LIC’s Bonus rates for 2015-16 and Comparison

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• i have a LIC new bima gold policy, purchased in 2011. annual premium 100000, policy term 20 yrs, sum assured is 2850000 rs
  as per policy, the maturity return will be = total premium paid till term - survival benefits paid + loyalty additions, if any
  How to know how much will be this LA ? nowhere it is mentioned
  i want to know the maturity return amount for this policy

  • Ashish-The current LA rate declared by LIC for this policy with the term of 12 years is Rs.100 per Rs.1,000.

    • can u simplify it plz. means with this LA rate, approx how much amount will be added in 20 yrs ?

      • Ashish-As of now, they have not declared the LA rate for 20 years. Hence, you have to wait.

        • OK, Rs 100 per 1000 means per 1000 SA or per 1000 of premium amount and is it 100 per 1000 per year ?/

        • Ashish-It is per Rs.1,000 Sum Assured.

        • Per year ??

        • Ashish-It is ONE TIME but not per year.

        • so in this policy, this is the only gain at the end of policy term?

        • im sorry. i had no knowledge while taking this policy 6 yrs back. i`m trying to understand it now. i need your valuable help. as per policy, the maturity return after 20 yrs will be = total premium paid till term – survival benefits already paid + loyalty additions, if any

          so after excluding the paid premiums amount which u get back, u only get this LA as a earning at maturity ? isnt it true ? any other return in this policy ?

        • Ashish-At maturity it is INCLUSIVE of TOTAL premium paid till the end-Survival benefits already paid (money back you receive during policy period)+LA. Hence, this plan only offers LA but no bonus.

        • Ashish-Whether you referred the policy document properly?

• Hi Basu,

  I have following LIC Policies -
  1. Marriage Endowment / Educational Annuity Plan started -Dec 2005 for 21 Year
  , SA= 8 Lacs Annual Premium - Rs 39266

  2. Jeevan Mitra double cover plan, Started Mar 2000 for 18 Yrs
  SA= 1 Lac , Annual Premium = Rs 5012

  3. Jeevan Saral ,Started Mar 2000 for 18 Yrs , started Jan 2013 for 15 Yrs.
  SA= 2,50,000 , Annual Premium = 12030

  4. Jeevan Suraksha 1 (Table No.147) , Stared April 2004 , last premium payment to be on 28-04-2032
  Annual Premium - Rs 9999

  Need you help and Guidance to
  A. Estimated return on my above policies (assuming I survived till policy maturity)
  B. If any of above is bad investment, recommendation for early exit ?

  Thanks in advance.

  Rgds
  Virendra

  • Virendra-A) Around 5% to 6%.
    B) If you feel the said returns of mine is good, then continue. Else better to exit.

    • Thanks

• Hello, I'd taken a Policy in which I can only read Endowment in the name. Policy No XXXXXXXX, Half yearly premium of 9767, Commenced Dec 2005, all payments regularly paid. I have the following questions.
  1. Is it better to surrender this or change over to some other, considering other coverage I get from Postal Life Insurance (SUM Assured :10 lakhs, Monthly premium 2750,Covered upto 2037 added to Group Insurance, Cover of Rs 75 lakh, Premium 5000 monthly).
  2. If I do surrender, what's the likely payout /conversion to child education plan?
  3. Am I Over insured?

  • Dheeraj-1) Your concern is COVERAGE or INVESTMENT?
    2) Check with nearest LIC branch.
    3) Without knowing your financial life, it is hard to say anything.

• Hi basu,
  I had taken a LIC policy ,JEEVAN ANURAG, premium 28000 yearly( paying 14142 half yearly)
  term 20 years,
  comencement : November 2012
  I had taken this policy long before coming across your informative blog. After reading through your article , I have opted for a pure term policy +mutual funds. i have also realised that ,the returns of this policy will be around 6%. Now, can you please inform whats the future course? surrender? paid up? if its surrender, when would be the best time? I have yet to pay the fifth years premium,though the due date is over.

  • Sreekumar-Your policy is now eligible for surrender. In my view surrender is better (even though it may not give you back sufficient money).

    • thanks for the reply. I forgot to mention that my last premium date should have been november 2016(which i didnt pay,since i was thinking of making it paidup). Please correct me if I am wrong,to be eligible for surrender, should we make payments for 5 years? If so, I would have paid payment only for 4 years.

      • Sreekumar-In case of Jeevan Saral, if you pay up to 5 years, then the policy term is modified as 5 years. Hence, suggest you to surrender after 5 years good.

• Hi Sir,

  I have a Jeevan Anand (149) plan with SA Rs5,00,000/-. My policy start date was May 2005 and my last payment date (on the LIC website) is shown as May 2034 (since 30 year policy). My accumulated bonus (on the LIC website) is Rs2,31,500. However, the maturity term is May 2084. Kindly help resolve my queries:

  1) Why is there a maturity date of 2084 ?
  2) How much will my family be paid if I die before 2034 ?
  3) How much will my family be paid if I die after 2034 and before 2084 ?
  4) What is the expected Surrender Value, if I surrender the policy now ?
  5) I have a pure-term policy with ICICI for Rs49lac. What is your recommendation ? Should I continue with Jeevan Anand (or) surrender it and invest in long-term mutual funds (as I am already covered by ICICI) ?

  Thanks.
  Sorry for the long list of queries.

  • SPB-1) They show like this because it is the combination of endowment and whole life.
    2) It is SA+Bonus till that period.
    3) It is SA.
    4) Better you contact the branch for the same.
    5) Recommendation for what? If you feel 5% to 6% the best return for long-term investment of up to 2034, then continue Jeevan Anand. Otherwise, strictly think of surrendering it. Option is in your hand.

• Hello,
  I have Jeevan Surabhi policy . Started on Year 2000 Poliy term is 20 yrs and paid for 15 years. COuld you please let me know my maturity amount. With details

  Thanks in advance
  satish

  • Satish-Check with nearest LIC branch.

• Dear Sir

  Now there are loyalty addition upto 14 years declared on Jeevan Saral . There is also benefit illustration available on lic website . Is it possible for you to coordinate them and then comment on expected rate of return.

  It seems that the actual returns are better than 10% illustration... Correlating to 6.75- 7% returns. This is for premium less than 5000 for higher premium returns could be more

  Please check & let me know

  • Nikhil-Actual returns more than 10%? Can you elaborate of how you arrived at this value? Give me an example of age, premium, MSA and the maturity amount after 14 years. Do calculate the CAGR and let me in what way it is better or equal to 10%.

    • Dear Sir

      Please go through the LIC website for Jeevan Saral benefits illustration , as I am not able to copy paste the table or insert photos in comment.

      As per IRDA guidelines insurance companies can give example using 6% and 10% returns.

      If you check the same it shows Rs.18000 loyalty addition benefit after completing 10 years for 100000 Rs insurance value which translates into Rs 180 loyalty addition per 1000

      Similarly it shows Rs.41000 loyalty addition benefit after completing 15 years which translate into Rs. 410 per thousand.

      I am aware that these are not guaranteed but when you compare them with actual declared amount Rs 275 for 10 years and Rs. 375 for 14 years . The actual declared amounts are higher than illustration. Here also I have taken figures for premium below 5000 as the benefit illustration is of premium value below 5000 .

      In case we consider premium paid above 50000 ( Fifty Thousand) then the figures are much higher...

      Translating this into actual compounded interest is in the range of 6.75 - 7 % . Hence I requested you to kindly check

      Please do reply back. Also let me know how I can send pictures as well as excel sheet

      Regards

      • Nikhil-Are you judging your expected return from illustration example given in LIC portal? It shows how the plan works. But it never guarantees that you receive either 6% or 10%. Please provide me the term, premium, MSA and the LA rate you considered to calculate the maturity amount.

        • Dear Sir

          I am trying to correlate the LIC chart values v/s actual returns and pleasantly surprised to see the actual returns are better than highest projected returns.

          It actually means LIC Jeevan Saral has potential to provide much higher returns than most of the policies. Probably equal or more than old Jeevan Shree which had guaranteed returns of 75 per thousand for all years .

          Requesting your valuable opinion on the same

          Regards

          Nikhil

        • Nikhil-Don't through arrows at AIR. Give me an example like the insured age, term of plan, premium, MSA and LA you considered for calculation. Then show me how your claim of more than 10% is TRUE.

        • Dear Sir

          Following are the details

          Age of entry 35 years

          Policy term 25 years

          Mode of premium Yearly

          Amount of premium 4704

          LA 98000

          At the end of 10 years guarantee returns 43360

          Variable returns (non guarantee) @ 6% 7000

          Variable returns (non guarantee) @ 10% 18000

          It is the example mentioned on LIC website

          Do you need any further details

          In case you tell me how to insert pictures or excel sheet I can provide it in more systematic way. In case I can't insert these things then you can check this example on LIC website by Googling jeevan Saral benefit illustration

          Writing only can lead to miscommunication and misunderstanding.

          Regards

          Nikhil

        • Nikhil-The problem for you is that you dont know the difference between ILLUSTRATIVE example to actual returns... What more can I say?? It is illustrative example but not real one. I need the details of policyholder of whom you are claiming that returns will be more than 10%.

• please tell me how's % bonus on jeevan labh policy

  • Kumar-It is new plan. So bonus is not yet declared.

• Hi Sir,

  I am also trapped in one LIC money back policy as is the case with millions of Indians.

  The Policy term is 25 Years. S.A. is Rs. 1,00,000/- Premium is Rs. 5,413/- P.A.

  I have paid the premium for 9 years. (Hence, my investment is Rs. 48,717/- ). Premium for 10th year is due.

  I received 15% of S.A. in 2012 ie rs. 15,000/- as survival benefits.

  I am confused as to should I continue it further or surrender it right now. I checked at LIC website. However, I couldn't find anything about Surrender Value calculation. Policy document also does not contain anything about surrender value factor calculation or table. I am interested to know approx. how much amount I will be able to get back.

  Pls. help

  Thanks

  • Hi Ritesh,
    You will get the surrender value approx as ( 25% of SA + PAID Amount)

• Dear Sir,

  while trying to surrender my Jeevan Saral policy the agent explained me a logic that the this plan has recently completed 10 years so it is better to wait for few more years to get full benefit (more Loyalty Additions) from this policy.

  Is this a valid reason?

  • Kirit-More LA also not fetch you more than 7% return. Stay away and close at the earliest.