LIC’s Bonus rates for 2012-13 and comparison

LIC declared it’s bonus rate on 1st September 2012 for the year 2012.  Let us see how much are they and compare with last 5 years bonus rates. Latest rates are available in my latest post “LIC’s Bonus rates for 2013-14 and Comparison“.


Above Bonus rates for 2012 will be applicable for policies entered during the inter valuation period (01-04-2011 to 31-0302012) and in force for full SA as on 31-03-2012.  It also apply for the policies whose death, maturity or surrender occurs on or after 01-01-2013. Also above 2012 bonus rate applicable who entered after 31-03-2012 and result into claims, maturity or surrender during the period commencing from 01-01-2013 and ending 9 months from the date of next valuation.

I considered only the plans which are currently offering by LIC. You notice from above table that Bonus rates are not changed to what it was previous year. Positive point is, it maintained the same increased rate of bonus rate for Jeevan Anand (which was raised previous year for all tenures). I mentioned here Jeevan Anand because it is one of the highest selling insurance plan.

Below are Loyalty Addition rates for few selected policies. I considered Bima Nivesh, Komal Jeevan and Jeevan Saral.


For Jeevan Saral if the policy is in force for atleast 10 years and full premium paid for all 10 years then loyalty addition is payable or due to earlier death for complete duration for which the premiums have been paid.

Also if death claim occurs in the 10th year of the policy and the policy is in full force then loyalty addition is payable.

If policy surrendered after completion of 10 years, provided 10 full years premiums have been paid under the policy, loyalty addition will be payable for the complete duration for which premiums paid.

Hope this information will helpful for policy holders.

If you have any specif doubt about LIC’s Jeevan Saral Plan then I request you all to raise your queries by commenting on the post LIC’s Jeevan Saral-Why so much confusion?


636 thoughts on “LIC’s Bonus rates for 2012-13 and comparison”

  1. Sir I have a lic policy of new bima gold money back in 2009 for 12 years. Sum assured is 4 lac. In 2021 it will be matured . What amount I get

  2. Hi Sir,

    My age is 29 and I have taken Jeevan Anand Policy(149) 2 years back. I am paying 50103 every year(once in a year) and the term is 21 years. I was told by my agent that I will be getting 20 lakhs upon maturity whereas the sum assured is displayed as 10 lakhs.
    Could you please confirm what would be the sum assured in my case upon maturity?

  3. dear sir my present age is 39, i have 2 kinds one is 12yrs baby and other is 6 yrs boy.
    i want to give 20 lakhs each at their age of 27. which plan is best for me.
    give me details. as early as possible.

  4. Hi Basu,

    Can you help me with an understanding whether bonus accrues on Jeevan Anand policy in the year of commencement? I have 2 jeevan anand policies and need this for better financial decision making.


    1. Biswajit Bhattacharjee

      Mr. Basavaraj Tonagatti
      please advice me-
      I have three Jeevan Saral policy yearly premium 30024,48040 and 24020 in the year December,2009 and March,2010.I am confused what should I do close the policies this year that is after five years or continue at least 10 years ?-please advice.And if I surrender then what should I decide for next Investment with same amount of premium? please reply soon.thanks.

  5. Murali Venkat

    Dear Mr. Basavraj,
    I have taken a Jeevan Shree Policy in year 2002 for Rs.5,00,000/- Sum Assured. Yearly I have paid Rs. 51,341/-. I have paid for 10 years without any break. LIC has told me that this policy shall mature after15 years, i.e in 2017. When I am trying to check about the maturity amount I shall be getting, I did not get any clear picture from any one person in LIC.
    Can you please let me know what shall be the maturity value I shall be getting. I was told when policy is being taken I shall get a maturity value of 4 times the SA i.e Rs.20 Lacs. Is it so?
    Appreciate your early and positive reply.
    Murali Venkat

    1. Hi Basavraj,
      I have a LIC Jeevan Saral (T No: 165) policy. Here are the details of it:
      DOC: 17/01/2010
      Sum Assured: 10 lacks
      Policy Term: 21 years
      Age while commencement: 24
      Premium Amount per month: 4043/-

      Could you please let me know the maturity amount that I will get?


  6. DEAR SIR,

      1. Sir,
        I only would like to know about if I have discontinued the policy after five years, I will have gone to loose side or not. If I continued the policy that is safer side or going to gain profit or loose.
        Please reply my query.


        1. Mohit-In case of 5 years closure even if you loose something from what you paid already, is safer than committing a same mistake for rest of policy period. If you are satisfied with kind of return then you can go ahead 🙂

          1. Sir,
            How long period I have to continue this policy, what is your advice if my policy has been terms 26 years. Please suggest me how long years have I to continue the very policy? After that I have no loose at the end of the policy.
            And also please let me know what will I get form LIC after five years if I discontinued my policy (including M.S.A & L.A. declared by corporation)

        2. Sir,
          How long period I have to continue this policy, what is your advice if my policy has been terms 26 years. Please suggest me how long years have I to continue the very policy? After that I have no loose at the end of the policy.
          And also please let me know what will I get form LIC after five years if I discontinued my policy (including M.S.A & L.A. declared by corporation)

          1. Mohit-By running behind year on year to get what you paid you actually looser by committing a same mistake. In my view it is best to come out after 5 years. If you continue for 10 years then you may get what you paid with that around 4% to 5%. Is it good decision?? I don’t have any data to claim you how much you get after 5 years. So contact LIC office.

  7. Hi sir,

  8. Ritesh Poddar

    Dear Sir,

    I had a Jeevan Anand policy with following details:

    1. DoC = 28th May 2004
    2. DoM= 28th May 2014
    3. SA = 10,00,000/-
    4. Premium Paid = 127,383/- for 10 years

    Could you please let me know what should be the total amount that I should receive at maturity (i.e. on 28th may 2014) ?’

    Thanks in Advance

      1. Ritesh Poddar

        Hello sir, first of all thank you for the reply.

        In my current situation, I would have been happy even if the return was around 6%.
        Annuity Due of Rs 127,383, for 10 years at return of 6% p.a. would yield Rs 17,79,750/- on maturity.

        But as far as I know the return has only been 13,53,000/- which is disgusting. My agent had promised me that at Maturity i would receive around 17 Lacs, but currently it is nowhere near that.

        Please let me know if 13,53,000 is the correct sum to be received on Maturity or has there been any mistake from LIC?

        1. Ritesh-I am not quoting the exact return. But do think 6% for such a long term is good investment decision, especially when inflation rate itself is around 8%. Means your investment is actually giving you negative return of 2%.

  9. chinmay dutta

    dear sir,
    i have a money back polici.amount of half yearly rs-2744.for 20 years snd money back is 16000 per 4 years..Please tell me about houw much return can I expect on maturity.

  10. Pratyay Bhattacharya

    Dear Sir,
    I have a Jeevan Anand(table 149) policy.The details are:
    Please tell me about houw much return can I expect on maturity.

  11. I have a 20 years jeevan anand policy with a yearly premium of 25000/-. I would like to take a loan against the policy. how much loan shall i get and is there any affect on maturity benefits due to loan. Also indicate the rate of interest against loan.
    Kindly advise.


    Dear Basu,

    I am SUBRAMANIAN. I took two policies .one for me and one for my wife.Both

    Jeevan Mitra(Doubie Cover Endowment Plan) in the Aug 1993 Tab & Term 88-20.

    Sum assured for me is Rs 35000/ and Rs 30000/ for my wife. For some

    unexpected reasons we could not pay the premium from Sep 2006. If we submit

    the policies now how much we will get? Whether the policies will be eligible all

    the benefits. I request you to help me in this matter. I am very much absorbed by

    your help to the needy people .Wish you all the best all the time in the world.

    1. R.Subramanian-If you at least paid 3 years of premium then your eligible for surrender. I am unable to say how much you will get. Instead I suggest to visit your nearest LIC branch or servicing branch to know the exact status of policy.


        Hello Basu,

        After paying premiums for 13 years Which will be more beneficial

        a) Surrendering at the end of 13th year,

        b) Surrendering after the due date.

        What are all the benefits ie the bonus etc and what is the calculation

        for both a) and b)

        Warm Regards

        1. Subramanian-For both answers, I request you to contact nearest LIC branch. They will exactly give before and after 13th year surrender values. Because surrender values depend on so many things.

  13. Hi Sir,
    I am planning to buy New Bima Bachat Policy for my nephew who is 17 years old for 9 years term.
    The one time premium is Rs. 74447 for SA Rs. 100000.
    The advisor told me that my nephew will get 15% of SA at the end of 3rd and 6th year and the end of 9th year he will get Rs. 100000+40000=Rs. 140000.
    Now one of my friend told me that at the time of maturity the amount will be the one time premium plus loyalty addition only which will be well below Rs. 140000.
    I want to know whether the contention of my friend is right? and if so how much amount(approx) will my nephew get at the time of maturity apart from 15% money back at the end of 3rd and 6th year.
    Thanks in advance.

    1. Hemant-What your friend quoted is correct. This being traditional plan, return will be around 6% from all your investments. Also I don’t think what is prompting you to buy a traditional product for 9 years. If you put the same in FDs then you have possibility to earn more than this product.

  14. Hello Basu,

    I have a Jeevan Saral policy ,in which 10 year complete in 2022 so i want to know that i got a loyality addition on basis of 2022 declare or on basis of 10 year term plan i.e. you mentioned in bonus chart.


  15. Hello Bashu,

    i have a policy of jeevan saral and 10 year complete in 2022 .If i mature i got a loyality addition value on basis of 2022 declaration or 10 year completion i.e. on 2011 basis ?

  16. Hello basunivesh,
    I have LIC’s Javeen Shree 1, 20yr Terms, premium @ 30300/- P.A for 16yr,
    What amount will i get after 20year (in 2030)?

    Thanks in advance.

    1. Farooqi-It is typical traditional plan where in only adding features are minimum SA is Rs.5,00,000 and for the first 5 years Guaranteed Addition (after that normal bonus declaration as usual to other plans). So you can expect around 7% return.

  17. Dear Sir,
    I had taken jeevan tarang policy which premium 71369 annual for 20 years with sum assured 14.5 laks. My advisor told me that if you withdraw plan before six month in case of this policy ( safe surrender mode) then you will get about 36 laks (sum assured+bonus+loyality) pls. tell me is it true.

  18. Hi Basu,

    I am grateful to your blog and i appreciate the effort made by you.

    I had taken LIC Jeevan Anand plan for 21 years & 25000/yr on 3rd Nov 2012, so only paid 1 premium till now

    I have few personal reasons and priorities to reduce the term from 21 to 10 year.

    I got a call from LIC Cannaught Place Office saying that my plan can be converted into Jeevan Saral ( 10 Yrs plan ) with following

    Details :
    1. Old 25k paid in Jeevan Anand will get added in Jeevan Saral and will be paid to me on 11th year along with SA of 5lakhs.
    2. I will pay 24k / year till 10th year.

    Additional Benefits :
    1. Loyalty Bonus 5k per year and will be paid on 11th year.
    2. IRR Bonus 5k every year will be paid to me as cheque.
    3. After maturity a life insurance of 5 Lakhs / 10 Lakhs normal insurance/accidental death insurance for next 25 yrs.

    I could find details on the website but could not find additional benefits on website for table no 165.

    Caller says, additional benefits may not be available on website as they are providing it on their behalf.

    If conversion is possible i would like to go for it, but i am not able to judge the authenticity, please help.

    Chandan Kumar

    1. Chandan-It is a big mis-selling technique going on from someone to fool you. Please don’t be in this trap. First thing, there is no such option available with LIC where they can adjust the paid premium of one plan towards the one more new plan. So here they are completely claiming wrong. Even if you go with Jeevan Saral plan for 10 year tenure then the return on investment (considering the current LA trend) will be around 4%. So never ever enter into this trap. Also what they are claiming to be additional benefits are completely against rules. So what gaurantee they can provide you that after 10 year they will pay you? If they not then to whom you have authority to claim?
      My sinciere advice will be to discontinue the Jeevan Anand. If you want to continue then you can. But NEVER NEVER NEVER enter into this new investment. This is a big caution from end to you.

      1. Hmm Thanks for the suggestion about Conversion of my Plan…

        Now although my previous Jeevan Anand Plan is going fine, but only personal issue for me is the “long” term.

        I have only paid 1 premium till now, If i discontinue existing jeevan anand would i get anything ?
        Even if i can get 50%, i would like to go for it.

        And if i will get nothing, then i would like to reduce the term from 21 yrs to 10yrs.
        Is it possible ?

        Chandan Kumar

        1. Chandan-These are the plans where your long term investment will only give you a bit good return. So it is of no use thinking now. No you will not get anything as premium payment will not completed minimum 3 years. But my suggestion will be discontinue and start a fresh with Term Plan (SA must be equl to 10-12 times of your yearly income)+Goal Based Investment (Choosing products based on your goals).

  19. Basav so much thanks for your reply but am in bit confusion for the amount that i might receive at the maturity period as per lic sheet they said @10% rate of int i will be receiving some xxx amount can i beleive that chart, am still in bit confusion , i request you clarify me in detail currently paying 2042/- rs p.m for 16 years already 2 years completed started at age of 26, now tell me how much amount would i expect at the time of marturity. thanks sandeep

    1. Sandeep-10% return showing from LIC sheet is indicative return. This example will give you an idea how the plan actually works. But it does not mean that you will guaranteedly receive this much. In my view for 16 years of policy the return from this plan will be around 6%.

      1. hello sir,
        from the above table i could get that 300 rupees for every 1000 rupees in SA,so that means present LA rate is 3%.then how you are saying it would be around 6%.please could you clarify this to me.

        1. Johnkrishna-I think you are referring to LA of Jeevan Saral. If it is so, then for your information LA will not be on SA on this plan but it is on MSA. Please read the table carefully also above few comments. So SA is different than MSA in Jeevan Saral plan. Also having Rs.1,00,000 today as cash in your hand is different than having the same Rs.1,00,000 after 20 years. The value of this Rs.1, 00,000 after 20 years will be less than what you have today. So bonus or LA declared today seems good but you receive it either on maturity or claim. Hence the value gets reduced.
          If you still have doubts then let me know.

          1. Thank you sir for your reply.yes i was referring to jeevan saral policy only.i am paying monthly 4000 rupees for my jeevan saral policy.though in bond they mentioned 35 years as my maturity period,but i am planning only for 15 policy commencement date was 15th march 2009.may i know what would be the approximate amount as per the present trend is considering i get at the time of my maturity(after 15years from policy starting date) ?by the by what is the difference between SA and MSA?

            1. Johnkrishna-May I know the age when you took this policy? The difference between SA and MSA is-SA is the risk you will get throughout the period of this policy, I mean your nominee will receive in case of your death during the policy period. Where as MSA is the guaranteed value you receive from this policy at the end of term.

                1. Johnkrishna-Your MSA for 15 years will be Rs.7,79,760 and LA will be Rs.3,70,386. (LA @ Rs.475 per Rs.1,000 MSA and premium paying policies of Rs.20,001 to Rs.50,000). So total you may receive Rs.11,0,146.

  20. Hi
    I have a Jeevan Saral of Rs 24000/- annual premium for a term of 35 years which started in 2009.
    I am 30 years old now.
    Wanted to know
    a) From which year will the surrender value also include the loyalty additions? And will it include the LAs in full as per last declared?
    b) Is the LA different for different terms? You have mentioned terms as 10 & 11 and the LAs are different for both.

    Shashwat Virmani

  21. hi Basau,

    i am investing 1024/- and 2042/- p.m for my jeevan saral, for 12 and 16 years periods, wat would be apprx amount i would be receiving at maturit period and also send me rate of interest declared for last 2 years for jeevan saral, so i can plan my years accordingly – pls send the details to my id [email protected]

  22. sir,
    presently i am in Dubai for oil and gas field job. next month I will come in India.
    I want to invest 5 lac rupees next month.
    pleas can you advice me where i have to invest with safety and Security.

    other vice i have plan to invest in SBI NRE Account as a Fix Deposit. advice me this is the right way.

    I am waiting for your favorable response.

  23. hi
    i invested 100000 rupees one time investment in bima nivesh for 5 years terms pleas can you tell me my maturity amount after 5 years?

    Virendra-It is Rs.1,27,628 (GA at Rs.50 per Rs.1,000 SA)+LA (which I don’t know).

    Sir approximate how much this LA (loyalty addition) Amount.

  24. Hi Bashu,

    I have invest a Rs73500 per year in JeevAN Saral for a term of 20 years.So how much return i would expect after 20 years.Is it good or not.
    Now, i have heard a LIC closed all these policies and introduce a new policy.So it would effect on a return of jeevan Saral LOYALITY addition declare by LIC?

    So can you please ellaborate is it benefit to contiue upto 20 years or exut after 10 year investment?

    Thanks and Regards

    1. Rahul-Return from this plan will hover around 6%-7%. Now you may conclude yourself whether it is a good plan or bad plan. No as of now none of existing plans of LIC’s are closed. That revamp postponed to 1st Jan 2014. So even if they change there also will be no effect to the existing clients. Don’t worry as of now.

  25. hi
    i invested 100000 rupees one time investment in bima nivesh for 5 years terms pleas can you tell me my maturity amount after 5 years?
    pleas send me maturity amount on my email address : [email protected]

  26. Thanks Basu, I get your point here. Can the above plan go into guaranteed returns category same as debt instruments. What are the other options you suggest in terms of maximum returns? I’m confused with MF or SIPs. Ofcourse I’m still collecting knowledge.

  27. Thanks Basu, 9 lac is guranteed returns and there is bonus component which takes it to 71 lac. so I assume it will be higher than 9 lac at any point in time? Also I’m spending 30,000 per month on this plan.

    1. Hvishal-What will be the value of Rs.71,00,000 at your age of 80 years? It may be around few years’ expenses. So don’t run behind values in current terms. My suggestion will be not put more than 20% of your overall investable amount into this plan. Now it is your call to take.

  28. Hi Basu
    Thanks for all your valuable comments. I need your help to understand whether I’m going for right plan.
    My LIC agent has suggested me Limited payment whole life with profit plan (table 5). Premium per year is 31000. SA is 9,00,000. Premium paying terms is 20 years. Maturity is at age of 80. Risk cover given is 9 lac from first year and keep on increasing till 71 lac towards the maturity i.e. it increases by 50,000 every year. Maturity benefit is around 71 lac. Can you please let me know if this is good plan to buy, as risk cover appear to be good. Of course the guaranteed risk cover is 9 lac but including bonuses it goes upto 71 lac. Please help.

    1. Hvishal-It is a good plan but the return from this plan will be around 8%. So treat this plan as if any other debt products like FDs, PPF or EPF. So don’t over invest in this plan especially for your long term investments. Debt portion of your total portfolio may go towards this. But not 100% of your investment.
      Another thing about Sum Assured, you said risk cover appears good. How? Ideal insurance cover should be around 12-15 times of your yearly income. Is it actually matching your income? I don’t think so. Rs.9, 00,000 may sound good but will it fulfill your dependents dream in case of your untimely demise today itself? Think and act.

  29. Hi BasuNivesh Sir,
    please send me the SRBonus, TB, LA and any other bonus rate declared details for the child plans, such as the JEEVAN ANKUR, CHHAYA, ANURAG. Where parent is insured.

    my email address is [email protected]


  30. Dear Nivesh,
    Like Anand, I am also JS (old) customer and I joined it just before closure i.e. Jan’02. My queries are largely answered in this thread. My spcific queries are on futur action plan:
    1. How can I get to know the current value of my policy? Unable to get it from online portal.
    2. My view is that in any way, the naturity proceeds can’t go beyond 14-16 Lacs i.e. 4 x premiums paid over 16 yrs. Will it be advisable to surrender it, invest the proceeds as well as premium amount of 25k into a 8.5% PPF and get hugher returns than expected under exempt, exempt, exempt instrument?

    1. Vivek-
      1) If you are unable to get information from online portal then visit your any of the nearest LIC branch. They will give you the information on your policy.
      2) Yes it is best option to come out of the plan and start the simple and tax efficient product which you mentioned. But at the same time not to forget to have the pure insurance plan called “Term Insurance”.

  31. Hello Sir i need to take an LIC policy as i want to avail tax rebate. I have thought og New Bima Gold for 16yrs. Annual premium is 24459. I am 23 yrs old now. Is it a good policy to take.
    How was Money Back policy?

    1. Tanaya-Good to hear that you planned for tax planning. But will this money back plan actually match your financial goals? Return from such policies are around 6-7%. Are you ready for this? Don’t consider only on the tax preview look into another aspect of any product like whether it matches your need or not and then decide.

  32. amit kumar singla

    Thanks sir.One more query.I have taken a endowment plan in year 2000 at age of 23 for 15 years .The SA is 100000 for table no 14-15 and annual premium is 6700.can u tell me what will be the maturity amount i will received in 2015

      1. amit kumar singla

        Thanks for reply.

        Sir i want to purchase new LIC policy only for higher return only can u pl tell me which policy i should buy where return is the maximum among all policies. I can Premium for 16 years and monthly premium about 3000 per month and my age is 36

          1. amit kumar singla

            I have jeevan astha policy taken in Dec 2009 at the age of 32 for 5 years and sum assured was 25000.How much i will get on maturity.

                  1. sir,
                    I also have same policy but can you tell me how the loyalty amount calculated and what is its amount now on maturity of the policy as my policy get matured on 20 jan 2014

  33. amit kumar singla

    I have taken Jeevan Saral in name of my wife from April the age of 30 for Death benefit of 500000.The per Month premium is 2042 for 25 years.can u tell me what will be the Maturity SUm assured

  34. Hi,

    Has the bonus for 2013 been announced by LIC? Last year it was declared around this time of the year, so I was wondering if the same is announced this year too or not. I could not find anything on the LIC website.


  35. Dear Sanjay,
    I am Rajesh, I am in little bit confusion in taking policy. I am discribing it
    below please suggest me which method is good for me.

    Name: Rajesh.Ch
    DOB: 26/05/1983

    Method 1:

    Policy: Jeevan Anand
    Duration: 22 years
    Sum Assured: 5,00,000/-
    Premium Mode: Half Yearsly (Rs.12.467/-)

    Now how much money I will receive after end of the polic.
    As per my Lic agent, I will receive Rs.12,00,000/- after 22years.

    Method 2:
    Policy: Amulya Jeevan (Plant No:190)
    Duration: 35 Years
    Death Coverage: 25,00,000/-
    Premium Mode: Half Yearly (Rs.4,947/-)

    Along with Amulya Jeevan, if I invest Rs.15,000/- per year in PPF then how much I will get after 22 years.

    1. Rajesh-1) If you go with Jeevan Anand then returns will be as below.
      SA Rs.5,00,000+ Bonus Rs.5,17,000 (I considered current bonus rate for policies of term more than 20 years is Rs.47 per Rs.1,000 SA). So total you receive Rs.10,17,000. I don’t know how your agent calculated.

      2) If you go with Amulya Jeevan then from your yearly budget of Rs.25,000 you need to set apart Rs.10,000 for this plan. Rest of the amount will be Rs.15,000. If we consider that you are contributing this as monthly Rs.1,250 before 5th date. Then maturity from PPF after 20 years (actual PPF period is 15 years but if we extend another one block of 5 years) will be Rs.7,00,377.

      But do remember that while comparing both the products your SA are not equal. Also if you opt for some online Term Insurance products then they will be much cheaper than LIC’s offline term plan.

      1. Dear Basunivesh,
        Thanks for your reply. As per my LIC agent in jeevan anand policy FAB will be added at maturity time, as well as every 2 or 3 years bonus rates will be increased. So after maturity time I will get Rs.12,00,000/- as well as insurance will be covered for Rs.500000/- for normal death and Rs.10,00,000/- for accidental death up 70 years. Please let me know it is right information or not?

        Please suggest which online term policy is good (with good settlement ratio) and please suggest which one is good form me i.e Jeevan anand or term+PPF.

        1. Rajesh-FAB is negligible which will not affect that much return impact. So I will never consider that as a great differentiator. How he say that future bonus rates will increase? It depends on the performance of the LIC. So best option is to consider the current rate. Even if we consider also it will not make that much high return for you.
          Go with HDFC Click2Protect. I suggest you Term+PPF is good.

    1. Basavaraj Tonagatti

      Nidhi Kumar-As per the circular available with me, I didn’t find the FAB rate for Jeevan Anand. Contact your nearest LIC branch for the same.

    1. Basavaraj Tonagatti

      Srinivas-For Jeevan Shree it indicates that for the policies if the term of the policy is 25 years and it comes to death claim how much one can receive the LA. For example for 25 years policy if death claim comes in the year of 19th then LA will be Rs.105 per Rs.1,000 SA. Same intreperation for the Komal Jeevan too.

  36. With regard to Jeevan Tarang, can you clarify between Interim Bonus Rate, Assured Bonus Rate and Assured Step Up Rate? I am 37 years old and have a 15 year policy for 7.5 Lakh with yearly installment of 50,000. As per the policy, I will get 696000 after 15 years and 42,000 yearly there after. When are these bonus calculated?

    1. Basavaraj Tonagatti

      Vik-With regard to Jeevan Tarang, I think you got the wrong information. There is nothing like interim bonus rate, assured bonus rate and assured step up rate attached to this plan. Please have a re-look at the information you got. This is the whole life plan. In this case if you survive till the policy period then you receive the accumulated bonus i.e. Rs.5, 17,500 (I considered current bonus trend of this plan which is Rs.46 per Rs.1,000 SA per year). So after this, you will receive 5.5% of SA life long.

  37. I have purchased a marriage endowment/education annuity plan for 18 years and sum assured is 12l and my premium is 64k per annum
    Can you please tell me what is my expected return for this policy

    1. Basavaraj Tonagatti

      Enakshmi-Please let me know when you purchased this policy and the age at which you took this policy. Reason is, these are low yielding products. Even though you may feel Rs.12,00,000 will actually suffice for your kid’s education or marriage need, when you consider the inflated costs of both the expenses it is nothing but useless. Hence please provide the details I requested for.

  38. Hi,

    I have a clarification on the Jeevan Saral Policy. On the Bonus information sheet given by the LIC, on Jeevan saral, it has been mentioned that the bonus is 250 per thousand but it is only for the Death Benefit and not for the Maturity Benefit. Is there any maturity bonus available for the Policy Per year?

    As i am having a 16 year policy, will i be getting any bonus.

    Vignesh. S

    1. Basavaraj Tonagatti

      Vignesh-Yes you are right. But will they have any such rates for other policies where they mentioned in death claims they have different rate of bonus and for maturity claim they have different. I don’t think no. So we can presume the same bonus rate for both the cases. If you have doubt on my theory then let us wait until 2014 when Jeevan Saral 10 years term policy will come for maturity.

  39. Hi,
    I like to know some details on 2 plans as below. Can you please provide an approximate figure on the below plans.

    1. New Jeevan Suraksha I
    Term : 26 Years.
    Premium : 50000
    Mode : Yearly

    I like to close the policy either 5th year or 10th year. Can you please provide me the sum that i will be receiving, if i close at 5th year and 10th year.

    2. Jeevan Saral
    Term : 16 Years.
    Premium : 12130 (Total 24260 per year)
    Mode : Half Yearly

    I like to know the amount that i will be receiving if i close on 10th year and at maturity (16th year).

    Also let me know, if jeevan ankur is a good policy in case of returns?

    Vignesh. S

    1. Basavaraj Tonagatti

      Vignesh-1) For this particular policy returns you better to contact your nearest branch. Reason is, we can’t calculate the surrender value or paid up value on this platform. Hence request you to consult branch. I don’t know why you purchased this as the returns from such product is low (almost equal to inflation rate) and how can you be sustainable with such low return product after retirement.
      2) Regarding Jeevan Saral, my recommendation will be to close if it already completed 5 policy years. Look at a few of the above comments. You clearly get an idea that this also belong to the lower yielding product (ranging from 5%-7%).

      My advice to you is, first buy term plan based on your human life value, once you get it then cancel both the plans. Invest the left out amount in such a way that it needs to fulfill your financial goals. Hence first looking at product then planning your financial goal is not a wreath instead prioritize your financial goals then at the end select the suitable product.

      Jeevan Ankur is the child insurance plan. In my view, insurance is mandatory when someone has financial dependents on him. Kid’s will not have any financial dependents instead we as a parent need to have insurance but not our kids. Hence treat the insurance as the risk mitigating product than the investment.

      1. Hi Basavaraj,

        Thank you for your reply. I just like to know a basic information of what i will receive, if close.

        Is the LIC Branch, can provide me atleast an approximate value? If so, i will approach them soon.

        Thank you.

        Vignesh. S

        1. Basavaraj Tonagatti

          Vignesh-Yes they will provide you not the approximate but the exact details and they have to provide. So go ahead 🙂

    1. Basavaraj Tonagatti

      Nidhi-It is not worth to consider policy (insurance) while you are planning for kids education and marriage. Hence my suggestion will be not to buy any insurance products which says child plans.

        1. Basavaraj Tonagatti

          Nidhi-First understand the concept of insurance. If something happens to me then my dependents like my wife and kids will suffer financially. But at the same time if something happens to my kid then me and my wife will not suffer financially. So insurance need to be on person who have dependents but not on others. Hence forget about insurance in your kid name. Instead cover yourself first fully. Once your insurance needs are over then plan on the goal.

  40. Hi Basavaraj…I was going through ur comments on various LIC products from last few months and I am really very convinced about ur knowledge on LIC products…so I have a query and I am sure u will be able to answer me correctly…I am 26 and I took LIC Jeevan Anand policy 3 years back for 27 years Sum assured Rs 10lakh so my policy will get matured when i will be 50years. now I am paying premium of approx 33000…what will be my approx return in that…kindly reply to [email protected] and also suggest me some policy for children both girl and boy and pension plan. Many thanks in advance

  41. Hi
    I braught a LIC Jeevan Saral Policy (Table 165) for 15 years, Qterly premium 15312. Policy sum assured value 12,50,000/-. Please let me know my total maturity value.

  42. Sharvan Kumar

    I want t take a LIC Jeevan Saral Policy (Table 165) for 15 years, Qterly premium 6060. My age is 38 years. Please let us know my maturity value after 16 years. Please let us know also, the LIC Jeevan Saral Table is showing 884796/-. Is it true ?

  43. Sharvan Kumar

    I have bought a LIC Jeevan Saral Policy (Table 165) for 15 years, Qterly premium 6060. My age is 38 years. Please let us know my maturity value on 16 years. Please let us know also the LIC Jeevan Saral Table shown 884796/-. Is it true ?

  44. Sharvan Kumar

    Sir,I am 35 Years old, I have bought a policy LIC Jeevan Saral Qtrly 6030/- for 15 years, Please let us know my maturity value. The LIC Table show 8,88,794/-. Is it true ?

  45. sir , i am babool looking for a lic plan , premiume among 30000-35000 for 16 yrs. my age is 25. so can u pls suggast a plan which is profitable for me and what is my return.

    1. Basavaraj Tonagatti

      Babool-Sorry for the delayed reply. May I know the reason for looking LIC plans specifically? Can you elaborate on this?

  46. Yes basu i know return is not true,so i want to know exactly how much amount after 10 year in 2021 or suggest me should be canceled or switch to jeevan anand everbody said jeevan anand is very good policy and give an extra return.
    Please give me some suggestion

    1. Basavaraj Tonagatti

      Rahul-I am extremely sorry for missing to reply to your comment. To calculate the exact return of Jeevan Saral I need your age too. Because maturity sum assured depends on age factor. Roughly we can say that returns for 10 yrs policy will be around 4-5%. Now switching to Jeevan Anand, it is like switching to another mistake to avoid one mistake. Features are bit different and may looks attractive. But returns from this policy too hover around 6-8%. Hence please ignore both the plans and stick to term plan and need based investment rather than fulfilling your agent’s dream.

  47. Hello basu ,
    i buy a policy of jeevan saral premium of 6000 per month for 10 years they said after that you got 7.5 lakh it is true?and when i said to agent they show a one table n which mention that after 10 year got a 7.5 lakh.If it is not true so please send me all bonus details after 10 years what you expect and snd me brouchure also in which all details mention reagarding this policy.Please basu…[email protected]

    1. Basavaraj Tonagatti

      Rahul-You are paying Rs.72,000 annually means total you pay Rs.7,20,000 in that 10 yrs of policy period. So what you agent’s quoted amount of Rs.7,50,000 is apart from what you paid or just you will receive Rs.7,50,000 only? Please clarify about the same. Once you give me a clear picture what your agent told then I may in a better position to say you whether he is saying right or wrong.
      Please look at above comments and you will find that for 10 yrs policy and considering the current LA declared by LIC, you may expect hardly around 4% return. So first share your agent’s claim then I will definitely guide you on this issue. Also in the mean time please refer above comments on Jeevan Saral plan.

      1. Hello basu sorry wrong written ,they said after 10 month you got a 15 lakh rupees just approx double an amount..when i consult again they show me a table no 165 of jeevan saral and said that is generated by LIC team.If you go and consult in lic office ,in that also same table.So i wantto know exactly it is true that shown by an agent table 165 for jeevan saral

        1. Basavaraj Tonagatti

          Rahul-This is how they fool you. It is the mandatory indicative return which either LIC or any other insurance company will show you according to IRDA rule. But it does not mean that they will definitely give you that much return. It is just for illustration purpose. Hence ask your agent if LIC pay that much then will he pay you back you? Ask him from written 🙂

  48. Rajkumarmeena

    Sir if I take jeevan anand policy for 21 years of 10 Lakhs
    How much lump sump amount i will get after 21 years at present rate………….

    1. Basavaraj Tonagatti

      Rajkumarmeena-Return after 21 years will be Rs.10,00,000 (SA)+Bonus Rs.9,87,000 (I considered the current bonus rates which for 21 yrs policy will be Rs.47 per Rs.1,000 SA)=Rs.19,87,000.

    1. Basavaraj Tonagatti

      Rajkumarmeena-For your information Jeevan Saral will not have bonus instead it only contains LA which I shown in above table.

  49. Hi,
    I did a LIC endowment policy (table no 14) in 2006/07 for 25 years (my age then around 30) for a SA of 25 lakhs for 25 years. Any idea what will be the final maturity value going by the current trends?


    1. Basavaraj Tonagatti

      Sam-In your case returns will be Rs.25,00,000 (SA)+Rs.30,00,000 Bonus (I considered today’s trend which for 25 yrs policy is Rs.48 per Rs.1,000 SA)=Rs.55,00,000. I have not considered Final Additional Bonus as it is one time payment and you will receive at end for being loyal with LIC.

    1. Basavaraj Tonagatti

      Ritesh-Best plan is, take term insurance on your life first. Then based on your kid’s age start investing. Suppose your kid’s education or marriage goals are more than 10 years then better to start investing in well diversified equity mutual funds. Don’t go to any plan where returns and insurance coverage will also not suffice. Let me know if you have still doubts.

  50. PPF is the best in debt category as of now..(Till gov does not slash the rates)….but those who have already burnt their fingers in LIC should atleast wait for 5 yrs to get back their hard-earned money….I will be going to LIC branch to check if reduced premium will be done after 3 yrs or making policy paid-up will help…Then i will take a call….or may be i can divert the money left to PPF and gain max interest…Thanks basu for the insights…

    1. Basavaraj Tonagatti

      Sushila-You can also play with debt funds now as everyone is expecting a rate cut from RBI. Wonderful decision what you have taken. Best of luck 🙂

  51. Thnks Basu, U are right that LIC treats 5yrs paid policy like original term…one gets MSA but not LA…LA is only after 10 yrs….However, I am planning to decrease premium so that I keep the dscipline of investing regularly (that is only thing i like abt LIC)…one becomes desciplined…though SIP in equity is also gud…but there ur fingers are always crossed bcoz noone is sure where the market will go….ur money r always at stake….in debt category, lic policy is gud…although ppf may be great but due to non-compulsion of premium, i become lazy to invest in that..Lastly, i am loving ur site…u r doing great job…keep going.

    1. Sushila-SIP is the tool used to mitigate the risk of equity market over the longer period of time. You feel fingers crossed when you check your investment on daily when your financial goals are of long term. It does not mean that we can’t review. But once in a year review and re-balancing is good habit. You are rightly told about LIC policies, you need to consider them equal to your debt portion of portfolio. But in my view PPF works wonders than these LIC policies. Let me know your views. Thanks for appreciating about my site 🙂

  52. Thanks Basu for your suggestion….But after 5 yrs, will i get 90% of the premiums paid till 5 yrs(excluding 1st yr premiums) or anything more than that???? or the last choice i am thinking of decreasing the premium amt(from 15K Qtly to 5K Qtly) and continue paying for 20Yrs…..atleast though less but chances is i will min earn 6%…..what u say??

    1. Sushila-If you complete 5 policy years then in Jeevan Saral term is treated as 5 yrs policy only not the original term (in your case 20 yrs). Hence after completion you will receive 5 yrs MSA (which is based on your age and premium you paid)+LA. So instead of decreasing premium and go on investing for remaining years, this suites best for me. Let me know your views too.

  53. Hi Basu, Your chart is very helpful. My husband had bought Jeevan saral in Mar 2011. We r paying Rs. 15213/ Quaterly (SA Rs. 12.5 L for 20 yrs). 9 premiums has been paid till date. Please suggest if we should surrender or get it paid – up after 3 yrs.

    1. Sushila-If you surrender now then you may end up in facing loss. Hence better to complete 5 years then opt for surrender.

  54. Sir i want intrest take jeevan saral policy with 1500/month for 15 years using the premiam caliculator to caliculate my monthly premiam it can shows SA 400000, sir i have a big dought this 4 lakhs SA is only for risk cover of policeholder?after end of 15 y term how much of total maturitry amount i will get?

    1. Srinivas-Yes your doubt is correct, SA is for life risk. Please go through the above comments, you will come to know what you can expect from this policy.

  55. Just wanted to know whether jeevan saral return will be around 9% return after 35 years investment… what u think

  56. postal life insurance is better than LIC.Because PLI offers bonus of rupees 70 per thousand in endowment scheme and 90 rs for wholelife insurance.

    1. Makesh-It is true that postal insurance offers higher bonus rates than LIC and premium is also less, but only employees of below mentioned organizations are eligible. Then what about the rest?
      Employees of Central Government, Defence Services, Para Military forces, State Government, Local Bodies, Government-aided Educational Institutions, Reserve Bank of India, Public Sector Undertakings, Financial Institutions, Nationalized Banks, Autonomous Bodies, Extra Departmental Agents in Department of Posts.

  57. Nidhi Kumar Sharma

    Hello Basu,
    I have taken jeevan Jeevan Anand for S.A 5Lakh, for 25 year My age is 29 year what is the Maturity Amount after 25 year Please tell me.

    1. Nidhi Kumar-If we consider the current bonus trend for future too then the total Bonus accumulation will be Rs.5,62,500+Sum Assured Rs.5,00,000=10,62,500. Final Additional Bonus is also their but it will be less than Rs.30,00,000 in my view hence I neglected that part for calculation.

        1. Nidhi-FAB is one time payment which you age at the end of term. Usually it depends on the term you opted. So if LIC declares Rs.200 (for example purpose I mentioned this amount, dont think that this is the true FAB) as FAB for 25 years or more term policies, it means that for Rs.1,000 Sum Assured they will give you Rs.200 as FAB. If you multiply this with your opted sum assured then you get the FAB you will get.

  58. Hello Basu,
    Please help me I have a Jeevan Saral policy of Rs 60000 per annum for 20 year.I have payed 1st year premium.As per your article it will give me around 3.5-4.5% return after maturity.Should I continue with this policy or just canceled it now.Please advice me…

    1. Monojit-For 20 years this policy may give you around 8% return not 3-4% (this return is for 10 year policy). Decision is now depends on you to continue or not. In my view if you really paid one premium then better to cancel immediately. But you will not get any money back. If you want some returns then need to continue for atleast 5 years. Then surrender it.

        1. Manojit-In my view it is just a relief that at last you got your invested amount. So instead of loosing Rs.60,000 now it is better to continue till 5 yrs and get some money with little bit of smile 🙂

  59. Hi Basu,

    Can you please send me the soft copy of LIC circular ([email protected])?

    I have enrolled for Jeevan Saral (Rs 5000 PM for 35 year with DAB). Assuming, I surrender my policy after 20 years, what is the LA which I can expect?(The table is for 10 and 11 years only)

    Thanks, gautam

    1. Gautam-I will send the soft copy of LIC circular. Please look at above comments, I did the calculation for similar few of doubts.

      1. Sir, i have taken policy Jeevan Saral yearly plan of amount 18015 per year for 20 yrs. Agent told that can also withdral after 16 year. So, Plz. tell me maturity amount on both cases.If possible then plz. send soft copy of LIC calculator([email protected]). Thank u

        1. Vijay-Their are plenty of calculations I did for the term of 15 and 20 years. Please go through above comments. If you still not catch the points then let me know, will definitely do the calculation and help you. I don’t have any readymade calculator for calculating Jeevan Saral returns.

    1. Pratyusha-First of all please let me know why you want insurance coverage for your mother who is 53 year old? Someone depend on her income? Is she generating income? If yes then I may suggest you the ways. If no, then my suggestion is a big no for buying insurance.

  60. Basu, Thanks. I do have a employee cover both on Life as well as mediclaim, however, I have always been an advocate of the same theory as what has been advocated by you and hence have separate covers by self. Currently, my daughter is covered under my mediclaim and I want to explore the possibility of moving away from my cover to cover under her name for all of us. If that is not possible, would look at a separate cover for herself and remove her cover from my policy. All of this is being planned from Taxation and long term savings on cost of insurance perspective. Please advice.

    1. Ashit-Better to take her separate health cover. That seems good idea. Whatever you shared looks fine for me. So go ahead. I didn’t understand this line “All of this is being planned from Taxation and long term savings on cost of insurance perspective”, can you elaborate on this? What type of further advice you are expecting from me?

      1. Basu,
        Presuming i & my wife survive till 75 yrs of age. We both are currently 46 & 45, we hv 35 yrears to go. If i continue my current policy, I would start shelling out additional premium fue to change in age bracket. But if i move to a separate policy for my daughter and cover myself & my wife as her dependants, then, may be there might be some saving of premium to be paid as compared to the current situation? Am not too sure of what my understanding on this is. If you could clarify more elaborately on the same. Further, since the policy would be in my daughters name, she would get the tax benefit on the sane. A small catch here is the fact that i still have a younger daughter who needs to get covered too, again, the presumption is that she coukd be termed as dependant on her elder sibling.
        Please clarify based on above.

        1. Ashit-Your understanding about premium is correct. But to be frank when you are taking family floater, premium will be fixed based on the eldest member of the family but not on the youngest. Hence in my view you will not get that benefit. I come to know about only one policy from National Insurance which offers only to Bajaj Capital clients, where the proposer’s age is considered instead of family’s eldest person age. But the trick is, you need to be Bajaj Capital investor, means you need to invest something. So it is again indirectly cost you more. Hence in my view, as your daughter I think is major so better to separate her from your membership. Continue you existing insurance with inclusion of your younger daughter. In this way, your elder daughter can be independent even after marriage too. But still you have doubt on this then better to contact exclusive health insurance expert Medimanage. Click here to view their contact details. They will guide you in a better and unbiased manner. If you still face problem then let me know.

  61. Hi Basu,
    Have gone thru the thread above, have a question on what is the approx maturity value for Jeevan Mitra (Double Cover Endowment Plan) i.e. plan 88/25/25 where premium paying is till 25 yrs and the last premium has been paid on 18/11/2012, maturity date is 18/11/2013, sum assured is for Rs. 1 lac. Also, what is the approx maturity value of The Endowment Assurance Policy i.e Plan 14/24/24, where the last premium has been paid on 02/05/2012 and the policy is due on 02/05/2013, sum assured is Rs. 25,000/-. Please write back to me on [email protected]

    1. Ashit-It is cumbersome for me to track all those 25 yrs bonus rates for Jeevan Mitra and 24 yrs for Endowment plans. Anyhow you paid all premiums and the only option left for you is to wait till maturity period and and cash it. If you really so nervous about the returns then contact your nearest branch they will help you out. From both the policies you may get around Rs.2,50,000 (it is my assumption). Hope this may be your 6 months household expenses. You bought them 25 years back thinking that this Rs.1,00,000 and Rs.25,000 are more valuable by ignoring the inflation values.

      1. Hi Basu,

        Thanks for the reply. Will try to get details from the nearest LIC office.

        Also, if its 2.5 lacs as stated by you, it would be close to 8 months of my monthly household expenses.

        1. Ashit-Pleasure 🙂 Hope in future investment you will also consider the fact of inflation before investing. Happy Investment 🙂

          1. Hi Basu,
            This were investments initiated by my father & Father-in-law at an early stage of the start ofmy professional journey and when they did not have the option of seggregating investment from risk cover. All my current covers are term plans and am covered to the tune of Rs. 1 crore under life, 1.1 crore under accident cover.
            I intend to initiate a life cover as well as mediclaim cover & accidental death cover for my daughter who is persuing her articleship under the CA course. Her current annual earnings is in the range of 2 lacs annually. Rqst some suggestions on the options available.

            1. Ashit-Sorry for misunderstanding about your past investments. Follow the same plan for your daughter too like what you did for yourself. Take Term Plan to the tune of 10-12 times of her current earnings and increase it after every 2-3 yrs in the proportion of her income and liability. Accidental cover and health cover best to buy now itself as they cost less to her age (few depends on employer health cover, but always better have your own health insurance). Include critical illness cover also for you and your daughter. If this much is done then I think insurance part is almost fulfilled. Please let me know your thoughts too.

  62. Hi,
    we have taken jeevan saral for 4000 and 6000.Its for 16 years term.
    But MSA mentioned are 831440 and 1226880 respectively.Although we were told by agent that we wil get around 50lakh.

    What are we missing?

        1. Shikha-Considering your premiums as monthly, what your agent told about MSA are true. But let us consider the LA which is additional benefit you get with MSA are currently Rs.250 and Rs.300 for each Rs.1,000 MSA of 10 and 11 yrs policies respectively. So if we consider the same trend of LA rates for 16 yrs policies, then we may consider LA rates as Rs.550. But to expect higher returns we can consider Rs.700. In such a case for the first policy your LA will be (where your premium is Rs.4,000) Rs.5,82,008 and for another policy (where your premium is Rs.6,000) Rs.8,58,816. So from both the policies you will get around Rs.34,99,144 [(MSA Rs.8,31,440+Rs.12,26,880)+(LA Rs.5,82,008+Rs.8,58,816)]. Return on investment is around 7%. If you opted for PPF for the same amount then your returns after 15 years will be Rs.41,01,842.
          If we go according to your agent then the return on investment will be 10.61%, which is highly impossible by the way the expenses are attached with it. (I am considering only agents commission which is 35% in first year, 7.5% in 2nd and 3rd yrs and 5% for the rest of the period). Now think and decide.

  63. i want to buy komal jeevan plan for my 2 y baby is it best plan or is there any other good plan in lic if i buy for 2 lac how much value i receive for 2 lac

    1. Rupinder-Eventhough in this plan you are assured of Guaranteed bonus rates, but premium is high. So if you calculate overall return then it will fall within range of 6-8%. Hence if you are planning for your kid’s future, then better to opt for equity investment with mutual fund route. Let me know your views too.

        1. Rupinder-As told above by Manish, it is always better to separate your investments with insurance. Hence to cover your life risk, first take term insurance to the tune of 10-12 times of your yearly income. Rest of the amount diversify your investment into Equity, Debt, Gold or any other available options according to your risk appetite. In my view your goal is long term (which I think 16-20 years away from now as you told your baby’s age is 2 years), so go for equity mutual fund option around 90% and Gold 10%.

    1. Preeti-Bonus calculation is usually per Rs.1,000 Sum Assured you chosen. So suppose if a plan have bonus of Rs.50 per Rs.1,000 Sum Assured per year, then if your Sum Assured is Rs.5,00,000, in that case you will get (Rs.5,00,000*50)/1,000 which is Rs.25,000 will be your earning from this policy per year. But this you will get on maturity. Also remember that this bonus rates changes every year. So never assume that the same will apply for future too. LA-It is calculated in the same way as of Bonus but it will be paid only once on maturity. Hence bonus is yearly return but LA will be one time return and you get both at the end of policy or in case of death claims. Hope you understood what I described. If you have still doubt then you can raise it.

  64. i want to invest in jeewan saral plan my age is 34 i think 20000per year for 20 years can you tell me how much amount i will receive after 20years

    1. Mr Rupinder,
      Do not mix insurance with investment,just buy a term insurance and invest reamining amount of your premium payable amount in good balanced and equity diversified funds. Returns will be much higher and tex free too.

  65. Basu,,, last time… we commented on jeevab saral….i remembered u told me ki,,u had same policy against ur name
    Ur plan of action,, what are u thinking … to terminate it or continue???

    1. Nagaraj-We might, but I never told anywhere that I have that policy. I might have told about wholelife policy but not about Saral.


    1. Pravinkumar-Continuation decision entirely depends on you. Look at above comments, if you are ok with the kind of return this policy may generate then continue. Instead of surrendering the policy after 4 years, it is better to surrender after 5 years.

  67. Hi Basu,

    Hope you are doing well. Please suggest if its correct or not:

    My Friends Cousin who is an LIC agent suggested him LIC table No.186 Jeevan Amrit Sum assure 1000000 Term 15years premium paying term 5years total premium in 5 years would be 1,10,000. On maturity he will receive 30 (revisionary bonus)x15 years x 1000= 450000+110000=560000. In case, this is not true than how should the maturity be calculated in this policy and how much return he will get actually get at maturity as per current bonus rate.What is current FAB on This Policy.

    Your response would be highly appreciated.



    1. Aalok-Sorry for delayed reply. As you not mentioned your age, I took the example of 25 yrs old guy who is looking to buy the above plan. For him considering above data, premium will come Rs.57,079 for first year and for the next four years it is yearly Rs.14,282. So overall you are paying is Rs.1,14,207.

      In Jeevan Amirt plan on maturity you will get Total Premium you paid+Revisionary Bonus+FAB (If declared by LIC). So if we consider the same bonus rate then for total 15 years bonus will be Rs.4,50,000. So total you get around Rs.4,50,000+Rs.1,14,207+ FAB if any (which is usually in thousands, hence I neglected)=Rs.5,64,207. Return on investment is 12%. But dont think this bonus is fixed it fluctuate on yearly base. Also think whether the said life risk is sufficient to cover your financial liabilities if something happens to you. Currently I dont have any idea about FAB of this policy. If they declare too it is negligible (in thousands).

  68. Hi basu,
    i am R.Ramakrishna age 28 now. I have done jeevan sarala policy in 2012. I am paying 24000/- per year.Can u tell me how much i will get after 10 years i.e. in 2022 if i surrender .

  69. Hi Basu,

    My friend’s DOB is 19-12-1983, he wants to pay 34-40K every year for 10 years and wants Pension from 60 years to 100 🙁
    please let me know any good LIC Plan.

    1. Mahesh-I need few more data like his current household expenses and his lifestyle he want to maintain at the time of retirement. Also why you are asking on behalf of your friend? Let him come forward share his doubt. I will definitely help him. Please do share those details to my official mail id.

  70. Hi basu,

    Can you please mail me the chart. I am not able to understand how to calculate LA and MSA. My policy details are–

    policy name : jeevan saral.

    policy term : 16 years.

    Yearly instalment : Rs 48040.

    Can you tell me how to calculate the complete amount which i would be getting after 16 years? I went thru the comments but didnt get how to calculate the amount at maturity. Are BONUS and LA different things?? Lets consider the interest rate to be 5 percent. Is this feasible ?? Please tell how to calculate BONUS and LA.

    Email id- [email protected].



    1. Nikhil-MSA of Jeevan Saral is available with any agents. So for the particular age, premium payment and tenure of the policy, you easily get it MSA. In Jeevan Saral LA will be additional benefit which you get over and above MSA. This LA is currently declared for 10th and 11 yrs policies. So considering the same trend of LA we can assume the returns on your 16 yrs policy will be around 6-8%. Calculation of LA was done on the same base, which you can see from above comments. Yes, bonus and LA is differ. For Jeevan Saral their is no bonus but only LA which is one time payout where as bonus will be added to your policy whenever insurer declares (normally yearly). Regarding the feasibility of 5% interest, it is achievable easily as you can expect around 6-8% from this policy. But will it be feasible to have such low returns to meet your financial goals over the period of 16 yrs? Certainly not. Think and decide.

      1. Thanks. Indeed not a good choice. But how did you calculate LA? I didnt get that. Can you please calculate LA for me for the details provided sir? Lets say the interest is 6%.

        Thank you.

    1. Bijay-Don’t be generic. Set your financial goals today and based on that it is better to plan your investment. It is not wise to take the risk for your short term goal and in the same way it is not prudent to put all your money into safe investments for long term goals. Hence if you share your financial goals, current investment and your cash flows then I am in a better position to share the ideas.

  71. HI , I found this page quite interesting as just last year someone told me about this Jeevan saral and showed me that chart with 10% calculation. I also invested around 1,00,000 ( 1 Lac) each year and I have taken it for 30 years.Can you please suggest connsidering my age as 30 Years as of today , what will be the Maturity Sum Assured after 11 years for me ?

    Please provide your valuable inputs so I will plan to drop this policy after 5 years if gain is not there

    1. Nitin-What your agent showed of 10% return is illustrative example to show the benefit of plan. This is mandatory as per IRDA to show both 6% and 10% return benefit. But it does not mean that it will generate 10% return. In all probability if we calculate considering the current trend of LA, we can presume that it will give you around 6-8% return. Hence it is better to stop it after 5 years.

    1. Bijay-Wonderful reply. For your information high return is always directly proportional to high risk. In one way you are saying secure life but in above comment you are asking for high return. Please be specific whether you want high return or secure return??

      1. Dear Basuji, Thanks for the prompt reply. I forgot to mention that i already have a term plan from LIC Jeevan Amirt for a good amount and the term selected was 30 and ppt was 3 years. then i thought that this will be finished after 30 years so took whole life policy table 8 single premium.

        I already have term plan then also u suggest me to surrender whole life policy and take another term plan.


        1. Abraham-Thanks for sharing. For your information, Jeevan Amrit is not the pure term plan product. This is the plan where initial chosen (3rd, 4th or 5th) years premium will be higher and subsequently premium goes down till the maturity period. This is again a combination of insurance+investment product. Please think yourself, the sum assured you chosen (you mentioned good amount now, but will it be good amount after 30 years??) will cover your family to the next 10-12 years without any financial burden in the event of your death? This is the traditional plan, so returns will be around 6-8%. Will you be able to beat the inflation by such kind of low yielding product? I am not saying this plan is bad. But it is not wise to invest major portion of your portfolio. You need to treat this product as if debt investment.

  72. Hello Basuji,
    I was lucky enough to read your valuable comments provided to various readers. I would like to ask your opinion on my two policies.
    1) Jeevan Shree – 1 SA is 700000 and PPT is 8 years for policy term of 25 years, i just want to know that this policy is 3 years old can i avail a loan from it, if yes then what will be approx loan amount. I understand that current LIC rate of int is 10%.
    2) I have taken a Whole life policy single premium for the SA of 500000 just 6 months back. Now i regret this dicision or shall i surrender this policy or invested that money in some debt instrument.

    1. Abraham-Thanks for your kind words.

      1) Yes you can avail loan from this policy. But regarding the exact amount of loan availability, it is better to contact your nearest or servicing branch.
      2) Please request you to surrender immediately and take term plan to cover your life risk first then invest the rest of the amount according to your goal and risk appetite.

  73. Hello,
    I have taken policy Table no. 14 in the year 2004 for 10 years & last premium of Rs. 7821 is due in March, 2013
    Tenure 10 years, premium 7821 per year, sum assured 75000
    what will be maturity value in 2014 ?

    1. Rajesh-You will get Sum Assured (Rs.75,000)+Bonus (Rs.25,500-Calculated considering bonus rates which is Rs.34 per Rs.1,000 Sum Assured policies whose term is less than 11 years)=Total amount you get is Rs.1,00,500. Return on investment will be 5.45%

  74. Thanks bishu……..but i want to know that in above table you mention only bonus rate for jeevan anand didnot mention la for jeevan anand?.

    I have already did a one policy that is jeevan saral and when i read your comments then feel it not give a gud return when i visit to any agent everybody said that jeevan anand is best that jeevan sarl becoz jeevan anand give all three (FBA+Bonus+LA) and jeevan saral give only (LA) but i note in above bonus rate in Jeevan saral LA is 250 or 300.

    So is it right?in jeevan anand how much la give after maturity?on basis of assumption.


    1. Rahul-Thats what I told. Each policy’s premium, features and returns differ. For your information, Jeevan Anand have only Bonus+FAB but it not contains LA. Even if it have also, it is impractical to compare product by Bonus+LA+FBA is good than product only have LA. What if the declared bonus and fab are not on higher side than Jeevan Saral’s LA? Hence dont go only by looking at what additions they are offering with normal bonus like FAB or LA but look at your need…especially insurance need. Will it cover your insurance need is the first question you need to ask yourself. For how many years your dependents survive on this claim amount if something happens to you? Think and decide 🙂

      1. thanks basu again for guiding me…….yes u right,actually i am luking towards growth oriented plan thats why……
        so please suggest me i have planned to add a term plan and also wantto invest in ELSS through please can you suggest me which is suitable for me or wait for next financial year starting??
        And i have already invest Rs 6000 in jeevan saral for 20 years so till 2022 can we expect a good LA by LIC?what u think abut it?All lic agent shows a 10 % return ,thats why i bound in that policy…..and so much fear about its return.If return is not gud then again i need to think abut my portfolio.


        1. Rahul-You send me your personal queries to my mail by sharing details like your age, current financial status like income, expenditure, loans and current savings. Then only I am in a better position to guide you. This platform is not suitable for specific financial planning.

          1. Hi Basu,
            Do we get FAB for table 14 for 16 years term SA is 6Lakhs,
            i am paying 37067/- per annum i have taken policy for 16 years and my dob is 11-04-1984.How much i could get after 16 years.
            My Agent told me that i will get 17+ lakhs after 16 years.
            Is this true ?
            Please suggest me.

            1. Mahesh-Yes you will get FAB for Table No.14 for 16 years of term (if premiums are paid more than 16 years). Returns from this policy can be calculated as below.

              You get Sum Assured+Bonus+FAB at maturity. Currently bonus rate for this policy for 16 yrs term is Rs.42 per Rs.1,000 Sum Assured. If we consider the same trend for our future calculation then total bonus you get from this policy will be Rs.4,03,200. FAB as of now is Rs.25 per Rs.1,000 Sum Assured which is one time payment. Hence FAB will be Rs.15,000. Hence you will get around Rs.10,18,200. Return on investment will be 6.81%. Less than normal PPF investment 🙂

              If we consider the returns what your agent quoted then it will be 12.80%. If he is so confident and ready to give me the assurance with some valid proof either from LIC or from him, then I request you to tell him to contact me. I am ready to invest and ready to give good number of business. Which ultimately makes him crorepati 🙂

  75. Hi Basu,

    I want to ask that in jeevan anand policy shows a fab+bonus+la .but in jeevan saral only la
    So if we assume LIC give a equal output in each policy then we can assume that Jeevan anand output(fab+bonus+la) is equal to jeevan saral(la).
    And i have noticed in above la in jeevan saral is far more and more from other policy.

    Actually what it is?can you please help me to understand this.


    1. Rahul-Each policy’s features and return differs. You can compare for your calculation. Hence for Jeevan Anand it is FAB+Bonus+LA is depend on that plan feature which you can’t say why not with Jeevan Saral. LIC will not give equal output to all policies, it depend on how much they generate from the accumulated amount from each policies. I did not get your point “And i have noticed in above la in jeevan saral is far more and more from other policy.”. Features of Jeevan Saral is different with Jeevan Anand. Hence look at it’s features and return then if it suites you then only better to go for any product.

  76. Hi Basu,

    I have LIC Jeevan Shree (T.No # 112) which I have taken in Jan 2002 with 5,00,000 Sum assured.Could you please let me know approx maturity amount ?

    Policy Term : 25
    Premium : 24,593
    Thanks for your help,

  77. Hello basu

    im having LIC bima gold policy

    Monthly premium – 1500/- RS

    Total year – 20

    sum assured – 500000/-

    Please give me the total sum at maturity

  78. Hi basu,

    Im 26 year male. i have taken jeevan saral for 20 year. premium 1000 Rs per month .

    please give me the details of taotal amount at the 20 year maturity .

    1. Anvi-Please go through above comments. It will be around 6-8% of return what you get from this policy (if we considered current LA trend of Jeevan Saral).

  79. Hi Basu,
    I am interested in taking up a Insurance policy for myself as i don’t have one, I think Jeevan Anand would be a right fit, Can i request you to mail me a breakup chart for this policy (Yearly premium and bonus i would get on maturity) planning to insure for a sum of 10 lakhs for 22 years… Please let me know if you need more details …
    Many Thanks in advance .. 🙂

    1. Suresh-Can you let me know the reason for going for Jeevan Anand? Also share your all details like your current investment status, future financial goals, your current age and your income and expenses to my mail id. Merely by your interest of opting for Jeevan Anand means I can’t say it actually suites you are not. Hence send all details.

  80. I have OLD Jeevan Shree Policy….

    Can u please give info about this old Policy (Not Jeevan Shree 1)

    There is a lot of confusion about Jeevan shree Old & new Policy

    Thanx & Regards,
    Anand purohit

      1. Thanx for your quick response

        I take this policy in 1999 & i have only policy 5,00,000
        i want to know the final benefits
        & what is loyalty addition ?
        & what i get after 25 years

        My agent told me that you got around 18,00,000 after 25 yrs
        but idont have any detail about this on paper

        i pay premium around 25,750 Approx Per annum

        1. Anand-This was the hot cake policy of LIC which mopped huge cash during the time of it’s closure. It offered Rs.75 guaranteed addition throughout the policy period which is highly impossible in current scenario. Now the returns about this policy, you will get Rs.5,00,000 (SA)+Rs.9,37,500(Bonus)=Rs.14,37,500 is assured. I am not sure about the loyalty addition of this policy. Because I dont have any information about this plan feature in detail. Overall it was a good plan.

  81. Hi Mr.Basu,

    Got to see this blog of yours. It is indeed a nice table you have prepared.

    As far as Jeevan Saral’s Loyalty Bonus is concerned, the Bonus Circular mentions that it is only for Death Claims which happens within the 10 Years. And as you know, Jeevan Saral’s Loyalty Additions are entitled for Maturity (or) Surrender only after 10 Years. Jeevan Saral was launched in 2004-2005. So the first Loyalty Additions w.r.t Maturity/Surrender will be declared only in the year 2014-2015. So the Loyalty Bonus mentioned here is only for those death claims which happen in the current year i.e. Rs.250 Loyalty Bonus is used for calculating the Death Claim Loyalty Bonus in the Year 2010-2011. The Minimum Term for Maturity for Jeevan Saral is only 10 Years and the very First Jeevan Saral policy would mature only in 2015. Then how can this mentioned Loyalty Bonus Rate be used for calculating maturity amount like you have done? It is clearly mentioned in the Circular as “For DEATH CLAIMS Only”.

    For e.g., If a person of Age 24 has taken a policy for Rs.5,00,000 with an annual premium of Rs.24,000 for a Term of 10 Years in the Year 2005, his MSA is Rs.557520. If he dies in the 5th Year (i.e. 2010), then the releavant Death Claim Loyalty Bonus declared is Rs.250 per 1000 MSA. His Death Claim would be Rs.5,00,000 + Rs.96,000 (Return of Premium minus First Year Premium) + Rs.1,39,380 (Loyalty Bonus Rs.250 per 1000 MSA for the Death Claim for a Term of 10 Years) = Rs.7,35,380.

    I again repeat, the Loyalty Bonus mentioned is only for Death Claim and not for Maturity/Surrender as you cannot surrender/mature Jeevan Saral till 2015. And one surrenders before 10 years is not eligible to get the Loyalty Bonus.

    Please read the articles written by Mr.Ramakrishnan (Chief Actuary) who designed this product. He has clearly explained about the Loyalty Addition Calculations. The above mentioned policy is my own policy that I took when I was 24. As a person, who do not believe in salesman (including you as you told you are an LIC Agent too), I made the research on this product before investing by reading various paper clippings and articles written by Actuaries.

    Thank You.

    1. Gowrishankar-Thanks for your wonderful comment and the knowledge sharing you did. We consider above LA only for death claims, then do you think actual LA will differ than these LA? I think no…because in LIC their is no such option where LA or usual bonus rates are differ for death claims and for maturity claims. Hence what I calculated above is considering above LA and presuming the future LAs increasing in the same order (10th year and 11th year difference). Even we consider higher LA rate for Jeevan Saral, do you think it will surpass other traditional plans which usually offer around 6-8%? Considering the expense ratios which are usually hidden in traditional plans (for example for agents in Jeevan Saral commission will be 35% for first year, 7.5% for 2&3 yrs and 5% thereafter) will you believe this plan will generate huge returns which are beyond bank FDs and PPF kind of instruments?
      Waiting for your reply….

      1. Mr.Basu,

        All Traditional Plans like PPF, Recurring Deposit, Traditional LIC Policies provide Benefits on a Longer Run. We cannot compare it with FD as it works on Single Time Investment.

        Consider Recurring Deposit provides 8% Annual Growth. It provides No Life Insurance Coverage. To add-on, we have to take a Term Plan to provide ourselves Life Cover. Adding the Term Plan Premium, Tax on Returns, then Net Returns would be only 6.3%. This is when considered 10% Taxation on Interest. If we miss to mention our PAN No. to the Bank, then it is 20%. And if our Honorable FM changes the Rules as “Interest to be shown as a part of Interest Income, then the Taxation would be based on our I.T. Slabs which could be even 30%.”. Though it provides liquidity, I will have to bear the penalty on Interest Rates.

        Coming to Public Provident Fund, I am huge fan of it. But I do not consider this as the best out of the lot. Again if we take the Life Insurance through Term Plan (for my present age of 30) as add-on, then the Net Returns come to 7.4% from PPF and not usual 8.5%. When we calculate projected returns for PPF, we strongly believe that the PPF returns would be 8.5%. But when we look into the history of PPF, the Returns used to be 11-12% in early 2000’s and been fluctuating between 8-9% since then and has come to 8.6% till last year, which is 33% fall in interest in the last 12 years. So considering the same trend as you assume in Jeevan Saral, the Interest Rate of PPF would be 6% or lesser after another 10 Years.

        PPF cannot be touched till 15 Years. So considering the same duration in Jeevan Saral, with the same conservative growth trend, we can expect a 7% Growth in 15 Years. And Net Returns of PPF would be 7.5%. I cannot think much on this 0.5% difference. As a diversified investor, I choose to invest both in PPF and Jeevan Saral. With the same trend and looking into the Loyalty Additions Trend in the other plans shown in the circular, at the end of 20 Years, the Loyalty Additions of Jeevan Saral would be Rs.1050 or Rs.1100, which will be a considerable growth for a traditional plan.

        I believe there will be definitely a variation in calculation for Death Claim and Maturity Benefit for the first ten years. Because, logically, even if the death occurs in the 10th Year or in the 5th Year, the Bonus is taken for only 10 Years Term MSA. Since the Death Claim bonus is declared now for 5th Year Deaths (since 2005 in 2010), there is no separate MSA for 5th Year as the Term is minimum 10 Years. So it has to be a lesser Bonus to compensate the difference. But even if we overrule this blind assumption, with the same trend or growth in the Loyalty Bonus, at the end of 20 Years, we can expect as per I have mentioned above.

        Take a call.

        1. Gowrishankar-I agree with the points you raised with PPF and RDs. Do you know that 50 bps point difference between PPF and Jeevan Saral means a huge difference when you look at long term perspective. Just for your comparison visit this link and do calculate yourself Eventhough this calculation is about Mutual Funds, but you will get a fair idea about the difference. He is my friend and a wonderful guy who created lots of such calculators on his blog. I totally agree too that their is interest rate risk in such products. But can you share me the Sum Assured you opted for your Jeevan Saral plan? Is it really fulfills your insurance need?

          Now regarding choosing PPF and Jeevan Saral-How many investors actually know what % of their portfolio is actually going towards such debt type products? Neither agents share that knowledge with clients nor the poor investors. Every agent is ready to grab the highest premium without bothering the % of portfolio client is going to invest. In such a case will investors lead a happy financial life with beating inflation? While mentioning the expense ratio of endowment plans I just mentioned agents commission but after that their is DOs commission(new business commission), maintenance changes and investment charges. Considering these expenses do you know how much return your money need to generate to compensate these expenses and give your expected decent return of around 8% ? It is more than 20 yrs equity return. Will it generate?

          Regarding the product design of the experienced guy, he may have declared MSA but LA is not under his limit. LA depends on LIC’s return and how much they declare. Hence going with actuaries is not worth, instead think how much you get from this investment.

          For 20 yrs Jeevan Saral returns, just look at above few comments. I mentioned the same returns of around 8%. I am not against any LIC products but who will teach the investor not to go beyond certain limit of their portfolio considering the low return factor?

          Hope I satisfied your points 🙂 Keep commenting. I need such a wonderful guys who eager to share and ready for healthy debate.

          1. I agree. But it is the responsibility of the investor to analyse the professional qualification of the agent before choosing to go by his advice. I am sure only 1 out of 10 would do that. The rest would go by obligation or tax purpose. Then why to blame the agent or the product? Think from the point of view of an agent who had just finished 12th Class. His main aim is to promote the best product of LIC (as told by his manager) and get his income. He cannot analyse the need of the insurance or do a financial planning for himself, then doing for his clients is out of question.

            How many investors do a capital net-worth analysis or even a basic analysis before deciding how much insurance they should go for? How many people know or bother to build a risk appetite? And for a person who is blindly investing going by his agent’s words, whether he chooses PPF or RD or Jeevan Saral, all mean the same.

            For one who is investing Rs.6000 per month in PPF and Jeevan Saral each, going by the same trend in the returns, at the end of 20 years Jeevan Saral (7.5%) would provide about 2-3Lakhs lesser than what he would get in PPF. But with the provision of Life Insurance (increasing due to ROP), this difference will not matter much. And for a person who is investing Rs.1000 per month, this difference is even lesser and should not matter much.

            1. Gowrishankar-Thanks for endorsing my views. Agents who only look for the growth of their business may sustain for few days of their profession, but in long run it is the agent who cares for investors will be winner. As I told in above comment, I am also agent of LIC. But I never forced client to purchase any product and before recommending any product I share what is good and bad about that particular product. If clients ready then only move. In my view no product on this earth is good or bad. Each product have it’s own advantages and disadvantages and suites to particular need. So analyzing before proceeding is not happening now. Panacea for this is education and financial planning literacy which is currently missing even in so called highly educated people. So sad to say….

      2. dear mr. basu,
        jeevan saral will definitely give better returns because,the tax whichL I C pays every year on their products, they need not pay tax (i.e.5% %) on profit in case of jeevan saral every year and the said savings is ploughed back to generate more revenues till maturity and ultimately can give better returns to policy holders( then any other traditional plans ), since tax is to be paid once only in case of jeevan saral. Your comments pl…

        1. MLJAIN-Can you confirm where they mentioned that they are not going to pay tax for this particular plan? If we consider that as special exemption for this plan too, then why they declared so low LA for 10th and 11th year of policy? It was started in the year of 2004 (almost 9 years back). So what difference they showed in terms of return by taking advantage of this 5% tax exemption? Govt is making LIC a scapegoat especially for dis-investment issue. Until and unless it is out of such Govt hindrance we can’t expect a good performance by LIC. Let us hope for the best 🙂

          1. mangi lal jain

            It is Technical difficult to combine regular yearly bonus with the flexibility built in LIC JEEVAN SARAL. So the concept of Loyalty Addition has been introduced instead of the regular bonus. There is lot of myth about Loyalty Addition that going by the experience of recent years, that amount given by the ways of Loyalty Addition may be negligible. It will be not so in the case of LIC JEEVAN SARAL. Actuarial analysis will show that the actual Loyalty Addition that can be paid will not be less than the total regular bonus payable on death claim, surrender or maturity.

            It is only a change of concept. The policyholder will be the ultimate gainer by this change of concept. One has to keep the policy in force only for ten years, and not till maturity, to be eligible for Loyalty Additions. Freedom has been given to surrender the policy at any time after 10yrs without any loss.

            Determination of Loyalty Addition

            Consider an average Jeevan Saral Policy, with a monthly premium of Rs 4000/-( i.e. annual premium of Rs 48000/-) The Sum assured under this policy will be Rs 10,00,000. Let the age of this policyholder be 38. During the first year, the risk cover will be for Rs 10,00,000 and one year term assurance premium for this risk cover will be about Rs 1390 (Rs 1.39 for 1000). During the second year, the risk cover will be for ( Sum Assured + one year’s premium). i.e. Rs 10,48,000 and the age will be 39. So one year term premium for this risk cover will be for (sum assured + 2 yrs premiums) i.e. Rs 10,96,000. And the age will be 37. The one year term premium for the risk cover will be about Rs 1750. Thus the premium for the risk cover appears to go on increasing because of increase in age and also increase in amount of claim payable on death.

            But the above working ignores the fund accumulating in the account of the policyholder. At the beginning of each year, Rs 48000 is received from the policyholder. After meeting the marketing expenses, administrative expenses and also the mortality charges the balance premium left get accumulated with interest. For example at the end of the 17th year, the fund to the credit of the policy holder will be about 12,00,000. If the death occurs during the 18th year, the amount of claim payable will be Rs 12,00,000 + 17yrs premium = Rs 20,16,000. Since there is already a fund of Rs 12,00,000 to the credit of the policyholder, the real risk to the corporation is only to the extent of Rs 8,16,000. In fact after few years, the sum at risk (Amount payable on death LESS Fund to the credit of the policy holder) will start reducing gradually. While because of Increase in age, the premium chargeable per Rs 1000 risk cover will be increasing, the sum at risk will be decreasing. Due to combine effect, the premium chargeable for risk cover may even start decreasing after a certain stage.

            So the above illustration shows that with longer period of LIC JEEVAN SARAL policy, the corporation’s liability decreases and premium can be further invested to provide more benefits to LIC POLICY holders.
            LIC has to pay income tax every year on the bonus amount declared on all with profit plans but since there is no bonus declared every year in LIC JEEVAN SARAL so income tax is also saved and reinvested to provide more profit to LIC POLICY holder by the means of Loyalty Addition.
            LIC has to pay 5% of the amount of bonus declared every year to the central government that is also saved and reinvested to provide more profit to LIC POLICY holder by the means of Loyalty Addition.
            In LIC with bonus plans, on death claims or on paid up policies even before 10yrs, LIC pays Sum Assured + bonus of the all the yrs (from the date of commencement) but in LIC JEEVAN SARAL since there is no loyalty addition before 10yrs, the money saved in this way is again reinvested to provide more profit to the LIC POLICY holder who run their policies for 10yrs or more by the means of Loyalty Addition.

            The premium amount received in LIC JEEVAN SARAL plan will be invested for longer period. Hence the yield of the investment of premium amount of Jeevan Saral Plan will be higher than under endowment plans on those the bonus is declared every year and paid on death claim and surrender of policies.


            Posted in Life Insurance Industry News | Tagged jeevan saral loyalty, jeevan saral loyalty addition, lic jeevan saral loyalty addition, lic jeevan saral loyalty bonus, loyalty addition, loyalty addition in jeevan saral, loyalty addition in lic, what is loyalty addition in lic jeevan saral | 2 Replies
            Recent Posts

            Income Tax Slab for FY 2013-14 : Income Tax Slab for AY 2014-15
            Aadhar Card as ID proof and Address Proof in LIC
            Misleading Telephone Calls

            Recent Comments

            admin on Jeevan Saral : LIC Jeevan Saral : Jeevan Saral from LIC : Table no 165
            admin on Ask For LIC EXPERTS
            admin on Pay Your Premium For LIC POLICY, Online Using Visa & Master Credit Card
            admin on Jeevan Saral : LIC Jeevan Saral : Jeevan Saral from LIC : Table no 165
            admin on Pay Your Premium For LIC POLICY, Online Using Visa & Master Credit Card


            February 2013
            December 2012
            November 2012
            October 2012
            September 2012
            August 2012
            July 2012
            May 2012
            April 2012
            March 2012
            February 2012
            January 2012
            December 2011
            November 2011
            September 2011
            June 2011


            An Investor Knowledge initiative
            Facts about LIC OF INDIA
            Health Insurance
            How to file ITR
            Just Jindagi
            Life Insurance Industry News

            Proudly powered by WordPress


            1. Mangi Lal Jain-Thanks for sharing. Can you elaborate why the LA of 10th and 11th years is so low when they are claiming that Jeevan Saral have additional above features? Also for comparison of Term Insurance premium, which plan they selected? Is it from LIC or other insurer? For your information LIC’s term plans are costliest in India.

  82. Ravinandan Dubey

    Hi there,

    I have a Jeevan Anand (Plan no 149) policy for which I am planning to pick up a surrender value or paid up option.

    Details given below –

    Policy start date: 24th Aug 2008.
    Annual premium: Rs. 34,801
    Premium payment term: 16 yrs
    Sum assured: Rs. 5,00,000

    So in total, I have paid 5 premiums for this policy till now.

    Please could you guide me on what should I do with this policy?

    Thanks in advance!

    1. Ravindran-If this premium constitutes around 10-15% of your investment portfolio then continue paying. If it is more than that then better to discontinue. Contact nearest branch regarding the exact amount you get if you surrender.

    1. Anand-LIC distribute it’s profit in the name of bonus to policy holders every year. This depends on LIC. They usually declare bonus per Rs.1,000 Sum Assured.

  83. dear sir,i am 30 year,paying 30000 premium per annum premium of jeevan saral from 4 year,my term is 25 yr,may i know what will be surrender value after 10,15 and 20 yrs.thanking u in advance

    1. Bagban-Please refer above comments. Above I did calculation considering different terms for few of quarries. If you still find difficulty then let me know.

  84. I am male 46 years, I want to take Jeevan Amrit policy for Rs 1 lakh SA and premium paying period 3 yrs – pl let me know the premium to be paid and approximate survival (maturity) benefit at the end of 15 years.

      1. jus that i dont wanna longer commitment, and getting dual benefits of risk coverage and some return on survival, thats all Mr. Basu!

        1. Balaji-Nice to hear 🙂 Bonus on this policy as of now is Rs.30 per Rs.1,000 Sum Assured. So if you took 15 years policy, every year they will add around Rs.3,000 (calculated as per current rates) as bonus till the 15 year. At end you will receive Rs.45,000 as bonus+whatever premium you paid.

          Now think yourself seriously the sum assured you opted (Rs.1,00,000) is actually fulfill your insurance need? I mean to say that, if something happens to you during this coming 15 years, will that Rs.1,00,000 suffice your family to survive without you? Second thing, what will be the value of today’s Rs.1,00,000 after 15 years? If we consider inflation rate of around 6% the current value of what you receive from LIC after 15 years is just Rs.60,000 (I considered approximately Rs.1,45,000 return from your LIC policy after 15 years). How many months will you survive with this Rs.60,000 today?

          Please think and decide.

            1. Mljain-Yes it is not for Sum Assured which is the usual case, but on premium we pay. In that case your return of bonus will again decrease. So you may expect lesser returns than what I quoted above. Thanks for updates 🙂

  85. Basu, I have got another querry please….Does the rate of LA in case of Jeevan Saral differ as per the policy term….or is it only dependent upon how many years I am continuing with the policy (i.e whether I am withdrawing from the policy after 10 years or 11 or 15 years….even when in all these cases my original term of policy being 25 years). Please try to clarify my points…replies me at: [email protected]
    Thanx again,


    1. Mohit-Yes LA differs with tenure of the policy. Suppose you discontinued your policy after 10 years then they consider your policy as if 10 years tenure policy and they will consider 10 yr LA for Surrender Calculation. So if you are discontinu 25 years tenure policy after 15th year they will treat it as if this policy term as 15 year and consider LA accordingly.

  86. Hi Basu, I have read all ur comments & they have been really informative. I have got a few querries & I would be grateful, if u could answer them one by one. 1) I have got a Jeevan Saral policy of 25 years (which I bought at the age of 38) @ Rs. 12,000/= p.a. Considering the LA announced by LIC for 2012-13, what would be the total amount which I would be getting, if suppose I was to end my policy after completion of 11 years. Please give me the detailed break-up of my benefits (after taking into account my age at the time of purchasing the policy). 2) Is the MSA different for different ages at the time of purchase of policy & then what should be the MSA, in my case?? 3) Is the LA paid only once, i.e. at the time of maturity of the policy or at the time of exit from the policy after 10 years……or it keeps on adding every year after completion of 10 years of the policy…like in the case of bonus?? 4) Are the figures available now with you for LA in case of Jeevan Saral for policies of 12 years & more for the year 2012-13? 5) What is the LA rate for 25 year policies for the year 2012-13??
    You can post ur replies to my querries at: [email protected]

    Thanks in advance,

    1. Mohit-My answers are as below.

      1) Request you contact the nearest branch for this calculation. Because it includes lot of things which I can’t do on this platform. Hence if you visit nearest branch they will tell you exact amount.
      2) Yes for each age MSA differ. In your case MSA is Rs.3,22,460.
      3)Unlike bonus which declared every year and added to your policy, LA is one time payout at the end of maturity.
      4) No as of now I dont have data to show LA of more than 11 years.
      5) Please refer my answer to No.4. I calculated the rest of years assuming the same trend of Rs.50 increase of LA for each year.

  87. Hi Basu, I have bought a LIC policy New Bima Gold, for tenure of 20 years, Insurance coverage of 15Lk, premium of 54563. As per my information, I will be getting 10% of SA, i.e 1.5 lk at the end of 4th,8th,12th and 16th years.
    What will be my MSA in this case.


    1. Amit-New Bima Gold is the money back plan where MSA will not come into picture. Yes what you told regarding the payout for 4th,8th,12,16th years is right. On 20th year, you will receive as below.
      Rs.10,91,260 (premiums you paid during 20 years)-Accidental Benefit rider what you paid during that period (which I dont know, but it is negligible, so I am not considering as of now)-Rs.6,00,000 (Which is already paid to you on 4th,8th,12th and 16th yrs)=Rs.4,91,260. Above this if LIC declares any Loyalty Addition for this policy then that you will receive which is one time payment at the end. But as of now LIC not declared LA for this policy. Hence I have not included that.

      Hope this calculation will be understandable to you.

      1. Hi Basu,

        Thanks for the prompt reply. Yes, LA is also included in the deal.

        If possible please give some information how LA is calculated.

        Thanks in Advance

        1. Amit-LA once declared will be based on Sum Assured. Suppose they declared Rs.200 as LA in your case, then this LA is per Rs.1,000 Sum Assured. So you need to multiply this LA with the Sum Assured you opted and answer should be divided by Rs.1,000.

    1. Jay-Their is not that much data to send only Jeevan Saral LA as LIC declared only for 10th and 11th year policies. Hence you get that information in above table.

        1. Sarma-I am unable to send separate LA details of each LIC policies. If you need I will send the whole circular for your reference. Let me know.

  88. backwatercruizPaul

    I took an LIC Jeevan Bhima 4 years back for 10 lakhs for a tenure of 16 years. My premium amount was around 49000. After 4 years, I will be getting 15% of the sum assured. That would be 1,50,000/-.

    But few days back, I thought 10 lakh covergae is not enough and I went for a pure term insurance from ICICI. It had 1 crore cover for 30 years. The premium amount was around 13000 per year. I know this policy does not provide any survivor benefit. But I have an insurance coverage of 1 crore for 30 years (It was 10 lakhs for 16 years and 5 lakhs for another 8 years by LIC for a hefty premium of 49,000).

    If the rest of the money 36000 (49000-13000) is invested in a simple investment options such as PPF, which provides an interest of 8.6%, I could have saved more money than I can get from LIC. If I had paid, 36000 per year (3000 per month) in PPF, after 16 years it should be around 1230552.61/-. If I had gone for more riskier options like equity the returns would be much more( Can expect 15% for 16 year horizon). More than that, I am getting life cover of 1 crore for 30 years from ICICI.

    I read there is LOYALTY bonus after 16 years. How do you decide what is the LOYALTY additions? What are the factors deciding this LOYALTY additions? I might get the loyalty bonus, or might not get. It is not assured from what I understand. If the loyatly additions is good, then I think, I might consider going forward with this plan. Otherwise, is it even advisable to go forward with this plan? Please let me know your suggestions.

    1. Backwatercruizpaul-Wonderful sharing about your planning. I completely agree with points you raised. Eventhough you continue with your existing LIC policy and we expect some good loyalty addition, then too returns on such endowment policies will hover between 6-8%. Hence stopping your current LIC and diverting the same amount to term plan and PPF (if totally risk averse) or equity investment is good option. Even you can add around 10-15% into gold also (in gold etf, gold mutual funds or e-gold).

      Hope other readers of this blog will follow the way you planned yourself so simply.

  89. Hi Basu,

    Whats the difference between SA and MSA? Suppose I take a policy, say Jeevan Saral for 35 years and I surrender it after 10 years, how will the MSA be calculated?

    1. Karthik-For all policies bonus is calculated on Sum Assured but only for Jeevan Saral bonus is calculated on MSA (which is guaranteed from LIC). Regarding calculation, please look at above comments where I mentioned in detail how MSA is calculated to one query. If still find difficult then let me know.

  90. Sir,
    Your response to each and every one in this forum is highly valuable. I wish to know about whether Bonus or LA is based on whole MSA or current year paying premium only.

    1. Rajkumar-Thanks for your kind words. LA is based on Sum Assured for all plans except for Jeevan Saral, where it is based on Maturity Sum Assured. It is not at all connected with premium you are paying.

          1. Rajkumar-Pleasure. LA of Jeevan Saral is not available differently. It is attached with LIC circular regarding the recent bonus declaration. LA rates are available in above table. Please look for the same. If you want then I can send whole circular for your mail.

      1. Hi Nivesh, Appreciate your patience to provide information to many people. Here is a small request from me. Can you please the Bonus and Loyality fo the below given LIC plans to my emaild [email protected].

        Jeevan Anand(T.No 149) : 20 yrs
        Bima Gold(T.No 174) :20 yrs
        Jeevan Varsha(T.No 196) : 9 yrs
        Komal Jeevan(T.No 159) : 26 years

  91. hi, can you please tell me about Jeevan saral policy, with 165 table n 25 terms, n premium is 6005, i wanted to know about bonus.

    1. Priya-Request you to look at above comments. In one or two comments I calculated the returns. If you still have doubts then please mail me with sharing the policy details like Term, Yly premium you are paying and the age when you took the policy. I will definitely guide you.

  92. I just came across this page while surfing on net, coz like others i was also taken for a ride by these LIC agents who showed me that stupid 10 % chart. And after going through this whole page / article / views I am feeling quite sad, as last year only i took this Jeevan saral policy and premium is around 1,20,000 annually. I got little bit suspicious when I saw the policy bond but it was too late then. Basu Ji can you please advice me what should I do now !! And 5 – 6 % return means sum on maturity (20 years) will be half. Or can you please guide me how to calculate approximate loyalty benefits on my policy and secondly the bigger question…. WHAT SHOULD I DO NOW !!
    Anxiously waiting or your reply
    Kind regards

    1. Rohit-Thanks for endorsing my views on such low yielding policies. What agents show mandatory thing of 6% and 10% calculation will lead to believe that we can get 10% return from these policies. As you started your investment previous year, you have two choices. Either you discontinue from now itself thinking that you did bad decision (which I know very hard with the amount you invested), else continue at least for the mandatory period of 3-5 years then opt for surrender. Surrender values may be bit lower to your invested amount but at least you have some comfort that you got what you paid. Let me know your views too. Calculating LA was done in two to three comments, so you just refer those calculations.

    1. Ramesh-If really want to take insurance then first take term insurance to cover your life risk to the tune of 10-12 times of your yearly income and your current liabilities. Also without knowing full details about your financial life, it is immature to suggest out rightly. Hence you need any guidance then please mail me.

  93. Hello Basu,
    Thanks for ur comments..But still i have some more doubts..
    can you tell me what is Mature Sum Assured in case of 1000/- per month for 10 years and how this is calcualted.
    Similarly ,in my came i’m paying 1000/- permonths , can u tell me how much i will get after 10th year ?
    Please tell in detail..

    1. Rohit-MSA again depends on age, which you not mentioned in your comment. Hence unable to say the exact MSA. Regarding MSA calculation, refer above comments. I mentioned in detail. Even if you provide you age too, by considering the current LA, I am sure that returns will be around 3%.

      1. Hi Basu ,
        My age is 23, and i started my policy in aug 2012 .Pls can you tell how to calculate MSA ,tell in detail pls .and i have one doubt ,u told la is calcluated on MSA , given in bonus chart LA will be 300 per 1000rs of mSA..So please tell me the returns after 10years and also how to calculate this returns please

        1. Rohit-LIC provided Basic Maturity Sum Assured for Ra.100 premium per month for all age group and available terms for each age group. Based on that we need to multiply it to your premium matching your age. In your case I considered data as Age-23 yrs, Term-10 years, Premium Rs.1,000 per month. For your age for 10 year period, LIC provided Basic Maturity Sum Assured as Rs.11,138. This amount is for each Rs.100 premium what you pay monthly. So for Rs.1,000 per month premium it will be Rs.1,11,380. This is MSA, which is guaranteed amount. Now LA for ten year Jeevan Saral is Rs.250 per Rs.1,000 MSA. So for Rs.1,11,380 it will be Rs.27,845.
          Hence total amount you receive after 10 years (if we consider today’s Jeevan Saral LA) will be Rs.1,11,380+Rs.27,845=1,39,225. Return on investment will be 2.92%. Hope you now have clarity.

  94. Hi Basu,
    Firstly i should say thanx for giving a wonderful information about LIC and other insurances . You are solving many doubts regarding insurance. Hope you will clear my doubt also.

    I’m Rohit , i need a small clarification about Jeevan Saral (Table no 165) . Actually , i’m paying 1021/- permonth to this policy and policy term is 35 years . Sum assured is 1,25,000.00 ..My doubt is that agent has given me a chart which show how much i will get after 10yrs . If i pay 1021 * 12 months * 10 years = 122520/- .This much of amount i will pay , then agent told me that i will get nearly 212900/- after 10 th year . I have a doubt that whether lic will give the amount figured or not ? if u want u can see this jeevan saral 165 table here ( . So please can u clear my doubt..

    1. Rohit-Thanks for your comments. Thanks for sharing the link too for the benefit of other readers. What he showed is considering 10% return on investment. But in reality I did the calculation considering today’s LIC LA for Jeevan Saral in few of the above comments. It is around 3% for 10 year policy. Even if you are long term investor (it is not a good word to say investment in insurance), you can expect in all probability around 6-7%. What your agent showed is predictions but reality is in-front of you, which I did calculation considering the current rates. Now the decision is left with you.


  96. Dear Basu,

    A very happy new year to you. One of my friend who is in illiterate but earns handsome wanted to save tax on his income. He invested in HDFC ULIP plan with Rs 25000/yearly for term of 10 years in 100% balanced fund in july 2011. When he came to know that his money was invested in share market. he didn’t proceed further. Now, he want to surrender the policy. I would like to know:

    1. Would he get some amount if he surrenders now or all his money is lost?
    2. if he surrenders the policy after lockin period(5years) would he get the entire amount he invested initially?
    3. Would he get the full amount i.e. 25000. or he would get lesser?

    He doesn’t want to invest with them any more .as he is quite shattered and feel cheated. So what should he do to get the money back.

    Your suggestions would be appreciated.


    Aalok Sudan.

    1. Ashok-Wishing you the same 🙂 As of now in ULIPs you can withdraw it after the completion of 5 yrs. To give you a clear picture, please provide me the name of product which he invested. I will go through it and reply you in a better way.


    1. Sanaket-Suggest your dad to take first insurance cover to the tune of his 10-12 times of yearly income. Rest in any well diversified mutual funds and PPF. This will really works you a better option rather than taking insurance where your father’s life risk low and return on investment around 6-8%. If you still need guidance then please feel free to contact me.

  98. Hi Sir,

    To add the sum assured given in the bond for J Saral is 1855710 , I am not able to understand the difference between the Sum assured and the actual payment received. Looking ahead to your expert comments.


    1. Sandeep-For Jeevan Saral policy, Sum Assured is the life risk what they will pay to your nominee in case of untoward incident of your life. Maturity Sum Assured is the amount which LIC saying will definitely pay you. With MSA you will also get LA which is based on LIC’s performance and will declare on every year.

  99. Hi Sir,

    Please help me with my policies. I have three policies 1) Jeevan Anand 2) Endowment Table 014, 3) Jeevan Saral.
    I took eevan Anand at the age of 31 yrs with Yrly premium of 43653 and sum assured of 1000000 and maturity in 2030.

    Endowment Plan Table 014 , my agent has provided me 22 bonds with sum assured of 70000 per bond and premium varies with each bond from Rs. 2223 for first bond maturing in 2031 to Rs.1843 maturing in 2051.

    The policy is Jeevan Saral that i took at the age of 34 yrs with yrly premium of 46451.50 and Term rider of 987.50, this is for 35 yrs.

    Please let me know how all these policies are going on and what will be the maturity amount for them. I am bit concerned about Jeevan Saral and want to know if Taking term rider is needed. What will be the maturity amount after 10yrs and do i go ahead with this policy. My agent gave be a pdf chart that shows the return as approx 8 lakhs…and 30 lakhs for 20 years. I am bit concerned if this is correct…. as I don’t want to be on loss as I have made a heavy investment on policies.

    Please provide me your suggestion regarding all the policies mentioned and if you need some more details please do let me know.



    1. Sandeep-This this the wonderful example of how agents sell insurance products without actually calculating your insurance need. From all policies you can expect around 6-8% of return. Please first understand the value of insurance in your life. You need to take insurance only for fulfilling your insurance need. But your agent sold you left and right by mixing insurance with investment. I am not against LIC, but if you have so much faith then better to restrict your LIC investment (unhappy to say it as investment) to around 10% to 20% of your portfolio. This recommendation is only to diversify your investment where such products always low yielding products. These will actually neither serve the purpose of your life insurance need nor your financial need.

      Regarding selling Endowment Plans of around 22 bundle of policies means he might have sold you some combo plans showing returns which may look good as of now but at maturity the same amount will be like penny. My sincere request you to take note of your insurance need and investment needs separately. Also act immediately, I am saying these things with pain even I myself being LIC agent. If you need any guidance in building and streamlining your finance then let me know. We discuss and do the things in a better way.

      1. Hi Sir,
        I am feeling shattered and cheated…please help me…I don’t know what to do and what not…i am not left any courage to invest more and do not know what to do now and how to move ahead….at this platform its not possible for me to explain you all the policies…do let me know we can discuss the polices and move ahead….

            1. Sandeep-Send me the name of policy, Sum Assured, Period, Premium you are paying yearly and age when you took these policy. Also it will be helpful if you send me the plan presentation which your agent sent you when you took policy.

  100. Hello BasuNivesh and Members,
    I have opted for Jeevan Saral Plan, Term 15 Yrs and yearly premium of Rs12010 (SA is 250000), i have paid regularly for last 3 years, if i stop paying my premium henceforth
    a) what will happen to my policy, will it lapse?
    b) What will be new SA
    c) and how much amount i will get after 15 yrs i.e. on maturity.

    There is no point on surrending as the refund amount is very less.

    Please guide

    1. Ritesh-If you stop premium paying after three years then policy will lapse. So it get as paid up value. This is the value you will get either on maturity or as a death claim during the policy period. You will get the paid up value only because from that lapsed year it will not get any benefit till the policy period ends. Hope you got clarity now.

      1. Thanks BasuNivesh,
        If i continue my policy by paying my regular premiuim, what will be the amount i will get at maturity after 15yrs.

      1. I m sry Mr Basu MI stands for Monthly installment is Rs2042 and when i had started the policy my age was 25 years. now i m 28 years old . my Jeevan saral policy(165) is for 10 years with sum assured of Rs 5 Lacs. What would be the lumsum amount i would get finally?

        1. Handeep-In that case your Sum Assured (which is life risk on your life for the total period of 10 years) will be 250 times of your monthly payment which is Rs.5,00,000. Now the guaranteed maturity amount which is called as MSA (Maturity Sum Assured) will be Rs.2,22,420. Now the LA which you will get above MSA as additional benefit will be Rs.55,605 ( I calculated based on current LA rate which is Rs.250 per Rs.1,000 MSA). So overall you will get Rs.2,22,420+Rs.55,605=2,78,025. Overall return on your investment will be around 3%. Now think is it worth to invest??

          1. Thanx Mr Basu I m giving them R 245000 in 10 years and i will get Rs 278025 only. had i made this amount FD than also i wud have been benefitted .. useless i think what ur expert thinking says Mr Basu

            1. Handeep-Good thought what you said. Take term insurance and remaining amount you can invest yourself. If you are totally risk averse then go for Bank FDs or PPF and ready to take the calculated risk then go for equity investments through SIP. Simple funda 🙂

      2. Oh I m really very sry Mr Basu,
        MI stands for Monthly Installment of Rs 2042 which m paying as premium.
        My age was 25 years when i had taken the policy now i m gonna 28.
        the Jeevan saral(165) is for 10 years with sum assured Rs 5 Lacs
        What would be my final amount to get from the policy including loyalty?

        Thank you

    1. Aman-We take the example as, age-18 years, Term-20 Yrs and yearly basic premium Rs.12,000 (But net premium will be Rs.12,010). LIC have provided basic MSA table from that for the age 18 years and Term 20 yrs, MSA will be Rs.28,060 for a premium of Rs.100 per month premium. Now to come to MSA of above example we need to calculate as below.
      (12,000*28,106)/(100*12)=2,81,060. This is how MSA is usually calculated.
      Hope you understand it in a proper way. I usually refer the ready made charts which agents follow, where we dont need to calculate each time.

  101. Dear Basu

    I read above comments but what is mean of SA, MSA, LA ?

    I took jeevan saral for 20 year,on half yearly premium 3030.

    I don’t know am in SA or MSA ? How i change from SA to MSA ?

    will you please guide me what is my LA + MSA on maturity.

    and will you please send me the soft copy of LIC circular.

    My Email id is [email protected]

    Thanks And Regards

    1. Prashant-In Jeevan Saral plan SA-Sum Assured means the risk of your life during the tenure of the policy. MSA-Maturity Sum Assured means amount you will get after the completion of tenure. In all probability for 20 year plan you will get around 6-8% return from this policy. I did calculation in one one of the above comment. Please refer the same. Still you have doubt then ask me I will do the calculation only if you provide all the details of the policy except policy number.I am sending the circular to your mail.

        1. Prashant-Which calculation I need to do? If you want overall guidance then better to mail me your personal details. I will reply to you. Sharing your personal information on public platform is not worth for you. What you think?

    2. Dear Basu

      One thing am not mention in above is i took the policy in this month 2012. Am now 26

      And i have plan take another one for my brother he is now 20.

      pls reply



  102. Dear Sir,

    I have completed 4 yrs in Jeevan Saral Policy having monthly premium of INR 4500.Pls let us know how much will be possible amount I can get after 10 yrs and 15 yrs based on current performance of this policy.This info is critical to me to decide continuation of policy.I am thinking about to suurender this policy and to invest in other policies having better growth prospect……

    Awaiting your valuable inputs

    Thanks & Regards,


    1. Rajesh-For the returns on your existing policies. Better to check above comments. If you completed minimum premium paying period then better to come out. Take Term Plan and invest in such a way that your portfolio consists all asset class and maximize your returns.

        1. Rajesh-Term Plans for better returns? In term plans your nominee will only receive the opted Sum Assured otherwise their will not be any returns. Now regarding the product selection. Please look at your cover you want to take and take till the age of 60 or 65 years. Choose the plans which offer online purchase. Reason is, online term plans are cheaper than offline. In my view better to look for HDFC Insurance, ICICI Pru Insurance, Kotak, Aviva. Compare the premium and according to your comfort with the insurer you purchase it.

  103. Hi Basu,

    I am looking of investment for 20-25 years for retirement plan. My current age is 32 years.

    Can you please suggest any good investment option with insurance and without insurance too ?

    If any plan has good return history then also good for me. What is your view on it ?


    1. DV Shah-If your waiting period is 2-25 years then I strictly and faithfully advise you to go for equity investment through mutual fund and cover your life risk by taking term insurance of 10-12 times of yearly income. Follow the basic rule what experts always recommend “Never club insurance with investment”. Hope I answered your query. If you still feel specific answers then instead of sharing all your personal information on this public platform, mail to me. I will definitely guide you.

    1. Bheemaraj-Thanks. Jeevan Saral is the product which combines insurance with investment. From above comments you might have noticed that returns from this plan is less. Hence I strongly recommend you to not to go with this product. I already sent you the mail, check it.

  104. Sir I can spare 35000 per annum on insurance aged at 36 yr living with house-wife and having 6yr son. I can esclate my investiment around 10-15% rate. I have any policy till now. I will be greatful to you if you suggest me best combination of product

    [email protected]

  105. Pls let me know for age 52 which plan is more suitable to get risk cover as well as savings.

    Reg Jeevan Akshay what percentage of service tax applicable.

    1. George-Opting risk cover at this age will cost you more even if their is no health issue. If still you need risk coverage then better to go for Term Plans. Taking risk about investment at this age is not a viable thing. Hence go for options where risk is low like Debt Funds, PPF (if you already have), Balanced funds, Bank FDs or RDs. I recommended these products purely based on saving option at this age, not gone into taxation issue. I dont know exact service tax applicable to Jeevan Akashy. If you really need then I inquiry with some one and get back to you.

  106. Hi Basu,
    I am bit confuse to select policy between Jeevan Saral and Table 90(Marriage Endowment with profits), as i checked in a trial software for 17-21 years (5 polices for both Plans).
    I got more returns on Jeevan Saral,Please suggest me if am correct to go with Jeevan Saral.

    Thanks in Advance.

    1. Mahesh-Please let me know the reason for going with Jeevan Saral and Marriage Endowment. Reason for asking is, your selection should first fulfill your life risk and the secondary thing is investment which you can avoid also. Share the ideas and will definitely help you out to the best of my knowledge.

      1. Basu, i want money for my child education starting from the age 17-21.
        when i compared both plans i got more returns in table 165.
        Please suggest me the Gud one.

        1. Mahesh-When you are planning for your kid’s education and I think which is more than 10 years then will it really fulfills your kid’s education needs by purchasing these plans? I think no, with returns around 6% to 8% how can you meet those expenses? Please let me know your views too.

          1. yeah, i do agree that these will give 6-8% , but both of these are guaranteed right? pls let me know if you have any other options.

            1. Mahesh-For your information, both the products are not guaranteed. Your returns are depend on LIC’s future bonus declaration. You may predict some positive returns of around 6-8% but cant assure that they give this much only too. Why can’t you take the route of equity through mutual fund SIPs? To beat inflation you need to invest where you get higher returns than inflation rate then only you sustain. Let me know your thoughts too.

              1. I donno how it works, and how much i get returns after 17 years if i invest 50K per year.Please give me the details for that .i will think and decide.

                    1. Mahesh-Will mail you the details. Please share some information like your kid’s current age, and suppose if he/she is currently 18 yrs then how much will be expenses for education+marriage. Share these info to my mail id, I will definitely guide you.

                  1. her DOB is 02-01-2012 and mine is 04-04-1984.i want 2.5 lakhs at her age 17, 1 lakh at 18.
                    and at 19 it shud be 5 lakhs ,20,21 and 22 i want 2 lakhs.

  107. Hi Basu, Thanks a lot for your post. Its very informative. As per your analysis,for 10 years,the returns on Jeevan Saral is 3%,but agents are boosting it to 8-10%. So is it a myth? I am investing 2042 per month in this and after ten years,I can expect just 3% on the total invested? Its less than the SB bank saving of 4%

    1. Karthik-Thanks for your appreciation 🙂 Yes return for Jeevan Saral with tenure of 10 years is around 3% (based on this year’s bonus rates). Yes agents are exaggerating the returns to get business. I am not saying anything wrong, but based on LIC’s recent bonus rates on Jeevan Saral, you can calculate yourself and come to conclusion, which I did in previous comments. You are right it may be less than savings account rate.

  108. can u pls tell me reg Jeevan tarang if i take for one lakh SA for 15 yrs accumlation period for age 47 what is the return..

    1. George-Jeevan Tarang is the plan where in your example you will get bonus at the end of 15 year. This bonus according to today’s rate will be around Rs.69,000 (I took Rs.46 bonus rate per Rs.1,000 SA for 15 years). After that you will receive Rs.5,500 till your death). If you survive till policy anniversary or 100 years of your age then you will SA which is Rs.1,00,00 along with LA (which we can’t predict now).
      Now the bigger question is with yearly payout of Rs.7,097 (yearly premium) and getting bonus of Rs.69,000 after 15 years and life long Rs.5,500 after 62 years of age will actually add value to your financial life?
      What will be the value of today’s Rs.5,500 after 15 years? Will you sustain with such a low income?
      If you invest the same amount in any equity oriented fund where if you get around 12% return then your amount will be Rs.2,64,574. In that amount if you withdraw the same Rs.69,000 (LIC Bonus rate) then remaining amount will be Rs.1,95,574. If you invest the same amount in any low yielding product where you get yearly return of around 8% then your return on investment will be Rs.15,645 yearly.
      Now think and decide.

      1. Thanks Mr Basu. It was very knowledgeable.
        What I actually want is: Risk Cover + Returns (after 15 years). Ie. whatever I have invested for 15 years (Rs. 1,06,455) + Bonus + LA.
        Is there such a Policy with LIC? If so, please advise Policy Plan. Thanks.