Sareddy-This is a typical endowment plan (exactly like LIC’s Jeevan Anand). How the yearly bonus of Rs.1,00,000 is calculated is known to GOD ONLY. Also, if they give you Rs.1,00,000 every year, then after 7 years why the maturity value is just Rs.3.13 lakh? It is purely a gimick used by an adviser to sell the endowment plan, where you can’t expect more than around 5% return in your case. I strictly suggest to stay away. If he once again insist for selling, then ask him to provide these in policy BOND, or written confirmation of all these returns from soneone at manager level of SBI. He will simply run away !!