declared for this plan is 70 rs/- i.e. every year 35,000 will be bonus which will accumulate every year .

    • Basavaraj Tonagatti says

      Chetna-I agree that whole life plans pay highest bonus rate compare to other plans. But do remember that this yearly accumulation of Rs.35,000 will be given back to your kid once he reaches the age of 80 years or policy completes 40 years (whichever is later). Also this Rs.35,000 will not earn any interest till maturity. So it is the same Rs.35,000 what you get after policy maturity. Then what will be the value of Rs.35,000 after 40 years or 80 years of your kid’s age? Too small.

      I don’t think it is wise decision to invest. He is young and if he is earning then let him take the advantage of equity investment+some portion of debt products rather than such products. But the decision is left with you.


    I want to put the LIC POLICY My age is 36 Years Which Policy is good for me I want to pay around 7000 quarterly premium

  172. Sandeep RohilaSandeep Rohila says

    Dear Basavaraj,

    I had take Jeevan Mitra (Triple Cover Endowment Plan) polices for 15 years terms in 2008 and my age is 29 now; Sum Assured is 5 lakh. My insurance Agent advised me that I will get arround 14 lakh on maturity. I want to know waht would be average maturity amount for my insurance.

    Thanks for your help.


  173. Lava NayakLava Nayak says

    Dear Basavaraj,
    I had take Jeevan Saral (165) polices for 10 years as well as 15 years terms in 2011 and my age is 28 now;

    10 years term policy ; i am paying -6125 rupees Qly (Annually 24,500)= Maturity Sum assured is Rs. 2,22,260
    15 years term policy; i am paying- 6125 rupees Qly (Annually 24,500)= Maturity Sum assured is Rs. 3,89,880

    I understood on maturity (on survival) i will get sum assured + Loyalty addition.

    Please clarify me what is the actual amount i am going to get on maturity of both 10 year policy and 15 year policy.

    Waiting for your reply

    Lava Nayak

    • Basavaraj Tonagatti says

      Lava Nayak-In both the cases your MSA is guaranteed. Apart from this the fluctuating part will be LA. Considering the current LA trend you may presume that for 10 years policy your LA will be Rs.77,791 (LA @ Rs.350 per Rs.1,000 MSA for a yearly premium blend of Rs.20,001 to Rs.50,000). Same for 15 years policy will be Rs.1,85,193 (LA @ Rs.475 per Rs.1,000 MSA for a yearly premium blend of Rs.20,001 to Rs.50,000).

        • Lava NayakLava Nayak says

          Adding further to it…. the LIC agent had fooled me showing a chart of LIC Jeevan Saral; please suggest me any other good policy with guarantee money back with more returns than jeevan Saral

          Thanks & Regards
          Lava Nayak

          • Basavaraj Tonagatti says

            Lavan Nayak-That is why it is always important to learn then invest. My suggestion will be not to club Insurance+Investment. Hence suggest you to buy term plan for the SA of around 10-12 times of your yearly income. Rest invests based on your financial goals. I don’t think any LIC traditional plans will give you better returns over the long run. If you are really looking for secured products they try FDs or PPF. It is left with you how you take the risk for each financial goal.

  174. MangeshMangesh says

    Hi Basavarai,
    I have taken a Jeevan Anand plan 149 Policy in 2012 jan. At that time I was aged 31 years. My Policy term is 25 years. The premium I pay is Rs.57,964/- Yearly. The Sum Assured mentioned in my Policy Bond is Rs. 14, 00,000/- . I would like to surrender the policy after paying next premium in Jan 2014 (2013-14), then surrender value would be how much and when I will get the money?. SuggeKindly let me know please at my email address is ([email protected])

  175. janardhanjanardhan says

    I have taken a Jeevan Anand plan 149 Policy in 2012 jan. At that time I was aged 32 years. My Policy term is 15 years. The premium I pay is Rs.6083/- Quarterly (Rs.24, 332/- Yearly). The Sum Assured mentioned in my Policy Bond is Rs. 3, 00,000/- . I would like to know how much I would receive after 15 years during my Policy Maturity. Kindly let me know please. at my email address is([email protected])

  176. vijay kumarvijay kumar says

    i have taken jeevan sathi and its premium is 47753 for 25 years it is good or not investment point of view and risk cover how much money get after 25 years and accidental how much cover.please advise me.

    • Basavaraj Tonagatti says

      Vijay-First I have few questions back to you. Can you please answer these?
      1) Why you bought this policy?
      2) Do you think this is sufficient insurance coverage?
      3) What return you expected while investing this plan?

      • RaviRavi says


        I have taken a Jeevan Anand policy of SA 2500000 for 30 yrs. what will be the maturity amount?
        for my wife I have taken Jeevan anand of SA 1500000 for 25 yrs. what will be the maturity amount?

        Thank You.

  177. narendra2511 says

    Hello Sir,

    Thanks a lot for this helpful article.

    My age is 26 yrs and recently I bought my first LIC Policy named – ‘New Bima Gold’ (Plan-179). Under that policy, I need to pay a premium of Rs.37,204/- annually for the term of 16 yrs and for the Sum Assured of 7,50,000/-.

    Can you please share your valuable reviews on this plan and its alternative LIC plans available. Also it would be great if you can let me know how to calculate the Maturity Value for this plan when the policy gets mature after 16 years. Is this policy entitled for FAB and how the Bonus / LA / FAB is calculated in this plan.


  178. Mohit TanejaMohit Taneja says

  179. satishsatish says

    Hi Basavaraj,

    I am planning to purchase LIC policy and contacted the agent and he suggested to go for Plan 48 assurance plan. For PPT 20 and maturity at 25 years the premium would be around 17800 yearly for the age of 23 years, Can you please guide me how is this plan and what would be the maturity amount.

    Satish ([email protected])

  180. GirishGirish says

    Hi Basavaraj,
    Tx for this outstanding article, it is helping so many people.
    I took Jeevan anand policy in 2003 for 25 yrs for 5L SA, premium of Rs 20,250 per yr. Now website says vested bonus Rs 241,000,
    I’m thinking whether to continue or surrender it, I have already taken one term plan of 50L from Aviva
    -could you please advise if I continue this LIC policy how would be the maturity amount
    -I contracted LIC and they said surrender value would be Rs 182,592
    – Is it good idea to take the money and invest in debt fund/PPF/equity or continue for another 15 years..

  181. Prabir says

    hello sir, I have few doubts regarding these endowment policies . My Mother have a LIC policy with assured amount of 1,00,000 and yearly paid premium is Rs. 64XX /- and maturity period is 17 year from Feb 2013. My question is why the investment value is less than the return .which is as follows

    If I pay Rs.6420 for 17 year then total investment is Rs,109140

    But Sum assured is only 1,00,000 after 17 year

    I think it it’s a insurance without bonus . But My question is why Sum assured is less than the total investment ?

    Is the sum taken by the agents and bank heads ?

    • Basavaraj Tonagatti says

      Prabir-Sum Assured is the life risk your insurance company will provide your mother during this 17 year period. Suppose something happens to your mother then her nominee will receive the Sum Assured along with the accrued bonus till that period. So from the policy start period this Sum Assured will be same (where as in the first year you only pay Rs.6, 420 but your insurance company providing you the life risk of Rs.1,00,000). At the end if it is participating plan then your mother will receive Rs.1, 00,000+Bonus+LA (if any) based on the plan feature.
      So don’t confuse with Sum Assured available during the policy period to the maturity amount.

  182. vibhorkarn says

    Sir i have bought jeevan anand policy(table 149) for 10lakh.They have convetred the amount into 1lakh per bond.They give me 10 bond paper.I have taken this policy for 30 years term.My age is 23 years.Agents has told me that i will got at 30 year 6lkh,at 31 6.5lakh and so on,….till 39th year 10.5lakh.Is it return correct and if correct then can you send me detail in my mail how is it calculataed.I am very confused some person told me that this type of policy doesn’t exist.

    • Basavaraj Tonagatti says

      Vibhorkarn-From each Rs.1,00,000 Sum Assured policy I don’t know how your agent claiming that you will get Rs.6,00,000 at maturity and it goes on increasing for each policy. First ask your agent how he arrived at this values, what bonus rate he considered to arrive at this calculation. Because for me it looks complete mis-selling.