LIC Bonus Rates for 2016-17 – A Complete Report

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• Hello Basu Sir, I am a ardent follower of your blog and would like to thank you for your views here! Your views help amateurs like us decide what is best for our hard earned money. I had a question about a Jeevan Saral policy. Could you provide your esteemed please?

  We have a Jeevan Saral policy taken in 2008 for a 35 years term. The death sum assured is Rs 7.5 lakhs. The premium amount is Rs36030 annual.. We would like to surrender the policy but we need some information regarding the policy and hence reaching out to you.
  1) What will be the surrender value of the policy? We have paid 14 years of premium of Rs 36030 (annual), no misses. It says that after 10 years loyalty benefits are added and the surrender value would be 100% of the maturity sum assured.
  2) The policy document states that the policy is Jeevan Saral Table 165 with Profits, but below there is a print which says "Jeevan Saral without profits". So which one is it? What is the difference and how does it affect us? How does the policy differentiate between them? Is there a difference in premium?
  3) I think I know the answer to this but is it worth continuing the policy? The returns are too low for the investment/time.

  Thanks,
  Krishna.

  • Dear Krishna,
    Thanks for your kind words.
    1) It is hard to say for me. Better you check with the branch. As you already completed 10 years, you are eligible for LA.
    2) Without profit means there is no bonus but LA will be available.

• SIR
  I had taken an professional education plan for child- 10lakhs and have received a total of 14.18 lakhs - which included five 20% return per year from 18 to 23 yrs and then final loyalty addition and guaranteed addition of 25 per thousand... is there an error in the calculation ...as after 23 years we have got only a 40 percent return ...is this correct ..should i apply for reappraisal to lic
  \thanks ..
  ryan

  • Dear Ryan,
    Please use XIRR function to calculate the returns.

• I have lic jeevan saral policy. Already Paid 19 quarterly premiums of (started in sep-2013 , ) Rs.6125/- per premium, sum assured Rs.500000 and please let me know what will be the amount I will receive if I surrender the policy
  1. after 5 years
  2.after 10 years

  • Dear Bajvali,
    Contact the branch for exact surrender values.

• I have received the maturity claim of Bima Gold policy (174-12-12). The IRR come to 3.45%. Premium Paid 12228 yearly, 30000 SB recd in 4th & 8th year, 104336 Recd as Maturity Claim. Did not get any working from them.

  • Dear Sheema,
    These are the hard realities of investing in WRONG products.

• Hi ,

  I have lic jeevan saral policy. Already Paid 6 yearly premiums(policy was in force for 6 years) and 7th yearly premium is on due. If I surrender this policy today then do I need to pay any taxes on the exceptions taken under IT section 80c in the previous 6 years?

  • Dear Prashant,
    NO.

    • Thanks Basavaraj for reply but I have read some where on other blogs that surrendering a jeevan saral policy before minium period couses taxation on previously taken 80c benefits. Is there any minimum years criteria ?

      • Dear Prashant,
        Refer my earlier post for the same "Tax Benefits of Life Insurance".

• Hi Basavaraj , Your blogs are quite informative. Appreciate your good work.

  I hold a New Jeevan Shree 151 (Policy Term of 25 years with 16 Years of payment term) with a commencing date of 2003.

  Though I have only one more term pending for payment, I am confused on this policy now and thinking did I make a mistake or not :)

  Having said and done where I stand, it will be much appreciated if you can help me in identifying how I can calculate my maturity amount which I will get in 2027.

  Thanks in advance

  • I have the same policy with same start date, unable to decide if i should surrrender

  • Sreejith-I think as your premium payment is almost to close, then check the surrender values and then decide.

• I HAVE JEEVAN SNEHA PLAN OF RS 1,50,000 DONE IN 1997. THE GA IS RS 70/ PER THOUSAND. PERIOD OF POLICY IS 20 YEARS. I HAVE RETAINED WITH LIC TWO MONEY BACK AMOUNT OF RS 30,000/ ONE IN 2008 THEN IN 2013. THE INTEREST ON SUCH AMOUNT RETAINED WITH LIC IS @ 11% COMPONDED ANNUALLY. THE PLAN WOULD MATURE IN NOV 2018. CAN YOU TELL ME WHAT I WOULD GET ON MATURITY
  SAGAR.C

  • Sagar-Better you check with nearest LIC branch.

• Hi Basu,
  I have a policy as follows
  Endowment Policy Table 14
  SA: 10 Lakhs
  Term: 31 years
  Year of Commencement: 5/2008
  Annual Premium: 29991

  I wish to know the following:

  Is Final Additional Bonus declared for Tabe 14 policies?
  If yes, could you please advise what can I expect as total returns when the policy matures in 2039?

  • Arnav-Think about FAB when you are going to closure or the policy mature. Also, this FAB is not that much big GAME CHANGER.

• Hello Basu,

  I have a LIC policy - New bima gold started in 2013. I have given 4 premiums.
  I cant find any bonus rates or loyality addition info anywhere. Could you please provide some light on it

  Regards,
  Anchit

  • Anchit-If your policy recently completed 4 years, then let them update the latest data. Then it will reflect in your account (when you login).

  • Its New bima gold T.No. 179 policy

• As part of regular income, can my uncle who is 58 years old invest in Jeevan Akshay.His purpose is to get a monthly income.The only issue is he does nt want to lock tha amount forever, he is however ready to hold the amount for 5 to 7 years.
  Or

  Is it better to go with a mutual fund such as SBI Magnum Monthly Income Plan Direct-Dividend monthly?

  Your advice on this matter is highly appreciated

  • Anil-If his requirement is for limited period, then he can opt for the same in Jeevan Akshay too. MF MIPs will not give him guaranteed returns.