In 2014, I purchased ICICI Pru savings Suraksha LP insurance, 7 years payment of Rs 2.5 lakhs. I need your help in knowing the total maturity amount after 12 years. Below is the maturity amount (total 37 lakhs) given by ICICI Pru agent, IS IT TRUE? Or is there any difference or how much I will get?? Please let me know.

According to agent On maturity, I will get 37 lakhs

Guaranteed Maturity Benefit (GMB) i.e., Rs.1500000.

Guaranteed Addition (GAs) i.e., Rs.375000 (GAs totaling 5% of GMB each year will accrue during the first 5 policy year)

Vested Reversionary Bonus i.e., Rs.875000 (Accumulated VRB is 50% of total investment).

Terminal Bonus i.e., Rs. 750000 (TB is 50% of GMB).

The VRB declared for this year is 3.5% is it cumulative means next year if VRB 4%, than the total VRB will be 7.5%. and so on.

Mattimarad-He confused you by saying that GMB is different than GA. However, GMB is nothing but GA. Therefore, no need to add two times like GMB and GA. The Guaranteed Addition is applicable only for fist 5 years. Later on this amount will not increase. I mean to say that, let us say after five years this GA stands of Rs.100, they will not add anything to this and will pay you at maturity. So returns of this you must say around 3% to 4%.

VRB is usually calculated per Rs.1,000 Sum Assured per year. Therefore, I surprise about how he arrived at simple rule that it will be 50% of your total payment. Terminal bonus is not at all considerable. Because it may be too small.

Hence, your concentration must be on GA and VRB only. The sad part of both these is that they not include a single rupee to it. It is not cumulative. But will be kept with them idle until the death claim or maturity.

Considering all these factors, your agent is a big liar. Also, you can expect around 3% to 4% return from this plan.

Dear Mr. Basu Thank you very much for your immediate response. VRB declared for 2014 and 2015 is 3.5 %, Now imagine if VRB is 3.5% every year, at the time maturity (after 12 years) the VRB will 42% of the sum assured or not