LIC Policies-How to calculate returns?

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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.

I recently wrote a post which is exhaustive than this one and hope will be helpful for you to calculate returns on your LIC policies. Please check the below link for the same.

Also, watch the video I created for the same.

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

 

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1,048 Responses

  1. Inprove your tone of response bro. You have open this site to help others your tone is reflecting you re doing a favour. Its no favour to anyone, you’re getting money from the site and you’re doing favour for yourself.
    I agree you’re advising people but watch your tone.

    1. Dear Nilesh,
      I am always respectful for others. However, people with some own beliefs thought that I am a representative of certain companies to earn something from them. Hence, such a strong TONE is obviously necessary 🙂

  2. How is the Vested Bonus calculated for Money Back Policies ? May I know how much I get for vested bonus ?

    Sum Assured – 5 Lakhs
    Payment period – 12 years
    Maturity years – 15 years

      1. Hi. When using LIC premium calculator for Jeevan Umang (T 945) (Age 25 years PPT 30 years) , in the illustration document, I see 0 Rs for the column “Reversionary Bonus @ 4 percent” . I do not understand how it can be 0 Rs ?

        1. forgot to mention few things. Sum assured = 10 lakhs. and column “Reversionary Bonus @ 8 percent” shows Rs 43000 per year

  3. Sir . Can u help me in understanding my jeevandhara old policy of LIC . The policy start date is 28/06/2000 . Name is jeevandhara Table 096 term 22/21 . My 1st premium paid date is june2000 .last premium paid to lic was in june 2019. Lic suo-moto stoped accepting my premium in 2020 saying all premiums are paid & deferment is of 2 yrs . The original policy document says last premium to be paid is june 2021 . Annuity will start from July 2022 . I requested lic to look into the matter . Now they are saying i hv to pay total 21 nos premiums so they are now ready to accept premium of june 2020 but they say annuity will start only in july 2022 . As per policy deferment is only 1 year . So if my last premium is on 2020 then my deferment shd end after 1 year in 2021 . My annuity shd start in july 2021 & not july 2022. Can u help me understand. My agent is not replying to any querry

  4. Hello I am stuck on investing , so need your help here please let’s say I invest or pay a premium of 120000 yearly for 10 years and whatnwould be the best option or insurance that I should go for if I am looking for a term plan of 20 years . Example i just looked at a wealth insurance plan where I pay premium of 120k annually for 10 years and after 18 years I get close 24.5 lakhs is this really worth or how do I know if this is the best plan ?

  5. How to calculate the rate of interest for the investment?
    e.g, if I am paying 20000 Rs per year to one LIC policy and after 20 years I am getting 400000 Rs. Then How will I know, what is the return interest I received?

      1. Thank you very much Mr. Basavaraj!
        I struggled a lot to understand how the IRR function in excel is working. But your example in the attachment made everything clear.
        Thanks again.

  6. Hi,

    Does anyone have any idea how long LIC takes to return one’s money after policy surrender? I surrendered a policy around 5 days ago – and have received the SMS confirmations of NEFT etc being “registered” in their system. However I did not get the amount in my account as yet – and while I did call their customer service I have a feeling they are “reading from a script” in this regard.

    Just wondering if anyone knows what a timeframe is! It really shouldn’t take more than a day or two given everything is online now, but that may not be how it works …

      1. Their branch is far away from where I’m at – but yes, a second trip there might be in order … I’ve been emailing them about it but they never replied.

        I did get the “NEFT” registered – and “Exit interveiw” completed messages on my phone, but nothing as yet, and today is the 5th working day.

        Customer service keeps giving me the “7-10 working days” spiel, but that’s obviously inaccurate.

        I suppose the only way is to go there and ask them in person?? Annoying, but if it has to be done …

          1. Hi Basavaraj

            Thanks for responding! What I did was register a complaint at the “divisional” level instead of the branch level this time (since emails to the branch were going unanswered).

            I also managed to get a hold to the person concerned at the branch who claimed that “it’s been done today”. That was over 3 hours ago though, and I still haven’t recieved the funds in my account, so I’m not sure if what he told me was accurate or not.

            They do “know” me apparently from the complaints I’ve raised – so I’m hoping it’ll be done by tonight (still a few hours to go). Else I’ll have to follow up again soon …

            Let’s see. If anything, this sort of customer service has only further served to solidify my belief that surrendering the policy was the right thing to do !

            Best,
            Rahul

  7. Nice, how did you take Rs:50 as bonus and fab Rs:100, is it fixed.
    and in new jeevan anand is it medicals required for accidental death benfit.

    1. Dear Madhusudhan,
      It is not fixed (both Bonus and FAB). However, for calculation purpose, I took the average of past. Medical examination requirement depends on sum assured you opted, your age and other factors. Hence, better to be in touch with the branch.

  8. i am paying premium of INR 16333 per months since May2009 for 20 years , 40 lacs assurance.
    Can you let me know how much will i get in return if ..
    1. I surrender policy it in June’19
    2. I wait until the policy is matured i.e 2029 how much can i get as my returns ?

  9. Sir, i had taken endowment assurance policy with profits+acc benefit in feb 2002 , details are:
    sum assured- 50,000
    table and term- 14-16(16)
    premium- 3241 /yearly for 16 years
    age that time-38 years now 54 years
    now policy is mature and i get approx 87k. I want to know how is this maturity amount calculated as i was accepting more amount

  10. Hi. Thanks for the wonderful explanation. I have a few LIC policies but don’t know the name of the plans. I do have the policy bonds but can’t find the name anywhere on them. Can you please guide a to how to know the plan from a policy bond? Thanks.

  11. Hi my name is aniket I had a policy with one time premium I took the policy on Jan 2009 and maturity is after 10 year so now it’s almost 9 years but today due to some family issue I need to claim the policy so what amount will I get?

  12. Hi Sir,

    I have endowment policy in Kotak, and the i m paying a Premium of 20000 for 10 years and the term period is 20 years (sum assured 240000), I have paid 5 premiums (Rs.100000) as of now. if i surrender my policy now how much amount will i get for my 100000??.

    looking forward your reply.

    Thanks and regards,
    Basavaraju

  13. Have been regularly following your articles and they are of immense benefit.. thanks a ton.
    Please guide me whether I shall have to pay any tax on the maturity payout for LIC endowment plan 817.
    Premium is around 2.5 lakh..sum assured is 5lakh..after 21 years, the agent is claiming a return of around 10 lakh tax free..is it really going to be tax free? Did read a few articles and got confused as in this case, sum assured is not ten times the premium ..please guide

  14. My policy expires in the year 2021 and I have paid premium for 7 years…..I am not in a state to pay premium now…Should I be getting anything towards maturity

    1. Shaifali-First thing, don’t share your personal details like policy number and all on such public platform (I deleted that detail). Regarding your doubt, Yes, now you are eligible either to surrender and close the policy now and opt for paid up.

  15. Dear sir i have a New Bima gold Policy from28/8/11
    My Yearly premium is 17648
    My Term is 20 Years
    So What Amount I will Get At Matuarity Please Help me

  16. I had purchased a jeevan anand(149) policy in Dec 2013 for Rs. 10,00,000/- for 20 years. Since then i am paying an yearly premium of Rs. 50782/-. How much amount I will get on maturity in the year 2033 & what are the other benefits of this policy?

  17. Dear Sir, 22 September 2017

    I began an LIC policy in 2003 for a period of 15 years.

    The policy details are as below:

    Jeevan Asha II (Plan 131-15)
    Premium: 4689/- twice yearly (May and November)
    Maturity period: 15 years.

    The date of last payment is 28 May 2018, and I have paid all premiums except the remaining two (Nov 2017 and May 2018).

    First my LIC agent said that I could get a loan on my policy, chargeable at 9.5%.

    Then two days after I applied, he said that the loan could not be given because LIC paid us an Interest of 10.5%.

    So I asked him to surrender my policy (for which I have paid all premiums except the last two: Nov 2017 and May 2018).

    The LIC agent said that the surrender would be processed within a week, but as of today 10 working days have passed and there is no news.

    Today (22 September 2017) I again asked the agent when the processing would be complete, and now he says it will be done by Navratri (30 September 2017).

    Should I be worried or is this normal?

    Thank you for your input.

    Ravindra K. Banthia
    Bikaner, Rajasthan.

    B. Tech. Mech. Engr. IIT Kgp. (1980)

      1. I did go to the local LIC office. The problem turned out to be in their software (that had been developed internally).

        Till August 2017, manualyl calculating and closing were allowed. From September onwards, everything must go through their software (which has probably had a problem from day 1).

        The problem has been escalated to the highest levels, and a solution has to come, sooner or later.

  18. I have another following plan

    plan name: Jeevan anand -149
    Term : 20 years
    Commencement year -05/02/2011
    maturity date :05/02/2087
    Sum assured :5,00,000
    Policy amount –6850/quarterly

    Now my question is when will i get amount with bonus? and how much?

    suppose If i will after maturity period,shall i change my maturity period?

  19. sir,
    i have the following plan
    1.Endowment plus -802
    premium – 5000 -quarterly(20000-yearly)
    sum assured -220000
    term-10 years
    Commencement year -05/02/2011
    I had paid 2 premiums only upto 08/2011.
    after that i haven’t paid.Now policy status says,it is surrendered.
    When will i get my amount & how much?

  20. Sir I bought a bima gold policy in 2005 of SA Rs 200000.maturity is in September2017 I received the 4th and 8 yrs money back 15% each.What will be my maturity value if you kindly give an idea pl.

  21. Sir,

    I have Jeevan Suraksha (Endownment Policy) table 17-17 taken on 15/4/2001 – Premium of Rs.10,091/- per year which is maturing on 15/04/2018. Can you please tell me what will be the maturity amount how much pension I will get monthly and should I take commutation? If so how much money I will get and after that how much pension I will get monthly? Also after my life time, my wife will continue to get the pension or she will get the sum assured? If so what will be sum assured?

    Thanks and regards

    H. R. Krishnan

  22. Hi
    I bought LIC moneyback 75-20 policy on 15th May 2012, as per T&C I should be getting 20% of SA in 05th , 10th & 15th year

    pls advise by when i should have got the 20% of SA as 5 years are over

    thanks
    Preeti

        1. Preeti-I think you might be missed their letter or you might not have updated your Bank details with LIC. Now, they do not issue cheque but transfer fund directly to your bank. Hence, better you visit cocnerned LIC branch and update your bank details.

  23. I have a pension plan table/plan : 147/21-21
    Yealy I am paying Rs.10,000/-
    date of commencement : 15/02/2003
    date of maturity : 15/02/2024
    date of last payment:15/02/2023

    can you please let me know, after maturity what will I get and what would be the monthly pension that I will receive?

    Thanks
    Sharmila

      1. Thank you so much for your fast response and valuable time spending for others.
        So would it be 5%/6% of 10,000 ?

    1. Plan :- komal jeevan
      Commencement Date 28/05/2008
      Sum Assured (Rs.) 100000

      please how much amount got at commlition

  24. I have a 901(Health Plus plan) completed 8 years and now I want to surrender it. Is it possible or not?

      1. FIRST OF ALL THANKS A LOT FOR QUICK REPLY.
        MY HEALTHPLUS POLICY’s DATE OF COMMENCEMENT WAS :20/03/2008.
        PREMIUM PAID UP TO 2015 i.e. @ Rs.10,000.00 pa X 8 NOS.
        HOW MUCH I WILL GET IF I SURRENDER THE SAME AS ON DATE.

  25. Hi i started my policy on 20/03/2013 in plan 179(Lic New Bima gold money back).It staes that at 4th and 8 th year end i will got survival benefit.My question is at what date and month i will get the money credited to bank account(already registered my bank account with them)?

      1. Thanks for your reply.But i need by which date and month it will be credited after completion of four years ??I commenced on this policy on 20-03-2013

  26. Hello sir,

    I took new Jana raksha policy in 2003 and sum assured is 500000(5 lac) and yearly premium is 24800 , total premium should be paid 20 years .

    I paid premium for 12 years and on 13th year the policy was surrendered buy third party as lic bond was submitted for security purpose by some one X person (very close to me) without my knowledge . now i want recover the amount from X person , Can you please tell me what was actually surrender value

  27. Hi,

    My mother applied for the LIC JEEVAN SNEHA PLAN in 1998 with term of 20 years and the sum assured was Rs – 50000. Premium is 3627. Few days back my mother got expired. What is the amount i will get from the policy.

    Thanks & Regards,
    Shriramvaraprasad B.

    1. How to calculate returns? … I BOUGHT LIC ASHA DEEP POLICY IN 1996 OF RS50000/ PREMIUM RS.2620.00 PER YEAR … In 20th year(maturity) WHAT IS MY MATURTY AMOUNT

  28. I have taken new jeevan shree policy in 2001 sum assured is Rs 500000. Annual premium is about Rs 33000.The agent says that I’ll get 1700000 Rs after 25 years.Is he right or lying?

  29. Hi Basu,

    I got a call from an LIC agent saying if i pay 1lakh will get triple times the return in end of maturity that is 8 lakh with benifits …some newly launched plan she said…”jeevan something*” I don’t remember the plan name correctly…but did I heard it right?? Could you please help me with the policy details if so.

    Thanks & Regards
    Jeevitha

  30. Hello Sir,

    I have a plan of LIC Jeevan Chhaya since Sept 2010 and I am paying 3007 rs premium 4 times a year.

    What will be the returns if I close this policy right now or how much bonus I will get if I continue with this policy.

    Waiting for your valuable reply.

    Regards,
    Ajinkya
    Mumbai

  31. Hi Basu,

    Thanks for the interesting article. Atleast gives some idea of LIC policies maturity. Though I understand your calculations but how do I actually get the amount for BONUS, Guaranteed Addition, LA and FAB? I have three policies 2 are Jeevan Saral (I believe only applicable for Loyalty Bonus) and 1 New Jeevan Shree (I believe applicable for all the four components).
    Your response will be highly appreciated. I can share some specifics if you can help me with your email ID.

  32. Hello Basavraj,

    I have following policy, but current in laps state. I am planning to surrender it,
    1 . Need advice on it.
    2. There is some vested bonus on plicy? can i get those bonus on surrender

    Policy Premium Paid from Paid Till Sum Assured
    Komal Jeevan Half year 2008 2012 3L – policy term 24 Premium term 16

    Jeevan Tarang Qtry 2009 2012 8 L policy term 69 premium term 20

    Jeevan Sathi Yearly 2006 2011 5L policy term 21 preimum term 21

    Regards
    Shyam

  33. Dear Sir/Madam,
    I have a LIC money-back (75-20) policy (Table 20 – Term 20) with sum assured of 4 Lakhs.
    1st premium paid on Dec 2001 of Rs.25,092/- (annually). Last premium of Rs.25,092/- paid on Dec 2015.
    Till date 15 premiums paid for 15 yrs and 2 money-back of Rs.80,000/- each (20% of sum assured) received on Dec 2006 (5th yr) & Dec 2011 (10th yr). 3rd money-back (15th yr) of Rs.80,000/- is due this Dec 2016.
    If I surrender the policy on Jan 2017 after receiving the 3rd money-back (on Dec 2016) and year-end accumulated bonus (on Dec 2016) without paying the 16th premium (due on Dec 2016), how much will I loose ?
    Total Investment = Rs.25,092 x 15 = Rs.3,76,380/-
    Total Money-back = Rs.80,000 x 3 = Rs.2,40,000/-
    Vested Bonus accumulated till 2016 = Rs.2,60,000/- (approx)

    Please provide your suggestion if I surrender the policy on Jan 2017, how much will I loose (in figures) from maturity amount and bonus. Also can I stop paying premiums from 16th year till maturity on 21st year ?

    Thanks & Regards
    Vikram

  34. Hello Bro,

    I’ve taken LIC Bima Nivesh policy for a tenure of 5 years and sum of Rs 5 Lac. Can you please help to understand that on the date of maturity how much amount I will get. It will be great if you can show the calculation also.

    Thanks,
    Neeraj

  35. Your calculation of return does not take into account the Cost of Insurance. The insurance we get is an additional benefit in any case and the cost which we have to pay for that Insurance is also a Benefit.

  36. Hi Basavaraj,
    Good morning. I have a unique problem in dissolving the LIC policy which I had purchased 3.5yrs ago.
    Need your valuable advise.

    I want to surrender the policy [NEW MONEY BACK PLAN-25yrs PLAN No.-821]. Since its already 3.5yrs I have been paying the premiums (monthly ECS), I am eligible for survival benefit of 90,000/- (15% of 6L Sum Assured) by April-2017.

    I searched online for the surrender benefit and it says after 3yrs its 30% of the total premiums paid (minus) the survival benefit already paid.

    My question is:
    If I surrender the policy after I take my 1st Survival benefit (i.e 90,000/-), and if the surrender value [i.e 30% of the total premiums paid (minus) the survival benefit already paid] comes to be a negative value, then should I pay back the amount to LIC before the policy could be closed?

    example:
    yearly premium is 30k
    premium paid for 4yrs would be 1.2L

    30% of 1.2L = 36k

    30% of the total premiums paid (minus) the survival benefit already paid would be => 36k – 90k = -54k (negative value)

    So to close the policy should I pay back 54k to LIC?

    Pls suggest.

      1. Thanks Basavaraj for your advice.
        You have mentioned “when you go for closure” …. anything I should be prepared beforehand when I go to LIC office for closure?

        I was looking for other options instead of closure and came across “PAID UP policy” option. So will this be a good option instead of closure? Kindly advice.

  37. Hi,
    In your view, which is the best policy right now available in the market that not only provides life risk coverage but also fetches good return (if looked from investment angle)?

    Thanks for your comment….

    Regards,
    Sushant

      1. As you have rightly commented, the average return is 5-6%. Any return more than current bank FD rate can be construed as good return to me.

              1. Thank you very much for your instant replies.
                In that case, what do you suggest to go with if not the traditional policies…?

  38. Hi Sir,

    My plan is Money back policy 820. (Total policy term 20 years) .I am paying my term for every half year is 18880. So yearly 37760. As you know sum assured is 5,00,000 laks. On every 5 year I will get 5% of assured bonus.So 1,00,000 I will receive on every 5 year. 5 th year – lak, 10 th year-1 lak, 15 year – 1 lak,totally i will receive 3 lak mid of the policy.

    On finally 20 th year 40% of assured I will get so 2 laks. Here How much accrued bonus I will get on maturity? And how to calculate exactly?

  39. suppose if I have taken the policy of new bima gold table no.179 (Money Back Policy) for 16 years with sum of 5,00,000 rupees and according the plan I would get the money back on 4th, 8th,12th and 16th years respectively. Please tell me towards end of the policy i.e.. after 16 years when the policy get matured then how much the total amount of money I would get….?? 07 years finished now… 75000.00 i got money back already

    STARTED DATE: 26TH MAY 2009
    PREMIUM: PAYING Rs.6425 FOR QUTERLY…….
    RECOVERY: Rs.75000.00 AFTER 04 YEARS,
    Thank you Viswanadh

  40. Hi, Thanks for the wonderfull information and advise being provided by you.
    Require an advise . I have a Jeeven Shree T.N.Nos 112 Policy .The below is the details of the policy

    jeevan shree T.NO.112
    Commencement date is 13.03.2001
    Sum Assured is Rs. 5,00,000
    Policy Terms – 25 (Premium Payment term : 16)
    Premium which i pay yearly is 26,121

    Can u help me out the working of the amount which i will be receiving after the completion of 25 years.
    Have seen many web site but none seems to be clear.
    Where can we find LIC Bonus yearly decalared .

    Thanks in Advance

    1. Hi Thanks for ur reply.
      Sorry to bother u am confused can u help me out in computing the same.

      Regards
      Murali

    2. Don’t waste your time asking this guy. He sounds a bit arrogant – and like most arrogant people, is also quite wrong.

      For example he writes “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.”

      This is nonsense. I have the same policy as you Jeevan Shree policy ( T. No 112) and it says clearly ‘Without Profit’ BUT the policy document also shows Guaranteed Additions of Rs.75 for every Rs.1000 sum assured. So for my Rs.500,000 “Without Profit”policy GA is 37500 per year which will be multiplied by 25 and paid at the time of maturity (25 years). So his definition of Without Profit is quite wrong.

  41. Dear Sir,

    I have Jeevan Mitra triple cover with term 15 Years and sum assured 5 lakh. What Amount I can expect at maturity?

    Thanks in Advance
    Sam

  42. Dear Basavaraj,

    I am paying premium Rs. 14,479 Quarterly for The Money Back policy 20 years (T. No. 75)
    Started at the age of 20. Sum assured is Rs. 9,00,000.
    Could you please tell me how much i will get in return.

    Thanks.

  43. I am investing Rs. 1500/- per month since 28/12/2010 jeevan saral. It is 20 years term policy. How much will I get in return after maturity. Sum Assured is Rs. 375000/-

    Please help.

      1. Thank you for your response Sir. Can you please just let me know a lump-sum amount. Please Sir…

  44. Hello Sir,
    I have Jeevan Chhaya LIC Policy of 13lacs sum assured for which I paid 72k appx. for 3 financial year.If I am going to surrender this Policy I am eligible to get appx. 1,2 lacs appx. Can you please suggest, it is better to surrender it with around 1lacs loss?

    1. Megha-Best option.However, if you feel that loss of Rs.1 lakh is more than future earning then continue. Also, continue if you feel 5% to 6% return on your investment is BEST. Otherwise, it is better to come out.

      1. Hello Sir – I spoke to agent and he was telling if I will continue for next 2 yrs ie 5 premium yrs, then I can able to recover at least my invested amount.Please Sir suggest me. I was thinking to minimize loss out of it.

  45. Dear sir,
    Greetings of the day !!

    Sir i have 2 policy which started in 2009 yearly basis one is regular ( Rs 6984) and second was money back after five years (Rs 12458) and now i wanted to close due to some prob. and as per agent very less amount i will receive.
    Request you to please guide me on above and how much maximum amount i can get it.
    Thank you for your time and guidance.
    Warm regards,
    Devendra

  46. Sir
    Total amount calculated in that time which I withdraw against 25000
    Prematured claim bina nivesh 2005 policy after my mother death

  47. My mother have died last April 2016 she hold a policy lic bima nivesh 2005 on 2013 Dec. And I am nominee this policy and amount only 25000 now l can not understand how much rupee return or withdrawal

      1. I do not know ,but l actually know how much money will withdraw in that time against 25000?

  48. Is there any option to collect the return comparison of LIC Money Back plan and LIC Money Plus plan.?
    If yes than plz kindly provide the reference Link?

      1. Hi, what is the impact if in a policy we have enrollment year and commencement year different. What does these mean. Does this mean any loss in benefits?

      2. Hi, I ‘ve a very general question.. Do we get our premium amounts with sum assured??

        For ex for my policy sum assured on maturity is 2 lace after 15 years. And for ten 10 years, I paid the premium 25k each year, that mean 2.50 lac

        That means I will get 2.50 lacs + 2 lacs after 15 years?? Am I right or I will get only sum assured on maturity??

    1. Sir, request your expert views on the following:
      1) I have a jeevan shree policy in 2001 paid 15 yrly premium out of 16. I have a loan o/s since last 3 yrs. Should I repay loan or only service interest
      2) I have also taken 10 lac jeevan anand policy in 2004 for 21 yrs.again have taken loan. Should I repay or srrender? Pls advise. Thanks

      1. Raj-1) It is left with you. If you have surplus, then better pay off. Otherwise, pay the interest ONLY.
        2) Again it is left with you. Also, if you are satisfied with kind of return of 5% to 6% from this policy, then definitely go ahead and continue it.

        1. Sir Many thanks, request your firther guidance:

          1) While I have the surplus tto pay off the laon, i am confused if i should do that or invest the same in a mutual fund, while continuing to pay interest.
          2) Jeevan Anand – Is it better to surrender or to pay the loan since i have paid 50% of the tenor i.e for 11 year out of 21 years. if the furture premium plus interest payable on the loan gives better return in mf or ppf, I would prefer to invest in mf or ppf then.

          Please advice. thank you.

          1. Raj-1) It is purely your decision. I can’t say of this. Because I don’t know your full financial status.
            2) I already replied. If you feel 5% to 6% is good return, then continue. Otherwise you have to surrender.

  49. i have money back policy, after compition of 4th year, how many days i will get my first money back amount

  50. hi basu,

    I have small query and suggestion.
    First of all I want to thank you for teaching me (LIC agent) and aspiring CFP on how to calculate IRR of lic premium.
    Everything else remaining same.
    I wonder why you did not take tax saving feature of lic while calculating IRR.
    As you have said in the video anything that goes from your pocket will be negative.keeping that point in mind, A 30 year old guy having a salary of 25 lacs PA decides to pay 1 lac premium to lic for 20 years.
    Even though he pays 1 lac premium which will be gross amount. he will be able to save 30,000 on tax as he falls in 30% tax slab. So the net amount that will actually go from his pocket is 70,000. So if you calculate with premium of 70,000 the IRR will be around 9% to 10%.

    Another point is i took example of a person who is under 30% tax slab. So i do agree that returns on investments will differ according to tax slab as tax saved will be different for 10%,20%,30%.

    i wanted your views on this.

    1. Ajinkya-You way of calculation is exactly like typical agents do to sell such low yielding products. I agree that I not considered tax benefit. But what about maturity? Currently, it is tax-free. But what if they turn into taxable in view of promoting term insurance. Because IRDA now started pushing term insurance by incentivizing more for selling term insurance. Hence, I avoided tax part fully.

  51. Dear Sir!

    I have taken Jeevan Saral Policy on 2009 and still now continuing, sum assured is 1037500 for 35 years tenure.

    My Qly EMI is 12709, and If I want to close after 10 years what would be the maturity amount along w/ bonus+LA (if applicable)?

    Your advise will be helpful for my planning.

    Have seen the video, however it would be great if you could help on this.

    Regards,
    Karthik

  52. sir which plan is more profitable.4500p.a. term plan of 2000000+6000F.D.p.a. or 10500 endowment plan of 300000. I am confused.i think the first one is more profitable.

  53. hello sir can u pls tell me how to calculate for any policies…like if i take 100000 lac rs policy then yearly and monthly how much i have to pay…the bonus and….service tax…//

  54. Sir,

    I want to take loan against my existing LIC Policy Jeevean Saral

    I can avail loan around 90000 INR.

    But i do not know what is the EMI?

    What is the tenure for this loan?

  55. Hello Sir,

    I have taken Jeevan Anand policy which will end by 2016. I heard from one of my friend (even he is not sure) that last premium need not to be paid. Is it correct?

    Thanks,
    Aradhya

    1. Aradhya-Insurance policy term let us 25 years means you have to pay 25 installments. But you receive the amount at the 26th year beginning, means once you complete 25 years of policy period. So he might wrongly felt that last premium need to be paid. But reality is different. It is his misconception.

      1. Sir I just want to ask that is the maturity benefit 100% guaranteed in jewan Anand policy?
        For example I was told to get 35 lacs for the 9lac sum assured for 30 years term

  56. I have purchased the policy LIC Jeevan Anand on 1st August 2004.
    Policy term is 21 years.
    Sum Assured is 100000 INR
    Annual Premium is 5383 INR

    How to find surrender value as on today?
    Also how to find bonus?

        1. Sir-my father had purchased the policy LIC jeevan an and on 1 April 2006.
          Policy term 21 yrs. Sum assured 200000.Annual premium 10767.00.

          My father have died last June 2016. And he hold this policy. I am nominee this policy..one more thing two installents of annual premium is left .. But I really don’t know about this criteria of lic.
          Plz tell me the total amount.

  57. Basavaraj- I started my Jeeavn anand polocy plan-149 on 28th august 2013. Premiun-15754 (HLY) . And after 1 year the vested bonus is shown as 22000. But when i checked in this month it is shown as ZERO. Please help me out of this.

  58. Thanks a million for the beautiful explanation.

    But I would like to know & understand that FAB & LA both are given to the policy holder if he/she is paying the premium regular & meeting the definition of FAB & LA.

    Thanks a lot.

    1. Pratik-FAB is a one-time payment payable at maturity, which is usually per Rs.1,000 of your sum assured. Loyalty Addition again a one-time payment at maturity which depends on same as that of FAB but sometimes on Maturity Sum Assured (like in case of Jeevan Saral).

  59. Hi Basavaraj,
    I need help in calculating returns of my policy. Will you be able to assist me on this. Pls let me know. Thanks.

    Regards,

    Viswanath. R

  60. DEAR SIR,

    I BOUGHT LIC ASHA DEEP POLICY IN 1995 OF RS 50000/- SUM INSURED ,PREMIUM RS 2038/ YEARLY AND FOR 25 YEARS

    WHAT I WILL GET MATURITY AMOUNT AS THE POLICY IS MATURING ON DEC 2020.
    PLZ REPLY AT MY MAIL

  61. Appreciate your calculation on surrender value of Jeevan Saral at the end of 10 years;

    1) Annual Premium-1,92,160
    2) Date of commencement-15/02/2008
    3) Policy term-35 years
    4) Maturity date-15/02/2035
    3) MSA on policy document-30,92,782
    4) Accident benefit sum assured-24,50,000
    5) Table 165, 28
    6) Regular Premiums are paid till date

    1. Dear Sir,

      I am curious to know surrender amount after 10 years.

      1) Annual Premium-1,17,698
      2) Age-42 years
      3) Date of commencement-15/02/2008
      4) Policy term-35 years
      5) Maturity date-15/02/2035
      6) MSA on policy document-30,92,782
      7) Accident benefit sum assured-24,50,000
      8) Table 165, 28
      6) Regular Premiums are paid till date

      Still 2 years are balance to accomplish 10 years. Is there any benefit to wait for more 2 years or surrender immediately?

  62. Hi Basu,

    I think starting of the every Year, Vested Bonus will update in the LIC Portal. But in 2016 it is not upadted. Do you know when it is updating and which month ?

  63. I would be happy if my 35 year Jeevan Anand gave me more then 6% return or at least 6%. Taken at the year – 2007

  64. Sir,
    I would like to know that what will be the expected trend for the NAV in 2016 for LIC endowment plan (Table 802) in comparison to 2015, it will increase or decrease.

  65. Dear Basavaraj,

    I have taken a Jeevan Chhaya Policy in 2002 March. At that time I was aged 37 years. My Policy term is 18 years. The premium I pay is Rs.6848/-p.a. The Sum Assured is Rs. 1,00,000/- . I would like to know how much I would receive after 18 years. The Policy Maturity will be on 2018. Is it better to withdraw now.

    Kindly let me know please.

      1. Sir i have a lic 179 new bima gold policy taken on 23/03/2013 but till now i am not getting my moey back …why sir

  66. Sir,

    I am planning to take Jeevan Anand polify for a term of 21 years for a sum assured of 1500000. My current age is 29. Kindly let me know what will be the maturity amount that I will be able to get.

    Also please explain how the component of Final additional bonus(FAB) is applied. I couldn’t find any information online which explains this clearly.

    Thank You
    Yogesh

  67. Dear Sir

    I have taken LIC endowment policy (Table 14) in the year of 2012. Total 10 policies (Premium term from 12 to 21 years) each 1lac for total of 12years. Paying 62k per year. Vested bonus is available online. I would like to know the maturity period and amount.

  68. A) I have taken three policies :
    1. Jeevan Sathi : SA : 100000 (premium ~5200Yearly) – (for 21 years) (Start date : 2010)
    2. Jeevan Saral : SA : 125000 (premium ~6005 Yearly) – (for 21 years) (Start date : 2010)
    3. Jeevan Saral : SA : 125000 (premium ~6005 Yearly) – (for 21 years) (Start date : 2010)

    Should I continue this policies? What max. return I get with vested bonus ? for each policies (approx idea is enough)
    If I discontinue, How much I get on surrender?

    B) I have one home loan (~25000 EMI) with term plan. If something happens to me, My family need not to pay any further home loan EMI. Is it enough term insurance for me OR Should I go for additional term plan ? Please advise.

    C) I am planning to Invest in Sukanya Smriddhi scheme? 3000 RS. / Month. Is it good scheme for girl child?. Wanted to ensure some amount for children education.

    D) I wanted to have ~ 50 Lacs at retirement? What should I do? SIP or PPF else?

    My yearly income is ~ 12 Lac. I am 30 years old. I am the only one source of income for my family. Five Family member.

    Thank you for your advise in advance.

  69. Sir,

    I have 2 LIC plans
    1) Jeevan Shree (T.No. 112). Premium Rs 25,416 (sum assured 5 lac)
    2)The Endowment Assurance policy (T No 11) Premium Rs 8528 (sum assured 5 lac)

    Both the policy I started in 2001 and never missed a payment since.

    I was told by my agent that I will receive some 18 lac on my first policy

    I am not sure about what I will receive since the lic site never shows any bonus nor any figure what I will receive.

    Is it good to still continue with both the policy. I still have 1 year to finish my whole payment on policy 1 and policy 2 has payment till 25 years.

      1. Sir,
        The policy term is as follows

        1) Jeevan Shree (T.No. 112). Premium Rs 25,416 (sum assured 5 lac) Policy Term 25 (Premium Payment Term: 16)

        2)The Endowment Assurance policy (T No 11) Premium Rs 8528 (sum assured 5 lac)Policy Term 30 (Premium Payment Term: 25)

        1. Ranjeet-Agent’s say many stories to lure customers. In my view, the maximum return from 1st policy will be around Rs.12 lakh.
          1) Either convert to paid up or continue as you almost paid the premium.
          2) Better to surrender.

      2. Dear Basavaraj Tonagatti
        ,
        I have taken a Jeevan Mitra Policy in 2003 July. At that time I was aged 24 years. My Policy term is 15 years. The premium I pay is Rs.10311/- The Sum Assured mentioned in my Policy Bond is Rs. 1,50,000/- . I would like to know how much I would receive after 15 years during my Policy Maturity will be on 2018

        Kindly let me know please.
        Thanks in advance!

  70. Hi sir..i have a doubt regarding bonus…when bonus for a particular year is fixed at 40(say) when i agreed for an lic policy and it is revised the following year as 45,will it continue to be as 40(initial bonus) or will it be 45(revised)???kindly guide

  71. Dear Mr.Basav,

    One of my cousin has the below mentioned policy having below details :-
    LIC’s Jeevan Shree – 1 (with Guaranteed Addition for 5 yrs and with Profits thereafter); Table 162; Term 20 yrs.Commencement: 03/2004;
    Maturity: 03/2024
    Premium for main plan Rs. 9212 (Qtrly)
    Date of Last payment : 12/2015
    Premium: 233872 (extra 13.5% premium incuding)
    Paid for seven years until 2/2015;
    Premium term: 12 yrs (i.e to pay until 2019).
    Sum Assured: 5,000,000

    Can you guide us that if this is the right time to quit so that they can repay other loans?
    Suppose if we quit, How much we will get now?

    Thank you.

      1. Dear Mr.Basav,

        Thanks for your quick reply. Really Appreciate. I will tell them to check with LIC for this option. They are having housing loan. But I think if they quit now they will get an amt less for Rs. 5 lacs (say around 3.5-4 lacs). Is that correct?

        Thank you

  72. Hello Sir, I am little confused on the calculation part if I use below link.
    http://www.policydunia.com/lic-new-jeevan-anand-premium-calculator/
    For a person aged 27, opting for a term of 33 years and sum assured 0f 100000 it shows the maturity benefit as 413400. Bonus has been considered as 48 per 1000 of sum assured. As per the calculation mentioned by you, it should come around 100000(SA)+158400(B)+FAB. Is the difference of 155000 can be of FAB ? What is the usual FAB rate for Jeevan Anand Policy. Kindy suggest.

    1. Akshay-I think the said portal considered the FAB at higher end. But better stick to bonus and the sum assured and calcualte on the return part. I don’t think FAB will create a major difference in return part.

  73. Sir, I have taken jeevan anand, in 2012 for 20 years, And Sum assured is 532000 rs. Let me know how much I will get in 2032 after complete the policy.

    Regards

    Brajesh

  74. I bought an LIC Bima Gold (179) policy in 2006. Sum assured Rs 15,00,000 and annual premium 58,000. I have already paid 9 annual premiums, received two installments of 1.5 lakh each in the years 4 and 8 of the policy. At the end of 20 years I am supposed to get back nearly 5.6 lakhs (total premiums – survival benefits of 1.5 lakhs paid four times) with loyalty additions.
    After hours of calls to LIC customer care and online research, I have failed to find any info on how much this policy means in term of loyalty additions. My question is, is this a good policy to continue? I am unable to find any information on what will happen to the loyalty additions if I stop paying the premiums now.
    Possibly if the loyalty additions are just like bonuses, then I may get 12 lakhs as loyalty addition. Or 17 lakhs in total after 20 years of paying 58000 annually.
    If I stop paying the premium, the policy becomes paid up. The paid up value is now 2.2 lakhs (premiums paid – susrvival benefits already paid) which I will receive in year 20. But will I lose all the loyalty additions or the loyalty addition will still keep on adding on this 2.2 lakhs?
    If I do not lose the loyalty additions, I think it would make more sense to buy a term policy of a higher sum assured (I have a family now) and invest the rest in MFs. I don’t quite understand if I will be breaking even or cutting my losses or actually gaining anything if I stop paying the premiums.
    I would greatly appreciate any suggestions and advice on this. Thank you.

    CM

    1. CM-LA will be one time payment payable based on how much loyal you are (for how long you stay with them). You can check the current LA rates for your plan and based on that you can assume the expectation. Whatever way you do calcualtion, let me give you a reality. If you are satisifed with 5% to 6% returns, then continue otherwise think seriously and convert either surrender or paid up.

  75. I have questions on LA.

    I have 3 policies with Jeevan Saral, each of annual premium 12010 / – for 20, 21 and 22 years respectiely.

    LA is declared after a jeevan saral policy has received 10 years of premium.

    Now, if i take my policy with term 20 years, will LA get accumulated every year or at the maturity only based on the rate which LIC declares.

    i.e.
    year 11, cash value is x, and LA is Y, net at end of 11 years is X + Y
    year 12, cash value is X+Y, LA for this year is Z, net at end of 12 years will be X + Y + Z

    OR

    For a 20 years term policy, LA will be added based on the LA rate declared by LIC only at
    1) maturity
    2) Surrender after 10 years of premium is paid
    3) Risk

    One more question, based on the many jeevan saral charts, JEEVAN SARAL basically is RD sought of account where we have RD interest rate. The % considered i 8 %, is it correct?

  76. Hello sir,
    I had a jeevan saral with profits. It’s details is 1000/month + 20/month rider. From Dec 2009 to Nov 2025 and maturity on Dec 2025. Matured sum assured is 182040 rs. Death benefit sum assured is 250000. I don’t want to continue this policy. How much I get if I surrender this.
    Thank you.
    Shiva

      1. Hi Basavaraj Tonagatti,

        Everybody knows that if they contact branch they will get information. Due to curiosity people are asking roughly how much they can get.

        Being a government organization of LIC you may know how responsive LIC people are if you visit branch to Surrender an LIC Policy.

        I personally had a very bad experience in LIC branch people when I enquire about surrendering a policy.

        I don’t think you will have a problem to tell surrender value of a policy based on your experience considering the details provided by the requester

        Thanks,
        Raja

        1. Spark-First thing is, people need CLICK a button READYMADE information even for simple calculations like surrender or paid up. Second thing, I can’t handhold them for all the things. They must be responsible buyers (in case of LIC investors) of their money. Third and important point, they not provide the complete details to arrive at surrender value and reply. Fourth point, they can now get information either on LIC portal (by creating login) or by sending SMS. If they are so LAZY of their own money, then forget me even GOD can’t protect them. It is a harsh reply, but a reality.

  77. Hi,

    I have a Jeevan Anurag policy, 20 years, yearly premium of 26500, S.A 5 Lacs.
    completed 4 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 63000. Will I be getting surrender value more than 63000, same or less than vested bonus of 63000?

    Regards,
    RK

      1. I took this policy from an agent and he is not touch now. Also, for now I didn’t have contact details of branch. Hence I posted this in this forum to get any quick help.

        I am in need of money. Can someone please tell me how much I can expect If I surrender the above policy?

        Thanks In Advance,
        RK

        1. I also contacted LIC branch, to surrender your policy –

          1) you need to fill forms
          2) Give bank details with NEFT details
          3) submit your original policy
          4) Once submitted everything you will get receipt by post

          As per my knowledge, you will not get any bonus after surrender of policy.
          Total amount you will receive is 30% of total premium paid till now minus premium of 1st policy

          1. corrected above –

            Total amount you will receive is 30% of total premium paid till now minus 1st premium of policy

  78. Hello sir,
    I want to clarify my doubt that
    My lic jeevan mitra policy is from November 2001 to October 2021 How much money I get if I stop this policy.
    Its premium is 530 per month. Sum assured is 1 lakh.
    Its surrender value is written as “This policy can be surrender for cash after the premiums have been paid for at least 3 years. The minimum surrendered value allowable under this policy is equal to 30% of the total amount of the within mentioned premiums paid excluding the premium for the 1st
    year and all extra premiums ,the cash value of any existing vested bonus additions will also be allowed.”
    Thank you.

      1. Thank you for your reply. Is there any disadvantages by making it to paid up. I had lic plans like jeevan saral, new bima gold, and another 2 lics. I want to stop them too.
        Thank you

  79. Hi Sir,

    Request your help on New Bhima Gold policy that I either wish to surrender or make it paid up.

    I have been paying premium for this policy since March 2007. Quarterly premium is Rs. 4512 and sum assured is Rs. 5 lakh at the end of 20 years

    I have received Rs. 5o thousand each at the end of 4th year and 8th year.

    Now I want to dis-continue this policy. However I am confused when I should make it paid up or surrender the policy.

    I had visited the LIC office and they told me that the current surrender value is Rs. 16961.

    Can you please advise whether I should surrender the policy or make it paid up?

    Thanks,
    Renuka

  80. Sir, my father bought a policy of lic 15 years back at that time agent told that return will be 2,31,000 if policy taken of 100000 for 7600 per year but now he is telling that we will only get 1,68,000….what should we do now my father has planned many things with this money

  81. Hello Basavaraj,
    My name is Bhaskar, i am from bangalore, i have a lic endownment policy plan 802, have paid 5 year till date, 1 lakh every year. As it is market linked plan as per the indian stock market every 30 years it has grown 100 times, what would be your idea the value would be if i continue paying 10 year premiums. what would be the investment of 10 lakhs rupees in 2030. Please reply. Hope you would comment on my message.

    1. Bhaskar-Who said that Endowment policy is market linked? It is a typical endowment tradiational plan where you get returns of around 5%. If you are pointing towards old Endowment Plus, then whether this product guarantee you that it exactly give you the returns which will be generated by NIFTY OR SENSEX? The problem in your case is not about understanding the power of equity for long term, but chosing a wrong product which involves heavy expenses and no track record. Continue at your own risk.

  82. My Father has a policy – MONEY BACK WITH PROFIT PLAN (Table No: 75)
    Term 20 yrs.
    Policy No. 292680317
    Commencement: 03/2004;
    Maturity: 03/2024
    Sum Assured: 51000
    Premim Amount HLY – 1805
    Bonus Get Amount =10000+10000=20000
    My Father Death August 2015

    AB Mujhe Kitna Paaise Wapas Mil Sakta Hai Please Sir Help Me

  83. Hi Basu

    First of all thanks for providing valuable information to all here.

    My husband has a policy – LIC’s Jeevan Shree – 1 (with Guaranteed Addition for 5 yrs and with Profit); Table 162; Term 20 yrs.
    Commencement: 02/2008;
    Maturity: 02/2028
    Premium: 233872 (extra 13.5% premium incuding)
    Paid for seven years until 2/2015;
    Premium term: 12 yrs (i.e to pay until 2019).
    Sum Assured: 25,000,000
    Accident Benefit Sum Assured: 25,00,000
    No TermAssurance

    Question1: He has accident benefit (no term assurance) and the LIC agent says at maturity he will receive about 60,00,00. How much should he receive at Maturity in case of no accident or death? And in case of early death he would like to know what amount his dependent will receive?

    Question2: We are overseas and have have paid through NRI account.

    We are now planning to settle abroad .
    We are worried about the long process involved in claiming policies and also money being blocked. Also my husband will be 70 yrs at Maturity of this policy. Both being too old to go through all the hassles of claiming – at an old age.:)

    So thinking to surrender this policy. Is it advisable to do so given already paid 7 premiums out of 12? How much will I get back as of now?

    Question 3:
    Also I read above you mentioning about ‘paid up’. Do you think I can do that and is that is a better option than surrendering? In that case how much will I get at maturity?

    Keep up the good work

    Anna

    1. Anna-1) At maturity he will receive Sum Assured+GA (for first 5 years)+Bonus. Including all the return may be around 5% to 6%.
      2) I know that being far and claiming LIC policy is cumbersome. Because as of now they have not any set up which we may say ONLINE. However, consider the returns from this policy, if your expectation is higher and no longer willing to continue, then go ahead and cancel.
      3) Yes, you can opt for paid up where they pay you the money at maturity. Surrender is beneficial when you are in intial stage of policy and paid up when you are about to close maturity. First take both the values from LIC branch and then decide which suits to you.

  84. Hi Basawraj

    Thanks for all your efforts.

    I have just one question. In the Bonus example you gave: Sum assured: 10L, LIC Bonus: Rs40/1000 Rs invested (= 40,000)
    My question is what happens in the next year? Does the bonus gets calculated on 10,00,000 or 10,40,000? If it is not compounded, then what only matters is the bonus at the maturity ending year (assuming of course i dont die!)

    Again, thanks for writing this article and more importantly answering all the queries being put up in the comments section very diligently.

    Regards
    Ankit

    1. Ankit-This is the reason all traditional policies give you less returns. They not compound it but they keep it just idle up to the maturity or death. So no question of calculating your bonus from Rs.10,40,000 but again on Rs.10,00,000 only from next year.

  85. Dear sir,
    Thanks for the article and its very educating. Please help me out for my below doubts. 1)There are two scenario of bonus calculation in Jeevan Anand. a) Scenario-1 : 6% b) Scenario-2 : 10%. Both are not guaranteed. My question is which scenario or rate is actually given to us by LIC. or in other way what rate of interest can i expect at the maturity of my policy at 2032.

    2) LIC declares a bonus rate for each year for all policy. It is nearly constant (44) per 1000 sum assured for Jeevan Anand. Is it going to be constant till my policy maturity or will change .

    1. Sagar-1) NONE. They considered 6% and 10% just for illustration purpose. But the reality will be purely depend on the bonus they declare year on year. 2) In all probability YES. But we can’t predict the future. So the answer is “ONLY GOD KNOW”.

      1. Thanks sir,
        It is rarely seen any body replying each and every mail sent and help other unanimously . Keep the good work going.

  86. Hello Sir
    I had a policy Money Back 20 years with profit, with DAB in 2011. Table 75. Premium is half yearly of rs.9557. The maturity year is 2031. Plz tell me the maturity amount.

  87. Hi,

    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!!!

          1. I wanted to find out what amount will be returned to me as of date, if I opt out of this policy.

              1. This article doesn’t have any content related to Termination of policy and the amount refunded when the policy will be terminated.
                Sorry for bothering again. Thanks for all the help!

                1. Aditya-What content you need from my end to an individual policyholder when it is totally personal and one must have to get from LIC?? 🙂 People never do research while investing. However, they eyes wide open only after buying. What is the use??

  88. 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.

  89. 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.

  90. 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.
    thanks,
    soumita

  91. Hi,

    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?

  92. Hi,

    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…

    reg
    Jugesh

  93. 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.

    Regards
    Ankur Saxena
    Mob:+91 9717474930

    1. Ankur-Secure money and secure policy? It is secured income for them and you being trapped. There is no such rule that one must go for any policy buying while taking education loan. The return from this policy will be around 5%.

      1. Sir I have endowment plan t 14 half yearly Premium 20958 ..I am continuous. Running it….it for. 10 years …start at June 2013 …what is the maturity amount…expected…

  94. Hello,

    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.

    Thanks

    1. 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.

      1. 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 ?

        1. 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.

          1. 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. ???

            1. 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”.

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

  96. 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

    1. 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.

  97. 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.. 🙂

    1. 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.

      1. 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 .. 🙂

        1. 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.

          1. 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 ..!!

              1. 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 . 🙂

                1. 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.

                  1. 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. 🙂

  98. 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?

    1. Dear Sir,

      I have bought LIC policy 1997.

      The Plan Term – 91/20

      DOC 15.05.1997

      Policy Amount Rs. 25000/-

      Premium (Half yearly Rs. 631.00).

      Can you guide when it will mature and how much amount i can get approximately.

      Thanks & Best Regards,
      Murali

        1. Thanks for your quick response

          Total paid amount is 631.00 x 2 x 20 = 25240.00

          I can get the above said amount (or ) It will double.

          Regards,
          Murali

  99. Sir,
    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
    Gaudham

  100. Hi,

    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,
    Nihal.

  101. 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!

    Thanks,
    Deepa

    1. 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%.

  102. Hi,

    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.

    Regards

  103. 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.

    Regards,
    SS

  104. 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.

    1. 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.

  105. 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.

  106. SIR I AM A STUDENT OF BCOM LAST YEAR ;DOING JOB WITH SALARY RS 7000.WHICH IS THE BEST POLICY
    FOR ME TO INVEST.I EXPECTED TO INVEST RS 1500.PER MONTH.PLEASE ALSO ASK FOR RETURN.

  107. 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.

  108. 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

  109. 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.

  110. 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.

  111. 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

  112. Hi,

    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
    Ritesh

    1. sir,
      may I know the Date backing for LIC new Jeevan anand (815) policy? my DOB is 20.07.1984. can I date back the policy, ie, Commerment date as July 2014 ? please reply.

      Thanks & Regards
      karthik

  113. 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

    1. 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.

      1. 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

        1. 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 http://bit.ly/iciciprulifetermplans and we will have one of our experts contact you to assist you with your queries.

          Regards,
          ICICI Prudential Life Insurance

  114. Hi,

    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,
    Sam

      1. I’ve heard that LIC does not actually give you the whole amount. That you have to re-invest with them. Would appreciate if you could let me know the amounts. Thanks.

              1. You ask what amount? Obviously, I’m asking about the amount receivable on maturity. It’s mentioned in my first post. Instead of asking questions aimlessly, why don’t you try helping out? And yes, forgive me if my queries are not accurate/do not contain the right terms. You see I’m not a Certified Financial Planner by qualification.

                I asked for some help. If you’re not up to it, it’s cool.

  115. 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????

  116. Hi,

    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/- ….

      1. I purchased a money back policy (table-75) in 2011 for 20 years with quarterly premium of Rs 6485/-. Sum assured for the policy is 400000/- under money back of 4 installments i.e. 20%, 20%, 20% and 40%+ vested bonus.

        My query is for the vested bonus. How much it will be at the maturity of my policy…?

        Please reply.

        Thanks.

  117. 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…

      1. 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…

          1. Hi Basu,
            Thanks for getting back to me…

            Attached is the link I was referring to . Notice on the right side it mentions that for 35 years term the FAB is 2200/- per 1000. I tried some online maturity calculators as well and it mentions that the return from FAB is 23L (2300 * 1000).

            Can you let me know what I’m missing here, am I reading the article wrong? How is it that I calculate the FAB bonus as so much?

            http://licalipuria.net/userfiles/BONUS%20CHART%20%202012.pdf

      2. Basuji
        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/-

  118. 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

  119. 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?

      1. NO, there is no proof from LIC
        AGent had promised many things and now im stuck as i have 7 policies running with him
        Now for 10 Lakhs policy return as per document by end of the year is 13Lakhs

        But even when hes promised…its not true right? it was a fake confirmation ?

  120. 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

  121. 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?

  122. Sir,

    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 ??

    So, PLEASE GUIDE ME…..as it is URGENT

    PLEASE……………….

    1. 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.

  123. 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.

    Thanks.

  124. 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 !!

  125. 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

    1. 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.

  126. 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.

    1. 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.

  127. 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.

    1. 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.

      1. 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.

        1. Joydeep-Why your concentration more towards Sec80C rather than insuring a family? Do you know with current changes in EPF rules, one can easily fill it up Sec.80C with EPF, PF, Term Insurance or any other short term goals related investments like FDs.

  128. 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

  129. 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

    1. 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?

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

    Thx,
    Manohar

  131. 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 ?

      1. 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.

        1. 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.

  132. 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.

    Thanks

    1. Sudha-Now you have three options-Surrender it after 3 years (you may loose some portion of what you paid already), paid up (no future premium payment, but you receive the amount at policy maturity only) and third option is to continue till end get the return of around 5%. Decision is left with you.

  133. 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

  134. Hi,
    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

  135. 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.

    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,
    Imran
    Email: imran2222@gmail.com
    Kuwait

    1. 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.

  136. 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.

    Thanks,
    Madhan.

  137. 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 .

  138. 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…….

    1. 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.

  139. 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…

  140. HELLO SIR,

    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…

      1. 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.

        1. 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.

        2. 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
          Deepa

          1. 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.

  141. 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.

  142. Hello,
    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!

    1. 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.

  143. 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

  144. Hi,

    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

    Thanks

    Sandeep

  145. 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.

  146. 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.

  147. Hi

    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

    Thanks

  148. Dear Sir,

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

        1. Raj-Then stay away from LIC policies. Because they give you maximum of around 7% return. So if your definition of “HIGH RETURN” not fit with kind of return typical LIC policies give then better to look for alternatives.

  149. 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?

  150. 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?

  151. 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?

  152. 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 procedure.my installement is 21 year.pls give clarification in vested bonus

  153. Hi,

    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.

  154. 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 !

  155. 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.

    1. Selvaganesh-This is typical money back plan but only exception is little bit low premium compared to other money back plans. So nothing special in returns. You can expect around 6%.

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

  157. 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

      1. Hi Basu, Thanks for the reply.
        The policy does not get yearly bonuses announced by LIC. It also does not cover accident insurance.
        This policy was taken in 2001. I have no clue on what would be the returns in 2o21 🙁

        1. Vijay-Bonus will not be payable to you yearly. But it will get accumulated. Check your bonus accumulation with LIC officials. You will come to know. How you come to know about this policy not covers accident insurance?

          1. Hi Basu,

            The policy document heading say it as “Jeevan Shree 112 20 12 (Without Profit) Without Accient Benefit”

  158. 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?

      1. 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..

          1. 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??

            1. 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??

              1. 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 🙂

                1. 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?

                  1. 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).

                    1. Thank a ton basu 🙂

                      BTW, can you suggest us any good health insurance plan and its benefits??

  159. hi Basu,

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

  160. Sir,
    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.
    Snigdha.

  161. 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?

      1. Basavaraj,

        Thanks for ur response!!!

        So ur asking me to continue with teh policy…..With Aviva for teh same coverage?

  162. sir i have taken 2 jeevan saral policies in my name back in 2009 for ten years THAT IS ONE POLICY OF rS.1225 /qUATERLY FOR TEN YEARS AND I GET rS.85,254 SIMILARLY ANOTHER POLICY OF RS.766/QUATERLY AND FOR TEN YEARS AND GET RS.53227. IS IT TURE OR NOT I WANT YOUR OPINOION REGARDING THIS PLZ REPLY ME ON MY MAIL ID GIVEN ABOVE

    1. 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

  163. Sir,

    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.

    Thanks,
    MSS

    1. 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.

      1. 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.

        Thanks,
        MSS.

  164. dear sir,,
    thankyou 4 ur valuable feedbeck 4 all.
    sir,my quaries are as follow-
    1.in 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

      1. 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

  165. 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.

  166. 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?

    1. 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.

      1. THANKS..ONE MORE QUESTION I WANT TO ASK…IF I WANT TO WITHDRAW LIC POLICY BEFORE MATURITY OR AFTER 3 YRS WHAT WILL BE PAYBACK

  167. 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.

    Thanks

    1. 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??

    2. 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

      1. 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.

  168. 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.

    1. 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.

  169. 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

    Shekar

      1. Thanks for your prompt reply. Honestly, I am not at all happy with this 5% return. It was a well executed trap by my relative (who is an LIC agent)!!

        Regards

        Shekar

        1. Shekar-You just come out of the plan and I know you may receive some lesser to what you paid. But do remember that this is the penalty you are paying for your ignorance. This will make you always cautious while buying any financial product next time.

  170. sir,

    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?

  171. 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.

  172. 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?
    Thanks

  173. 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

    1. 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 🙂

  174. 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.

    Thanks.

    1. 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?

      1. 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.

            1. Ram-When the person in question is almost started retirement age and he is not earning. His income is depending on retirement corpus he created. Then what is the use of insurance at this age?

  175. 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?

      1. 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 )

        1. 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.

          1. 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?

            1. 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.

              1. 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.

                  1. 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.

  176. 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.

      1. 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.

        1. 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.

          1. 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?

                1. 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.

                  1. 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

                    1. 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?

                      Kaustubh

                    2. 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.

  177. 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.

    1. 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.

      1. 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.

        1. 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.

          Kaustubh

      2. 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
        Kaustubh

    2. 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

  178. Hi,

    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!!!
    Rishikesh

    1. 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.

  179. 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….

    regards

    1. 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.

  180. DEAR SIR
    I AM DARSHAN
    I HAVE A JEEVAN MITRA POLICY
    I RECEIVED A CALL FROM SOME INSURANCE DEPARTMENT
    IT SAID ME THAT MY BENEFIT OF GA LA WAS CANCELLED AND WAS RETURNED
    IF I WANT TO GET THE BENEFIT THEN I HAVE TO CONTACT MY AGENT
    MY AGENT SAID THERE IS NO BENEFIT LIKE THAT.
    I WANT TO KNOW WHETHER THE BENEFIT IS GENUINE OR IT WAS JUST A FAKE CALL

  181. 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.

    1. 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.

      1. Thanks for all your answers Sir. Just to clarify my understanding on Question 4; on maturity I will receive SA+Accrued Bonus. Apart from this amount, on my death after maturity, my nominee would receive SA. Is this correct ?

  182. 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.

    Thanks
    Rajiv

  183. 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.

    1. 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??

  184. jEEVAN ANAND
    START DATE: – 31/1/2013
    PREMIUM 12000 PER YEAR
    POLICY 230000
    POLICY TERM 21 YEAR
    PLZ TELL ME HOW MUCH MONEY I WILL GATE AFTER 21 YEAR

    1. 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)

      1. 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??

  185. 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

    1. 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.

  186. Hello,

    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
    Abhishankar

      1. Hello,

        Sorry I didn’t get you. What you mean by 6% !!

        And I would like to know approx. maturity amount for both the policy.

        Thanks
        Abhishankar

  187. 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
    varghese

    1. 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.

  188. Hi
    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?,

    1. 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.

  189. 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 !

    1. 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.

      1. 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 …

          1. 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 ?
            Thanks.

            1. 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.

  190. 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
    Premium:34,361(Yearly)

    2.Plan:Bima Gold (T.No:174)
    Started in 28/Mar/2006
    policy term:12(premium Payment Term:12)
    Sum Assured:200000
    Premium:2915(Quarterly)

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

    1. 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?

  191. 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?

  192. sir,
    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.

      1. 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.

        1. 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.

          1. 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.
            Regards
            PSK
            Moraghat Tea Estate,Banarhat

            1. 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.

              1. 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?

                1. 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.

                  1. My Policy is New Bima Gold(T-179)
                    Premium:35776(payable yearly)
                    Term:20 years
                    Extended Term:10 yrs
                    SA:10,50000
                    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)

  193. 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?

    Regards
    Dinesh

    1. 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.

  194. 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.

    Regards
    Dinesh

      1. Dear Basav

        Can u please calculate and let me know the estimated final returns on this product.

        Thanks
        Dinesh

        1. Dinesh-You have not provided the SA, anyhow currently bonus for this plan for Rs.44 per Rs.1,000 SA. You can calculate and multiply to your SA. Along with SA, you also entitled for this accumulated bonus.

  195. 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?

  196. 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.

    Regards,
    Riju

    1. 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

      1. 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.

        Regards,
        Riju

        1. 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.

  197. 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

  198. 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
    SA:10,50,000
    Premium:35,776(yearly)
    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?

    1. 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.

      1. 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 420k..so 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?

        1. 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.

          1. 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 🙁

            1. 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.

              1. 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.

                1. 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.

  199. 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?

    1. 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.

  200. 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.

  201. 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

  202. Hello,
    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.

      1. Sir,
        My LIC Plan is Jeevan Saral (T. No. 165)……just wanted to know the approximate amount that I might get at the end.