I have been paying LIC’s Jeevan Anand for an annual premium of Rs 47,000 from Jan 2011 for maturity period of 33 yrs. I get ROI of around 70L and less when compared to other instruments. But not sure of the approximate value if the bonuses and the other stuffs are added to it. Is it good to continue this policy or advisable to discontinue them and invest the same amount in a MF?
Raje-When you said that you will get Rs.70 lakh from this investment, then have you calculated the return on this investment? How you arrived at Rs.70 lakh maturity? I think your agent misguided you. Check your facts properly. In my view, the returns will not be more than 6% to 7% from this policy.
Now you have to decide whether this much return is BEST for your 33 years of investment or not. Do remember that this will give you the negative real return (Return from this plan-Inflation). So you will be under loss.
<br>okay..I actually got the final sum using the calculator. I was actually guessing apart from that 6% to 7%, there will vested bonuses and other amounts which will add up close to double of ROI. Is that not so ? <br><br>I already have a Term insurance and MF invested around 5K pm. I have back that time taken this JA policy for retirement purpose.So it is better to get this JA off and invest that amt in any tax saving long term MF? Pls advice..
Raje-In whatever way you do calculation, if you consider the current bonus rate, then the returns will not be more than 7%. Also, do remember that there are no other returns. You will get only Sum Assured+Bonus+Final Additional Bonus. This final additional bonus is one-time payment at maturity. This will not make a huge difference in return part. So better to concentrate only on considering your sum assured and total bonus you accumulate at maturity.
Thanks for the clarification Basu..Will have this cancelled and invest their 5K pm in an MF.