LIC’s Jeevan Anand-My favorite plan

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Today we will look into the features of LIC’s Jeevan Anand Plan. I will let you know why it is one of my favourite plan from existing LIC’s Plans. Before proceeding further we will first look into the features of it.

Suppose Mr.X whose current age is 30 Yrs, he want to invest in Jeevan Anand policy for the tenure of 20 yrs and the Sum Assured he chosen is Rs.10,00,000. Then his annual premium will be Rs.54,274. During this 20 years of period he have risk coverage of  Rs.10,00,000. Suppose within this 20 Yrs period, if any untoward incident happens with his life then his nominee will get full sum assured+accrued Bonus till that period  immediately and policy closes their itself.

But if he alive till the maturity period of 20 yrs then he will get total SA+Bonus. After that actual Jeevan Anand’s feature start. Means he still has life risk of Rs.5,00,000 till his last breath or Rs.10,00,000 life risk in case accidental death within his age of 70 Yrs. So without paying a penny he is getting his life risk after the maturity of the policy!!! One more good feature with this policy is, he can surrender the death claim amount which he is getting after his death in advance but after maturity. Now I think you got a fair idea about the features of the policy.

We will look into the returns on investing in this policy and is it worth to invest in. Just don’t go blindly on the brand name LIC have and its publicity. So look into it as any other product, like how much you are investing and in return how much you will get.

Suppose Mr.X survives till the policy period of 20 years then he will get around Rs.18,60,000 (Rs.10,00,000 SA+Rs.8,60,000 Bonus at the current rate of Rs.43 Per Rs.1000 SA per year)+if any final additional bonus at the time of maturity. Hence Mr.X will pay as premium in the whole tenure of the policy is Rs.10,85,480 and he will get Rs.18,60,000 as a return. Hence a return on your investment will be around 5.5%. So you may say is it worth when today Bank FDs are offering around 9% interest rate?

Yes, still it is worth for Mr.X. I will show you how it is. As I said above, he will get around Rs.18, 60,000 after the maturity of 20 yrs. But Jeevan Anand provided one more option to surrender the life risk which he get after the maturity period and within his last breath into cash. Suppose he waited for five more years and surrendered his life risk he may get around 60% to 70% of SA i,e. around Rs.3,00,000 to Rs.4,00,000. (The exact figure of this surrender value not known. Even I tried to get the information from LIC, but in vain). So return after using this option is around 6%.

Now with the kind of return 6% and life risk of around Rs.10,00,000 till his 50 yrs of age is good or not? Yes it is good but as the rule, he can divert his debt portfolio of investment in this policy instead of investing in Debt Funds or in any non risky product. Hence I will recommend you this plan to the tune of your investment amount of Debt. Not more than that.

Hope you understood what I am pointing. But as a thumb rule, don’t invest all your savings in such low yielding products. But need to divert some portion in such plans as the benefit of Life Risk with Returns.


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287 Responses

  1. Hi Basavaraj,

    I’ve taken Jeevan anand plan-149, for sum assured 500000, for 21 yrs premium paying term in 2007 when I was at the age of 30. In 2008 we moved to UK and I continued paying premium. I haven’t taken UK citizenship (although I am eligible) . Now as I am NRI, will if affect my policy in anyway? should I inform LIC about this ? Also, will I be able to withdraw the amount after the completion of 21 yrs premium paying term.? On my policy, it says policy term is 70 yrs, what does that mean? I mean will I (or my nominee) be able to withdraw the amount only after that 70yrs policy term or after 21yrs premium paying term? on Maturity means after how many years? ….I am so confused, please clarify on this.

  2. Dear Sir,

    I tried to do some calculation using IRR for my policy New Jeevan Anand-5Lac T-815-17-17.
    Yearly I pay 42,158 Rs. for 17 years and policy matures. LIC pay me Bonus = =500000+410000 = 910000/-
    So the IRR (-42,158*17+910000) = 2.60%. This is way too low from 5.5% you have calculated.
    Kindly advise, am I missing something here?


  3. Hello BasuNivesh,
    We have enrolled for the Jeevan Anand (149 plan) in 2005 for 10 years. My question is are we eligible for Critical Illness_Rider ?

    Thanks for the feedback in advance.

  4. Dear Basavaraj Tonagatti,
    Today I read your article about traditional policy of LIC Jeevan Anand. This article was eye opening for me. My self also invested in these policies with out knowing return 10 years back after sharp recession in 2008.

    After reading your article, I get confused whether to continue these polices or else surrender and invest in some other asset class.

    I also have term plan of 50 lakh upto 65 years of my age from max term plan of prem 5000 p.a.

    I have these 3 polices of Jeevan Anand which I have taken 12 – 10 years back. Out of three I have calculated XIRR of one policy which come around 7.84%
    Details are as follow,
    commence date 28/11/2009
    date of maturity 28/11/2034
    sum assured 5,00,000
    prem paying term 25 years
    premium paid 10 years
    premium pending 15 years
    prem amt p.a. 18763/-
    SURRENDER VALUE 1,61400-/
    PREMIUM PAID 1,87,630/-
    SURREND LOSS NOW 26,230/-

    option 1 – CONTINUE.
    maturity amount – 12,80,700/-.(tax free)
    sa+bonus+f.a.b+SAM VALUE
    bonus @ 49*25
    fab 100 per 1000
    SAM VALUE 23640*5

    maturity after 15 yrs 16,20,000/-.(TAXBLE 20 %)

    option 3 – paid up and invest in mutual fund
    paid up s.a. = 200000
    maturity amt = 3,50,000
    =FV(12%,15,-18763,) = 7,00,000/-
    TOTAL BENEFIT 10,50,000-/.

    So Sir, making paid up this policy is not a wise decision . Now two option available with me, option 1 and 2.
    There is 3,20,000/- diffrence in both the option and also there is tax implication.
    I don’t know what will be tax rate in 2034, let us assume 20 %, then effective return will be(12-20%)
    9.6 %.
    So to conclude, 7.84 < 9.6.
    If I surrender this policy , I will get extra 1.76 % with loosing 50 lakh insurance n Accident and Dis -ability insurance .
    If I invest in PPF which give 7.9% return, in future this rate is not guarantee.
    if i invest in mutual fund for 15 years may I get 12 % or 18 % , which is also not guarantee as market risk.

    So Sir, please help me to select my option which is best suitable for me from above details.

    Thanks in advance,
    Waiting for your reply
    vicky 9986871441

  5. Hi Basav, I came across your articles when trying to figure out the IRR on my LIC policies and they’ve been hugely helpful. I have a Jeevan anand policy going on from 2011 for a term of 25years. Annual premium is Rs20251 for a sum assured of Rs500000. The IRR seems to be around 6%(assuming i calculated it correctly). Would you suggest I continue with the policy or surrender it and look for other options?

  6. Sir, I hv taken 3 lic policies jivan anand in 2013 and have paid 23105 premium till dec’2017 & now facing some problem & wanted to close policies. What is surrender value? I feel that its big loss for me. Pls advise amount i get after lic policies closed.

  7. Hi me RIYA I have question please reply me. I have Jeevan Anand policy in the name of my father in law for 16 years but he died before 16 years completed . Now how much amount I will get approximately

  8. How much amount will I get on maturity if sum assured is 500000 and paying term is 16 years. Annual premium to be paid is 34995/- under LIC Jeevan Anand (149).

  9. Sir,

    If LIC Jeevan Anand policy (149) so many negative reviews, does it have atleast few positive features?

    thanks ,Ravi

  10. Hi Basu,
    I have around 8 LIC Jeevan Anand policies started in 2013 each of SA 1,00,000 (but different maturity periods).
    I had taken it out of ignorance back then.
    But now after gaining some knowledge have invested in Mf and PPf. My LIC premium is around 30% of my investment.

    Do you think if I should continue this plan or discontinue?

  11. Hello,
    Thanks for such a clarity post on the policy. But its hard to digest about the bonus figure you have mentioned.
    Lets say 10,00,000 is SA and 20years term, bonus rate is 45 then the calculation:
    Rs.43 Per Rs.1000 SA per year
    Total bonus= 43*10,00,000 / 1000 = 43000

    But your calculation says 8,60,000 will be the bonus accured!!!! HOW???
    Please clarify

  12. Thanks for the amazing article.
    I am having a Jeevan Anand (Table – 149) plan. The headline of the policy paper says ‘JEEVAN ANAND (WITH PROFITS) (WITH ACCIDENT BENEFIT)’. Sum Assured – Rs. 5 lacs. Premium – Rs. 6569 (quarterly). Proposal Date – 30.Nov.2012. Date of last payment – 19.Aug.2033.
    In the policy paper, inside the 2nd left box it is written as Premium paying term – 73 21. What does it mean? Does it mean that I need to pay for 21 years (from Nov 2012 to Aug 2033) and I will get the sum assured + bonus after 73 years from the date of commencement? I am getting confused seeing the figures ’73’ and ’21’.
    I just want to know when will I get the sum assured + bonus amount?
    And what are the benefits I will be getting from this Jeevan Anand Plan? Kindly elaborate the pros and cons of it.
    Thanks in advance.


      1. Thanks a lot for the reply.
        The paper says, ‘Date of Commencement’ as 19.Nov.2012, so, will I get sum assured + bonus after 21 years from then i.e in 2033? The date of last payment is 19.Aug.2033.

  13. I am an NRI.I have taken jeevan Anand (with Accident benefit) on october 2013.Premium is Rs.99866 and premium payment term is 17 years.Sum assured is 15 Lakhs.Is the amount payable on life assured’s death after the end of premium paying term( post maturity) is limited to 5 Lakhs or sum assured(15 lakhs)?
    I do have life insurance policy in my country of residence.Is it worth continuing this policy or should I change to paid up status?

      1. Thank you for your reply.
        I am asking about the amount inaddition to the maturity amount.I will receive 15lakhs +Bonus by 2030.But the risk cover continues up to 70 years right?What will be the amount payable if the life assured dies after maturity of the policy but in the risk cover period.Is it the sum assured or is it limited to 5 Lakhs?

          1. Ok.
            I got confused with condition No.10(b)(Accident benefit) given in the policy. Its in addition to the sum assured I think.

  14. Can you give me a clear idea about what will be the returns of my jeevan anand plan for 30 yrs.My premium is 50000/- annually.My Lic agent says I will get a return of 55 lakhs plus 6 to 7 lakhs more if I surrender the life coverage after maturity.p

  15. Sir,
    I invested in jeevan Anand in june-2014 for 25yrs .SA 8lakh. Premium 3147.
    What will be the maturity amount.
    Shall I continue or surrender?
    Because return is too low.

  16. I just retired. Had 5 LIC policies 3 in my name and 2 in my wife’s name. When I started the policy 20-25 years ago the salary was poor and so I could afford small amount. Hence, the all the Insurance policies are 1-2 lakhs. Paralley, I also invested in PPF and subsequently in mutual funds. An equivalent amount of 1 lakh in LIC gave me 1.5 lakhs. But the 2nd route (PPF and then mutual fund) gave me 6 lakhs. I chose PPF initially as there was no mutual fund those days. LIC keep telling you that you are covered for your death. When you are dead where the money goes? You may think family. Don’t be fooled again and again. Save somewhere else for your family. 99% of the lic members won’t die which I can guess. Hence, LIC accumulate lot of money as unclaimed…. The worst organization of India (according to me) is LIC. This is my personal view as I had experienced in my life….

  17. I have invested in jeevan anand (149):

    Sum assured: 3,70,000/-
    Installment Premium: 25,578.00/-
    Premium Mode: Yearly
    Commencement Date: 28/09/2010
    Age at Commencement: 22 Years
    Premium Paying Term: 16 Yrs
    Policy Term: 78 Yrs
    Date of Maturity: 28/09/2088
    Premium Paid Till Date: 8 x 25,578= 2,04,624/-

    My Question is when will I get the Sum Assured + Bonus amount. Will I get it by the end of Payment Terms?
    Date of Maturity is very confusing, showing the year 2088.

    Please help me.

    1. Amit-In case of Jeevan Anand, you will receive the Sum Assured+Bonus when the actual policy period ends. After this payment, your life risk continues forever. Hence, at the time of death (after policy period) your nominee again receive the sum assured.

  18. Hi,

    I have Jeevan Anand policy(Details below).

    Staring date : December 2009
    Sum Assured : 5 Lac
    Term : 21 Years
    Premium :Rs 25028 Annually

    I have bought this for tax saving purpose, but now my friend suggested that i should surrender this and invest the amount in Debt mutual fund for better return. ( I already have elss of 5000 monthly.)

    Please suggest.

  19. Hi,

    I have taken Jeevan Anand and Jeevan Saral policy from LIC and fully paid completed 6 years of policy with fully paid premium.
    I want to know average rate of return on both the policies and also, I want to calculate the surrender value of the policy if I am getting higher return in other Investment options, I can think to surrender.

  20. Sir,
    I have a query regarding claim rules if Policy holder dies in following scenarios :- 1) Policy was bought when Policy holder was unmarried and he appointed his mother as Nominee . 2) So if after some time of Marriage Policy holder dies then does his wife and daughter have any claim on the Sum Assured of Policy. 3) Also is it legal if His mother claim the Sum assured without the consent of the wife of Dead policy holder. 4) Policy holder did not prepared any Will before death.

  21. I am planning to buy Jeevan Akshay 6 having 10th plan option for Rs 5 Lakh

    WIll it be beneficial than having money in FD

  22. Sir,

    I took LIC’s Jeevan Anand 149 plan in the year of 2013. total 8no plans of SA 1 lack each and 1 plan of SA 2 lacks (Total 9 no of plans). premium paying term is 52 years for long term. is it good? generally how much return i will get at time of maturity ?

    Yearly Premium is 16,990/- for 52 years
    Total SA is 10 lacks
    Total premium paid is 9.8 Lacks for period of 52 years.

    what are the benefits i will get?

    please suggest me.

  23. Hi ,

    I have old Jeevan Anand plan for which I pay Rs 755 per month starting from January 2012. My vested bonus is showing 61500 .I cross checked with the compound interest calculator it is giving near about 10 % interest rate of return. But most of the knowledgeable person say LIC gives max 6% rate of compound interest.

    Kindly clarify

      1. Sir, I used the simple Compound interest calculator
        where I put the details are as follow
        Start date Feb : 2012
        amount :755
        frequency monthly .
        Compounded annually.
        till march 2017.(approx 5 yrs tenure)
        Now total amount if I select rate of interest 10% .
        Its showing 60,ooo which is also reflecting LIC in vested bonus column in the web site.

            1. Amarendra-Cross question. You told that the accumulated bonus is Rs.60,000 (around). Now ask LIC that if you close this plan, whether you get Rs.60,000 immediately? Second thing, whatever this already accumulated Rs.60,000 will not earn the additional SINGLE rupee up to the end of term. It is just IDLE with LIC for their own usage but they not add any interest on this. Check facts with LIC officials and we discuss further.

    1. Hii Basu
      Sorry for entry in conversation.
      Just want to know that is there any IRDA rule for surrender value after 5 years? I’m gonna complete 5 years after 3 months and want to surrender. I have Exide life new fulfilled policy with money back 20% of sum assured. Visited there they recommended for paid-up because now surrender value is only 30% so you are losing huge amount. Please reply if IRDS has rule that 90% or more amount we can get after 5 years surrender.

      Sorry for grammer.

      1. Shez-Neither believes on me nor the insurer. You do one thing, check the bond details for surrender values and then decide. Also, as your policy is in early stage, I don’t think paid up will be worth.

        1. Amazing! Even paid advise is not like you free service! Salute Boss for instant response.
          Well here I’m putting hond paper sentence about surrender..
          (However such cash surrender value shall not be lesser than the guaranteed cash SV, which is calculated as 20% of the total premiums paid excluding extra premiums if any, less 20% of total survival benefits paid.)
          On visit office exide exc told me my amount is now 150K (50K 20% of SA I can get as money back) till now I paid 113K. So if I surrender the money I will be getting 76K something including 50K bonus, means I will be losing 80K as per his words.

          Kindly help me out about bond sentence, it went over my head.
          Hoping for your support because tomorrow I have to final either surrender or paid up.

          1. Shez-Guaranteed surrender values rules are mentioned so that policy holder must get a minimum of that much when he applies for surrender. Also, do remember that whenever you apply for surrender, then in majority cases (especially when you are surrendering during the initial year of policy start period) it will be lesser than what you have paid.
            Accept it as your financial mistake and come out from such junk products. Think wisely and start investing like INFORMED investor than relying on anyone.

  24. Dear Basu

    Your inputs and feedback really helps me a lot in my financial decisions.
    I have a Jeevan Saral policy of monthly premium of 2042 ( yearly 24504) . Tenure is 20 years . Currently I have been paying since last years. Please suggest if it is better to surrender instead of waiting for another 12 years considering very low returns. Please advice.

    Also if i have to go for a term plan or something, which one do you recommend. As i don’t have any other insurance plan as of now

  25. Hi,

    my question is not regarding usual investment issue. As i am follower of your blog and already asked question to you regarding PF and got best solution for it, so I thought to asked this is pension related question to you. there is some issue regarding family pension of my grandmother. please let me know if you have any idea how to calculate family pension of central govt. if so then i can explain you the detail issue (possibly on email-id) or else let me know any contact person in mumbai or navi mumbai who can help me in this.
    Thanks in advance.

  26. i have a tata aia assure 21 years money saver plan which was taken in the year 2004 .I want to know if i should do paid up or surrender the policy. Which would be more beneficial. I dont have a cash crunch just that i think it is not really value adding to my portfolio

    i have already taken a term plan for 1 crore.

  27. Hi Basu,
    I want to know if I need to continue with lic plan 807 (jeevan ankur). I am paying quarterly premium of rs 7144 for sa of inr 5 lac for 15 years. I have started it in march 2012. I am thinking of surrendering it to lic and starting with pure insurance. can u pl advice. Should one go for pure term insurance and SIP combination to get benefit of both worlds. Money back plan don’t seem to give anything 🙂

  28. Hi Basu,
    I have been reading ur blog for the last 3 months. Also watching videos of financial Plan on zee & CNBC.

    I belong to jharkhnd, and took JA 815 my father’s frnd lic agent suggested me. Was not ready but took. Here are the details… SA 7L, Term 15, Premium 60K yearly ( but paying quarterly 15K). Paid only 2 premium.
    Now I want to close this one and want to take Term insurance of 1 Crore. My income is more than 7L an.
    What should I do ?
    I want to invest with little risk in MF or PPF. Please suggest me because after 10 days premium date will occur.
    In next comment I will tell you about one more policy Exide life new fulfilled which I took in 2013 by my agent frnd.


    1. I forgot to ask important thing lic agent dint give me bond paper he said will come after 6 or 7 months, he dint even lot of people, he said will come an give you once dispatched from Jamshedpur regional office ( 450km far from my location). I could cancelled but I haven’t got bond and two premium already paid. Should I stop paying and loss 30K? Kindly advise.

        1. Yeah I asked at that time but said there are lot of policy holder so work load and that’s why it takes time. I knew about bond because Exide life’s bond i got in 15 days. Well I decided now to forget 30 K.
          Basu sir could you please tell me about Exid life new fulfilled policy. I have been paying for the last 4 years and planning to close after another one year so that I can get fair money.
          Yearly I’m paying monthly 2100/- and will get 25% cash back money of SA. Term is 16 year. I took it because I dint know much at that time and agent was my frnd. My idea is now I must go for term plan with this money and the other 60K which I m paying for lic will invest in MF with SIP.

          Kindly suggest.
          Once again I would like to thank because last time also sir you helped me about FD receipt.

    2. Shezaan-You can stop now also, but the problem is you have to forget of what you paid earlier. If you want some money back, then you have to continue for at least 3 years, then go for closure. However, in that case, also you will not get the full money. It is just a trap. Hence, better to forget of what you paid and go for alternatives. I know it is hard but this I seems best solution.

  29. I have taken 2 Jeevan anand policy in the year 2011, one is of Rs.16400 & other is 15264 . My total investment till date is Rs. 158320 &if I close these policy , I will get total Rs. 91408( Confirmed in LIC office ) . Term for the policy is 21 years & 25 years respectively . Should I close them or continue . Can the term of policy be reduced.
    Thanks in advance

      1. I heard that endowment plans of LIC offer low life insurance cover & low interest yield . So after withdrawal I will take one term plan for 1 crore & invest other money in high yielding equity mutual fund . Should it be wise or not ?

  30. Hi Basu,

    First of all, thank you for sharing wonderful information regarding LIC 🙂 . Appreciate your Knowledge sharing !!

    I am Anil and my age is 25. I am earning around 35k per month. Also, I am going to marry too in month of April 🙂 . I am thinking to go with some investment plans/term insurance which may help in for tax and also act as a good source of return. Could you guide me what I should I do. LIC agent suggested me to go with 30 yrs GA plan with premium of around Rs. 17871 per year. Apart from this , i am thinking to go with NSC.

    Please guide me for the above points.

    Thanks in Advance

  31. Hi Basu,

    I am continuous follower of all of your blogs,Thanks for all such great info.
    Need your advice regarding this product,my age 30 yr,other investments already there (EPF,PPF,FD,MF SIP),
    I bought Jeevan anand(T NO 149;Sum assured 2 Lac;policy term 75;Annual premium 14.5 K) in 2010;Now I am going to buy HDFC term plan of 1 CR,So what should I do with this product,Shall I surrender it and take the losses or Let it continue till end.
    Thanks a lot !!

      1. Thanks,Actually I was more inclined to continue it..But as u advised to continue it I did some calculation ..So far I have paid
        7220(half yearly premium)X 2 X 5 years => 72200 .
        I believe I will get 30 % of premium paid(excluding first year prem) ..17328 Rs plus vested bonus 34800 Rs=> 52128
        Total Loss => 20 K

        Do u think bearing that much loss will be judicious design..Thanks

  32. Hi Basu,

    Thx for d article. I have certain doubts. As ur article starts, it gives a feeling that JA is good but then d ending part is confusing. Moreover, the comments and replies also kinda gives negative reviews abt JA.
    your last line – “But as a thumb rule, don’t invest all your savings in such low yielding products. But need to divert some portion in such plans as the benefit of Life Risk with Returns.”
    here “such low yielding prod” and “such plans as d benfit of” – they refer to what ? JA is a low yielding prod ?

    1. this 5L of money which nominee gets after Mr X death. Is there any age limit to this ? like it can be X is above 100 yrs and still life cover of 5L will be paid at death? My policies , both JA , one’s policy term is 75 and other’s is 80yrs. what is the relevance of these numbers ?

    2. There is dis confusion abt the 1st premium. I cannot see the 1st premium paid of both my policies in LIC portal. moreover , wen I calculated the bonus and compared it wid whts given in LIC portal, it seems the 1st premium is not included in the calculation. SO the 1st premium is not taken into calculations ?

    3. can I change the nominee of my polices ? [ one is 4 yrs old and other is 8 yrs old ]

    4. both policies wer opened thru agent in a branch. d branch is in a village. fr doing things like changing nominee, or after maturity if I want to withdraw, I want that to happen in blore , bec I stay here. I don’t want a situation whr I have to travel to the main branch for something. is there a provision of transferring the home branch to blore LIC office like hw we do in case of bank accounts ? And whts d process of withdrwal after maturity ? can it b done online ?

    5. I read lots of articles on JA. some say its good an some say its pathetic. I am confused whether to stop both my policies and take up a term plan. one policy is 21 yrs, 10,10,000 SA and 50k premium , DOC is 2010. other is 2721 payable half yearly, SA 1L and 20 yrs , DOC = 2006 . What you recommend ? shud I close both d policies ? I don’t hav any other policies or mediclaim ….

    Thx for the help.

    1. one small info on the 1st premium paid confusion – altho the DOC of my policies are 2010 and 2006 , but my enrollment date in LIC portal is shown as 2011 and 2012 ( is it the date when I wud have created account online ? ). Moreover , for the 2010 DOC policy, no premium is shown in d year 2010-11 in portal. And for the DOC 2006 policy, I can see the premium paid from 2010-11 ( previous year options r not there in portal)

    2. Manish-Yes it is low yielding. Infact lowest than a typical products like PPF.
      1) I think you are asking about post maturity cover. No there is no such age limit.
      2) For what purpose 1st premium calculation not taken? Bonus calculation depends on the term of policy and sum assured. But not on premium.
      3) Yes you can change at any point of time during policy period.
      4) Yes your concerns are right. You can transfer it to any nearest branch by submitting the letter to home branch. Hope your agent will help you 🙂
      5) You continue the policy if you are satisfied with kind of return of around 6% to 7%. Otherwise a strict NO. To me waiting for long 21 years and getting return of 6% to 7% is worst financial decision. Rest is left with you.

  33. Dear Basuji,

    1. I have purchased LIC JA (T.149) in May, 2007.
    Monthly premium: Rs.2965/-
    SA: 500,000/-
    Term: 18 yrs.
    Last premium paid: Dec,2014
    Vested bonus at present: 148,500/-
    I want to know: 1. How much shall I get if I surrender?
    2. Should I surrender or Paid up?

    2. I have purchased LIC New Jeevan Suraksha-I (T.147) in Jan, 2004.
    Yearly premium: Rs.10004/-
    SA: NA
    Term: 21 yrs.
    Last premium paid: Jan,2014
    Vested bonus at present: Nil
    I want to know: 1. How much shall I get if I surrender?
    2. Should I surrender or Paid up?

    Pls. help.

      1. As per LIC:

        For Jeevan Anand (DOC-28.05.07, Term 18 yrs, Mthly prem-2965/-) : Sur. Value-Rs.222366/-, Paid up-Rs.392722/-

        For Jeevan Suraksha(T147, DOC-27.01.04,Term 21yrs, yrly prem-10004/-): Sur value-Rs.156050/-,Paid up-Rs.253000/-

        Pls advice what to do?



  34. i had taken a jeevan anand policy of 10 lacs in march 2006 for 21 yrs, premium Rs .51000 yearly. I want to close this policy and go for a term plan and a investment plan (for more assured sum as well as better rate on savings.) Can you suggest me a better plan and also how much money i will get if i close my policy.

  35. Sir
    I have started JA Policy in feb 2012 SA 500000 and tenuare 20 years. now after 1 premium i.e in feb 2015 i will complete 3 years of i am 29 years old and my salary is 25000/month.kindly please guide me which option is goog? to continue or surrender

  36. I have taken JA policy for duration = 21 yrs, SA 25 L, with a purpose that my son ( now 8 months) will go to college at 21 yrs.

    Can you please help me undestand the return that i will get after 21 yrs. Annual premium = 140,000.

  37. Hi,

    I am a novice if you talk about investment and don’t have any clear idea of what will be better for me. I have a few questions & queries if you may kindly suggest what to do?

    Firstly, I make 50K approx a month and have fixed expense of 20K which I can neglect (Bills), i haven’t invested any money till date (I know I am an idiot) apart from keeping it in Savings A/C, but now that i am just over 25 (age), would you mind suggesting me a few investment options.


    1. Ken-Before proceeding to investment do some basic things yourself. Buy online term insurance to the tune of around 15-20 times of your yearly income. Then buy health (even if your employer providing you), accidental and critical illness insurance policies. After all these, finally create a emergency fund of at least 6-12 months of your monthly expenses. Keep this amount in Bank FDs by opting online FD option.
      Once all these are in place then we discuss about investment.

          1. Hello sir,

            Can you please analyze the LIC- New Bima Gold policy like you have done for Jeevan anand? Because I took a policy in 2012 for 10L for 20 yrs and paying Rs.35000/- premium for it. At that time my agent did not encourage Jeevan Anand. I wonder why. Your views may help me think over, and if possible (any portability option in LIC?) port it.
            thanks in advance.


            1. Aishvarya-Currently this plan is closed. So it is of no use for readers to review. But there nothing special even in case of Bima Gold. It is typical endowment plan (expect return of around 6%), money back in between and a low premium compare to others. So no special features. If you still have doubts then comment here and I try to reply.

              1. Thankyou Mr Basavaraj. I wanted your opinion to know whether it is advisable to continue this policy or stop it after 4th yr once i get the first money back, to invest in some other instrument. Like you explained in your blog, these plans are inadequate in terms of insurance as well as investment. Although at present I am not investing.

                    1. @aishvarya there is time to take Jeevan Anand also . . Jeevan Anand covers whole life cover

                      Any queries
                      free to call us

                      Dineshbabu Team
                      95 97 28 5448

  38. Hi I had taken a Jeevan anand policy for 5L coverage with premium of 35K yearly for 16 yrs and now i have paid 2 premiums and i m thinking of leave this policy or pay the 3rd premium and make it paid up. but i think i have to wait for 13 more years to get money. paid up value will be 135000 after 13 yrs. so where can i invest that 35K to get the same amount if i dont want to make it paid up and close it..

      1. No, i want to invest 35k to get 135000 in 13 years .But in PPF it wont give the same return with 8.7( already have PPF). so will lump sum investment in ELSS help?

  39. I have Jeevan Anand Policies (16 policies ranging from 1 lac to 1.5 lac for 30-45 years) since last 4 years. Agent told me it is like pension plan. Each policy will matured after the age of 60 and I will get SA+Bonus. But now I am thinking that I have taken wrong decision and now I want to surrender or paid up it. Which will be much better Surrender or Paid UP?
    Kindly help me out.

    1. Vaibhav-In my view it is better to surrender than paid up. Because if you paid up then you will receive the amount at end only. So need to wait for long without earning anything on that. I might have suggested you to opt for paid up only if you are about to complete tenure.

  40. Good Evening Mr. Basu Nivesh. I have seen your feed back its great.

    Can tell me how much i will receive i have taken a insurance policy Jeevan Anand of 15,00,000 Rs for 25 yrs period. My agent said so much, just need to confirm with you.

  41. This is the first time that I am seeing a financial planner suggesting for a endowment plan. Generally people like you dont encourage these insurance+ investment and for good reasons only. However I agree with you completely .
    1. For people in higher tax bracket return of FD(post tax) and these plans are almost similar. But the benefit is they come with a insurance part which a fd does’nt have.
    2. In my life I have seen very few people who are serious and disciplined in savings(including myself) . They follow Earning-spending=Saving. So however good a sip in mf or ppf or something like that be , it becomes very difficult for us to invest.(i opened ppf account last year, and in one year I could put only 18k, and let me tell you I have just touched the highest tax bracket).
    So for people like us these endowment plans are best. They may not give good return, they may not even keep up with inflation but at least, I will have some money after the tenure.
    So after suggesting people not to buy insurance+investment products I have bought new endowment policy by LIC with annual premium of 150,000.

    1. Raja-May I know the reason of why you are unable to contribute to PPF and reasons for staying away from equity? Also please bear in mind that I am not promoting this product, but in debt category one can opt for this. Hence putting 100% into this product for your long term goal is waste and wrong. Restrict your investment to maximum of 20% of investable surplus. Strange to see that you understand the return and inflation but still over invested in such product. Please rethink.

      1. I am investing 1/3 of my saving capacity in lic. The reason why I am unable to put money in ppf is lack of self discipline.I always found reason to spend, and broke my RD,FD that I started.I am two years into job and I failed to save even two months salary. thats why i chose lic. because it will be kind of forced saving.
        For the past two years I vehemently opposed LIC whenever somebody did it. I would lecture them about return , inflation ,lack of actual insurance and all. But after two years I see that because they did lic ,atleast they saved that money and I did nothing.
        This has happened with many people .

          1. by lic I mean to say endowment product which invariably gives bad return and low insurance coverage and comes with heavy premiums. the problem(good thing for me and people like me) with them is once you start them, you cant stop because if you stop you ‘almost’ lose all the money that is already that keeps us get going.I have seen people who have lots of responsibiliites in their early days choosing these products because of this ‘forced saving’ feature only . Otherwise they will not be able to save any money at all.

                1. See here I am citing you a side of endowment policy which I have not read anywhere but in my surrounding I see many people who invest in these policy knowing fully well about their return.
                  Say a young guy 28 year old , married with no kid has job of bank po away from his hometown.He has some responsibility of his brothers education .lets see his condition:
                  Salary 28k
                  personal expenses: 13-18k depending upon the place of posting.
                  brother education: 4-6k per
                  so money in hand: 6-10 k
                  now the personal expense of 13-18k does not take into account, extra expenses like on clothes, visiting hometown, sudden medical expenses(ordinary fever like things, outside purview of health insurance but expense may be anywhere from 200-2000)
                  so on an average he will have 4-5 k left per month only.
                  Guys like him are very common in todays society.they really cant set aside a certain sum of money for investment. they open ppf but fail to put money into it because there was his colleagues retirement for which he had contribute a sum of 1500 for gift.For these people endowment plans are good things.because if u know that if u fails to give the premium ur already invested money is gone. so the pay the premium in anyway.
                  Hope you understand my point.

                  1. Raja-Wow what a supportive way of leading financial life !!! Why can’t same guy opt for ECS for PPF? If he is so careless about his hard earned money then GOD can only protect him but no other outside force. What is same person start to think after 3-5 years that even if I fail to pay premium against LIC premium then I can surrender and get back with little over of what I paid? Is it a true financial decision?

                    1. Yes, I agree with you completely. That is not the best financial decision in any way.But in some cases it makes sense.Like the example given above ,the same guy can invest in better things when his earning increases, he has made some corpus like emergency fund and has a little more money left .
                      As for me, I pay 1.5lac premium it is quite a sum for me now but after a few years it will only be a small part of my saving capacity and I will use better things mf,equity

                    2. Raja-Do you feel increase in his earnings will make him active? They will become more lethargic. Whether it is today’s Rs.1.5 Lakh or Rs.10 both are equally important to me, because both are not given me at free. So I will take same importance while investing Rs.1.5 L or Rs.10. Same applies to future also. This shows your financial behavior, where people tend not to bother about small expenses but too much bother about big investment. At end they loose their hard earned money.
                      Hence in future if Rs.1.5 Lakh may be smaller amount for you. But it is not free for you and if you do same behavioral mistakes then you may be in financial trouble.

                2. Raja-But in PPF you can’t withdraw it immediately same like endowment. Also for all your investment only the outside force matters you more or inside force matters you more? If every time you need outside force to make you to invest then it is waste to work and earn. It is your hard earned money and you need to take initiative to invest properly. Only because endowment policy force you to invest that is the reason continuing is disastrous in your financial life. Think and decide. After all it is your money and your life 🙂

                  1. Thank you for you honest and thought provoking answers. I have some questions regarding liquid/ ultra short term mf. Where should I ask this?

  42. I bought a Jeevan Anand policy in 2010 with a tenure of 20 years . I later realized that the policy isn’t right for me. Now that the policy is 3 years old, I decided to surrender but my agent tells me that if pay premium for 2 more years ( 5 years in total) and then surrender, I will get a higher and almost full amount back ( including bonus). Is there any truth to this? Please guide.


    1. Varun-First ask your agent about the expected money you get after 2 more years continuation. How about surrendering now and invest the amount and two year premium somewhere in Bank FDs? Which gives more return? Ask these questions to your agent and get back. Then we discuss.

  43. HI Firends
    Can any one please clarify my doubts on LIC New Jeevan anand and basic knowledge on Income tax.

    1. what is Sum assured rebate? what is different between premium rebate and SA rebate? i am planning to open policy for 10 lakhs , how much rebate will i get when and where ?

    2. to my knowledge the total premium pay per year can be shown under 80C for Tax exemption right? in addition to this, one of the LIC agent told me that i can SAVE TAX Rs 16400/ under Sec. 80 CCE against every premium paid , can any one please tell me clearly about this i am totally unaware about this 80CCE what is dif. bet 80C and 80CCE?

    3. How to clime rebate on insurance premium payed under Sec. 88 Income Tax? is it possible for me to clime ?

    4. Other than Accidental benefit rider is any other rider is there for New Jeevan anand if so please tell me the name and premium amount for it my Sum assured is 10lakhs.

    Thanks for reading my message.

    1. Rajesh- 1) Sum assured rebate is something which insurance companies offer when you try to buy higher sum assured. Like discount in huge volume purchase of any grocery item. Premium rebate is same like if you pay yearly premium in advance then they provide some discount than monthly or quarterly payment.
      2) Regarding taxation of Life Insurance please read my post “Tax Benefits of Life Insurance“.
      3) Sec 88?? Please read above said article in full.
      4) What is your main aim of buying Jeevan Anand-Life Protection? Saving? Tax Saving? Or Getting rider benefits??

    2. Hi Basavaraj
      Thanks for you replay satisfied about the taxation and few more doubts

      1. So how much percentage i will get for sum assured rebate my proposed SA-1000000 -21 yrs
      i am going to pay premium yearly so i will get 2% rebate right? so in addition to this 2% will i get the sum assured rebate for each year?

  44. Dear Sir,

    Can you Advise regarding my Maturity Amount How much will be…?

    I have taken LIC Jeevan Anand, 10 years plan, Half yearly Premium Rs.59032/-. Sum Assured is 10 Lakh.

    I have paid 11.80 Lakh (20 x 59032 = Rs.11,80,640).

    So how much I will get for the years 2004 to 2014 as maturity.

    Please mail to me

  45. Hello Mr. Pattu,

    I am shiva and i have gone for jeevan anand policy.

    I am 23 years old as of now. Intially when i took the policy a year back, it seemed very lucrative but now it feels really difficult for me to pay the premiums

    I took this policy in the month of may 2013 and i have so far payed 59,268 in 2 installments of 29,634 each. I dont want to for surrender option because i know i would be paid peanuts for the total amount i will be paying.

    I wish to go for paid up option. I also understand that i will have to pay money for atleast 3 years to go for paid up option.

    So in 3 years i will be paying 1,77,804 ( 59268 * 3). Assuming my bonus rate to be 50, kindly let me know how much i will be getting after 21 years which is my policy termif i make it paid up after 3 years

    PS: I tried using your calculator but sorry i couldnt understand anything properly

    What do u suggest ?

    1. Shiva-Paid up calculation depend on many things. Hence I can’t guide you on that. Instead visit your nearest branch about the same and they will let you know the exact paid up or surrender value. In my view paid up is best when the policy is about to close. During the initial stage of your start I suggest you to go for surrender. Because Rs.100 in your pocket now is more valuable than getting Rs.200 after 21 years from now.

  46. hi Sir,

    I have spoken to one customer , he explained the jeevan anand plan-815.

    SA-200000 (2L), TERM:21 yrs, age:29 mode:qly

    first year premium:2887 (inclusive of tax -3.09%) and remaing 20 years mode -qly (2843- incusive tax-1.54)

    maturity amount after 21 years I wii get: SA+BONUS+FB (200000+201600+20000) TOTAL:421600.

    HERE Only I have one big doubt . he said once I get maturity amount (421600) still my policy wil cover my risk cover. if anythink death happen my age (51 to 100 ) my nominee wil get SA AMOUNT (2L) Is it true .

    its not possible when I get maturity itself I can get my risk cover?


  47. Hey Basu,

    Really thanks and appreciate your dedication toward the blog and instance replay 🙂

    I am 26 years old IT professional, Agent suggested JA but now i will not go for it. I will go for term plan instead.

    Want to know this:
    – What things to take care when planning for your investment?
    – How much one should invest from his/her income?
    – Is mutual fund with SIP is good option?

    Thanks in Advance!

    – Bipin

    1. Bipin-Pleasure 🙂
      -Planning involves lot of things like your goal, income, expenditure, risk appetite, current investment and finally product selection based on your goals.
      -How much one should invest depends again on lot of things like income, expenses, job you do, how many dependents you have, what current investment do you or any debts.
      -It is misconception among people that mutual fund means equity investment. It is just part of mutual fund. You have variety of product which one need to invest based on your goal. So if you mean equity investment through mutual fund then it is good if you have long term goals like more than 7+ years. Otherwise a strict NO.

  48. Basu,

    I had invested in Jeevan Anand policy and paid the premium for two years (annually).

    SA 20,00,000
    MY AGE : 24
    Tenure: 20 years
    Annual Premium: 98,376

    Please suggest if it is a good option to keep my entire savings only on this policy. Or else suggest me in my investments.

    1. Raj-If your investment in this plan is around 10% of your overall investable amount then go ahead. Otherwise this is worst product, because you neither fully insured nor your return from this policy is around 6% to 7%. So better to come out of this plan once you complete 3 years. But immediately term plan to the tune of around 15-20 times of your yearly income.

  49. Hi,
    Can you please tell me how to make the policy paid-up and how much returns to expect on the paid premiums and accumulated bonus on the maturity date? I have paid 8 premiums ( bi annual premiums worth 18092 and S.A 720000, TERM 20 years).

    Thanks in advance

    1. Shubham-You don’t need to do anything, just visit your servicing branch and ask them to convert your policy for paid up. How much you get will depends on type of plan, term, bonus declared and time left out for the policy to mature. Hence, I can’t say anything blindly.

  50. Thanks for the suggestion. But you mentioned LIC jeevan anand is a good plan above, am I investing wrong amount of money or wrong term period ? If so please guide me.
    May I know what Term plans are and Can u please suggest some good term plans in the current market.

  51. Thanks for the suggestion. But you mentioned LIC jeevan anand is a good plan in blog, am I investing wrong amount of money or wrong term period ? If so please guide me.
    May I know what Term plans are and Can u please suggest some good term plans in the current market ?

    1. Sriram-It is a good plan. But it does not mean that you invest all your 100% portfolio into this plan. Instead restrict your investment into such plans to the maximum of 15% to 20%. Treat such products as debt products.

      1. Thanks for reverting…. May I know the difference between JA and term insurances
        Now one of my friend suggested me to choose Jeevan Anand policy(149) with 5lakh SA for 21 years. May I know your thoughts on this?
        I am saving 80000 yearly. Can you please suggest me by wat percent I can invest my savings
        in PPF, Term Insurances or EquityFunds.

        I searched for Term insurances. Are term insurances for fixed amounts and period … in general for SA 50 lakh or 1 crore minimum coverage?

        1. Sriram-JA is the policy wherein you are clubbing your investment with insurance. So partial insurance coverage and return from such policies are around 6%. Instead, the best way is to separate your insurance need by buying term plans, where they will cover only life risk and if anything happens during the policy period your nominee will be eligible for SA or else nothing will be paid at the end. That is why they are so cheap and actually fulfill your insurance need. Once you have term insurance with you then you can start investing based on your financial goals. I am still suggesting you to stay away from JA.
          Now coming to your investment of Rs80,000, I am unable to understand your financial goals then how can I plainly guide you how much should be to each asset class?
          No there is no fixed coverage, term or SA. Based on your requirement you can buy like how you buy JA.

  52. Hi Basu,
    I am 26yrs old and am planning to take LIC Jeevan Anand policy for 10 lakhs for 25yrs term. Since it has good returns at the end and also I understand the importance of insurance in one’s life. Yearly premium payments would be around 39,993.00. I am in a dilema whether to take this policy or not and also if am investing the right amount in this . since I have not invested my earnings in any others til now. Please guide me if I am doing the right thing and suggest any other investments that could be done along with the Insurance .
    Thank You

    1. Sriram-The decision you have taken is completely wrong. Because it provides neither good returns (expected return will be less 7%) nor fulfills the insurance need. Hence my suggestion will be staying away from this plan. Instead have a term plan and start investing based on your financial goals.

  53. Hi Basu – Thanks for such insightful blogs.

    I am 28 year old & wants to invest some money in tax saving instruments, I am planning to allocate my savings as follows:

    10,000 annually for 20 years (term insurance) + 20,000 in JA OR JS + 40,000 in PPF + 30,000 in ELSS = 1 Lac.

    Please suggest if it would be wise to do so, also kindly advice should I go for Jeevan Anand or Jeevan Saral ??


    1. Vikas-Are you employed? If so then you need to add an EPF contribution from your end also to Sec 80C. So let me know the yearly contribution of EPF. Also I don’t think it is wise to have term insurance for 20 years in your case. Increase it to till 60 years of your age.

        1. Vikas-Then no need to go for any insurance plans apart from term insurance. But bear in mind that, never ever invest only thinking in mind of tax saving. But your investment should match your financial goals with tax efficiency. Hope you rejig your style according to both 🙂

  54. Hi,
    I have a Jeevan Anand Policy,
    SA – 10L
    Duration – 25 years
    Total premium paid till now is 3, 4th due date is around the corner.
    How much I am going to get after maturity?

    I calculated with this formula –
    Sum Assured+Bonus+Final Adittion Bonus

    10L + 10L * (45/1000)*25 + FAB
    ==> 21L + FAB

    Also for my younger brother,
    SA – 15L
    Duration – 30 years.
    Total premium paid is 2, and third one is not paid yet.
    How much he will get after maturity?
    Calculation as per formula –
    ==> 35L + FAB

    Is our calculation correct?
    How much will be FAB after 25/30 years?

    Also, we have used 45 as Bonus in our calculation.

    We are thinking about surrendering the policy, and instead take a term plan plus PPF investment, as per your advise in your blog.
    How shall we finalize what is right and what is wrong, so that we can take a right step.


    1. dvsquareepak-Your calculation is correct. But please do understand after investing for such a long term is it worth to get around 6%-7% return? Instead my suggestion will be to to go with term plan and not invest all in PPF. Instead based on your goal diversify your investment to even earn more than what PPF can give you. So my advice will be to surrender this plan after completion of 3 years.

      1. Thanks a lot for the quick reply.
        Right now, I am paying 40k right now towards insurance, now, what I want to do is to put around some 12-15k annually for term plan and remaining (25k) in the safest instrument like PPF.
        So, my first question is based on profit?
        First of all, I am going to anyways take term plan. Now, for this policy, I am trying to compare PPF returns with this policy returns? Please help me in this.
        Secondly, for me 3 years are over, so I should surrender right now, correct?
        For my younger brother, only 2 premiums were paid, and if we have to surrender, its good to surrender now for him also, instead of paying for 1 more year and then get 30%, better to ignore now itself. Is it?


        1. Deepak-To compare the exact returns between such traditional plans to Term Insurance+PPF we need to have the same insurance cover which such traditional plans offer. So if we do so then I don’t think term insurance of Rs.10,00,000 will cost you more than Rs.5,000. When we consider the rest of the amount into PPF then PPF will always will be more profitable. So go ahead with term plan and PPF (around 20% of your portfolio). You are able to surrender only after completion of 3 years. Hence you can go ahead of surrendering and let your brother’s policy to complete 3 years.

          1. Thanks again.
            So, I am thinking of term plan for 25 years for say 1 crore around. and to surrender this policy. How much will I get back ? (I think, since i paid 3 premiums, 30% of 2 premiums, right?)

            For my brother, we can just ignore the policy or close it, there is no point wasting some more money there, right?

            Term plan, any idea which are the good ones from different companies?
            How much will it cost annually for a term plan of 1cr?


            1. Deepak-For exact values of surrender better to contact your nearest branch. Yes you can do so with your brother policy. Regarding the choosing of term plan, it depends on your comfort with the company brand, premium rate or claim settlement ratio. So better to go with HDFC Click2Protect or ICICI iTerm. Choice is yours in choosing the plan. Do some research and you will find the answer.

  55. Boss, from your earlier articles i have known that one should never ever mix up insurance and investment. then why JA is your favorite plan? You can see that the premium is high compared to the term insurance plans. if you can opt for a term insurance plan with say 5k per year and tenure of 25 years, you can actually invest the remaining amount of premium that you pay for endowment plans like JA into pure investment options. Moreover what is the return you are getting here is mere 6%. Please can you throw some more light on this query. Whats advisable among an insurance + investment plan like JA or a term insurance plan with remains as complete investment say in PPF or FD’s or Equities. I understand the latter might not give you more guaranteed returns but is it wise again to choose an endowment plan over pure insurance?

    1. Ashish-Jeevan Anand is my favorite plan and I categorize this instrument as debt product. I am suggesting this as a long term tool where you can put your debt portion of overall investment into this product. Having said so, I am not saying that it is the best alternative to term insurance. Hence having term insurance will be your first priority. The best option will be Term Insurance with goal based investment plan rather than this plan.

  56. Hi, i am 22 years and i have opted this plan for 11 years. i am paying Rs 51,940.00 Half Yearly. can you tellme if this is good investment ? my agent said i will get sum assured of 15 lakhs and around 10 lakhs as lifetime insurance cover. i have not paid the amount yet can you tellme if i should go for this or some other plan?

  57. Basavraj, Can you tell me specific reasons why I discontinue this policy ? Because with proper explanation I need to explain it to my family and LIC agent. And about health insurance as agent told me with this policy of some more premium mediclaim is available for hazardus diseases like cancer, heart surgeries etc for it LIC will provide me INR 500000 and I don’t need to pay any premiums onwards for rest of life.

    1. Narendra-Simple thing to follow-If you discontinue your plan and take the equal SA term plan from LIC (but it is costliest in the market, still I am recommending you as you are inclined to LIC) and rest in PPF then your returns will be higher than what you get from this. Regarding critical illness-Do you know how much cheap are they in market? For around SA of Rs.10,00,000 you may get Critical Illness for a premium of yearly Rs.1,100 to Rs.1,500. So don’t feel that LIC is giving you anything free. That expense is included in your total premium.

      Do some homework on what I said above, then you will come to know which is best for you 🙂

  58. Hi Basavraj, Currently I am 24 years old and Software Engineer by profession. Last year I invested in Jeevan Anand Plan(149) Sum Assured of 500000 for 21 years. I already paid 2 half yearly premiums. When I calculated with current bonus amount INR 47 after 21 years I will get 993500 and again 500000 after death. I also purchased mediclaim insurance with this policy of INR 500000 for non curable diseases. As per my calculation I think I will very low returns. So I need advice from you that Do I need to continue this policy or exit it ? Also after how much time I need to stop it ?

    1. Narendra-Better to discontinue after 3 years by surrendering the policy. I didn’t get your lines about health insurance you are sharing. Can you elaborate on what type of health insurance is it? But before surrendering any policy, first go ahead to buy the term plan.

  59. Hi I have taken Jeevan Anand for 12 years term with a SA of 3,00,000. I have provided my information to the agent today and havnt yet paid my first quarter premium. I am 23 years old and dont have any other life insurance.Is it a wise decision or do I need to reconsider? My friends are suggesting me to extend the term since it is a life insurance.Is it possible to extend the term now? Please guide me..Thanks in advance.

    1. dtk-My suggestion is, instead of running behind this plan, go for term insurance to the tune of 10-12 times of your yearly income and invest the rest of the amount into PPF (if you are risk averse) then in my view you receive more than what you can expect from this plan. Tax features are also same as of this policy. No need to worry about taxation issue. Also take the term plan to maximum tenure i.e. for around 60yrs or 65 yrs of your age.

  60. I am still not able to get the exact return as mentioned. If possible, please explain it in bit brief.

    I can understand that we have to calculate it using Time value of money but do we have to consider inflows also using Time value?

    1. Sumit-Please consider each premium payment as yearly outflow and maturity as inflow. You will get the answer.

  61. Basu, when I calculated it by CAGR formulae, using Final Value as Rs. 18,60,000/- and Initial Value as Rs. 10,85,480/- and time period as 20 years, I got the CAGR return as 2.73% only. Can you please tell me where I am wrong?

    1. Summit-You are paying a premium yearly but not one time payment at the beginning of the period like what you did (54274*20=Rs.10,85,480). So we need to consider time value for each yearly installment. Hence instead of putting initial value you need to consider as yearly payment of Rs.54,274. Then you will get the exact value what I said above.

  62. Can you please tell how you calculated the return on investment (5.5% and 7.5% respectively) in your example. I tried calculating it by CAGR formulae but I got a very low value.
    I used CAGR because I see some illustrations on internet where ROI was calculated this way.
    And please also share which formulae is appropriate to calculate ROI and in which scenario.

    1. Rahul-I calculated by CAGR itself and as I mentioned it as around 5.5% but in reality it is around 5.33%. Now the 7.5% return was wrongly updated as we will again receive equal to sum assured after maturity. But we receive to maximum of Rs.5,00,000 only. So after considering that valuation it will be around 6%. Same has been updated in above post. Check it. CAGR is the method which will be used to calculate the returns where your investment period is more than one year. If it is less than one year then Absolute Return method. But when you have uneven cash flows then you can use IRR to arrive at the CAGR.

  63. Hi-Myself a NRI had taken a LIC Jeevan Anand policy in 2004 September-My annual premium is 1,20000. This policy is for 11 years and it will mature on Sept 2015. My query is as follows
    1) What would be the total amount that i would be eligible for after maturity in sept 2015 with bonus ?
    2) Would the above amount be taxable?

        1. Sree-First thing I did not understand why you opted for 11 years. These are long products, but having said that it does not mean that they will give you better returns in the long run. Now below are my calculation on your data.

          1) Return after 11 years will be Rs.11,00,000 (SA)+ Rs.4,71,900 (going by the current bonus rate which is Rs.39 per Rs.1,00,000). So the total you will receive Rs.15,71,900. Apart from this you also receive Final Additional Bonus which will be negligible. Hence I neglected that part. Return on investment will be less than 4%.
          2) As this policy was issued prior to March 31st 2012 and premium is Rs.1,20,000 which is less than 20% of Sum Assured Rs.11,00,000, so your maturity amount will not be taxed.

  64. Hi Basu,
    This is Kiran Gandhi here. currently i am 28 years old. i am planning to invest in some good return schemes and i have stick my eyes on LIC Jeevan Anand for rs. 5 Lacs for a yearly premium of around Rs. 35,000. it has maturity amount of 5 lacs + Bonus + Additional Bonus for 15 years. how much i will actually get in return on hand after maturity. i am only want to go for this as it provides life cover of 5 lacs continue after maturity without paying any premium…. is it a worth going for? or i should simply go for PPF investment as thats what i firmly believe in at the moment…
    Need your advice and guidance on this.

    Thanks & Regards,

    1. Kiran-Better to go with PPF and at the same time don’t ignore the value of insurance in your life. Hence cover your life risk with term plan. From this plan you can expect the maximum return of around 6-7%.

  65. I am planning to take jeevan anand for rs. 5 lac for a period of 21 years. she is 20 year old now. present bonus is rs.47/- . premium to be paid is around 25000/- pa. is this worth?

    1. Geetha-Please let me know who is 20 years old. Also please let me know the reason of choosing this plan particularly.

  66. Hi,I hav dought about JEEVAN ANAND POLICY
    SA 15,00,000
    MY AGE : 25
    Tenure: 30 years
    Annual Premium: 38000



    1. KLRAO-If you completed 3 years then better to go to your servicing branch and cancel it immediately. Else you need to complete it minimum 3 years. Also you will get a clear information about the amount you will get if you surrender today. If you continue till the policy maturity then also return from this policy is around 7%-8%. Just understand why your agent is sharing his commission (which is against the law of IRDA). Reason is for first year his commission is 35%, 2nd and 3rd years 7.5% and for rest of period 5% of what premium you pay.He will be richer than you without investing a single rupee 🙂


        LAST MONTH JUNE 28th, HE PREPARED BONDS AND YESTERDAY HE GAVE ME THE BONDS i.e he said, i paid the amount of your half year payment . But i am not intrested to pay the amount and i want to cancel that bonds……now is it possible to break the bonds or not ?(i didnt paid any amount and i didnt given any proof of my identity )… name, address and dob only i given

        1. klrao-In that case simply don’t pay the future premiums and inform this issue with the servicing branch mentioned over there. Because I am totally surprised how this policy was issued without having a valid document like date of birth proof, address proof, not filling the form or just making you aware about what he is filling on behalf of you. This is the serious offense he did. So take it to the next step to make him aware that what he is doing is entirely an illegal activity.

    1. Sana-May I know the name of the policy (whether it is Jeevan Anand?) also let me know what % of your total investable surplus is going towards paying this premium.

  67. hai….i am new to this site…..
    I have jeeven anad policy of1000000rs ..for 15years…quaterly paying around 18000rs ,how much will i get after 15yrs

    1. B Jose-Considering the current bonus trend you may get as below. Sum Assured Rs.10,00,000+Bonus Rs.5,85,000 (Current bonus rate for 15 yrs term is Rs.39 per Rs.1,000 Sum Assured)=15,85,000+Final Additional Bonus (which I think negligible, hence I am not considering it as of now)=Rs.15,85,000. Return on investment is 5.25%…less than your normal Bank FD rates 🙂

      1. Mr. Basavaraj, can u explain that if any one want a JEEVAN Anand for S.A. 5 Lac & 21 Year Term if age 30, then according to you if he take a term Plan then where to invest his money to get best return Like TAX free Maturity amount in 21 years

        1. 1) Do you know the return of Jeevan Anand for 21 years plan considering the current bonus rate?
          2) You are asking about tax free return?? PPF is not a tax free instrument?
          3) Even equity investment holding more than one year is considered as LTCG and it is totally exempt from tax.
          4) Even if one comes under highest tax bracket of 30% and his post tax returns are more than 9% then is it good or bad?
          5) Again where is the liquidity in Jeevan Anand and what % of his investment one can withdraw after 10 years?
          Can you answer these questions please??

  68. hi, I am 24 and I have taken a Jeevan anand plan having the following details
    SA – 990000
    No. of Years – 23
    Premium annually – 43000 (approx)

    i have paid 1 premium so far. I bought it because one of the LIC agent who is a relative advice me. But after reading reviews about the policy , should I continue or if not, what can be the least damaging way out ?

    Please advice


    1. To add to the above, this is the only plan I am investing right now. And this premium is not much of a burden to me right now. Please suggest, should I continue?

    2. Eshan-Better you reviewed at the earliest. Please dis-continue this policy as soon as possible. Maximum you can loose is the amount you paid now. But in return you can create your wealth with proper planning. Hence in my view stop immediately and take term plan to cover your income to the tune of 10-12 times of your yearly income. Rest amount invest based on your goals not your agent’s goal. Otherwise your agent will have wonderful cash flow but not for you 🙂

      1. Thanks a lot for the insight.. I have paid only half the premium and half was paid by the agent. So i guess.. I should just forget the money invested..and exit..
        Thanks once again..

        1. Eshan-Wow 🙂 this is one more example of mis-selling…you know commission sharing is wrong as per rule. But will share as they are getting hefty commission in first year (35%). So you are safe now than your agent. Go ahead and dis-continue the policy 🙂

  69. i am 27 years old , planning to take lic jeevan anand for 21 years of 3 lakhs .. i would like to knw the appx maturity amount after 21 years

    1. Swathi-May I know the reason for choosing this plan? Is it your recommendation of your agent or your choice?

  70. dear basu ji. I was very recently disccuing with my agent about a suitable plan for me and he suggested jeevan anand for a SA of rs. 5 lacs for a peiod of 21 yrs
    . I am 40 yrs of age.i am working. I dont have any housing liability. Kindly let me know if jeevan anand is the right option for me or is there any better plan.

    1. Rashmiraj-With above few data I can’t recommend a plan. Hence for your better understanding please mail me why you are looking at LIC-for investment or for insurance cover? What is your current investment style and products, what are your future financial goals, how many dependents do you have and ….so on.

  71. Sir – I am not getting any response from LIC regarding the surrender value of JA policy (Sum Assured Rs.3,00,000). Could you find out from your sources and enlighten me?

  72. also what will my surrender value be and how much will i get if i want to make it paid up ? i am confused.. plzz help. thanks

    1. Darleen-For exact surrender value you may contact your nearest LIC branch. If still not find any satisfactory answer then reply to me, I will help you.

  73. Hello Mr Basu, I would like to know whether to surrender my Jeevan anand policy or make it paid up. I have paid all premiums till 2013 . Details are as follows
    Start of policy – 2007
    premium yearly – 92000
    premium paying term – 22 years
    Sum assured – 20,00,000.
    Kindly advice as to whether to continue or reinvest or make it paid up.

    1. Dalreen-If this investable amount is within the range of around 10% of your overall portfolio then better continue. If it is crossing more than 15% then better to surrender it by taking term plan. Why I am saying so is, I treat this plan good but in debt category which is just part of your overall investable amount. Not fully.

      1. dear darleen- dear make it paid-up. if you surrrender it you will get 30 to 40% of ur paid amount
        but its better if you continue……………..

        1. MK Yadav-If he continue then from paid up period to policy maturity how much return he will expect? Too less, instead better to wash your hands one time and start a fresh.

    1. Bhanu-In that case you can start with 70% balanced funds like HDFC Prudence and rest in PPF. Reason for choosing you the balanced fund are your risk averse nature and your waiting period. Even you can opt for some tax free bonds too.
      Considering your waiting period I still recommend you equity investment through mutual funds. Over the period of 15 yrs you will get the good real return which is bit difficult with totally risk averse instruments. Ideally risk averse instruments are good when your goal is less than 5 yrs or to diversify your returns. With such long period and investing in risk averse instrument will not actually meant to fulfill your goals. Think and decide.

      1. Thanks basu….Iam goin to pay the third yr premium n get back my investment n then go fr investment as u suggested thank u so much

  74. Sir, it would be very useful to many readers if you could briefly analyse JA is good/preferable for what age group, what maturity period and under what terms. Like many, I am getting negative returns (because I opted for 6 years period) without doing proper homework.

    In fact, a similar comparative chart of some other LIC plans would be extremely useful.

    A request: you should initiate a link at the blog for donations as some of us would like to donate a small amount for your advise. I often feel hesitant to ask questions and seek advise free of cost.

    1. KS-Will do that shortly. Regarding donations, I think it is not right to get donations for no hard work of me. I am just sharing what I am learning and important to all. So when you take any of my services where I actually need to do some work then I only ask from you 🙂

  75. Dear basu, I hv opted jeevan anand on 18-08-2011, for 16 yrs, sa-10.00 lakhs, with premium of Rs.69114/ lic agent told me that I will get Rs.2200000/- at the end of fifteenth year. But ur calculations show a lesser return…. How much will I get after 15 th yr? Am in a dilemma to continue ths plan or close it n go fr a high return plan & sum pvt life cover….pls suggest me wt to do.

    1. Bhanu-Considering the current bonus rate which is Rs.41 per Rs.1,000 SA in your case, total bonus you accrue will be Rs.6,56,000. With this you also receive SA which is Rs.10,00,000. So totally you receive Rs.16,56,000 for the total premium payment of Rs.11,05,824 over the period of 16 yrs. Now the question is whether to continue or not? If this investment is around 10% of your overall investable portfolio then continue else better to stop here itself. Because returns are low and life too will not give you full coverage of insurance. Instead if you are totally risk averse also and opting the PPF with term insurance will actually give you higher returns than this plan. Think and decide.

      1. Thanks for your quick n elaborate reply…..I wouldn’t hv gone fr this plan if I had known that I’ll get only this much after waiting fr 15 years….ok…am 28, and am a banker….I can invest around 15000/- per month… risk averse too…but I hope to get reasonably good returns….pls suggest me a portfolio…thanks

    1. KS-Exactly and the reason for this is your agent whom you believed without doing homework yourself.

    1. In that case better to come out of this plan. Take term insurance immediately as in my view now it is a peak end for your to cover your life immediately. Rest invest based on your financial goals. You may feel bit nervous by receiving less return from Jeevan Anand but you will come out of it. Thinking of less return and continuing will actually harm you more than come out.

  76. If I take JA (sum assured Rs.3 lakhs) for 6 years and pay an annual premium of Rs.60000, how much money will I get at the end of policy? Some rough figures would help.


    1. KS-Life insurance for 6 yrs?? Anyhow you return Sum Assured Rs.3,00,000+ Bonus Rs.61,200=Rs.3,61,200. (I considered current bonus rate of Jeevan Anand for tenure of less than 11 yrs is Rs.34 per Rs.1,000 Sum Assured). Return on investment is less than 1%.

    1. Satya-What about investable amount? This LIC payment constitutes how much % of your total investable amount?

  77. Hi Basu,
    I have taken Jeevan Anand policy for 10 lakhs – 10 policies of one lakh each maturing from 21 to 31 years. My annual premium is 45000. I started this in 2004.
    I have already paid 9 premiums including for this year(2013).
    Suddenly I’m in a dilema whether to continue or not. All the policies are in my name(currently not working — Hence the risk cover really does not help)
    Should I continue or surrender ? I have paid around 405000.
    what will I get if I surrender now?


    1. Satya-Can you let me know your age, your current investments and your earnings plz…not here on this platform but mail me these details. It is totally unacceptable to pay Rs.45,000 to such low yielding product. Hence before judging and suggesting you more I need these details. Please mail me.

  78. Hii every one, I want to take Jeevan Anand policy for 21 years, My age is 27 now, I can effort S.A bettween 500000 to 600000. Can you please explain me yearly premium and retuns amount.

  79. Hi Basu,

    I am new to your site/blog and found it very useful!! Thank you for providing such a valuable information.

    I need your opinion regarding return / surrender value of my Jeevan anand policy. I have this policy with Sum Assured of 600000 and policy term of 16 years with premium being 41,868 annually. I have already paid 7 premiums. Now i am in a dilemma whether to continue with it or surrender it and go for a pure term insurance plan. What would be my approximate maturity benefits if i continue and what would be my surrender value if want to discontinue it. Also you advice to continue or discontinue it. Thanks in Advance

    1. Deepak-It is wonderful plan but you need to maintain the balance of this investment to the tune of debt instrument. Returns will be around 7-8% so higher exposure to such plan may imbalance your financial life. Hence if the premium of what you paying now is more than 10-15% of your investable amount then continue else better to surrender it. Also it is not the answer to term insurance. Term insurance is a must product you have to. So first take term insurance then decide about continuing or not based on the points what I mentioned in above lines.

      1. Hi Basu,

        Thanks a lot for the reply!!
        In addition to the above policy, I have a ULIP ( Max NewYork Life Insurance – Fortune Builder with SA 240000, Policy Term 24 years and and annual premium of 24000. Already paid 3 premiums since 2009) So in total I am paying close to 66,000 yearly for a cover of 840000. Isn’t this very costly. As per your suggestion i will think about Jeevan Anand and for sure buy a term insurance. But i decided to surrender the ULIP for which i may get surrender value of around 40k based on my current fund value 55000. Please advice.

        1. Deepak-It is totally a costly insurance what you chosen by investing in both the plans. Go ahead for surrendering of ULIP. Keep simple your insurance need by taking term insurance.

              1. Hi Basu,
                I’m new to this site..can you explain what is term policy means? How good is for me? Can you send me details about term policy in detail??

                1. Perry-Term insurance is the pure insurance product where you are paying only for the risk insurance company will offer you. Suppose you took the term plan for Rs.1,00,00,000 for 30 years. Then during this 30 years of the policy period if you died then your nominee will receive the full sum assured. But at the same time, if nothing happens to you during this policy period then you will not receive anything from this policy. That is why these are so low (if you go online buying then you will get cheaper options than offline). Ideal insurance coverage should be around 10-12 times of your yearly income. The main purpose of such product is to protect your family in case of your absence. Hope you understood the importance of term insurance. If you still have doubt then let me know.

  80. Hi Basu, first of all let me appreciate your commitment in writing this blog. I really love it.

    I have bought Jeevan Anand policy 21 years with SA of 15 lacs. will you be able to tell my returns after 21 years if i surrender my life risk!

    1. Vinoth-Thanks for your kind words 🙂

      After 21 years you will receive Rs.15,00,000 (Sum Assured)+Rs.14,80500 (I took this year’s bonus rate which is currently Rs.47 per Rs.1,000 Sum Assured)=Rs.29,80,500. After this you have life risk of Rs.15,00,000 for the rest of your life (till 70 yrs of age Rs.5,00,000 if death occurs in accident and after 70 yrs of age whatever may be the cause of death Rs.15,00,000). You can encash this after maturity life risk too. But I dont have any idea like how much LIC will give you and what way they calculate that surrender value.

      1. I appreciate your blog but Would like to make a correction at – “till 70 yrs of age Rs.30,00,000 if death occurs in accident”

        It is double up to 5 Lacs SUM assured only I guess.

        1. Unknown-Please look at above comments by me and Mr.Vinoth, we were discussing about Rs.15,00,000 Sum Assured. So it is Rs.30,00,000 (which is double of Sum Assured he opted).

  81. Hi Basu,
    Does the maturity amount is non-taxable or the do we need to pay any tax on the maturity amount (If person is alive and continued to pay premium till end of policy term with out break)

    1. Srinivas-It is not taxable as per current tax rules. Maturity amount is covered under section 10(10D) of income tax. It states that to get tax-free returns, your policy should be at least 5 years old and the premium amount should not exceed 10% of the Sum Assured.

  82. I have invested in jeevan anand for a sum assured USD 50000 in 5 years plan which is availabe in LIC international scheme. Pls let me know whether i did the right one ?

    1. Ashok-Jeevan Anand for SA of USD 50,000 and the tenure being 5 years I think is a wrong decision outrightly. Reason being, first of all you need to think insurance as long term and the second thing will be, you bonus rates will be less as the term of the plan being just 5 years. May I know the reason for going with Jeevan Anand?

      1. Sir my spouse age is 28 years i need to take some insurance coverage for her life ,she is housewife suggest good plan sir

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