LIC’s Bonus rates for 2014-15 and Comparison

LIC declared its bonus rates on 1st September 2014. As is expected lot of rates are unchanged and maintained the same flow of Jeevan Saral LA rates.

Below is the overall comparison of LIC bonus rates since 2008 to present.


You may notice that Bonus also declared for new plans such as New Jeevan Anand. However, there is no difference at all from old to new plans. Therefore, it is clear that this change was only to match with IRDA regulations. I marked with red colour for the bonus rates of new plans.

Below is the LA rate for the Jeevan Saral Plan.

LIC LA Rates 2014-15 for Jeevan Saral

You notice that LA changed to an old LA rate for premium ranges of Rs.20, 001 to Rs.50, 000 and above Rs.50, 000. I marked with red colour where they changed the LA from the old rates.

Note-The above bonus rates will be applicable for policy entered upon during the inter valuation period, i.e. 01/04/2013 to 31/03/2014 and in force for full sum assured as on 31/03/2014. It would apply to policies resulting in claims by death or maturity (including those discontinued within one year of maturity) or surrendered on or after 01/01/2015.

205 Responses

  1. Why does vested bonus appears to be zero(0) for Jeevan Anand policy. I have purchased the policy in 2014 with SA 500000 and tenure of 16 years.

  2. My Brother is living in US. In order for FACTA regulations he needs to get the surrender value of lic policy on 31st Dec from 2011. LIC branch officials say they cannot provide the previous year values. Kindly provide the formula to calculate the same and how to know the bonus received till date on each policy.

  3. Hi Basavarj,

    I have problem,

    In my policy document , My Name was mentioned as ‘ KATABATHULA VIJAYKUMAR’, but i have given 10th marks card which has name K. VIJAYKUMAR as proof while taking policy.My other KYC document it is mentioned as K VIJAYKUMAR, except passport where it was mentioned in full name correctly KATBATTULA VIJAYKUMAR .
    My question is..

    1. Is it possible to change the name from KATABATHULA to KATABATTULA in policy , if yes how and what are the documents we need to submit and where..

    2. will it be ok if we dont change the above name. does it will create any issue while claiming the final policy .

    Please suggest what to do..

    Thanks & Regards

  4. i have jeevan anand 149 plan from april 2012 with 5,00,000/- sum assured for 20 years monthly payable of 2,296/-

    How much i can get at end of my maturity period.? how much i can get at age 60-70.? how much i can get after my dead happen on after 70 age.?

    1. Sir, i have also same police and also recd a phone call ,i can clam my bonus ….its true or total bonus LIC paid only after maturity

  5. Dear Sir,

    I already have an term insurance plan for Sum Assured 50 lakhs. I am eligible for PLI also. Should i go for PLI EA POLICY or LIC NEW ENDOWMENT POLICY based on returns provided by both of them?

  6. Hi,
    i have LIC Jeevan Anand (T.No149). I purchase in 28-Sept-11 and paying half yearly 10,517/- and sum assured is 4,00,000/-. Paying Term id 21 years. Till now i paid 94,653 ( 9 Nos of Installment ). Till date bonus is 57,200/-.

    Now i want to ask you.
    1. How much amount i can get at end of policy.
    2. Should i continue with this policy or no.
    3. if i will stop now this policy, how much i can get from policy
    4. In current market which policy i can buy.

    1. Sanjay-Regarding current surrender value, contact LIC branch. You continue this plan only if you are satisfied with returns of around 5% to 6%. In current market, the insurance which I recommend is TERM INSURANCE.

  7. Iam 31yrs , bought Jeevan Anand in 2009 for 1500000 till 2030. Paying 19000 prm quarterly. Shall i surrender the policy and go for some mutual gunds??

  8. Dear ,’

    I have three policy one is Jeevan Anand for 16 years premium is 36k in year sum ASsured 5 Lac then how much i will get after 16 years

    please clarify

  9. Dear Sir,

    I want to take jeevan anand policy(5 lakh) for 21 years term. My age is 37 years right now. Will this policy fine for me. How much gain will I receive from this?

    1. Kamal-For how long your financial dependents survive with Rs.5 lakh of death claim amount? If you feel Rs.5 lakh is a big sum to survive them for next at least 10-15 years, then go ahead. Also, if you feel 5% to 6% return is BEST return for you, then go ahead. Otherwise, think seriously of NOT going.

  10. I have a jeevan nidhi policy of 3250 premium quarterly taken in 2008 fr 35 years………… nd i was 22 years then,,, now i have paid premium of 87000 nd accured bonus is 980000. but only a year back i cme to knw its a pension policy. now am confused. i think its better to surrender, surrrender value is 58000. nd i came to knw the pension v get is v less. SA is 500000. What should i do. surrender or paid up or continue?

  11. I have taken a jeevan anand policy. quarterly premium of 4300, SA- 5 Lacks for 35 years, so my maturtity amount will be
    500000+510000(on the basis on bonus accumalated till now) + 100000(assumed) + 1100000 (5000000*2300/1000,ASSUMING 2300 PER 1000 for 35 years from previous chart).. total comes around it alomst right?

  12. Jeevan saral year li Rs14412
    Term 15 year michorti amunt kay hoga As300000 lakh

    Bima gold Qut Rs1506
    Term 12
    1 lakh
    4yera 15000
    4yera 15000
    Last me kitna mile ga

    Michorti Rs

  13. Hi Basu,

    Looking for your suggestion. I have LIC Policy Jeevan Shree I 162 and I have been paying premium for last 10 years, yearly premium of 25176/- and as per their site, my bonus stands at around 1 lakh. I have no idea how to calculate their projected rate of investment but from my their illustration its clearly not 10% though i am not sure when they do calculate bonus, after i have paid 10 premiums or after 10 year completion of policy. I pay annually in November. The reason I have always in 2 minds to discontinue is because agent is family friend (this would be story of many people). However if i discontinue, i feel as per my calculation i would get around 1.5-1.6 lakhs. Is it worth discontinue and invest this lumpsum and future premium amounts into better returning schemes either in equity. I feel even better debt fund might give better returns with more 15 years to go. Equity would in worst case can give 12% return which i feel would yield me more money. So my question is should i discontinue or continue considering this as one of debt investments (with other savings of mine going in say equities)

    PS: I already have Term insurance.

  14. Policy = Jeevan Saral (table 165)
    Commencement = 1st October 2005
    term plan = 30 years
    Yly payment = 12130/-
    MSA = 2,5000/-

    I want to surrender this policy in October 2015 post completion of 10 years..

    Kindly let me know what will I receive after surrendering the policy

      1. Dear Sir,

        LA is showing Rs. 250. I have tried to calculate but unsuccessful.
        Can you please calculate & let me know the amount. Please..

  15. Sir,

    I am having an LIC plan – “Jeevan Shree-1”, From 2002 i am paying my Premium of Rs.6333 per every quarter.(25000/yr)

    The web page of the same says that my returns depends on Projected Investment Rate of Return of LIC.

    How i can track this.
    How do i calculate the return at the end of 25 Yrs.

    In their website, they have assuming 6% & 10% returns and tabled & it depends on Projected Investment Rate of Return.

    I would like to know how I can track their Projected Investment Rate of return of LIC.

    Kindly Help.


    1. Kandavel-It is indicate return what they project. For calculation purpose simply they add 6% and 10% to give you an illustration. But it is not gaurantee that they will give you either 6% or 10%. In my view the return will be around 5% to 6%. You have to calculate the current accumulated bonus and the investment done as of today. Again this amount will not be realised as it is considered as surrender and they charge some penalty on that.

  16. Dear Basavaraj Tonagatti,

    Sir I need you help on this as I don’t know much about this policy subject but I have recently taken this LIC policy from Agent. Can you go through it and let me know is it fine.

    Thank you Sir.
    Rupesh Gor

  17. Hi Basavaraj,

    I wanted to know from where did you get the bonus/loyalty additions chart for Jeevan Saral Plan. I dont see this chart in any of the LIC websites and more over this policy was introduced on 16/02/2004. It completed 11 years till date , but the bonus /Loyalty additions chart which you are referring is showing that the LIC has declared LA for those who completed 10, 11, 12 and 13 years . How come it is possible?

    According to your LA figures if we continue to pay the premiums for m0re number of years the rate of return would be more than 6%.

    Could you pls give clarity on this?


    1. Ram-LIC not yet updated the bonus chart on it’s portal. However, it is official notification which LIC Branches also follow to settle the claims fall under the respective year. LA was started to declare once this plan completed 10 years. Hence, year on year they are declaring it. You may cross check with LIC branch.

  18. Sir, now can you advise me how much amount aye willget at the time of maturity(approx.)
    Thnxs nd rgds

  19. Checked with LIC branch also. They confirmed that the policy is ok.
    Now sir, pls advise what to do?

  20. Aye would also like to inform that aye hv already paid seven premiums of Rs.49733/- each (half yearly)) from april 2012 to april 2015.

  21. Aye hv taken a jeevan saral policy (plan 165-10-10) at the age of 60. My half yearly premium is Rs.49733/-. The maturity sum assured shown on policy is Rs.250838/-.only, whereas aye will pay a total of Rs.994660/- during 10 years period.
    Pls. Clarify what to do?
    Is it a printing mistake…
    Pls infm how much minimum amount aye will get at the time of maturity?
    Thnxs nd Rgds.

  22. I have a jeevan saral plan taken in 23 April 2010 with monthly premium of Rs 2042 with a maturity SA of Rs 709840.Now i want to surrender this policy .Kindly let me know what will I receive after surrendering the policy

    1. Please note that Jeevan Saral plan is eligible for Loyalty addition only after completion of 10 years. This is a high risk cover plan. So, as per my opinion you can continue this.

  23. sir,
    i have jeevan anand, jeevan saral, endowment assurance policy with profits+acc.benefits and 25 year money back policy which are maturing on2023,28,25,28. i am paying more than a lakh as premiums. after reading ur articles i felt it is not worth. i want to reduce the premium. i want to know the difference between paid up policy and partial surrender (reduction of premium). can educate me in this regard?
    thank you

    1. Padmavalli-Surrender in the sense you stop paying premiums and receive whatever benefits you get from those policies. However, paid up means you stop premium payment but you recieve benefits at end of policy term. Ideally paid up value will be higher. First you check with LIC branch regarding both the values then decide which suites to you best.

  24. Dear sir u r very informative.I track your comments regularly to update me of various policies. I shall be highly obliged if you kindly inform me about Bima Gold policy of 2006.I have it Sum assured of 150000/with a monthly premium of 499/.policy term 20 years.on maturity what will i get.please help.Masood Eqbal,Bokaro Steel City.

  25. Hi, I have taken Jeevan Saral Plan for 35 years.

    Annual Premium is 30025/-
    Term-35 Years
    First Premium started from Dec-2009
    Can you Please calculate the Maturity Value for the policy??

  26. Policy = Jeevan Saral (table 165)
    Commencement = from 2005
    DOB = 01/1952
    term plan = 15 years
    Yly payment = 90,075/-
    MSA = 18,75,000/-

    As per my knowledge the final maturity value at 2020 will be,
    = MSA + loyalty addition ( considering 475 rate at 2020 ie (475*1875000/1000))
    =1875000 + 890,625
    = 2,766,100/-

    I hope this should be the correct calculation.
    kindly revert.

  27. I m having Jeevan Saral Policy from 2005
    term plan = 15 years
    Yly payment = 90,075/-
    SA = 18,75,000/-
    what will be the final maturity value at 2020
    as per my cal:
    MSA + loyality addition
    1875000 + ????

      1. here I m nit understand the calculation of LA, request for your guidance. As per the details it should be 6 – 7% but of what?

        1. Saurabh-LA is a one-time payment which you receive either on maturity or on death of a policy holder. It usually calculated per Rs.1,000 Sum Assured (In case of Jeevan Saral it is per Rs.1,000 Maturity Sum Assured). When I say 6% to 7% then it is a return of what you expect from your investment.

          1. 1. It is difficult me to evaluate the LA figure. request for the calculation.
            2. Thing is that I want to know the final appox value at the end of maturity ie at 2020.

            1. Saurabh-Let us say your policy offers you sum assured of Rs.5,00,000 and LA will be on this sum assured. Then let us say LA declared for that particular plan and the term you opted is Rs.200 per Rs.1,000 Sum Assured, then the total LA you receive after maturity will be (Rs.200*Rs.5,00,000)/Rs.1,000=Rs.1,00,000. Now you calculate yourself and arrive at that “Final Approx Value at the end of maturity”.

              1. thanks for your reply:
                Annual primi = 90,000/- for 15 year from 2005
                SA is 1,850,000/-
                SO LA during maturity =(375*1,850,000)/1000=693,750/- ( consider rate for LA 375/- at 2020 ie after 15 years)
                SO final Maturity value will be = 1,850,000/- + 693,750/- = 2,543,750/-
                is this correct ?

  28. Could you please let me know where can I find the chart to find out the cash surrender value of my endowment policy and the money back policy? I understand the guaranteed surrender value is 30% of the premium paid (not including the first year). But I was told as the year passes the above % goes up. Also what would be the cash value of the vested bonus which gets included in the total cash surrender value?

      1. Tks for your response. I found the Surrender value factor chart which has factors for Rs.100 paid up value. But in all places its stated that the guaranteed surrender value is 30% of the premium paid excluding that of first year. So the question is whether we should multiply the factor by total premium paid (excluding the first year) or by the total paid up value (which i understand is the proportionate Sum Assured for the years the premium is pad) (or is this paid up value same as the total premium paid till that year?)

        I have also have the chart which shows the bonus announced each year..but what percentage of this vested bonus is the cash value for a particular year?

        Would appreciate if you could provide few pointers for these. Tks

  29. I have purchased New jeevan Anand plan
    SA – 265000
    Term – 25 yrs.

    If i will surrender this policy on maturity (means don’t want to continue risk cover after maturity) then
    what returns shall i get at the time of maturity?

  30. Hi BasuNivesh

    Can you please clarify on the maturity benefits of NEW Jeevan Anand plan.

    My age is 34 years
    Premium payment years : 27 years
    premium amount 58945/- per year
    basic sum assured 1400000/-
    Accident Rider sum assured 1400000/-

    I was told by agent that on maturity I would get 4417000/-

    Please clarify if that is true..

    Praveen Kumar

    1. hi praveen,
      as of present bonus rate u will get around 43 lacs rupees on maturity of the policy with 14 lacs risk cover for the entire life.

  31. Hello,

    I have 3 money back policy of 30000, 50000 and 100001. Each one for 20 yrs.

    Would you mind to tell me what will be the maturity value !! Approximately.

    Waiting for your reply.


  32. Hi Basavaraj,

    Hope you are doing well.

    I am taking New Endowment policy (814) of LIC. Plan details is
    Yearly premium 61150 yearly (including S.T.)
    Terms: 30 years
    My Age: 26 years

    As per the LIC executives and one financial adviser the return which I will get is more than 70lakh. Is this really I am going to get OR this amount is just to make me impress?

    Your advice will be well appreciated.


  33. Hello sir in last month I bought a lic plan no. 814 term 21. it is 20 year long plan my sum assured is 150000 and the premium is 3691 rupees which is half yearly. Now my agent already submitted my first instalment of rupees 3800 included file charges now I want to know that how much incentive he make in this first instalment some one say its 25 some say its above please tell me exact figure in percentage. Waiting for your reply thanking for your concern.

  34. Hello Basavaraj,

    Thanks for providing a first hand info on the Bonus rates declared for LIC Jeevan saral plan.

    Please let me know my surrender value after 5/10/12/15 years with the below set of details-

    Plan Name- LIC Jeevan Saral
    Sum Assured-10 L
    DAB- 10 L
    Policy term -35 yrs
    Inception Date- Jan 2012
    Premuim- 48040 (annually)
    Total premiums paid so far-4


  35. Hi,
    I am 34 years old and want to buy a policy worth SA 1900000. Some LIC agent suggests Jeevan Anand and some suggests for BAJAJ Alianz LIC policy.
    Kindly suggest which is better option as on current date.

  36. Hi,

    Would like to know the maturity benefit of ’93-25? Money Back policy with SA of Rs.75000/-. Maturity date 28.01.2015. The Voucher (Maturity Benefit) mentions FAB and is calculated @Rs.175 while your above chart shows Rs.330 per thousand of SA for year 2014-15. The Rs. 175 per thousand of SA considered in voucher, was for year 2013-14. When I inquired, I received strange answer that this policy does not get FAB but Loyalty Addition and it is @Rs. 175 per thousand of SA. I don’t find any reference on inter-net that loyalty addition is paid to ’93-25? money back policies while FAB is mentioned (with condition – ‘if any’). Please help.

  37. Hi,

    I have Jeevan Saral plan. Is it possible to share the LIC link where bonus info is published. Because when I went to their bonus website and downloaded last few of them, I did not find Jeevan Saral.

    Appreciate your help


  38. Hi,

    I have 6 Jeevan sathi policies with a total annual premium of 88000 for a period of 25 to 30 years.
    The policies had completed 6 years. I took this with a view of good returns at the time of retirement.
    I had also started SIPs of 13000 in various funds since last couple of years which are going good so far.
    What do you suggest?
    Should I surrender, do a paid up of these policies?
    Am bit confused and worried about the returns. Also Confusion over risk returns and assured returns.
    Don’t know which way to go? Please suggest.

    Thanks and Regards,

  39. sir
    I take 4 policy
    new bima gold s.a.400000(20year)
    mony back s.a.200000(20year)
    jeevan chaaya s.a.200000(20year)
    jeevan Anand s.a.200000(20year)
    total LA FAB=?

  40. Dear Basavarj,
    Excellent article & thanks for sharing.
    I am so confuse to select my first insurance plan & below is my basic expectation so please suggest which plan will best for me.
    My Current Age: 29.
    My yearly premium Limit: Min-1 Lac to Max-1 Lac 20 thousand.
    Insurance Plan Suggested Period: 25 year’s or 35 year’s?
    Insurance Plan Return Period: I am expecting to get LIC money after 25 year’s in next 3-4 year’s breaking period.
    Insurance Bonus Rate: I want best bonus rate (48-50)
    Insurance Benefit: Tax Benefit + Death benefit + Participation in Profits + Maturity Benefit.


    1. Asmita-That is great planning. But have you calculated yourself the return on this imaginary insurance expectation? What are the major things you are forgetting? Please answer to proceed further 🙂

  41. Dear Basavarj,

    Excellent article. I end up reading this article when I decided to reconsider continuing my Jeevan Anand 149 Plan. I am in a real dilemma whether to continue or dump this policy and I think you would be the perfect person to answer that.
    Policy details : Jeevan Anand 149 plan, Premium quarterly : 17,983 Rs, Maturity : 21 years.
    Start date : 09/05/2011.
    The policy is currently lapsed and I have paid my last premium on 09/02/2014. I just want to know
    a) surrender the policy as I have paid premium for min 3 years?
    b) Continue policy till the 5 th year and later surrender?
    c) Make It a paid up policy and wait for 21st year for Maturity benefits?


    1. Thomas-Best is to surrender it now. Because continue for another 5 years is no meaning and it can’t add more return to your paid premium. Paid up is best when the maturity is nearer. So that option is not good. But before that check out with LIC branch regarding the exact values then we can discuss.

      1. Thank you so much for the advice. I will get back with the proper numbers so that I can get a second opinion from you. Thanks once again!

  42. Sir,

    I need a suggestion, I have Policy New Bima Kiram. It is 20 years policy, i completed 12 years.

    SA -500000
    Premium – 5000 PA

    * If i surrender now how much i will get?
    * I am not sure after the bonus additions how much i will get after 8 years from now
    * Can you suggest me if i can surrender this and go for a term plan?

    Requesting your suggestions


  43. For the new LIC jeevan anand plan, we can see that the Bonus rates is same as the Old plan. But the premium costs are higher, and in addition there is the tax on annual premium (1.5 or 3%). Taken together, what this means is that the New Jeevan Anand provides a reduced ROI for policy holder in the name of more “customer friendly” features such as ability to withdraw policy earlier on. What this all means is that for the faithful LIC policy holder who regularly pays premium, the new Jeevan Anand will provide less ROI than the old Jeevan Anand. So far, this confirms the fears of those who towards end of 2013 rushed to buy the old jeevan anand policy. They may have made a wise decision.

      1. Dear Basavaraj,

        I rechecked the premium rates for old LIC jeevan anand and LIC new jeevan anand. I will give one example: Old policy, 35 year old taking a 1 lac policy of 25-year term will pay annual premium of Rs. 4535/– only. Now, with new jeevan anand, the premium for the same has increased to Rs. 4773/- per year. meaning almost 5% increase in premium!
        Then add the 1.5 percent annual service tax. So, effectively once is paying 6.5 % more in premium than before. But as you can see from published annual bonus this year, the return annual is same (Rs. 48 per thousand SA). So, from all evidence we have so far, its very fair to conclude that the new jeevan anand gives less in terms of pure ROI than the old jeevan anand. So, the people who rushed to buy old jeevan anand at end of 2013 may have taken the right decision.

        Best regards,

  44. Dear sir
    1 Have jivan saral policy of 21 year of quaterly paid .primium is 4594 per quater.
    3 Years is completed .
    Plz suggest regarding surrender time & amount.

  45. Basavaraj,

    I have a 15 year Jeevan Anand policy taken in 2004. I have paid all premiums so far(10 so far). 11th is due end of this month. would you recommend that I cancel the policy and invest the amount in debt\equity mutual funds. Also when is does lic pay the final amount for a 15 year policy? Is it at end of 15th year or 16th year?

    1. Chandra-First check out with LIC how much you get. If it comfortable for you then go ahead and cancel. But I feel another 5 years left. So continue. They pay all maturity amount after completion of 15th year i.e. on 16th year beginning.

  46. Sir,
    I find your website very informative – thanks! I have a question regarding FAB – where can I find the historical data of FAB and LA rates declared by LIC? Their bonus info page gives links only to the data on reversionary bonus rates. In case of a standard endowment policy (Table 14) which a customer is already subscribed to, is some FAB always added on maturity or can LIC decide to stop giving FAB abruptly for some policy even for existing policyholders?

    1. Amandeep-FAB is something which you get at time of maturity. So the list displayed on LIC site includes all such information. Please go through. Also it will not be a big idea to check your FAB yearly. Because your policy will not mature yearly. Again this FAB is not a big amount.

      1. Thanks sir. Yes, I realize that FAB is added only at the time of maturity and will depend on LIC’s FAB announced that year, but wanted to look at historical data to get a rough idea of what I can expect as maturity amount. I looked at, but the FAB data links seems to be broken.

        I have subscribed to multiple long-term Table-14 policies, two Table-149 policies and a medium-term policy from another insurance company. I now feel I have over-insured (didn’t get sufficient guidance at the time of subscribing to these). Given that insurance is not investment, I want to know how much I will lose if I continue some of the existing policies and decide whether I should let a few of them lapse or surrender them. If I let one single policy lapse (I have paid one premium so far), will it have any adverse impact on my other policies, like LIC requiring me to pay penalty if I need to continue with other policies?

        1. Amandeep-In that case first visit LIC branch and get the fair idea about the surrender values of policies. If you are comfortable then go ahead and surrender. You are not over insured but you are over invested in wrong products. Ideal insurance coverage should be around 15-20 times of your yearly income. Do you have that much coverage? No…So start to come out of these policies and buy the term insurance immediately. No, it will not impact on other policies if you surrender your new policy.

          1. Sir,
            Once again, thanks a lot for your replies. I appreciate the service you are carrying out through this website, guiding several people on financial matters. As suggested by you, I will consult the LIC office and decide on whether to surrender some of these policies.

            1. I was advised to take these table-14 (endowment with profits) plan to serve as some sort of pension, or atleast a supplement to pension. I was not informed about various other options for pension planning. LIC seems to have a Jeevan Akshay plan which seems to provide yearly annuity. Is it a good option for non-government employees who have to make their own planning-cum-arrangement for pension? Are there better pension plans, LIC or others?

            2. Is it not advisable to have endowment policies at all as a part of one’s insurance basket? I got to look at Jeevan Saral policy recently, which too is an endowment policy, but seems to offer more flexibility (especially the surrender value) compared to table-14. If it is okay to have some endowment policies, then should I consider going for Jeevan Saral instead of surrendering a few of the table-14 policies?

              1. Sir – what are the factors I need to consider to decide whether to retain some of the endowment policies (assuming I am fine with the loss of money on policy surrender or stopping premium payment after the paid-up period)? Are endowment policies worth at all? For what types of people would you recommend some endowment policies?

                And besides PPF/EPF, are there any other regularized schemes that can help one meet his/her own *minimal* financial needs after retirement? From your earlier reply, it looks like Jeevan Ashay is meaningful only for people who are close to retirement age.

                Thanks again!

                1. Amandeep-Endowment plans are suitable to those who are satisfied with return of around 5% to 6% and ready to take risk having less insurance coverage on their life. If your goal is retirement and of long term then why can’t you opt for equity mutual funds?

  47. Hi Basavaraj,

    You are really helping people to understand their investment it is really very good service your giving to the society.
    I have 2 questions here on LIC Jevenand old which i took 3 years back.

    1) -My age is 45 years i took retire and enjoy 19 policies my self and my wife name.
    -My expectation was as i am private employee i do not have any pension schemes.
    ( My father/father in law govt employes seeing them enjoying the life after retirement with pension)
    – I was not able to find any combination insurance and pension scheme combination. so went for them. yearly 94000 i am paying for this. Please suggest whether i can continue with 6% interest expecting 2% i spent for my life insurance. am i correct in this?- Returns 120000 with 5% inflation hike from my 58 years to 75 years

    2) Is there any other safe investment and mandatory forced savings investemnt which gives same assurance as of LIC with same amount .

    1. Suresh-In what way your retirement corpus generating positive return? You are investing in a product which according to you gives you 6% return but average inflation of various cost shooting up at around 7% to 8%. Then the real negative return of -1% to -2%. So you sustain and decide yourself that this plan suites you? First think yourself whether you are going to invest in a product which gives you positive return or negative real return. Then decide the product. You have to learn a lot to understand your life’s most important goal called retirement. Please read and then decide.

      1. Hi basavaraj,

        investments i have in hand

        1) 2 independent houses(total 9 portions single bedroom) in metropolitan city which give rental amount of around RS45,000(full occupancy) to 25000 (minimum occupancy ) there is expansion n scope in one house for another 5 portions( planed) once i return to India

        – faced 1 court case and cleared it in one of the house as the colony layout developer and middleman agreement so real estate expansion planed immediately.

        2) spent around 25l in Real gold lost around 10 l gold in theft – so no gold investment planed- so no gold investment immediate planned.
        3) Bank FD for RS50 l at 9 % ROI no more scope as my wife and my elder kid pan card limit on income tax reached.
        4) have lic for Rs40000 yearly for younger kid education planing
        5) took LIC one more of 19 polocies for retirement and present income tax benefit.

        Suggest now can i hold this or not


  48. Hi, I opted for Jeevan anand plan 149 and have already paid 3 premiums. Only now i realize that the return generated is meagre at 6% and i should have ideally gone for term insurance. Neverthless, request your inputs on the below

    1. Can i come out of this 149 plan having already paid 3 premiums? What would be the loss that i might have to suffer (Rs45,000 is the annual premium)?
    2. In your earlier posts, u have mentioned the return expected is 6%. Does it include the bonus as well?


  49. Dear Friends,
    while taking advice, be sure that you are taking it from a right person, else you will loose a lot in future. before surrendering any policy see to it who other strong institute is going to protect your family. Insurance policy is for protecting financial backup to your near and dear and if you are taking investment part also from insurance then it should be for long term only, since in between our life we are many time doing wrong investments and also we like short term investment so that the reason why maximum people dont have much amount in their hand at the end. so i suggest policy which you have already taken should not be surrender, but its advisable to take advice from a right person before investment and not after investment.

    you can contact me on 9320234439

  50. Did LIC really declared bonus on Jeevan Saral policy? I’m not finding this information in the lic websit anywhere.
    Could anyone send me the link for that?

  51. Dear Friends,

    I have opened a Jeevan Anand policy,Plan no-149,Term 72 on june 2013 …Already i have paid 7 premium in this policy ..SA is 5 Lacs and Premium Qtrly INR 6677.But i am confuse it is a better policy for me or not …Because i am paying INR 26708 per year …and maturity is after 35 year.

    Can you suggest me for the above. Is it better for me or should i close it ? if i will close,how much amount will get me.

  52. Dear Sir

    I need your suggestion with respect to continuing of my jeevan anand (149) policy took for 26 years in the last nov 13 and premium (Rs 40386) due for this year and my current age is 33. My query is that, is it feasible to continue. After stopping of old plans, LIC taking time to launching of new plans and launched ones are not up to the mark of old plans with respect to premium, PPT, entry and exit ages etc. As a result of this I understand that revenue regeneration will also decrease for LIC and will they able to give same rate of bonus in future days. Instead of this will you suggest any other best option to secure life and tax savings.
    Thanks in advance

    1. Anand-If you are comfortable with return of around 6% then go ahead and continue. Otherwise discontinue it. I think you you started to analyze more after committing mistake. In what way old plans are unique than new plans? All are same with few changes to match IRDA regulations. So don’t be under trap.

      1. Dear Basu,
        Can you e-mail the entire set of bonus rates 2014-2015 to me,I hold a Jeevan Shree policy(old Jeevan Shree With Guaranteed addn of 75 per 1000 SA),hence I want to know about the loyalty addn of Jeevan Shree various terms
        email [email protected]
        R J Sarma

  53. Sir, i have joined LIC, New Money Back Plan 820 in April 2014, and till now paid 2 premiums of rs 39805 each half yearly, pl clear after 20 years how much money i will get and in LIC website my vested bonus is showing zero, why?

  54. Hi Mr. Basavaraj,
    My name is Krishnendu,
    i have started Jivan saral policy @ age 29…. term years = 15 monthly premium= Rs. 9187/month(ECS)

    How much I will get after completion of 15 years?(as per agent it is around 44L)
    If I want to surrender, after which year I should do that without any loss(or with some minimum gain)?

  55. I am having LIC Jevan saral, commence date Dec 2009, of term 20 years and annual premium 24020, I have registered my policy on LIC website and i checked today and Vested Bonus is showing as 0.00, I suppose LIC will have to declare bonus for Jevan Saral in 2014, Plz clarify.

    Also confirm my Maturity amount after 20 Years.

    Vested Bonus Information
    Policy No 124521662
    Vested Bonus 0.00

  56. Dear Sir,

    IS final additional bonus still being paid out? whats the value per 1000 MSA for 2014-15 for different plans?

      1. Sir – as mentioned in another comment, I am planning to let go of few endowment policies I had taken. I would like to know the historical *FAB* rates of LIC so as to decide which of the policies to let lapse. LIC website provides data only on regular bonus rates, not FAB; at least I was not able to find historical FAB data on the web; managed to find FAB for just the year 2012 on some other website. I know FAB rates, like yearly bonuses, are subject to change every year, but want to know historic data to get a sense of what can be expected. It will be very helpful for many if you can post the data on your blog or provide a link to the data if it is available already somewhere on the web.

          1. Sir – 0.5% of total amount is extremely low indeed! The indicative FAB chart shown in (not sure which year’s rates are indicated there) seems to suggest that one could expect an FAB in the range 25% to 80% of the sum assured, for policies whose terms are more than 20 years. Is my interpretation of that chart incorrect? It mentions FAB of Rs. 240 per Rs.1000 of sum assured, for policy term of 21 and SA in the range 200000 to 499999. Did you mean to say 5% instead of 0.5%?

  57. Dear Sir,

    I have a Jeevan Anand policy (149 No Plan) of 16 year term of Sum Assured of INR8.50 Lacs with annual premium of INR 59,342/- started from Nov 2009 with last premium due on Nov 2024 . Is my plan eligible for any other bonuses like FAB, LA, GA etc apart from Simple Reversionary Bonus? Thanks in advance for your time

  58. sir, i have taken jeevan pramukh policy 5 years back with an objective to have some amount for my
    daughters marriage after 12 years. i have taken this policy for 25 years by paying premium for 5 years
    consecutively and the premium payment term ends this December 2014. is it justified by taking this
    policy? what about the prospectus and dividend payment history could you please clarify?

  59. Hello sir,
    I amSunil Kumar from ajmer. I have jeevan saral policy and yearly prm is 36030/- and msa is 15.72 lacs for 35 years. I want to know how this policy will work for 35 years. First 10 year how LA will be calculated and from 11 year how LA will be calculated and addition amount added back to corpus accumulated up to 10 year. Kindly explain whole process up to 35th year step by step and approximate calculation of maturity amount.

  60. I hold a Jeevan Shree Policy (T.112) since the year 2001 for Rs.5 lakh, with a 2o year term and with premium payment of 12 years/. Pl. let me know the amount I would get on completion of the term by way of return of premium, guaranteed bonus, loyalty additional (LA) and Final Additional Bonus (FAB).

  61. thanks for your informations. you r doing a fantastic job.
    can u pl. send to my email address a copy of bonus declared by lic for the year 2014-15. Incase of jeevan saral what does it mean “amount of premium paid” is it yearly or total premium paid for 10/11/12/13 years. since policy commenced in the year 2004, then what does it mean for 11/12/13 years. it should be only for 10years. is nt it. Thanks

  62. The undersigned has taken in 1999 a Jeevan Surabhi Policy of which Sum Assured was Rs 50000=00 . The undersigned has paid 12 nos of Premium of Rs 5571.00 only For 12 years. Pl. tell what will be the amount of Bonus at the time of maturity after 15 years.

  63. Hi Basavaraj,

    I have taken Jeevan Tarang policy(5 Laksh)(15 Year Policy)..Just I need some clarification about this policy.
    what amount I will get if I surrender the policy after 15th Year(all premimum paid).
    Already I have completed 5 years.. please suggest me shall I pay the premium amount till 15th year then surrender the policy or I can stop paying the premium now itslef.

      1. Thanks,Basavaraj..
        I need one more clarification that huge amount is getting loss if I go with surrender option now.. Will it same on 15th year also once I have done all the premium.

        1. Devaraj-I agree that there will be loss. But committing the same mistake for the rest of life is not a wise solution right? Now calculate yourself like if you withdraw today then how much loss will be. If you start to invest the same elsewhere like PPF or FDs then whether you can offset that loss or not. But in my view you will, only problem is guts to come out with small loss (I say penalty for your ignorance and believing on agents).

          1. Thanks Basavaraj..

            Will surrender the policy ..
            Could please provide me some good invesment details so that I can withdraw that amount and will start new invesment.

            1. Devaraj-You are doing the same mistake again by plainly asking the same question of what you asked while buying insurance. Please first understand the basic things to do, once they are at right place then understand when and for what purpose you need money. Based on that choose products finally.

    1. Devaraj, You must continue to pay premium of Jeevan Tarang policy upto 15 years. You will get bonus after 15 years. After that take 5.5% of sum assured till life or if you wish to the number of years you decide. You can exit even after that by getting 90% of policy sum assured. There is no such policy like Jeevan Tarang at present with any insurer, even LIC is not having this policy. So continue.

      1. Gulshan-Only criteria to continue this plan is there is no such plan currently available? Whether your treat this plan as insurance then will the man who questioned is fully insured? If you consider this as an investment then whether this plan will at least best the current inflation rate? Then how can he sustain with 5.5% of sum assured? I think this 5.5% may be one day’s expenses at that time.

        1. Brother, Question of Guaranteed for life is important. In case a person managed to continue with Jeevan Tarang for 15 years e.g. for 5 Lac sum assured, apart from bonus at the time of maturity, he will be getting Rs.27500/- guaranteed for life time. This amount may not be sufficient to fulfill his financial goals, but he may invest that amount yearly to any term plan or PPF/mutual fund etc. Guarantee for life time is not available with high returns, if return is low but it is guaranteed for life time, it sounds better.

            1. No doubt inflation will eat Rs.27500/- in the next 10 or 15 years. But question is of guarantee of lifetime. Should we focus on returns or remain satisified with guaranteed returns? Other question is of mixing saving and investment with insurance. Should we refrain from mixing investments with life cover strategy? In India, people prefer to take plans with profit/bonus rather than resorting to term plans with pure life cover. Though now barriers seems to be broken, some new generation people have started to think on taking term and health insurance and investing in mutual funds. I would like to know your valuable opinion on this matter, whether one should stick to traditional trends of investment or adopt new trends. Do not forget, traditional tools have tax rebate u/s 80-C and tax free maturity u/s 10(10) D of Income Tax Act. I wait for your comments.

              1. Gulshan-Do your investment must be with the aim of tax savings only. Do you know the current limit of Sec.80C can easily be filled if he is employed and earning around 4 lakh to 5 lakh. EPF, Term Insurance, PPF and if home loan then enough. So why to think more about tax saving? The problem of Indian insurance industry is not to spread the true meaning of insurance. But to spread the low yielding products as if true insurance products. One must first prioritize the financial goals. Then must select the product which may have tax saving too (if necessary). But if we select the product only to save tax and without knowing where we will be in future, makes one’s financial life a terrible kind.

                May I know what is GUARANTEE in traditional life insurance products??

                1. The question of Guarantee is promise to pay a sum for life time regardless of interest rates prevailing in the market and banks. My aim is to create a constructive platform for debate over the issue of investment and quantum of insurance. On the other hand I would like to add here that pattern of investment should not be fully equity oriented, nor it should be debt based. All eggs should not be kept in one basket, and in case one is given a guaranteed product even on a meager return, it should have been accepted keeping in view the market uncertainties prevailing at present. The person taking traditional products with Guaranteed benefit for life time is free to set aside other portion of his savings to other avenues like equity oriented schemes and PPF etc.

                  1. Gulshan-Sum of what? Sum Assured or return on investment?? Who is suggesting equity is the only asset class one must invest and ignore the others?? Also who said to keep all eggs in one basket? I am still unable to understand what is GUARANTEED in endowment plans?? It is the mindset of few agents who feel that if someone is spreading about term insurance means they recommend equity investment. Come on….come out of that wrong belief. First spread the true meaning of insurance to all. Then discuss about investment. The basic priorities of one’s needs like life insurance, health insurance, accidental insurance and emergency funds are not in place. But agents sell them the product which neither meets one’s insurance need nor investment need.

                    1. Basavaraj Ji,

                      There are some agents who sell the products, which people want. The importance of term insurance is explained to prospective clients, but when they come to know that they will not get anything on survival, they prefer traditional plans. So far as commission structure is concerned, please note that it is same whether agent sell term plan or a traditional plan. I totally agree with you that it is duty of an agent to spread true meaning of insurance to public. But I have told you the reason of low selling to term plans. But time will change gradually and people will come out this mind set.

  64. Thanks Basavaraj for information. One thing that is missing or somehow I missed) is info on Final Additional Bonus (FAB) for different policies for year 2014-15. Can you provide the information. Also, where did you get this bonus information. In the LIC website, they have it only till 2012. Can you pint to the authentic source from where we can get this info (not that I suspect your valuable information 🙂 ).


    1. Mohan-Yes, you are true that LIC showing only the bonus rates till 2012. But yearly in the month of September actuarial department of LIC declares Bonus, same will be circulated to all offices. I am not aware why LIC takes too much time to update the same on website. But this post is published based on such circular from actuarial department of LIC.

      1. Dear Basu,
        Can you e-mail the entire set of bonus rates 2014-2015 to me,I hold a Jeevan Shree policy(old Jeevan Shree With Guaranteed addn of 75 per 1000 SA),hence I want to know about the loyalty addn of Jeevan Shree various terms
        R J Sarma

  65. In case I decide to close my Jeevan Saral policy (27 years – Original Plan) after 12 years will my MSA remains same as mentioned in original policy document or will it change

    If it changes what will be new MSA -1) More than original MSA 2) Less than original MSA

  66. Hi Basavaraj,

    I paid 3 premiums in Jeevan Saral till now (yearly premium Rs.24020, term 20 years). My DOB is 1/9/1988.
    I want to know if I surrender now (after 3 years premium), what is the amount i will get?
    If i continue for 2 more years, what will i get after 5 years?
    And if i stop paying premiums after 5th year and want the money by 10th year, will i receover the total premium paid?
    Your response is valuable to me.


  67. Hi Basavaraj,

    I paid 3 premiums in Jeevan Saral till now (yearly premium Rs.24020, term 20 years). My DOB is 1/9/1988.
    I want to know if I surrender now (after 3 years premium), what is the amount i will get?
    If i continue for 2 more years, what will i get after 5 years?
    And if i stop paying premiums after 5th year and want the money by 10th year, will i receover the total premium paid?
    Your response is valuable to me.


  68. For the last 8 years from 07/07/2005 , I have paid 26 premiums of 5225 for SA of 5 Lakhs for Tenure of 25 Years.
    My father initiated this (Jeevan Anand – 149) for me when I got my first job (lack of investment awareness, cannot blame anyone)….

    Now after reading articles/blogs of financial expert like you, I have stopped paying premium (making it a Paid up, rather surrendering the policy) Both Paid up and Surrendering has its own benefits though depends on how we deal with that money.

    But one thing is sure : Invest wisely,Don’t investment and Insurance , LIC is not an investment option, These Bonuses are not helpful enough.
    Having said that, if my father haven’t started this Policy at that time, sure I would not have saved whatever I saved with this policy. At least it helped me that way.

Leave a Reply

Your email address will not be published. Required fields are marked *

For Unbiased Advice Subscribe to our Fixed Fee Only Financial Planning Service

Recent Posts