LIC’s Jeevan Saral-Why so much confusion?

When I wrote post related to LIC’s recent bonus declaration, I flooded with lot of quarries related to Jeevan Saral plan. Why so much confusion about this plan? Is it due to few new features of this plan or exaggerated returns shown by agents? I think both. So let us understand what this plan is and how you can calculate your returns.

This plan is different to other plans of LIC in case of accumulation what LIC provides, sum assured calculation and about surrender. Also I think this is highest selling plan in LIC after Jeevan Anand. I am not going in detail about plan feature but will point out the highlights.

  • In this plan you can choose your premium amount which is not possible with other plans. Minimum monthly contribution in this plan is Rs.250.
  • Sum Assured will be 250 times of your monthly premium payment. Hence suppose your monthly contribution is Rs.1,000 then sum assured will be Rs.2,50,000. You may call this benefit as “death benefit sum assured” as this benefit is only meant for deaths. Hence don’t misunderstand that Sum Assured is the amount you get after maturity (which is the case with other plans). Hence I will call it as Death Benefit SA or DBS. So this option is bit advantages for age old buyers as irrespective of your age this DBS is fixed on your premium payment but not on your age and term you selected. This is not the case with other plans of LIC. So two persons paying same premium but age different is around 30 yrs then too they will get the same sum assured benefit under this plan.
  • In this plan if death occurs during the policy period then your nominee will receive this Death Benefit SA+Return of premiums paid (but excluding 1st year premium)+LA till that period.
  • Now the biggest confusion arises is, what you will receive after the maturity. Usually in all LIC policies you will receive Sum Assured+Accrued Bonus+Final Additional Bonus if any. But in this plan depending on your age and term of the policy your sum assured which is also called as Maturity Sum Assured will change. So during the period of taking this policy you will come to know what is your Maturity Sum Assured you will receive at the end of policy. This is fixed and will not change during the policy term. Will show you how to calculate it.

In this plan their are two types of premiums. One is called Basic Premium and another is called Net Premium. Basic premium is the base premium without adding any cost, but Net Premium is the premium which you actually pay to LIC and includes premium mode rebate (rebate of 2% for yearly and 1% for half yearly payment)+charges for providing you the death benefit SA (@1% DBS). Below table will give you the clear picture about this.

Jeevan Saral

Note-Death Benefit SA charges are arrived as below-

Yearly premium of Rs.3,000 is divided into 12 and then multiplied by 250 times this will be (3,000/12)*250=62,500. This is the DAB and charges for this will be @1 hence Rs.62.

Now notice from above table that basic premium is nothing but base premium but net premium will add rebate and costs of this plan (which includes mode rebate and DAB charges @1%).

If it is so confusing to you then the simple formula to come to net premium will be multiply your basic premium by the factor 1.00083 this will result into net premium which you need to pay to LIC.

Now what you will get after maturity?

In this plan you will receive Maturity Sum Assured which is fixed and known to you in advance during the start of the policy once your age and term you chose. With this Maturity Sum Assured LIC will also provide you Loyalty Additions. This Loyalty Addition will be declared annually and currently LIC declared Loyalty Addition (LA) for 10 yrs and 11 yrs of policies only and which are Rs.250 and Rs.300 respectively. Based on this declaration we may presume the returns from this policy which hover around 6-7%. But for 10 yrs policy it is just around 3-4%.

How to calculate Maturity Sum Assured yourself?

LIC provided Basic Maturity Sum Assured list for the premium of Rs.100 per month for all ages. So just you need to select your age and policy term then multiply that to your Basic Premium.  I am working on this chart and soon will upload the whole Basic Maturity Sum Assured Chart.

  • Surrender Value-Their are three types of surrender values under this plan. To avail these option policy need to complete atleast 3 years.

a) Guaranteed Surrender Value-In this you will receive 30%  of total premiums paid excluding 1st year premium, all extra premiums and accident benefit/term rider premiums.

b) Special Surrender Value-It will be of 1+2 options given below.

1) 80% of MSA will be paid if less than 4 years premium paid, 90% of MSA if between 4 to less than 5 years of premium paid and 100% of MSA if premiums are paid for 5 years or more.

2) Loyalty Addition till that period.

c) Can be made anytime after completion of 3 years or more from the start of the policy provided full premiums are paid.

So surrender will be bit easier once policy completes 5 yrs or more which is not the case with other LIC plans.

Hope this post will make easier in understanding this plan.


1,242 Responses

  1. Hello sir, we had taken a jeevan saral policy for 15 years with an annual premium. In the portal, The death sum assured is showing a number however the maturity sum assured is showing 0.
    Please advise if this is any typo or any action that needs to be taken.

    1. Dear Aj,
      Rather than the portal, it is always good to look at the policy bond. Your policy bond is the legal contract.

  2. DEAR Basavaraj, SIR


  3. Dear Basavaraj,

    This is just a thank you message. I had wanted to surrender my Jeevan saral policy when it was close to 9 years, which would have resulted in a loss. Based on your suggestion on various posts, I waited for 10 years completion. I surrendered the policy last month and received the amount today. I walk away with 1.6 lacs profit. Though it’s not a handsome return, I’m happy that I’m not at loss.

    Your website has been very helpful in making this decision. Thank you wholeheartedly for the good work that you do. God bless!

  4. Dear Sir,
    I took Jeevan Saral in Dec 2011 for Rs 121000 annual premium.
    Till Dec 21 I paid 11 installments regularly.
    Is it advisable to close this policy now.
    What will be the amount, I will be getting now?
    Thanks n Regards,

    1. Dear Rohit,
      As the policy completed more than 10 years, it is better to close. Regarding the values, be in touch with LIC branch.

    2. Hi Rohit,

      I am a same policy holder as well, just completed 10 years on Dec’21 (48040 annually, Total 4,80,040 for 10 years). when I checked in Feb’22, LIC branch manager told me I would get (4,21,000 instead of total paid 4,80,040). Worried very much with their answer.

      Please confirm how much are you getting post checking with LIC as per advice from Mr. Basu sir… Thanks!

  5. LIC Jeevan Saral Plan death sum.assured 150000 premium 72000 yearly started Sept 2013 and insurance paid till March 2021 can you help to find surrender value now and also LIC office showing surrender value lesser than premium paid I read that after 5 years you get special surrender value how come less can you advise what would be the surrender value

  6. Thank you sir,
    I read all your comments,
    Myself & my wife have taken this policy for Rs.20lakhs each, for 20yrs, no one gave such clear details of this policy till date properly, but after reading your comments, Now we are clarified.


  7. Hi Team,

    I have taken the policy of Jeevan Saral 165, Request to know how much amount I will get the total amount at the time of 25 years (Maturity time). I have no idea of receiving the total amount. Can you please share the details how much i get the amount?

    Installed premium Policy number 1 – 9804 Rupees
    Sum assured : 2,00,000
    Premium Due From 28/03/2021
    Maturity Sum Assured : 2,90,088
    Policy Term: 25 Yrs

    Installed premium Policy number 2 – 9804 Rupees
    Sum assured : 2,00,000
    Premium Due From 28/03/2021
    Maturity Sum Assured : 2,90,088
    Policy Term: 25 Yrs

    Questions :
    1 How much amount I get if I surrender after 10 years? ( once complete 10 years immediately)
    2. Was it interlink with the stock market?
    3 After 20 years if we surrender the policies how much I will receive the assuming amount?
    4 Most of the suggestions given by you to surrender the policy after 10 years, May I know the reason?
    5. Was I get the highlighted amount? Below mentioned


  8. Hello sir,

    I have invested in jeevan saral policy in the name of my daughter , who was a minor then, with an intention to get it assigned to me later. But after taking the policy i was informed that until the child attains majority it cannot be assigned. But later i read articles on the policy. Now i am unsure of what to do? Surrender ? Take a loan? Assignment? Or continue till completion of 10 yrs? Can u please guide? the details are as follows:

    DOC : sep’2013 (the child was 12 yrs of age)
    Premium per annum paid half yearly : Rs.52272
    DSA : Rs.11,00,000
    MSA : Rs.13,13,1800
    PPT : 21 yrs
    Premium paid for :14 half years ie upto 2019

    Thanks in advance.

  9. Hello sir,

    I have a lic Jeevan saral policy with following details-
    1. Premium – 24020 yrly
    2. Sum assured – 500000
    3. DOC – 12.12.2011
    4. Age at Comm. – 27

    Sir, my policy is in force till date. Plz suggest that should I surrender it now or wait till next year?

    Thanking u in anticipation.


  10. My jeevan saral.policy was taken in Nov 2011.. quarterly premium is 3062 and Msa is 250000.Can I surrender my policy in Nov 2021 as it will complete my 10 year of premium paying?? Or I have to wait for one more year. Ie in 2022 to avail loyalty additions?

  11. I took LIC jeevan saral plan -165 policy with monthly premium of Rs 2024/- in 14th August 2010 with 21 years period and that time my age was 39 .06 months years. The maturity sum assured is Rs 527860/- and date of maturity is on 14/08/2031. It is learned that the loyalty supplement for this policy is applicable only after the 10 years . When contacted with LIC agent he informed me that I have to pay regular premium till August 2021 to complete 10 years to enable me to get the loyalty supplement.
    As I would like to discontinue the said policy after completion of 10 years , what will be the Full & Final Maturity Value after 10 years.
    Your valuable advice will be highly appreciated.

    1. Dear Rakesh,
      Yes, LA is applicable only for the policies which complete 10+ years. Hence, you have no option but to continue. Regarding the exact values, better be in touch with the branch (NOT WITH AN AGENT).

  12. Sir My Name is Kishore Kumar
    I have 2 Jeevan saral policy

    1. policy for 10,00,000 SA taken on 15.12.2011 paying terms 20 years – I am paying 48,000 PA

    2. Policy for 12,50,000 SA taken on 26.07.2013 Paying terms 16 years – I am paying 60,000 PA

    if I surrender my policy after 10 years of payment what will my returns

  13. Thank you sir . Just need a suggestion shall I continue with my policy term ie. 21 year. Will it
    b beneficial?? or shall I surrender once complete 10 year.

  14. Hi, I have a jeevan saral policy with msa 250000,and quarterly premium of 3062 for 21 year. If I wish to surrender the policy after 10 yrs will I get the loyalty addition?? Also would like to know till what percentage to total premium paid can be be withdrawn if I want to partially surrender?

  15. Dear Sir, Really appreciate your effort in writing this article and educating people! I have started a home loan at 7% rate and my husband has 4 Jeevan Saral Policies Plan No. 165. We wish to surrender, to repay our home loan principal amount, but not sure if we should wait or surrender now? Details
    of the 4 policies:
    Policy 1:
    started in yr 2011,
    Maturity SA: 2,79,630
    Prem paying term and Policy term: 20 yrs
    Premium amt: 6065 ; Payment Mode: half yearly

    Policy 2 and Policy 3 have exact same features and was started in year 2012.

    Policy 4 :
    Started in 2013
    Maturity SA: 8,43, 856
    Prem paying term and Policy term: 35 yrs !!
    Premium amount: Rs. 19216 yearly

    I know the surrender values against each policy but should I wait for every policy to complete 10 years or give up right away and why- pls share reason. Thank You. God Bless You!

      1. thank you sir. Can you please tell me what is the rate or percentage of Bonus/ loyalty addition in Jeevan Saral Policies..I didn’t find it on LIC website as this policy is discontinued now. If Bonus is a very small amount, then maybe it is not worth the wait. What is the total Premium I pay in the next 1 or 2 years will probably exceed the Bonus addition that I get along with surrender value after 10 years.

  16. Dear Mr Basavaraj,

    I have 2 Jeevan Saral policy. I want to surrender my both policies. What’s your advice…

    Details of policy
    1) COD – 5/6/2013
    Death Sum Assured-625000
    Maturity Sum Assured-643675
    Term- 20 years(2033)

    2) COD – 9/7/2010
    Death Sum Assured-62500
    Maturity Sum Assured-47325
    Term- 15years(2025)

  17. Hello Sir

    I am Kavita Kamath

    I have a jeevan saral policy which was taken on 24.02.2011 for a total monthly premium of Rs 1531 incl tax (Yearly 18372). The Maturity Sum Assured is Rs 507360. I have been paying it till date. But now i want to surrender the policy. Can you please let me know what will be my surrender value that i will receive.

  18. Hi blogger…thank you for letting us know about Jeevan Saral Plan.
    Can you please provide your inputs, as I went to branch for surrendering the policy, but they advised me to pay for 10 yrs and get eligible for additional amount. Should I pay for reaming two years or not (i.e. 2020 and 2021) ?

    Here are the details of policy –
    Commencement Date : 2012
    SA : 5,00,000
    Premium : 24,020
    Premium Paying Term (Yrs) :21 i.e. 2033
    Maturity Sum Assured: 5,79,500.00

    Thanks in advance and appreciate your work !!

      1. Hello Sir,

        Thank you for helping so many people from your blog. It is a great help indeed.

        I am in an extreme dilemma right now and would appreciate your guidance. Below is my policy details:

        I started it in December year 2011 at the age of 18 and the term is 15 years.

        Semi-annual Premium: 18,195.
        Maturity Sum Assured: 5,88,450.

        Till now I made 16 payments of the same which leads to a total payment of 2,91,120 (18195*2 * 16) and when I recently came to know my surrender value which is 2,51,000.

        I was planning to surrender the policy but checking this loss stopped me, Initially, I was having high hopes but now my target is to reduce the loss as much as I can. I am also not clear with the calculation of Loyalty Additions.

        Should I continue with this policy for another 6.5 years or another 1.5 years for LA or should I surrender it asap?

        Kindly suggest.

  19. Hi Basuji,
    I am confused regarding surrender value clause.
    “Special Surrender Value 100% of MSA if premiums are paid for 5 years or more.”
    Policy name : Jeevan Saral
    Term : 30 years
    Premium: 6125 quarterly
    Purchased in 2011
    Age was 26 at the time of purchase
    So, If I calculate the surrender value as per clause as per my understanding it is around Rs. 222590 [=Premium paid till date in years (7.5) x MSA (890360) /policy term in years(30)]. For this calculation I have taken MSA value which is mentioned on my bond.

    But when I have checked with LIC office it is only Rs. 155655 (against Rs.183750 total premiums paid till date).Could you please provide your guidance what is going wrong as I am not getting what i have paid till date as per clause.
    What can be done to get the at least the amount which I have paid till date for premium while surrendering the policy?

    1. Dear Dinesh,
      MSA value which you took is for that particular 30 years. You have to reduce the MSA to the 7 years and do the calculation accordingly. This is the catch with this product.

  20. Hi…
    Need advice …!

    Policy name : Jeevan Saral
    Term : 35 years
    Premium: 3062 pm
    Purchased in 2011
    Age was 29

    Should I continue with the same or should I surrender

    1. Dear Vineet,
      Continue-If you feel the Life Coverage is sufficient for your family to survive (if death occurs today) and also if you feel 5% to 6% returns are BEST for you.
      Discontinue-If you feel both above points are not meeting with this policy.

      1. Hi,

        I do have other lic policy along with 75lac term policy. I want to know if This policy can give me a good return at the time of maturity cuz someone told me to surrender this policy and switch to a good / high return policy.

        What should I do please suggest .

  21. Monthly premium Rs.1000/- ,Age at the time of policy 34 , term is 10 years Lic calculated maturity sum assured @10889 and loyalty addition @355
    pls adv how this figures were calculated .

    Why exaggerated returns shown by Lic while introducing policy ?

  22. Hi Tonagatti,
    Thanks for your effforts in putting this information in a blog.
    I am staying out of india so difficult to visit branch and get things done.
    If you dont mind can you please help with the calculation.
    I took the policy in dec 2012 at the age of 29 for half yearly premium 9097 (yearly it becomes 18194 Inr) .

    I took it as the agent was close relative and now when i review all my financial investment , I find this policy as not a great option and rather i will prefer some MUTUAL FUND + Term policy.

    How much roughly I can get now (18194 * 6 years = 109164 INR Premium paid so far) If i surrender the policy. what is the best option to come out or better to stay invested in this ?.if really the return is 4-5% then definately i am looking to come out of it?

  23. Hi Basvaraj,

    You said you will are “working on this chart and soon will upload the whole Basic Maturity Sum Assured Chart”.

    Can you share the chart or excel sheet.

  24. Hello Basavaraj,

    My plan details are as below.

    Plan : Jeevan Saral
    DOC : 28/04/2010
    Term : 31 Years
    Premium : 16844 (Quarterly)
    Sum Assured : 13,75,000

    1) Can you please let me know if the SA they have mentioned is correct for a policy of 31 yr terms?

    2) I wanted it to surrender after 10 year completion, so what will be the amount I’ll get assuming today’s loyalty addition rates.

    1. Dear Sanket,
      1) How can I say this without knowing your details (like date of birth and all)? Better to contact LIC branch in this regard.
      2) It will be around 4% to 5% returns (It is hard for me to calculate each individual).

  25. Dear Basavaraj,
    Thanks a lot for the great service to society by educating people with your informative posts.

    I have a query w.r.t. my Jeevan Saral policy. Here are the details:
    – Monthly premium: 4083/-
    – Death benefit: 1000000/-
    – Sum assured: 1450000 + Loyalty addition
    – Policy term: 25 years
    – Policy start: 2009 (9 years)

    I have been contemplating since a long time to surrender the policy, but have been advised by agent to continue until completion of 10 years since Loyalty bonuses start getting added after that. As per details provided in your post, will I be eligible for full MSA (14.5 lacs) since I will have completed 10 years, plus the loyalty addition on the MSA? Based on this, the total value should be 14.5 lacs + 4.35 lacs(loyalty). Is this calculation correct? Can you please guide?

    1. Dear Indro,
      If you go to surrender at 10th year, then your MSA will not be Rs.14.5 lakh. They reduce to the applicable 10 year’s MSA and based on that they will pay the LA. This is where many got cheated and this is where many got confused.

      1. Dear Basavaraj,

        Thanks for your response. Yes, I called up the LIC customer care number provided in one of the comments below, and got to know that the total amount I will get (surrender value + LA) if I happen to surrender on 10th year, will be around 6.22 Lacs, which will be a return of 1.32Lacs in 10 years (even less than what an RD at 7% would give). If I surrender now (9th year), my total surrender value will be around 3.5 lacs, which is less than 1.5 lacs of what I have invested so far. So I believe waiting another year will be more useful at this stage?
        However the LIC lady also informed that over the years, this return will increase manyfold, considering many people have already surrendered the policy and ones left will surely get the benefit. Although I am not sure if that can be believed.

      2. Dear Basavaraj, thanks for this blog & info on Jeevan Saral policy. I have done some calculation & tried to compute the returns this policy would give at different time frame & would like to share that file with you for your inputs. Please guide as to how i can share the file with you.



  26. Dear Sir

    I have paid premium for Jeevan Saral for 8 yrs. now.
    Wanted to surrender my policy ,however my LIC agent was telling me to wait for it to complete 10 yrs. to avail the loyalty bonus.
    Should I wait for Loyalty Additions ,is it a good amount to wait for ?

      1. In some cases you tell people to wait for 10 years to surrender, and for some you tell them not to pay for 2 more years to complete 10 yrs.

        Would be good, if you clear up the matter in just a few lines, about what the matter really is.

        I would think along following lines .. when you go buy insurance for your car, you buy it every year. It is only when you meet with an accident, that your losses are covered. You are paying the insurance company to cover your risk, and not to earn money like in a bank fd. Your car insurance premiums are used by the company for paying for the losses incurred by just one car involved in an accident out of say a 100 other premium paying cars. The insurance company also recovers it’s own costs and makes profits. Covering risks is an entirely different matter than investing. This Saral is more of a risk covering thing, as compared to other life products. Higher the age of the insured, higher is the risk covered by LIC. Lower will be your maturity benefit.

        1. Dear SRR,
          If the policy period is about to complete 10 years, then it is better to continue and complete 10 years as LIC will consider 10 years of LA. However, for those who completed more than 10 years, they may discontinue at any point of time.
          Now, coming back to your LOGIC of comparing general insurance to life insurance, your comparison itself is illogical. You are comparing Life Insurance with Idemnity insurance. In one way you preach “Covering risks is an entirely different matter than investing”, by saying so, do you think this policy the risk coverage of this product is far better than even TERM LIFE INSURANCE? First, decide yourself on what point you wish to defend. Whether you wish to consider this product as risk-mitigating or investment product. If this product was so fantastic, there may not be cases pending against LIC.

  27. sir my agent told me that i will get 45 lakh after 35 years in jeevan saral policy. monthly premium is 2100…. can you tell me is it possible???

    1. Pranoy-Calculate based on above post and arrive at who is right and wrong. Usually, agents exaggerate returns to show some fancy numbers. But the returns from this policy will not cross more than 5% to 6%.

  28. Hi,

    I have taken policy in year 2007 with annual premium is 24020 for 20 years, Sum assured is 500000. I understand that at maturity time, I will get assured sum + Loyality bonus.
    1. I would like to know what will be loyality bonus.
    2. I have paid premium till 11 years. IS it ok to complete 20 years or shall i withdraw now. ? if i will withdraw now, what will be surrender value?

    1. Akash-At maturity, you will not receive assured sum but the MATURITY SUM ASSURED+LA. Refer to post and comments for LA assumption. You can continue this policy if you feel 5% to 6% is the best return for your 20 years of investment.

        1. Thanks for the reply. If I understand correctly, LA will be 500000* 525/1000 after end of 11 year. That will be around 2.6 lakhs. So 2.6 + 5 . Total will be 7.6 after 11 years. Is calculation correct?

          1. Akash please follow below steps and pls pls reply to contribute back to help lacs of other Jeevan Saral buyers as you are one of the unique buyer who has completed 10 years in Jeevan Saral:

            Step 1:- Just call LIC customer care is quite busy number but try continuously and provide you policy number they will tell you the exact surrender value.

            Step2 :-Please share surrender value you get from LIC customer care and also share what surrender value is shown in the chart given to you by LIC agent at time of buying policy. This info will help lot of people. Thanks in advance Akash

            1. Hi Akash,

              Can you share information if you have already done above steps suggested by Sagar?

              I have this poilicy which has completed 7 years. I am planning to continue till 10 years thinking about the LA which i will get if i complete 10 years. At-least then I will have no loss but surely very less returns. I hope my understanding is right 🙁


            2. Hi Sagar,

              Please advise how much you got after surrendering.
              My policy has completed 10 years now and I want to pay the premium and surrender.

  29. Hi Basavraj, below are my policy details:

    Age: 28 Yrs
    Instalment Premium: ? 48,040.00(Yly)
    Premium Paying Term: 32 Yrs
    Policy Term: 32 Yrs
    Sum Assured: ? 10,00,000
    Commencement Date: 24/02/2010
    Date of Maturity: 24/02/2042

    Could you please help me with the Maturity Sum Assured and LA at time of Matiruty?

  30. Dear Basavaraj,

    I have taken the following policy for my life coverage + investment.
    Jeevan Saral (Plan-165) , Premium 25,382 p.m. (annual Rs. 3,09,984)
    Started when I was 34 years on 04/09/2012. Policy term is 33 years. Maturity is 04/09/2045.

    I may not be able to pay this huge monthly premium till its maturity date. If I surrender now how much I will get. OR should I continue this till its 10th year? I dont have a good term policy for my life cover. What should I do with the policy? Please advice.


      1. Thanks Basavaraj for the quick response. Any suggestion on the replacement policy/investments after I stop my Jeevan Saral

  31. I have taken Jevan Saral Policy (165) with yearly premium – 48040 rs/- on 2011-12 academic year.

    Policy name Name : Jevan Saral(165)
    premium : 48040 (yearly)
    taken at age : 24
    Maturity Sum Assured :2109640
    Death Benefit Sum Assured : 1000000
    Policy Term : 35

    When my age will be 59 years old (If I am alive), the policy will matured and I will get 2109640 Rs. Hence, Maturity sum assured is fixed on my policy and it will be approximate 24 % of total premium I have paid.

    48040 x 35 = 1681400 Rs and its 24 % will be my Maturity Sum assured.

    You are telling that Maturity sum is not fixed but inmy policy it is fixed and 2109640 r s has been printed in my policy.

    Please guide me if my thinking and calculations are right …….

      1. Thank you for quick reply. Hence, as per above policy containing my age,premium and term, when my age will be 59 years old (If I am alive), the policy will matured and I will get 2109640 Rs. Am I right?

  32. I have a 5 lac policy which I have taken for 25 years in 2009. I am paying 24000 yearly premium, since last 8.5 years. I am now unable to bear the premiums and want to stop paying it. How much will I lose if I surrender the policy now, does it make sense to continue paying premiums? At this stage, will I gain more if I were to still surrender it and invest in MF SIP for example.

  33. So I have a small doubt here.
    I have 2 policies of Jeevan Saral.
    1) First was taken by my father when I was 12 in the year 2009. The Death Sum Assured is 200000. The Maturity Sum Assured is 224848. There’s a monthly installment of 800 on it. They are not taking any Accident Benefit Premium from me. So anyway, after calculation, it shows me, I will get approx. 1.2Lakhs, if I mature it after 10 years. So its a profit for me as I am paying 96000 for 10 years [800*12months*10years] and receiving almost 1.2Lakh after 10 years that is in 2019. Am I correct in this calculation?

    2) The second and the same policy was taken by my father for himself when he was 55 years old in the same year i.e. 2009. The Death Sum Assured is 200000 for this also. The Maturity Sum Assured is 69240. There’s a monthly installment of 817 on this one though. So we would pay Rs. 98040 for 10 years [817*12*10] and what we are getting after maturing it after 10 years is Rs. 69505 approx. So basically this is a pure loss right? We just spoke with our agent regarding surrendering the policy & he said we will get around 76K if we surrender it now which I guess is a lesser loss comparatively. So is my calculation correct? What do the people here think about it?

    I highly appreciate your response. Please guide us with this.

    1. From my experience with Jeevan Saral policies I can say that if the policy is taken at a young age, preferably below 35 years, then only you can expect to be in the positive. Those who have taken after age of 35-40 years will be in a loss whether you wait for maturity or surrender it. I suppose you have understood the special surrender and loyalty addition clauses. Main thing in this policy is understanding the maturity sum assured concept. I am sure that most LIC agents also will not be able to answer any questions on that.

  34. Sir , still I am v much confused gone through the whole article , which is V nice But need your help.

    I have taken this jeevan saral policy for 16 yrs and I am paying 10,208 ra monthly to LIC .
    I have started this police since Oct’11 .

    Sir how much will i get if i surrender this plan after 10 yrs ?
    If after 16 yrs ?
    If today ?

    The LA which lic declares gets accumulated each year or not .suppose whatever LA lic declared for year 11 -12 and subsequent yrs will be added to my plan or not or will LA will only start after 10 yrs .

    Pl help and advise

    1. Loyalty addition is only one time. At maturity or surrender after 10 years. Do you know what is the maturity sum assured? (not the death sum assured). Moreover the loyalty depends on the maturity sum assured and the sum changes every progressive year.

    2. The real problem with this policy is that probably not even one policy holder, including me, knows about the maturity sum assured and neither any agent knows or even if he knows he does not communicate with the customer. If one knows the maturity sum assured then it is easy to understand the various scenarios about the policy.

      1. Reposting:

        just call LIC customer care quite busy number but try continuously and provide you policy number they will tell you the exact surrender value.

        Basavraj I believe you have to put this number in topic heading to avoid repetitive posting 🙂

      2. Now you can see the MSA in your policy schedule PDF which is available online on LIC portal. I just downloaded checked today.

    3. Mohit-LA is one time payment and be considered based on the year in which you will close the plan and depends on the MSA of that particular year. Hence, you have to contact the branch for a better understanding of exact amount.

  35. Thanks this is the first time I am able to get hold of the terms of the policy , it bad we were trusting and naive at the time of purchase , and the agent happens to be a distant relative.
    My take 0-4 years surrender, 9+ years wait for magic 10; thanks and greetings to curator of the blog

      1. Age is an important factor in determining maturity sum surrendered. In my opinion those who have taken the policy below the age of 35 can expect to get some return, though not even comparable to FD, and those who have taken above age of 35-40 should not expect to get any positive return.

  36. Hi,

    I’v2 2 Jeevan Saral Policies with combined premium of 10k per month. It’s been 5 years since I’m paying premiums and about to pay the 6th (almost 6 lacs I’ve paid already).

    I realise that I’ve committed a mistake going for this. I want to surrender both the policies. But the confusion is whether I should surrender it right now or it’s better to wait for 10 years so that I can get some LA when I surrender.

    Please help me calculate the surrender value now and after 10 years (considering the current loyalty bonus for 10 years). It would be a great help so that I can decide on what to do.

      1. Thanks a lot. From your reply, one thing I understood that there’s no point holding it for more time.

        Thanks again.

  37. Sir,I have taken Jeevan Saral Policy and completed 10 years and paid 10 premiums and last 10th Premium paid on July 2017, amount 18.015 INR

    Can you please guide me ,should i surrender the policy?

    Actually i want to surrender this policy

    What will be approximately surrender value?

    1. Hello Vinay,

      just call LIC customer care quite busy number but try continuously and provide you policy number they will tell you the exact surrender value.
      Please share surrender value you get from LIC customer care and also share what surrender value is shown in the chart given to you by LIC agent at time of buying policy. This info will help lot of people. Thanks in advance Vinay.

      Thanks Basavaraj for this thread

    2. Hello Vinay,
      Highly Appreciate if you respond for below query, as you are the rare candidate who has completed 10 years with Jevan Saral…I have just completed 7 years and searching for candidate with 10 yrs completion to decide whether it make sense to wait for next 3 yrs.

      Please share surrender value you get from LIC customer care and also share what surrender value is shown in the chart given to you by LIC agent at time of buying policy. This info will help lot of people. Thanks in advance Vinay.

  38. Hi, I have taken Jeevan Saral 165 policy in 2013 and for 35 yrs.
    Monthly pay = 3060 (12 policies 255 * 12 = 3060)
    Wanted to know maturity amount after end of policy (@35 yrs completion)

      1. Hello Basavaraj ji !!

        Part 1
        I have taken 3 policies for Jeevan Saral

        1 ) Policy 1(self)—335640(Current surrender value)—taken on 09/2009—taken on 12/2013—-Annual premium 48040—paid 7 premiums till date
        2 ) Policy 2(sister)—373889(Current surrender value)—taken on 09/2009—-Annual premium 48040—paid 7 premiums till date
        3 ) Policy 3(brother)—-333861(Current surrender value)—taken on 09/2009—-Annual premium 48040—paid 7 premiums till date

        Policy term is 35 years.
        I had asked the advisor to drew for 10 years but he drew for 35 years saying you can stop it whenever you want after 10 years.
        I won’t be able to continue this policy for 35 years.
        The Insurance advisor who drew this policy said you have to pay premiums till 2018 in order to get more than what you have invested.
        Please guide !

        Part 2

        Jeevan Anand
        1 ) Policy 1(self)—57540(Current surrender value)—taken on 12/2013—Annual premium 25191—paid 4 premiums till date
        2 ) Policy 2(brother)—56940(Current surrender value)—taken on 12/2013—-Annual premium 24906—paid 4 premiums till date

        Policy term is 21 years.
        I had asked the advisor to drew for 10 years but he drew for 21 years saying you can stop it whenever you want after 10 years.
        I won’t be able to continue this policy for 21 years.
        The Insurance advisor who drew this policy said you have to pay premiums till 2022 in order to get more than what you have invested.
        Please guide !

        When shall I surrender
        Part 1— Jeevan Saral policies
        Part 2— Jeevan Anand policies

        in order to get more than what I have invested ? So that I do not lose on the hard earned money.

        Thank you in advance !

        1. Alpesh-You are in trap. Also, in search of getting profit from these, you pay more and more and finally end up with savings account return. You can come out from those policies which completed 3 years. No point in being ADAMANT that I not BOOK LOSS 🙂 If you close and invest wisely in future, then definitely you can compensate the same.

  39. Let us all together try to understand some things. Loyalty addition. If someone has purchased a policy of 22 years term having maturity sum assured of Rs. 10 lakhs, then will he get loyalty addition of (400 X 10,00,000)/1000 i.e. 4 lakhs on surrendering after 10 years? how many think this is correct?
    What will be the special surrender value after 10 years? [(10/22) X 10,00,000] i.e. Rs. 4,54,545 plus loyalty addition. Any comments on this?

    1. Dilip- If someone has purchased a policy of 22 years term having maturity sum assured of Rs. 10 lakhs, then will he get loyalty addition of (400 X 10,00,000)/1000 i.e. 4 lakhs on surrendering after 10 years? how many think this is correct?

      In my opinion,its not correct…. Loyalty addition of 4lakh is for complete 22years and for maturity sum assured of 10Lakhs, but for 10years maturity sum is not 10lakhs. It will be somewhere around 3.2lakhs( for exact MSA u can contact customer care and get it)
      Now for (320000*300)/1000 = 96000( loyalty addition for 10years)
      Total is LA+MSA=96000+320000 = 416000 ( total surrender value after 10years)

          1. In above example MSA after 10 years is (10/22) X 10lakhs. Is this right? For loyalty addition also the same formula is applied or it is according to the table given in the link.

          2. Formula to calculate loyalty addition: (Maturity Sum Assured/1000)* Rate of Loyalty Addition as per annual premium band

            Note: Maturity Sum Assured on policy bond is written according to the term you have chosen at proposal stage. It will not be used to calculate loyalty addition while surrendering the policy before term.

        1. Dilip – It is also same as i discussed in above comments…
          For the purpose of determining the rate of loyalty addition for exits by death or surrender or maturity the duration in completed years for which premiums have been paid shall be considered.
          For example 10years: you have paid so far 30025*10=300250
          Now LA calculated as (300250*400)/1000 = 120100
          Total = MSA for 10years( 2.8 lakhs appx) + 120100
          This is my understanding, please anyone can comment if you guys have surrender policy after 10 years…

          1. Dilip – Exact MSA u can get it from lic customer care service.
            LA formula it is according to the table given in the link.

              1. Dear Mr.Basuvaraj Tonagatti Sir, I am Ashish Kumar Roy from Nagpur I have a Jeevan Saral Policy (2013 table 165/20)and I am paying 72780/- per (36390+36390) as a premium which is very difficult for me to deposit. I wanted to know that after 10 yrs. of my policy if I will surrender how much amount I will get as LA as well as paid amount Kindly calculate and inform me because in that policy its a very worst policy introduce by LIC , so please help me ASAP.

                Ashish Kumar Roy

  40. I bought a Jeevan Saral policy in 2007 at age of 52. Policy term 18 years. Annual premium Rs. 30025. Maturity sum assured is Rs. 6,25,000. Paid 10 premiums. Want to discontinue. How much special surrender value (including loyalty additions) should I expect? will it be (10/18)X625000 plus loyalty addition?

    1. hello Dillip Kulkarni,

      can u contact branch and post comments on how much surrender value you will get now (policy inforce for 10years)…
      Yours comments will be useful for many of us because even I am waiting my policy to complete 10years. so far i paid 6 premium… when i contacted branch to surrender policy they insisted me to continue for 10years..

      1. I have paid the 10th year premium and 10 years will be completed in November. I will contact the LIC office then so that I will get a proper and correct answer. I will post on getting the information. Meanwhile if anyone else is in a similar position and can comment on the situation, they are welcome.

          1. No need to visit branch just call LIC customer care quite busy number but try continuously and provide you policy number they will tell you the exact surrender value. Please share surrender value if anyone has completed 10 years…Share committed surrender value time of policy taken and actual you get from talking to above number. I have completed 6 years and tato wait till completion of 10 years.

            Thanks in advance

        1. Basavaraj — Lic customer care guy suggested me to continue for 10years so that atleast i will get back 10years premium paid(36030*10=360300) with loyality addition. Altogether with loyal addition i will get more or less 3.6lakhs… So i am waiting for 10years…

            1. Yes but even if it gives less than bank FD rate you will loose some part of your 10-12% premium paid till date (i.e. before completing 10 YRS) so this loss of 10-12% is making me to wait till completion of 10 years. Your suggestions are welcome on my decision to wait for 10 years(7 years already completed, 3 yrs pending)

              1. I had started the policy in 2007, with annual premium of 24020 in Jeevan saral policy. currently the surrender value revealed is about 357,315/-. Two years back it was 166,000/-
                I got info from the customer zone, that new declaration happens in September. So i am thinking right now, what time to exit within this year to get best surrender value. Any inputs or thoughts?

                  1. will i get additional LA which may be declared in September? Is there any such thing? will the surrender value vary as on today and one month later?
                    Since i have completed the “magical 10 year”, then with small wait, i may achieve something better.. unless there is no change at all..

                    1. Hi,

                      I have taken New Jeevan Anand policy in 2015 with sum assured of 2625000 and premium of 122000 annually. Return comes out 6.2% on recurring but problem is how to calculate Maturity Amount? Even LIC don’t write on website. Agent has written 70L rs after 25 years but based on LIC calculation ( Sum assured + Bonus) it comes out very less as bonus declared is 49rs. Please help if I should continue it or I will get atleast 70L+.

                      Please help asap !

                1. Hello Anand,
                  The surrender value of 357,315/- is matching with the chart given by LIC agent while buying the policy? If not how much is the difference? Please reply, as this will help me as I am in 8th year of this policy

                  1. Sagar, whatever your decision, please post it on this forum. I think there is no harm in waiting for 10 years to complete. Not 10 premiums but 10 years total. I am also waiting for my policy to complete 10 years which is October end this year. My annual premium for 18 year policdy is Rs. 30,025. I also was given a quote of about 1,65.000/ two years ago.

                    1. If you surrender before 10 years you normally get lesser than what you have paid. If you surrender after 10 years at least the loyalty bonus makes the amount what you get more than what you have paid. But if you calculate rate of return it is very low in both cases.

                    2. I think the question was asked by Anand, not Sagar. So the answer is for Anand. Sagar’s views are also welcome

                  2. Hi,Sagar, Chart showed about 349000 for surrendering in year 2017. But after 10 years, returns are just 5-6%. So it’s not worth investment..mixing insurance and investment is not appropriate..

                    1. Hi Anand,
                      The chart showed you 349k but you your value is 357k. I think you did well. Also, to my understanding, mixing insurance and insurance is best option if you diversify your portfolio properly.
                      Getting 6% is not bad. Don’t forget that you have 10k deductible from your income which reduces you tax, and you get tax free money when you surrender. So, when you consider all benefits, your RoR could be 10%.
                      And don’t forget that it covers the risk 250 times your monthly premium.
                      I think, this policy is like seed of a fruit tree you plant, you will have to remain patience to bear a fruit.

  41. I have taken Jevan Saral Policy (165) with yearly premium – 48040 rs/- on 2011-12 academic year.

    Policy name Name : Jevan Saral(165)
    premium : 48040 (yearly)
    taken at age : 25
    Sum Assured : 1000000
    Policy Term : 35

    1. As of i have completed 6yrs payment and what is the maximum amount if i continue this policy for 35 years?
    2. Is it recommended to continue this policy for that such longer period?

      1. Thanks quick reply Basavaraj.

        When i calculate got the following amount with rate of interest 5 to 6% (4,820,926.32 to 6,043,766.04) I am thinking or calculated right way?.
        Do we have any other best policy in market to get more life coverage and returns?

  42. Hello Sir,

    One of LIC Agents has given approx 15 policies Jeevan Saral policy to my father. Some of them are monthy,quartely and half yearly plan. Approximately we pay 60000 per year. We have have paid the premiums for these policies for 5 years. Some of these policies are on my name , my brother,my sister,my mother and fathers name. We want to surrender these policies as its difficult for us to pay the premiums. So how much surrender value we get? If we continue the policies on my father’s name would it be beneficial and how much sum assured vlaues we get after 10/15 years. Please find below details:

    4 policies half yearly >> Rs1516
    5 ploicies quarlety >> Rs766
    7 policies yearly >> 2426

    Thanks & Regards
    Neeraj Singla

      1. I checked with LIC office and they said we would not get full premiums.We have paid 300000 and they said we would get approx 220000 only. But as per below statement shouldn’t we get Full premium as we have paid for 5 years? Please clear this doubt.

        “b) Special Surrender Value-It will be of 1+2 options given below.

        1) 80% of MSA will be paid if less than 4 years premium paid, 90% of MSA if between 4 to less than 5 years of premium paid and 100% of MSA if premiums are paid for 5 years or more.”

        1. Neeraj-I am not said you will get full of what you paid, but I said that MSA will be reduced as per 5 years tenure and can be paid to you. MSA of 5 years will be reduced, which may be lesser than your premium paid.

  43. Hi Good Evening Sir,

    I have seen quite a few advice from you for others and I do appreciate your time.

    Need a help on the policy which I took couple of years back.

    Policy name – Jeevan Saral with Profits
    Table – 165
    Term – 20
    Maturity sum assured – 10,00,000
    Premium method – Yearly
    Premiums paid – 5
    First premium – Dec 2012
    Premium – Rs. 48,040.00
    Next Premium due – Dec 2017
    Policy Status – Active

    The main reason for me to start this policy was to save money & avoid tax on the other hand so I spoke to an agent who said this policy should suite my needs, I specifically asked him if i need to close the policy any time will I get my money back? He answered yes however, would need to wait for 3 years.

    Post 3 years when I spoke to customer service they said I would loose some money if I cancel, and advised to complete 5 years for some benefits.

    Now, I have paid all 5 premiums which is 48,040*5=2,40,200 & when I checked with customer service they advised me that I wouldn’t get the complete amount. I feel like getting fooled as I am loosing my hard earned money. I think I heard saying I would get only 1,80,000 if i cancel.

    Please advise is it best to cancel policy or is there any way for me to get my complete money if i extend for 10 years for loyalty benefits. If I also extend for 10 years I am afraid as i may not get 48040*10=4,80,400. Kindly advice.

    Mark Sabastian
    [email protected]

    1. Mark-Better to discontinue. You asked for SAVING and TAX BENEFITS to your agent. So he provided that option, but not an INVESTMENT OPTION. Hence, in my view agent not did anything wrong. But it is mis-buying than misselling.

      1. Thank you so much for your feedback, just one thing I need to ask you sir….,

        If I ever continue or wait till I cover my complete tenure, is there any benefits for this policy or will I still lose my money. Please suggest.

          1. Can you tell me how much would I get if I continue for next 5 years, which is ten years in total please.

            Sorry to be a pain but your inputs will make me to take decision.

              1. When you say 5 to 6 percent, is it my total premiums paid for ten years with 5 to 6 percent approx additional or am I missing some thing else?

                  1. Hi Sir,

                    I have paid premium – 48,040.00 for 6 years which is so far 2,88,240.00

                    I should be able to manage for another 4 years, which would be 10 years if in total and total would come up to (48040*10) = 4,80,400.00

                    Hence, if I surrender post 10 years, I should except returns of 4,80,400.00 + 5 or 6 % extra.

                    Please correct me if I am wrong… Thanks!

  44. dear sir,

    i have bought a jeevan saral policy on 22/2/2011 for a period of 20 years. firstly it was monthly plan of rs. 5104 and thereafter changed to quarterly amount of rs. 15,312. sum assured was 12,5000/- . date of birth is 26/10/1983.
    sir, i am really sorry to state that being very poor in calculations, i need your expert advice. my querries are :
    1. what amount will i get at the end of 20 years.
    2. what amount will i get if i surrender it now ( already 5 years over)
    3. should i continue here or invest it in mutual funds.

    please advice. no one is helping me out. and you have been so kind in answering everyone’s doubts. the lic agent isnt helping out sincerely. thanks sir in advance.

  45. my premium is 3062 per quarter ( I think net premium) …. SA is 2.5 lacs ….. term is 20 years… i bought it in Dec 2010 … What would be my return after maturity in year 2030 ? can you elaborate with a chart or breakup amount.

  46. I invested Rs 24020/- for 3 years till Dec 2016.Recently I have taken a term plan also for 50lakhs from LIC. I am investing in PPF also.I am very much confused whether to divert this premium amount towards ELSS fund or continue with the policy till 11 years or 25 years.My policy term is 25 years.The maturity sum assured is around Rs7.5 lakhs in policy bond.

      1. Actually I was not so investment conscious about my investment portfolio at that time as i was not coming in any tax bracket.Now, I am in 20 % tax bracket.At that time I was not aware of Term plan and also was not comfortable in investing any Private Companies.I used to deposit in only PPF. At that time I was feeling i am short of Insurance and hence bought this policy without keeping any perspective in mind that I am taking this policy for Investment or Insurance.Now , when I am trying to take advise from others.Some are advising me to surrender and some say the policy is good you should continue for at least 10 years. I am 34 now and dont want to take any wrong step related to investment and insurance and ruin my later years. I request you to kindly advise whether to continue investing in this policy or discontinue.I really dont mind investing also if I am supposed to get better returns.As, today I feel I am adequately insured as far as Insurance is concerned in comparison to my annual package as I am having another Limited endowment policy of 2 lakhs also from LIC and also insured by my employer for approx 15-18 lakhs.I will be taking your advise as the final call for this policy as I dont wont to linger on with this policy as I have already invested 1.5 lakhs for my Income tax rebate by investing in PPF, PF , LIC(Limited endowment plan) and LIC e term( Cover of 50 lakhs). I have tried enquiring from lot of people related to its return part also. No one is able to give a clear picture in this regard also.

        1. Amar-If you have adequate insurance then why you retaining this dummy product? It is your money. Therefore you judge which BEST to you. Hence, never rely on anyone nor listen to those who suggest you based on their opportunity in your investment (agents). Act fastly and close all such dummy products.

          1. One last question. Should I see this product on investment perspective or Insurance, In case on Investment then what rough percentage can be expected on this product.As this product is giving me only 5 lakh on insurance front and 10 lakh on accidental.

            As I have an option of diverting his fund towards NPS and claim 2 lakh of income tax rebate instead of 1.5 lakh in coming financial year.

            Incase I am closing this product this year I will booking loss of around 30000/- which I dont mind if I get returns by investing in long term.

            Thanking you in advance.

            1. Amar-For 10 years of investment and return 5% to 6% enough for you? Is so, then continue. If you consider this product as insurance, then think how long your dependents survive with the death claim amount they receive from this product.

                1. You should seek investments in mutual funds through SIP for wealth generation and buy term insurance for pure insurance need.

  47. I have a Jeevan Tarang plan of 10 years policy term. I want to surrender this policy on the 9th year after paying 36 premiums (quarterly payment mode). What is the formula to surrender? I want to know how much I will get.

  48. Hey mate, you have been doing a fabulous job of explaining the intricacies of the Saral Policy. I have been hurt the same with almost paying through the roof per year premium paying in saral. The LIC and their agents just care about their bottom line. They gave wrong charts and return values when they were getting people onto buying their policy. Why can’t they be put behind bar for wrong selling of policies with wrong information.

  49. Dear Sir, I was opened policy jeevan saral 165 plan 22 year in sept-2013 , 25473/- Half yearly. at that time misguide & show me higher return by LIC agent & open this policy. Now I want to surrender this policy after 4 year.
    My query is the following question?
    1) If continue this policy to full maturity (22year), what is amount I will get?
    2) If I surrender this policy after 4 year than how much amount I will get?
    3) Can I rest policy after 4 year without pay premium till maturity & after maturity how much I can get.

    I want higher return but with this policy I cant get.
    please give me proper calculation & suggestion.
    Shankar baghele

  50. Hi Basavaraj,
    I have a query regarding my LIC Jeeval Saral Policy Table no 165. Bought this policy on 28/12/2009 (misguided with the chart which agent showed me) at age 26 Policy term -30 years Premium -72780 yearly (approx 6000 per month) Death Benefit Sum Assured 15Lac. I have already paid for 7 years : approx 5 Lacs. I have also taken loan on this policy last year (May 2015) Loan amount 285000. I have made up my mind to surrender this policy as policy is not good and I am unable to pay premium. Question is should I surrender right now or should i wait for the completion of 10 years for this policy

    1. I want to know if it is good idea to hold this policy for 10 years completion (until Dec 2019) so that I get Loyalty addition.
    2. What amount I can expect to get in return from this policy after 10 years completion
    3. How loan will be handled in this case. Will LIC deduct Loan and interest at the time of surrender. I found that they have already charged 30K interest for 6 months on loan amount of 2,85,000 which is very disappointing. This interest will be charged every six months. I am confused if it is good idea to hold until Dec2019(as holding also means more interest on associated policy loan). But even if I surrender now, I have huge loss.
    Really need an advice. Please help!

      1. Thanks for your prompt response. Regarding surrender or holding for 10 year(to get LA) which one will better suit me. What approx LA LIC usually provides?

  51. Hello,
    i have take jeevan saral policy in november 2009, paying premiun of Rs 48040/- yearly.
    Clearly understood that the chart agent showed is misguiding.
    Currently i have invested 336000 in total whose surrender value is 316000 right now.
    What will be the better option—
    1) book loss of 20000 and surrender immediately
    2) stop paying premiums and keep the policy active for 3 more years and redeem after completing 10 years of policy so that i am eligible for LA/bonus.
    3) pay premiums for 3 more years and then surrender the policy after completing 10 years of policy to avail LA/bonus.

    In any case if i surrender i am planning to buy jeevan anand policy for approximate same amount for a period of approximate 30 years.

        1. i mean why did you suggest me to book loss and surrender it..
          In case if i reciveLA of rs250 for every 1000, i can get 120000 as LA along with 480000 (total of premium paid)

          1. Sorry I have paid 386000 and current surrender value is 316000…so lot of loss..
            And I have 3 such policies–mine,sisters n lot of loss–a total of 2.1lakhs..

  52. Hello,

    I have taken jeevan saral plan dec 2011. and i wand u surrender now. But LIC Agent is saying that.

    25000*10 = 250000
    Your balance Amount is 250000-85000 = 165000rs

    Thanks & Regs.

  53. Sir,

    I have completed 6 years of Jeevan saral 20 yr term plan paying of Rs.6406/- quarterly (i.e. approx Rs. 1,53,744/- till date) as an installment. I want to surrender this policy due to some financial problem, so I visited to Lic office and I took surrender value statement. Surrender value is of Rs.1,24,000/- ( approx loss of Rs.30,000/- ) I don’t know how they calculated surrender value but it’s really shocking to loss of Rs 30 k. now what should I do?

  54. I have taken Jeevan saral policy for 20 years in Feb 2011, yearly premium is 12k, need your help in below queries-

    1.)If i want to surrender policy after 10 years i.e in 2021 then will i be eligible for loyalty additions as total tenure is 20 years?
    2.)Is LIC declares Loyalty additions every year for Jeevan saral?
    3.)I bought this policy in Delhi now i moved to Bangalore can i surrender the policy in Bangalore LIC office, If yes what is the process for the same?

      1. Hello Dear,
        Under jeevan saral Im paying 6125 INR as monthly premium. At the age 24 I took this plan. Policy term period is 25 years. Agents show very high figh amount in their chart as maturity. But as i received my policy it is showing maturity sum assured approx 20-21 lacs which is very low as compared to agent. I took this plan on 15/10/2012. Kindly help me out what i will get exactly as maturity amount.

      2. I think the LA will be not given as it is applicable only after 10 years. So if someone continue for 11 years then he will get the LA for last one year not for whole 11 years !!

  55. I purchased Jeeven Saral Policy at the age of 32. I have completed the 6 year of premium. Yearly premium is comes 24500. Agent assured me at the time of purchasing the policy that I get more than 10 Lakhs on the maturity of policy after completion of 16 year. Now it is come to my knowledge through some other agents and friends that the chart shown under this policy is fraud.

    Will I continue with this policy or not .What is surrender value of this policy at this time. If I continue, will I get the value actually shown in the chart after 16 years? This question has become more relevant as the policy purchased for meet the expenditure at the time of my daughter weeding.

    If I surrender the policy, Can you suggest me some other policy or investment plant to meet expenditure mention above. Now my age is 39.

    1. Ashok-Better to surrender. For surrender value check with LIC branch. You firmly believe that it is a fraud selling. But asking me whether continue or not. The decision is YOUR’s. Without knowing much about you, how can I blindly guide you about investment?

      1. Thanks for your valuable advise. I am going to surrender this policy. Can you suggest me some other investment option. Am i go with SIP, if yes please suggest some plans.

        Thanks for your reply.

  56. sir i want to surrender my policy
    please guide
    policy start 28/03/2011
    age when started 27 years
    monthly preimium 5014
    sir pl tell what amout will get me

  57. Hi Basavaraj ji,

    I have query regarding my LIC Jeevan Saral policy where i completed 7 years with yearly premium of 36030. When i took this policy he showed a T165 chart and assured that i will take 6.5 lacks after completing 10 years.

    when i enrolled my age was 23 and now i am 30 years of age.

    Need your kind and valuable advice what shall i do, because what i understood that i may not get assured amount as per chart. Is this total fraud ? please advice as i am really worried.

  58. Dear Basavaraj,

    I have two JEEVAN SARAL policy.

    DOB: 30-04-1986
    Policy taken – 2011 February,
    Yearly premium=Rs.18000/-(for 30 yrs term) and Rs.6000/-(for 25 yrs term)

    Please tell me the amount if I surrender the policy after 10 years completion. Thanks in advance.

  59. Hello Basavaraj Sir,
    i planned for Jeevan saral of Rs750000 with annual premium of 36030.
    My agent told me i would be getting around 25lakhs after 20 years, i dont know exact MSA or LA.Even though he has given one pamphlet explaining premium & maturity.

    Premium – 36030 Rs yearly
    term of policy – 20 years
    my age 23 years
    so pls let me know the actual return after maturity…

    2) i have completed 5years, what amount ll i get if i surrender after 5 years..
    pls help me out

      1. Sir,
        I already bought this policy… I have completed 5 years also…. what amount I ‘ll get if I surrender now?
        What ‘ll be my maturity amount if I complete full 20years.

    1. Basavaraj sir,
      1)I have already bought this policy, completed 5 years also..
      Premium – 36030 Rs yearly
      term of policy – 20 years
      my age at time of enrollment – 23 years
      so pls let me know the actual return after maturity…
      2) what amount will i get if i surrender now( 5 years completed)?
      Pls help me out

  60. respected
    tax saving instrument was top savings PPF,NSC, FD, ULIPs,ELSS,. The explain with total returs to 3 0r 5 years pls send

  61. Hello,

    Please help me on my query as it holds important due to my current financial crunch situation.

    I took the ‘LIC Jeevan Saral’ plan started in 2010 for 15 yrs with yearly premium as 25000/. I have already paid for 5 premium terms till 2014 for a sum of nearly 1,25,000/-. But due to i lost my job in 2015 i couldn’t able to pay premium from 2015 & 16. So as i can’t continue this plan due to my bad financial cond. so i want to surrender my policy now after 7 years. So what would be the payout amount to me if i surrender now. I see the current status showing in LIC portal as: “Reduced pay-out.’ Also let me know if i want to pay premium of last year & this year would i asked to pay any penalty?

    So kindly update me on my above query. Thnx in advance for your support.

      1. Hi Basa,

        Thanks for giving quick update. But as i am staying outside of state current for a job search so can’t make to home now.

        Its been 6.2 yrs now from the commencement of policy so can you please anticipate what’s the surrender amount i would get where i have paid 1,20000/- for 5 years,i expect to get at par with my total paid premium or little higher from that but not sure. I believe as a financial analyst you can give me at par update if not concrete. Please update me here.


        1. Shakti-You refer above post and below comments. You will get an idea of how to calculate on your OWN. You no need to be in same state to know the status. Visit nearby LIC branch and get the status.

  62. Dear Mr.Basavaraj,

    I have taken Jeevan Anand in Feb 2012 with half yearly premium of 52300 approx for 25 yrs with sum assured of 25L at the age of 32yrs.

    But after your reviews and lots of search I found that it is better to go for term insurance and balance with other investment as this policy will give max to 6%.

    Can you suggest is it better to leave/surrender with Jeevan anand.
    Also can you suggest where should I invest the balance.

  63. Hellow Basavaraj,
    thanks for such an informative post regarding LIC Jeevan Saral Policy. I am myself struggling to get the clearer picture regarding the Maturity Amount. I purchased this policy @ 24yrs , Single Premium 48040 INR, 5 yrs completed. My policy paper mentions MSA : 1159520 INR (along with Death benifit & Term Rider sumof 10 Lakh each) but in my policy premium receipt its showing MSA = 10Lakh while that confusing chart showing somewhere around 54 Lakh. I think all of us are having this same confusion. I will b happy if i am getting 5-7% interest overall at the end of policy, if not please suggest if i should stop paying further and get whatever i can get back.

    Saurabh negi
    [email protected]

  64. hi my name is pinkal mahajan i am 29 years of age i got this policy at the age of 24. i have been paying 72000rs per year can you please tekk me how much i will get after 35 years. on the chart(165) it says some 22000000rs. but when i contact branch they say something else. please clarify this.

  65. Hi Basavaraj,

    I had taken Jeevan Saral in June 2011 with a monthly premium of Rs 6123/-, which means i am putting Rs 73476 in a year in my Jeevan Saral account. my policy will be completing 5 years by June 2016 and i was thinking weather to continue with it or not because people were telling me that i am paying a very high premium and the returns are not as expected and it is better off to put the money into PPF account where i can have better returns.

    so there can be few options that i was thinking about and i am confused:
    1. to close the policy after 5 years, could you please tell me what is the amount that i should be getting ?
    2. secondly , since its a flexible policy i thought of reducing the Premium amount to Rs 1000 or 1500 per month.
    3. surrender policy after 10 years and continue to pay what i am paying at the moment.

    i am 42 year old and need to have good investment. let me know what you say.


  66. My policy was started on March 2013 and have paid till May 2015 without interruption. Its jeevan saral with DAB – Premium monthly 3062.. Almost i had paid the premium for 2 years 3 months.. 9 months i did not pay the premium as per schedule. Almost 3 years completed now.. Now the policy status is lapsed without surrender value. Can i withdraw my amount now?

  67. Hi Mr. Basavaraj,

    I have completed 5 years of Jeevan saral paying Rs.5104 monthly (i.e. approx Rs. 3,00,000.00 till date) as an installment. I want to surrender this policy due to some financial problem, how much amount would I get as the lic website is showing after completion of 5 years if they surrender they will get 100% of the Maturity Sum Assured. So in that case would I get approx 3,00,000.00.


      1. Hello Sir…

        I have just completed 5 years of jeevan saral policy.
        So far I have paid about 1,53,000 RS for 9 jeevan saral policies (Courtesy LIC agent wrong input) which has different maturity dates but started at the same time in May 2011.

        My age is 26 years when the investment started.

        Now, I want to surrender all the policies. Can I expect to get the money which I have paid ?

        I understand that visiting LIC office would be helpful but I am not in a position to visit office….

  68. Hi Mr. Basavaraj,

    I have completed 5 years of Jeevan saral paying 9187 Rs quarterly. If i surrender now ,will be losing the premiums paid in the 1st year according to LIC people. There is an option called partial surrender. Can you please throw some light on that.


      1. Dear Basavraj,

        1. Would like to liquidate this amount

        2. Will be short of money due to some other financial commitments, so will be difficult to pay premiums of this amount.

        Thanks in advance

        Thanks in advance

  69. Hi sir,

    I have Jeevan Saral policy policy no #578448787 enrolled in 2011. I want to surrender the plan since I have completed 5 years.The maturity was in 2029 and MSA = 500000/- only.You have stated that surrendering after 5 years will fetch 100% of MSA value. So am I supposed to get 5lac or (500000/14)*5 = 1.78 lacs? I paid 2042 as monthly premium for 5 years so total premimum would be around 1lac 20k.Can you please tell me teh expected range of the surrender value that I am expected to get.


  70. sir this is k v Raghu kumar i bought jeevan saral 165 plan in 2009 February,qtly premium 4250. i was paid until 2015 Feb premium. After that i was not paid till now, i have taken loan also amt RS 210000,AND interest RS21000 If i continue this policy i have to pay premiums amount+loan now i am not able to pay this amount right now , and I asked to LIC officers if I surround the policy how much amount will i get, they told me approximately 26000 plus or minus, up to Feb 2015 i was paid Rs 306250,if surround this policy i will get loss the amount rs 30000 to 40000, what can i do please give your suggestion, now i am not ready to pay premiums and loan amount and intrests

    k v raghu kumar

  71. Sir I have jeevan anand policy sum assured of 200000. my EMI is 7668 half early for 15 year, how can I get total maturity amount after 15 year. sir plz advice me.

  72. Dear Sir,
    I wanted to know one thing that for jeevan saral it is preferred to surrender after 5 yrs if taken.
    I pay premium yearly can you please tell 5 yrs will be considered completed after paying 5 premiums or after paying 5 premiums and completing 60 months as well.

    Avinash Kedia

  73. Dear Mr Tonagatti,

    In one of the post (dated 22 Jan 2016) you have mentioned that LA would be 500 – 600, based on current trend.
    Could you please elaborate?


  74. Hi Basavaraj Tonagatti,

    I took Jeevan saral Plan for 25 years with SA: 5,00,000 and Yearly Premium as 24.020 on 17/09/2013.
    Till date i have paid three premium’s. After reading this blog, i realised that i had invested in a wrong plan.

    So, please suggest me whether i should surrender this plan now or shall i pay two more premiums?? (to complete 5 years)

    How much amount will i get if i surrender the plan now?
    How much amount will i get if i surrender the plan after completing five years??

    Thanks for your help inadvance..

        1. Chandru-In this policy, if you surrender after 5 years then it is considered as 5 years policy but not the term you opted earlier. This is the uniqueness. Hence, instead of 3 years, it is best to surrender at 5th year.

  75. Hi Basu,

    I have purchased Jeevan Saral in 2010. I’m paying half yearly premium of 15466 INR. My MSA is 1336367 INR. Now the policy is in affect for 6 years. I understand that Jeevan Saral has a SSV for >5 years, which is to pay out 100% of MSA . This MSA is calculated for the time frame for which the policy has been in affect i.e 6 years in my case. I also understand that in case of Jeevan Saral, LA starts from 10th Year onwards. Now I have couple of queries:-

    1. If I surrender the Policy on 10th Year completion, would the returns be as calculated below ?
    > MSA for 10 year period = 1336367 * 10/35
    > LA for 10th year for premium range between 20,000 – 50,000 INR – 375 * MSA for 10 years/1000 = 375 * 1336376 * 10/35 * 1/1000
    > Since Policy in affect for > 5 years. As per SSV, MSA Paid out = 100%
    > Returns on surrender on 10th Year = MSA + LA
    = ( 1336367 * 10/35 ) + ( 375 * 1336367 * 10/35 * 1/1000 )

    2. If I opt to not pay any future premiums ( Policy lapsed ), what would be my returns at the end of policy term of 35 years ?

    3. What would you recommend, should I hold the policy for its term or should I surrender it right away ?

      1. Hi Basavaraj,

        Could you please me understand what would be the surrender value of this Policy on its 10th year completion ?. I need to know the below details actually:

        1. MSA on surrender
        2. Loyalty Addition on surrender ( I know this is not yet declared. Will be declared on 2019 for 2010 policies. But based on the Loyality declared for the last 3 years, Can I assume it to be 375 INR per 1000 MSA ? )
        3. Total Surrender Value = MSA on surrender ( MSA calculated for 10 years ) + Loyalty Addition

        My next premium payment date is on June 2016. If I have to exit from this Bad investment, I have to do it now. If you can guide on the above and answer my above queries related to calculation, it will be really helpful.

        Thanks a million for your help :).

        1. Sriraj-1) MSA on surrender will be known to you once you visit LIC for surrender.
          2) You can. But clear picture or shocking picture emerge when you know the actual surrender of this policy.
          3) Yes.
          First go ahead and surrender it.

          1. Sir I have purchased the jeevan saral policy with half yearly premium INR 3032 in may 2009. I want to surrender this policy due to some reason. Pls tell me about surrender value. Is it more beneficial to close after 10 yrs?

  76. Hi, Basavaraj

    I have purchased the LIC Jeevan Saral in May 2010 through LIC agent. Now 5 years are completed for same. Since that agent had made a purchase of policy for 35 years term, can I close or surrender this policy now ? And, what could be process to do the same.

    Let me know so that I can plan for better. Also, I would like to invest for long term in some SIP fashion. What could be the better option ? is it something similar to Tax saving MF.

  77. Hi I have invested 36000 in jeevan saral and 6 years are completed.. Could you advise how much I will get as Lic says I will get 29000rs.and also advise do I need to continue the policy or surrender it….

  78. Please I want to know I purchase lics jeevan saral policy for 30 years of 1000 monthly premium on 27 age so what will be return i will get at maturity of policy

  79. Hi Basu, I was calculating MSA, LA and total amount I might receive.
    I have jeeval saral policy which I took at the age of 25, half yearly 6065. Sum assured 250000.

    Per my calculations.
    MSA: 195310.
    LA : (195310 * 250*5)/1000 (*5 because I presume from 10th year with 250 there is gradual increase of 50. So, I rounded it off to 250 for all 5 years from 10th to 15th making it 5 times) = 244137
    Total amount is 439447.

    Am I correct in calculating the LA? And is the total amount correct?

      1. Thanks for reply.
        If we consider the amount to be 500.
        LA calculations for Jeevan Saral would be as below:
        LA = (MSA *500)/1000 = (195310*500)/1000 = 97655.
        Total Amount would then become = 195310+LA = 292965.

        Is this correct or am I still missing anything for LA calculations?

  80. Dear Sir,

    Kindly advise, I took Jeevan saral policy plan 165 in 2011 at the age of 28 yrs.
    premium of Rs 6125 quarterly.
    tenure 15 years
    i have paid premium of 4 years till date if i surrender policy now i am getting around Rs 70,000 (with loss of 30000 & 4 years)
    what you will suggest should i continue or surrender policy? what would be the surrender value after paying 5 years premium?

  81. I have taken Jeevan Saral Policy 4 yaers packa and my monthy sip is Rs 5000 i.e rs 1000 x 5 poiclies. Let me know wheather its is advisabke to continue this policy, are there sufficent returns as ther sis market rumours that Jeevan saral should not continued as there is case beteween LIC nad IRDA goint on for and less chances of getting assured rtuerns . Please suggest

  82. I surrendered my Jeevan Saral policy after paying 5 premiums and completing 5 years.

    My Sum Assured was 12,62,500. Thus, the monthly premium was 12,62,500 / 250 = 5,050. Yearly premium was 5,050 * 12 = 60,600 minus 2% discount on annual payment = 59,387.50.

    According to LIC’s table (I think no. 165), for someone who was 30 years at the time of buying the policy and paid 5 premiums, the “factor” for calculating Maturity Surrender Value (MSA) for the 5th year was 4,726 per Rs 100 of monthly premium.

    Thus, the surrender value was calculated as 5,050 * 4,726 / 100 = 238,663. There would have been a reduction of 3-5 thousand rupees from this if the surrender had happened before completing 5 years.

    The Rate of Return on the policy was -7.2%. If I had continued with the policy believing that I’ll get BIG loyalty bonuses, the rate of return would not have been more than 5%, typical with any other LIC policy.

    LIC sucks! They have been duping common public for decades, using poor man’s hard earned money for free, making themselves and their agents rich, and returning peanuts to their customers provided they keep paying premium for ages. It’s a pity that majority in this country do not understand RoR and CAGR, which should be the first thing they should teach in schools.

  83. Hello Sir,

    Today I went to LIC office and asked about the policy surrender procedure. My policy start of date is 09/2009 and date of maturity is 09/2029. I am paying Rs.2300 every 3 months as premium. When I spoke to the LIC officer they asked me why you are surrendering the policy, you have paid premium regularly for 6 years and now why are you surrendering. They asked to to get loan on the policy. Finally they told till date I have paid premium of Rs.59000 and if I surrender I will be getting only Rs.48000. Then I asked her its mentioned in the policy document like special surrender value will be 100% of MSA if premiums are paid for 5 years or more. They said there is nothing like that and there will be Rs.11000 loss for you. Hearing this I am very clear that they are not even promising what is return on the policy document and I am not sure what amount I will be getting in my hand at the end of the policy completion. I am going to fill the form and going to submit the forms for surrender.

    You are really doing a great job here. Thanks for your advice and educating everyone.

  84. Hi Basavaraj,

    I must say your online platform provides the best information on LIC policies and especially Jivan Saral policy. Thanks for sharing such valuable information on such important investment topics.

    I had purchased Jivan Saral policy 8 years ago when I was aged 30 years. My annual premium is Rs. 60k. I have taken this policy for a period of 35 years. After reading your comments here, I am assuming that this investment will not yield me more than 6-7% returns over a 35 year long period. This is very low compared to the time and the money I am putting in.

    I would like to get your advise on whether I should surrender this policy now or wait for the completion of 10 years so that I get some LA.

    Your advise will be highly appreciated!



  85. Hi,

    I have a Jeevan Saral Policy (Table 165) taken in 2012 and will mature in 2037. The sum assured is Rs/-1250000. I pay yearly premium of Rs/-60050. I have paid four premiums so far. My question to you – If I surrender this policy after 5 years, then as per information shared by you in this blog, I will get 100% of the premium amount paid i.e. 3 lacs. Please correct me if I am wrong.

    Also, If I wish to continue with this policy till end than what would be the total amount I get? Any other suggestion regarding this [policy would be really helpful.

  86. Hello Sir,

    I bought LIC Jeevan Saral policy on 7th jan 2010 at the age of 25. I am paying 18015 as yearly premium, policy term is 25 and death sum assured is 375000.

    I have paid premium till jan 2014 ie for 5 years .
    Please advise, should I go for 25 term or surrender the policy now or pay premium for 10 years and then surrender my policy.
    what will be my surrender value after 10 years and now and maturity value after 25 years

    Thanks in advance.

  87. Dear Sir,

    Kindly advise, I took Jeevan saral policy plan 165 in 2011 at the age of 24 yrs.
    premium of 29000 half yearly
    tenure 15 years
    i have paid premium of 4 years till date if i surrender policy now i am getting around 175000 (with loss of 57000 & 4 years)
    what you will suggest should i continue or surrender policy? what would be the surrender value after paying 5 years premium?

  88. I started LIC Jeevan Saral Policy 3 years before for a yearly premium of INR 24020.

    1. What will be the actual total amount i will receive as per today’s calculation after 35 years? Policy Started at age 26.

    2. How can i get out of this Policy immediately or what will be the best time and what will be the charges deducted for same?

    Thanks a lot for all your help & valuable information.

      1. Can you please let me the formula to calculate it? So that i put the values in and calculate expected outcome from this Policy…

          1. Thanks Basavaraj for all your help and replies. i got clarification for my 2nd doubt regarding surrender value. Can you please clarify my first doubt by giving me a rough figure (What will be the actual total amount after 35 years – Policy Started at age 26 & Annual Premium 24,020.), it will be appreciated. Sorry to bugging you again and again.

              1. Hi Basavaraj,

                I am weak in calculating these percentages & opt in for this Policy 🙁 …. that’s why i am asking you that what will the FIGURE (appox.) after calculating? Thanks a ton again.

      1. Thank sir for your kind reply! Is the surrender value received (after paying more than 2 premium terms for traditional policies), required to mention in our ITR of the respective year?

  89. Hi,

    Need your expertise here. I’ve paid 5 premiums till date for Jeevan Saral (24020*5) for a measly 5 lacs sum assured (No riders).
    The 6th Premium date is approaching in Jan 2016. What would you advise for this plan – Should one:

    1. Just stop paying premiums (Make it Paid up) and wait another 10 years for the money
    2. Surrender the Policy immediately and collect whatever is left of it
    3. Continue with the policy for another 5 premium terms to look at Loyalty Bonus etc
    4. Any other advise on this policy?

    Do respond! Thx


  90. Dear Basavaraj Tonagatti,
    Thanks for your detailed explanation of this policy. I am in dilemma now & appreciate if you help me to solve this.
    My DOB is -1989,

    JEEVAN SARAL Plan details are as follows:
    Policy Date: June-2012,
    Half yearly premium=18195, TABLE=165, TERM=35 yrs

    As I have completed 3 yrs. of my policy. I went to LICBranch to get surrender amount and Surrender value is Rs 61632/-. But till date I have paid total premium 109170/-. And Now if I surrender then I will be in Loss of Rs 47000 Approx.
    Please suggest me on following option
    1) Should I exit at this stage of 3 yrs & take 47K loss. Invest that 61k money in my home loan which will at least reduce my interest component.
    2) As in above post you suggested that exit from this plan after 5yr.
    If I surrender this policy after 5yr
    a) Will I get complete premium back. At least (181950) my 5 yrs paid premium .
    b) Or after 5 yr also I have to bear some loss. (May be you have some rough idea on this)

    Your suggestion will help me to take further decision.

  91. Hi Sir,

    I have taken Jeevan Saral policy in 2011 for 16 years with a premium 48040/Year.
    My age was 31 years when i enrolled for it, agent has given bond of worth 10 Lac.

    It would be great if you explain or guide me where to invest

    Please let me know what would be my meturity amount after 16 years?
    What is SA for my policy?
    How much LA I can get after 10 & during 16th year?
    Shall i continue with the policy?

    With Regards,

  92. Hi Basu,

    I am a regular visitor of your site and find your blog very helpful.

    my question is around Jeevan Saral – i have been paying the premium for 7 years and surrendering this policy as it does not suite my needs.

    Question : my premium is due next month so do you think i should be paying the pending premium and then surrender to surrender directly ? if you could shed some light in this matter.. a big thanks in advance for your answer.

      1. thanks basu.

        as you suggested i will surrender the policy without paying the pending premium but do you think it will cause any trouble or inconvenience if i surrender the policy when the premium paying date is passed ?

  93. I have seven years of my LIC Jeevan Saral Policy.

    If I will surrender the same now, Shall I get my total premiums paid back or not ?

    If yes then shall I get any sort of additional amount ?

  94. Hi,
    I have taken Jeevan Saral on 2013. Two years paid. But when i look at your blog, i am surprised to see that i was cheated.
    My premium details are,
    10,000 – per month.
    for 35 years.
    DOB : 31/07/1984

    Please tell me how much i will get it. Will it be good to withdraw after 5 years?


  95. Very informative article…
    Hi Baswa,
    Below are my details
    DOB 9 july 1982
    premium 9187 quarterly
    policy term 20 years
    started 24/5/2013
    Sum assured 750000

    Please help me in finding out total return after 20 years and also what would i get if i surrender in 5 years
    Thanks in advance !

      1. Thanks Basu,
        I had no interest before reading your blog and not even know the basic of investment but after reading your blog and some interesting question i did some google and found that if i invest 3000 per month in PF I will get near about 1942961 in 20 years (interest rate appx 8.7%), which would be far better then LIC.

        Do you agree to this?
        The only difference would be that I am not insured with PF but with LIC.
        any advise you want to share?

          1. No, I dont think that jeevan saral will fulfill the insurance need so I am planning to cancel this and will go for term insurance rather

            But again can you give me a rough idea how much will i get if i cancel today (3 years) offcourse i will call LIC as well but thought to check with you as well
            hope you wont mid

  96. i have a jeevan saral ….premium of 1,40,000 per annum…….i have completed 3 years….when should i terminate to get the whole premium amount back without any interest….or when should i terminate to suffer least loss in premiums….thanks in advance…

      1. Sir,

        For example, we paid Rs. 60,000/- in 5 years under Jeevan Saral Plan,

        and we surrender the policy after completion of 5 years, then what amount we get ??

        we get paid amount with interest or without interest ??

        Also, what will be rate of interest ?


  97. Dear Basavaraj/ Admin


    Today morning I posted my query on your site and it was displayed but later on it deleted by you people but again I am writing to you.

    I took Jeevan saral plan (165) on 15-10-2010, that time my age was 19th Years. I pay quarterly payment Rs. 3062/-, and sum assured is 2,50,000/- , Term – 12 years.
    Now I am planing to surrender it on 20th Oct-2015 due to some personal reasons.

    So please tell me what amount I will get after completion of 5 years, also tell me what rate of interest will be provided to me.

    Moreover, if I complete this plan till 12th years what amount I will get ??

    Your prompt revert on same will be highly appreciated.


      1. I am unable to know my query answer

        So please give me brief idea what amount I will get after completion of 5 years

          1. Hello Sir,

            I contacted LIC Branch and came to know that Maturity Value is Rs.50169/- even I paid Rs.64302/- to lic in 21 premium of Rs.3062/- quarterly

            so its cleared, we will not get 100% amount even after completion of 5 years

              1. Hello Sir,

                Can you please confirm which form I have to fill for policy surrender

                Should I fill form No 5074 ?

                Or form no 3510 ?

                Or any other form ?

                Please confirm asap bcoz I have to send these documents out of station

                Note- My policy is not completed

  98. Dear Mr. Basu,

    I have taken jeevan saral policy in 2011 when my age was 60 yr.Annual Rs.60050.Till today I have paid 4 instalments. Term of the policy is for 10 years. The maturity sum assured is 152950.Tell me how much amount I can get on maturity assuming the current rate of LA.If I decide to surrender the policy , how much will i get now ?

    S.T.Dabir, Aurangabad

      1. Dear Basav,

        My confusion is regarding the LA payable for a 10 year term policy. It is mentioned in the scheme that LA will be paid only on complition of minimum 10 years. In that sense, the maturity amount in my case will be – Rs. 152950 (MSA) ) +Rs.45900( LA at the present rate of Rs. 300). = Rs.1198850/-. Is this correct ?

  99. Hi Basu,

    Some correction is required in your information.
    I have surrendered my jeevan saral policy after 5 years and i haven’t received 100% of my premiums. I received Rs 36,000 lower then my premiums paid during 5 years of tenure. But you have mentioned that if surrendered after 5 years then we will receive 100% premiums.
    Please let me know if you need any clarifications.

    Though you have made your disclaimer statement clear but as a responsible blogging person we should be very careful in publishing financial related info on web on which people are going to take decisions.


    1. Satish-What I said is, LIC consider your policy as 5-year tenure policy. Accordingly they adjust the MSA for 5 years period+LA. If such adjustment is less than of what you paid then it is an eyewash which LIC created stating that this policy is highly liquid.

  100. Hi Basavaraj,

    I had two policies of jeevan saral for the term of 35 Years as mentioned below:-

    Enrollment Date Prm Amt[Monthly] Maturity Amt
    28-02-2012 [2,042.00] 5,00,000
    14-01-2014 [4,083.00] 10,00,000

    Can you tell me the surrender value and paid up value for both policy? AND
    what you will suggest to do should I surrender or should i do the paid up for both the policy?

  101. Dear Sir,
    Kannan here, I have taken Jeevan saral (165) policy through an agent in April 2009. The Policy details are as follows:-

    Jeevan Saral (165) Policy Term – 21 years
    Date of commencement: 09/04/2009

    My Age at the time of policy: 30 yrs

    Premium – Rs. 7656 / quarter

    Maturity Sum Assured – Rs 7,24,375
    Accident Benefit sum assured- Rs 6,25,000
    Term rider Sum Assured – Rs. 6,25,000
    Policy Maturity Date: 09/04/2030

    My question is

    1) The Agent showed me Jeevan Saral ATM Plan chart(Table no 165) that I would get 20 lakhs at the end of 21 yrs after taking a premium of Rs. 7656 / quarter. Will I get 20 lakhs (as per table no 165) at the end of 21yrs?
    2) If no, then how much i will get actually at the end of 21 yrs?

    K. Kannan

      1. Thank you for your quick response…

        Please let me know that could I get 20 lacs (as per table 165) at the end of 21yrs?

          1. Sir,
            As per policy I need to pay premium Rs 7656 per quarter for complete policy term 21 yrs. So as a whole I could have paid around 6.5lacs (Rs 7656 * 4 * 21=Rs 6,43,104 ) at the end of 21 yrs. As per table 165, LIC will give me lumpsum of 20lacs alongwith loyalty addition after maturity period 21yrs). So I hope it is a good return. Please correct me if I am wrong.

            1. Kannan-I assumed wrongly that the term of policy is 30 years. Now according to your agent, the return on this investment will be 10%. This is totally impossible from this policy. Considering the expenses involved in traditional plans and the nature of investment LIC do by this amount, it is hard to expect around 5%. Rest is left with you to decide.

  102. Dear Admin and all user,
    I want to share my feeling here-
    I took Jeevan Saral policy in 2008 for a premium of Rs.20417 annually (my age was 24 years ).During taking the policy my agent show me a detailed chart which show multiple benefit and too much return. I observed that no agent is showing actual table to customer and formula for calculation of maturity amount. Thanks to Basavraj .
    During that time I was only 24 years old and very much eager to take a pension insurance plan for my better future. I am a common man and was not aware about common insurance fraud.
    Please note that LIC agent will tell you only high premium plan so that they can get good commission and Jeevan Saral is the best example. We are indian and believe on everybody very easily. We believe in LIC as our parents teach us that LIC is very good.
    After taking this policy I learned many things and invested in other area like Equity, mutual fund, Recurring, FD etc and I want to share my knowledge for you.

    1. Insurance- insurance should be used only for covering risk not for investment but most of us try to invest our money in insurance. ULIP is a great example for that. From my past mistake I learned that everybody should take only pure insurance without any maturity
    for eg: Pradhanmantri Suraksha Bima Yozna of Rs.12 premium- it is the best example for pure insurance without maturity but only for accidental insurance
    Ask your agent to show life insurance plan without any maturity. Believe me he will try to misguide you because in that case premium amount will be minimum
    for eg: if you want a risk cover of Rs.500000 in case of death then you have to pay only 1400 annualy ( if your age is 24 years) so safe your family by taking pure insurance plan

    Now come to second option-
    2. Investment- you can invest your money in various option as per your wish but i will suggest you to invest in many option rather than in one bucket.
    a. Gold
    B. Property- Highest Safe Investment and best value
    C. Equity Share Market- only for some Tech savy person
    D. Mutual Fund- Medium risk and ladder for new investor. Personally I took ELSS mutual fund for 3 years locking period and believe me I got my money double ( may be i choose best fund or luck) and since then I am investing money every year + tax benefit
    E.Kisaan Vikas Patra- we are used to it. we should invest our some % in it.
    F. PPF- good for safe side and secure future
    G. Local BC or Patti or Kitty- Best for businessman
    H. Recurring- Its very easy( if did online) and suggest that every person invest their bank saving in it. You can withdraw anytime.

    Question to Admin- Sir, I am feeling that I stuck due to investment in Jeevan Saral plan. I started with Rs.20417 in 2008 for 35 years term plan and now i want to surrender but i want some return. Through your table i calculate that i will get around 950000 without loyalty which is worst return as per me so please tell me that my calculation is right or wrong and for some return in which years I should surrender the policy.
    Second Question- For securing my future I want to take a pension plan but I don’t have proper knowledge so guide me after surrender this policy which pension plan I should choose.
    Third Question- I started my business recently (I worked in various MNC for last 10 years) for which I want to establish a taxation system. I read many books for taxation but got confused and need your help. For this support I can pay your fee.
    My email id [email protected].

    Please revert.

    Best Regards,

    1. Subhash-I respect your sharing and concerns. However, I have different opinion about investments like Gold, Property, Equity (this is not at all meant for tech savvy, in fact, it is bet for those who understand the concept of equity) and for local BC. Now regarding your doubts,
      1) Your policy already completed 5 years. Hence, visit LIC branch and ask for closure value. Then decide whether it is worth to continue or stop.
      2) As of now there is no such pension product, which you may say BEST. You have to accumulate on your own.
      3) Sorry, I am not an expert in that matter. I can only handle the personal finance tax but not business or corporate.

  103. I have LIC jivan saral policy with premium of 6065 HLY since July 2008.
    1. If i surrender this policy than what amount of money i get ?
    2. if i surrender after 10 years than what amount of money i get ?

    MY MSA is 534990
    MY TERM is 35

      1. Thanks Basu, I can and will contact LIC nearest Branch.. but what’s the use of this blog then?

        1. Abhishek-I am not here to let all readers to know about the surrender or paid-up values. This is meant to understand you about how it works. Also, if you are so smart to ask me of WHAT IS THE USE OF THIS BLOG, then I feel it is a pity of you. This blog is meant for making you to understand how these schemes work. You already committed one mistake of investing without knowing whether it suited to you or not. Nothing comes easily and the same applies to your investment and knowledge.

          1. Thanks Mr Basu.. as far as my knowledge is doesn’t need your scale for rating..Instead of reading your blog, people can go to website, article & their policies.. but if you see most of the comments are asking for your help on MSA.. you should know how to solve it..put a excel which gives indicative , it’s still fine..
            I have answer to your offending comments, but I would rather end the discussion with a note that I have got details I was looking for PERIOD

  104. Hi,

    I have a Jeevan Saral Policy, premium 9188/- quarterly. Till now I have paid 13 premiums i.e. 3 yrs + 1 quarter.

    If I now surrender the policy, what would be the surrender value?


  105. Hi Sir,

    Found your blog very useful. Thanks for the really informative post.
    I need a small clarification here. I have a Jeevan Saral policy since 2010. I have been paying Rs.1000/month and now it’s been 5 years and the total premium paid is Rs.60,000. So what is the amount that I will get back if I surrender now? The special surrender value says, if 5 years’ premium has been paid then 100% of Maturity sum will be assured to us. But guaranteed surrender value is 30% of the total premium paid excluding 1st year’s premium. Which one of these do I get? And how to avail the Special surrender plan? Please help me out with this.


  106. I have started my policy on September 2011 my premium is of 35280 per year I have paid 4 installment. My policy is jeevan saral with profit . how much I will get if I surrender this policy now.
    Or if I surrender after 5th installment how much I will get ?

  107. Sir, Is there any website where we can calculate the maturity amount of different policies?

  108. I purchased a Jeevan Saral Policy in Feb. 2009 and have paid instalments for six years. My quarterly instalment is Rs. 9800/-. Now I want to surrender this policy. How much amount I will get 0ut of it. I have paid for six years as follows:

    9800X24= 235200

    Whether I will get some interest on it or not? Kindly help me.

  109. Hello Sir ,

    My name is Sumit , I am having a jeevan saral policy taken in 2011 @ the age of 24 . The premium amount is 48000 yearly & policy period is 35 years .I come to know after so many blogs that i did a mistake of taking this policy . I have paid premium for 4 years & would like to quit after paying the 5th year premium . Can you please let me know the amount i will get aftr completion of 5th premium under special surrender ?? Please advise . Also please let me now the value after completing ten years of premium . Will get loyalty bonus add on ??

  110. i am paying 1500 pm for 15 years and my plan is Jeevan Saral… please calculate the maturity amount and send me the same in my email.

  111. Hello Sir,

    i have bought Jeevan saral in 2011 and paying premium of Rs.30025/- since then. Its for 35 years. I took it when i was 25 years old. I am still confused what i will be getting after 35 years. Policy date of maturity is in 2046. Sorry for the confusion but i am not good in this type of calculations and lot of confusion about the sum assured and maturity sum etc…
    Also let me know how you calculate so I can plan and calculate in future accordingly.
    moreover can we take same policy twice or increase premium in between?

    Thank you sir

  112. hi

    thanks for sharing valuable information.
    my husband brought a LIC Jeevan Saral Policy (Table 165) for 18 years at the age of 33yr in 2010 , qtly premium 15312. Policy sum assured value 12,50,000/-. Please let me know my total maturity value.

      1. Why so much partiality. For the guys questions you just told them to read the article and for the girl you answered her question. 🙂

        1. Calvin-Is it? I have not done any such partiality. Initially I tried to reply with their unique quaries. But if the same quaries started to repeat then I requested readers to follow the earlier comments. For me no differentiation of gender.

  113. Dear Sir..

    Its wonderful the way u explained the calculations. I will be extremely grateful to you if you could tell me the exact surrender value. I am investing Rs 3000/- month in Jeevan saral for 15 years term starting in March 2011. If I surrender after completing 5 years of premium paid ( i.e in April 2016) what amount I should assume to get ? Pls help. My maturity sum assured is Rs 750000/-

  114. Dear Sir,

    I took Jeevan Saral for my Wife on 12-Dec-2011 for 35 yrs term and my annual premium was 12000/.
    As one of my friend told that the Maturity Sum assured is not that great in this policy.
    So Please guide whether to continue with this policy or surrender it after 5 yrs.

    Thanks in advance.

      1. dear sir
        i have bought jeevan saral before 5 years back
        monthly premium is 1000
        how much money i should get after 25 years

  115. Hi,

    I had taken Jeevan Saral policy in combination with Jeevan Anand in 2013 at the age of 26 for a term of 30 yrs. I pay monthly premium of Rs. 1125 towards Jeevan Anand and Rs. 1021 towards Jeevan Saral. Please suggest me whether I should surrender Jeevan Saral after lock-in period of 3 yrs ends. My mother also pays Rs. 360000 as annual premium for Jeevan Saral.

    Also the premium schedule chart provided by my advisor shows return of 1416000 after 30 yrs from Jeevan Anand policy. Is it true ?

  116. Hello Sir,

    My husband has opted for LIC Saral Policy (165) in 2010 at the age of 21. Sum assured-300000, premium-3675 quarterly, Term- 30 years. Location-Pune, Maharashtra.
    What would be the amount we will receive after maturity of the policy?


  117. Dear Sir

    Based on your comments, it seems it is advisable to exit this plan after 5 years. I have paid 3 premiums so far. Should I stop paying premiums and surrender after 5 years or pay 2 more premiums and then exit?

    Thank you so much in guiding laymen with this forum.


      1. Sir I have a jeevan saral plan
        30yrs term
        Taken at age 26
        Premium paid for 6yrs(rs.1940 monthly)
        If I surrender now I will get 100000/-
        If surrender after 10yrs will I get rs.400000/-
        Is my above calculation true

        Sir please help

  118. DEAR SIR,

  119. Sir I want to purchase a land worth Rs 12 lacs. as an investment I had given an advance Worth Rs 5 lacs the registration will be on coming March 15. But sir I have a shortage of Rs 3.5 lacs. sir i am a self employed person running my own computer business and i am an income tax payer. am i eligible for a loan for land purchase. except the advanced deed i Had nothing to give as a security to bank.
    actually i am from west bengal and the property(land) which i want to purchase is in the state of Bihar just 2 hours from my location. if i am eligible, from where do i apply a loan from my nearest Branch? or in the Branch where I want to purchase the land ?

  120. I got Jeevan Saral Policy two years before.
    My yearly premium is Rs.31,826. ANd the Sum Assured is Rs.6,62,500/-

    I just paid two Premium. I am yet to pay premium for this year (Dec 14).

    By reading all above comments, I have decided better to quit the policy at this stage and buy some Term Insurance (Jeevan Amulya).

    Just wanted your advice. Is it better to quit now or after 5 years?

    Please help.


    1. Ramprabhu-It is better to continue if your are satisfied with return I quoted in below comments. Otherwise discontinue immediately after 5 years why to buy offline term insurance of Jeevan Amulya, when LIC offering cheaper online term plan?

  121. hi Basavaraj,

    i have jeeval saral 165 policy my quarterly premium RS 6431
    can u explain before 20 year how much my maturity amount .

      1. Basav for this plan I want more clarity
        I have saral plan for 30 Years with 30K yearly prem, 7 year completed, MSA is 162262

        LIC office told mi surrender value 159355 for today
        Accroding to the product note if I continue till 10th year my surrender value should be MSA i.e. 162262 but my agent told mi that u continue till 10th you will receive the bounus + 100% of value paid that is 3 lacs + bonus aprox comes to 3.75 lacs

        pls suggest what will be surrender value after 10th year,I got for after 7th year

        in this situation what should I do

        pls note that I don’t want to continue this till 30 years

  122. Hello,

    I have been following your Blog Posts for some time now and find them very informative. I had a Query regarding my Jeevan Saral Policy. I was also one of many people who got lured by a LIC Agent and got trapped in this Policy.
    I had taken this Policy in 2008 and it has completed 6 Yrs. now and now i want to surrender it. I got to know from LIC Customer Care that i will be getting around 1.75 L and my Premium Paid till now is 2.18 L.
    With a heavy heart, i am ready to bear the Loss.

    However, most important thing i want to know is whether i will lose the Tax Exemptions that i have claimed by showing the LIC Premiums as Investment under 80C ? Do i need to repay all the Amount that i have claimed under 80C for 6 Yrs.?

    Awaiting your response.
    Thank you.

    1. Forgot to add that i also seem to have misplaced the original Policy Document. Do i need to apply for a Duplicate Policy Document before surrendering it ?

      1. After going through the above link, i can conclude that I do not need to repay back the amount I have got exempted till now under 80c. Kindly confirm.
        Also, plz let me know if I need to obtain the duplicate policy before surrendering, as I seem to have misplaced my original policy document.
        Thank you.

  123. Hi Sir,
    I have Started my LIC Jeevan Saral Policy on 09-Dec-2009,
    I am paying a premium f 24020 yearly.
    My DOB is 16-08-1986.
    Please let me know what is the amount that i will get back once i surrender the policy in Dec 2014, i.e. after completion of 5 years.


      1. Thanks For the Reply Sir.

        It would be great if you can tell me that Will the Amount be at least equal to the premium paid by me i.e. 120,000 or less than that ?


  124. Dear basavraj
    My dob- 25/12/84 and my jeevan saral plan details are as follows
    Policy date- 21/03/2011
    Quarterly premium- 15312
    Table-165, term- 20 yrs
    Sir, how much will I get after completion of 10 yrs and 20 yrs

    Thanks in advance

  125. Dear Sir,

    How much do you expect the Loyalty addition to rise as as of now based on bonus 2014-15 its 475 for 13 years with highest premium paid slab.

    This question is to understand if i am staying invested and say redeeming it at 25 years (instead of 13 years for which the calculation of 475 is given) how much this LA would be ?

  126. Hi

    I purchased Jeevan Saral plan with yearly payment of 30025/- for 35 Years. Policy started in 12/2008. As per the comments it does not look a policy with good returns.

    1)Can you please advise me that do we have better LIC policy than Jeevan Saral?? If yes, should i go for surrender the policy and take that one.

    2) If not LIC can you suggest me any good investment tool with can give the approx. 10% guaranteed returns with the investment of 2500-3000/- per month.

    Vikas Singla

  127. Dear sir,
    I have purchased quaterly premium of lic jivan saral plan for 21 year with value 4594 per quaterly basis i have paid 5 year .i wants to surrender plz confirm the return amount

  128. I am paying 25000 Rs yearly premium since last 10 years of jeevan saral policy. Already 11 premium paid. I want to surrender my policy next year..Heard 260% loyality addition declared.What will be my surrender value next year.
    kindly help.

  129. Hi,

    I bought this policy on 2008 and paid my 7th installment(210000).Recently i am in need of money and wanted to surrender.surrender office said i can only get 1,65000.
    If i continue till 11th year i may get good returns(3-5%).

    Beware these agents..they may say 100 rupees each year after 20 year you will get 2100 + expensive accidental insurance.


    1. Sir,
      I have taken jeevan saral policy when I was 20 yrs old and paid Rs. 4083 monthly premiuma for 25 yrs. Policy completed 5 yrs I dn’t understand what should have to do ? Surrender or continue. If surrender then what amount wlii be get.

  130. Hello Sir,
    I read your post completely. I am very bad at math. I will be very much glad if you help me with the figures.
    I got LIC jeevan saral policy.
    I pay 3000/month

    on my LIC doc it shows 1589790 as mat sum assured and 2048 as last date

    i can not hold for that long

    how much will i get after 5 yrs and 10 yrs (lump sump) including all the benefits.
    I have lost the faith in this policy.
    How do you consider this policy.
    I have just started earning can you suggest me better approaches of investment to get good benefits.
    I am very new to all these.

    Also can I get loan on jeevan saral if so how much?

    1. Hi

      My understanding from your article is I will get 80% of premium paid after 3 years i.e. 80% x (3x72K) = 1.72 Lacs.
      And if I hold it for 5 years surrender value will be 100% of premium paid i.e. 5x72K i.e. Rs 3.6 Lacs.

      If I consider my example here
      3*60 = 180

      but after 10 yrs some of the charts on the internet shows
      3*120= 360 (something around 6 lacks i shown)

      How is that calculated?

      Also If My term is 35 yrs.

      Will I get near around 6 lacks after 10 yrs?

    2. Anirudha-It is not a rocket science to understand these basic things. Try to understand yourself and take control of your money. Otherwise one more agent will come and sell you one more bad products. After all it is your money. So take care by learning basics.

  131. See what I understood is, if I have 10,00,000 INR sum assured at maturity and if term is for 35 years with yearly premium of >50000 if we assume rate of 425 INR for 35 years per 1000 rupees of sum assured then loyalty addition will be
    (10,00,000/1000)*425*35=1,48,75000 INR

    Am I right?

    1. Hi Basavaraj,

      I have Jeevan Saral with 72k/year premium paid half yearly. I have already paid 6 premiums i.e. for 3 years. please suggest what is the best time to surrender the policy.

      My understanding from your article is I will get 80% of premium paid after 3 years i.e. 80% x (3x72K) = 1.72 Lacs.
      And if I hold it for 5 years surrender value will be 100% of premium paid i.e. 5x72K i.e. Rs 3.6 Lacs.

      Please check if this is right?

  132. Hi,

    I have two different policies from LIC – Jeevan Tarang and Saral.

    Have question regarding Saral. As per my LIC bond, sum assured is rs.5 lakh and for 21 years. I bought this LIC on 23.09.2009 hence this September (2014), 5 years completed for this policy. I am paying quarterly Rs. 6125 premium. Now, my query is, if I surrender my policy now(after 5 years), what would be my SA? I have this question because in this forum page you said have explained about DAB.

    Thank you

    1. Pari-Please read complete description. In this policy SA is different and MSA is different. Once you go for closure after 5th year then this MSA is reduced to 5 years policy period and accordingly you receive benefits.

  133. can you please let me know then formula ( logic) for calculate MSA ? I am also frustrate with jeevan saral plan and paying 42000 yearly. Now I am planning to come out from this plan so if you have formula/function for calculate MSA then please provide me. Thanks

    1. Jindagi sath bhi nahi chahiye
      bad bhi nahi chahiye.

      All products are bakwas including term plan of LIC.

      What is the life ecpectancy calculation of LIC acturies I didnt understood.

      Puri loot machake rakhi hai

      LIC ko jano mere yaro….

    1. Sudhir-What LIC showing the return of 6% and 10% is indicative return as specified by IRDA. This made mandatory for all insurers as it will give a clear picture how the product works in a scenario of 6% and 10%. But never ever be in wrong belief that LIC will give you either 6% or 10% return. Nothing is guaranteed and it is based on performance, bonus declaration or LA declaration.

  134. Hi Sir,

    I took jeevan saral policy in May-2010 for a monthly premium of Rs. 6125 for a term of 25 years. I took this policy at the age of 25. On my policy document MSA is given as 21,83,100 and my SA is 15,00,000. I pay policy premium on a quarterly basis.

    I have a couple of questions on this,

    1. Even though I am paying premiums till date, the payments were irregular and the policy got lapsed and revived for around 3 times in the last 4 year period. Does this affect the bonus or LA that I am going to receive after its maturity? Also, in LIC website, Vested bonus against my policy is shown as zero. What exactly does Vested bonus means?

    2. Can you give me the approximate amount that I am going to receive after completion of 25 years and do you think if it is better to surrender the policy or continue ? Please advise an alternative financial tool where I can gain maximum benefits compared to jeevan saral if I invest regularly for 25 years with monthly amount of 6000 Rs.


    1. Surya-1) It will not affect your return part. Yes it is showing bonus as zero. Because this policy not contains bonus but Loyalty Addition.
      2) It will be around 6%. Gaining maximum benefit depends on lot of things. So without knowing your financial life it is hard for me to guide you.

      1. Hi Sir,

        Thanks for the prompt reply.

        1. The 6% you are saying is the gain on the MSA and that too after 25 years? The chart provided to me by the agent shows that I would receive around 81 lacs after a period of 25 years. Do you feel I should go for surrendering it? When you would suggest me to surrender?
        2. My annual income is around 12 Lacs, and I am looking for an investment plan which would give good returns (long term investment of 25 yrs @ 6000 Per Month) as well as tax-benefit scheme under 80C. It would be great if that investment would cover me for insurance too eventhough I am contemplating of taking term policy.


        1. Surya- 1) 6% gain is not MSA but the premium you pay. This includes MSA+LA. Either believe your agents or facts shown by me. So decision is left with you. If you are planning to surrender then go ahead after 5th year.
          2) My first advice is not to include insurance with investment. Buy term insurance of around Rs.1 Cr to Rs.1.5 Cr. Then based on your financial goals choose a plan. How much according to you is GOOD RETURN?

          1. Hi Sir,

            Thanks again for your reply.

            1. Is there any blog entry by you to calculate the surrender value after 5 years of Jeevan Saral?
            2. The definition of good return according to me would mean the following,
            a. may be 15-20% for a long term investment of 20 years. ( Rs 6000 PM)
            b. provides tax benefits under 80C
            c. Guarantee for my money.


            1. Surya-1) Neither blog nor LIC officials know the values. If you can then check out by visiting LIC branch 🙂 and this is the reality.
              2) You are asking me to bring down moon on earth by asking imaginary returns of 20%, tax efficient and GUARANTEE. Do remember that each product have it’s own positive and negative side. Along with that return is always directly proportional to risk. So in one way you are expecting high returns and in another way you are claiming Guarantee of money. Only GOD or some agents who mis-sell can suggest you such product. Please be realistic and look around for products and do your own research. There is no magic wand neither in me nor with any expert of earth to provide and suffice all your requirements.

  135. Hi Sir,

    I opted for jeevan saral policy from 2010 Aug.

    My Sum Assured mentioned in the policy document is 4,00,000
    My Meturity Sum Assurance mentioned in the policy document is 3,12,000

    As per your comments I understood that after completion of 5 years if I surrender 100% of meturity sum assurance will be payable to the customer.

    In that After completion of 5 years if I surrender the policy I will get 3,21,000 not the amount which I have paied for premiums

    Could you please correct me if I understood wrongly


    1. Ram-Sir the MSA will be adjusted according to your term of policy. The said MSA is for the full term of plan purchased by you but not for 5 years. If that is the case then every one might have booked 200% profit 🙂

      1. Thank you for your quick reply!!! Appreciate your efforts!!!

        In that case, can you please calculate the expected amount if I surrender after 5 years? or please share me the excel to calculate the returns at [email protected]

        start date is Aug-2010, Base premium – 4800, mode- quarterly, my age when I took policy – 25


          1. Please let me know the required details. I will provide.

            for now,

            My policy Jeevan Saral is Quarterly mode and paying 4900 every quarter.
            I took this policy when I was 25, Aug-2010, SA is 400000, MSA is 3,12,000.

            Please calculate the MSA after 5 years.


            1. Ram-Required details of not about policy details from your end or MSA calculation, but the LA rate which none (even LIC officials) not know. You can check it with LIC, they too don’t know about this 🙂 This is the reality.

              1. Hi Sir,

                Out of 3 surrender options, which one they consider to calculate the returns if we surrender the policy after 5 years, do you any idea? Does the surrender option mentioned in the policy document?

                Just curious about it:)


  136. Hi Mr. Basavaraj,

    This is Imran here, 36 yrs old. I am a NRI, working & living in Kuwait (Middle East) for the past 5 years. Thanks for sharing the information regarding the LIC Policies. I’m actually new to this concept of LIC Policies, investments, mutual funds etc.

    Family members – Me, my wife & a son (1 1/2 yr old).

    I have taken Jeevan saral (165) policy through an agent in Hyd, in Aug 2013. The Policy details are as follows:-

    Jeevan Saral (165) Policy Term – 21 years Date taken: Aug 17 2013

    My Age at the time of policy: 35 yrs

    Premium – Rs. 60,050 / year Premiums Paid – One ( Aug 2013- Jul 2104)

    Sum Assured – Rs. 12,50,000
    Death benefit sum assured – Rs. 12,50,000
    Maturity Sum Assured – Rs 13,93,200 Policy Maturity Date: Aug 17 2034

    Date of commencement – Aug 17 2013.

    The Agent showed me Jeevan Saral ATM Plan chart that I would get 44 lakhs at the end of 21 yrs after taking a premium of Rs. 60000 per year. You can find this chart online too.

    Example of the chart:- LIC Maturity calculated based on 10% I.R.R

    Term 250 400 500 750 1000 1500 2000 3000 4000 5000 6000
    —————— ————————————————————————————————————————
    1 0 0 0 0 0 0 0 0 0 0 0
    2 0 0 0 0 0 0 0 0 0 0 0
    3 5122 8195 10244 15366 20488 30732 40976 61464 81952 102440 122928
    21 223848 357833 447291 670938 894583 1341874 1709166 2683749 3578332 4472915 5367498

    Do I really get this amount “4472915” after I complete 21 yrs of my LIC Plan? I know that the agent has lured me in taking this policy. What’s the approximate amount that I get at the end of 21 years?

    Is it worth investing Rs. 60000 for this policy for 21 years?

    How much Loyalty Addition would I get once I complete the 21 yrs term, If you have any Idea?
    Any bonus will be there too?

    Should I continue in this policy or opt out? As I have no idea about my future financial situation.

    What is term plan, risk cover, investment, mutual fund, can you plz explain?

    What’s the best option available for an NRI to put or invest the money in like mutual fund, investment, term plan?

    Can I go for a health plan in India being an NRI?

    I want to secure my son’s future too. Which plan should I go for?

    Actually I’m new to this kind of concept, that’s why I have so many questions.

    Please advice me in this matter. My Email ID: [email protected]

    Thanks & Regards,

      1. Dear Basavaraj,

        Thanks for all the information regarding the Jeevan Saral Policy Table 165. I have taken this policy in Aug 2013, after reading all the comments I have decided to drop out.
        Premium – 60050 yearly, Premiums Paid – 1, Term – 21 yrs

        Thanks for giving the Jeevan Saral LA amount for the 2013-14, as per the link provided by you.
        Term – LA
        10 – 375
        11 – 400
        12 – 425
        20 – 650

        Will the LA amount Rs. 650 per 1000 SA be the same every year or increase or decrease?


  137. Hi,

    Thanks for detail explanation. I have Jeevan Saral with Annual premium f Rs 490,000/=

    What is maturity sum expected. I have taken this for 10 years.

    Can you send me excel sheet for calculation [email protected]

    Thank you


      1. Dear Sir,
        I have jeevan saral, and paid 5 premiums for 48000/year. If i do not surrender this policy and just let it lapsed. So would i get return what i have paid earlier. I can wait till next 5 years.

        Please suggest as i am not in condition to pay more premiums and surrendering this policy at this stage would occur in lose of 50000 around to me.

        Thanks in Advance…….

  138. Hi

    Can you please let me know how Loyalty Addition is calculated for Jeevan Saral for 20 year policies
    IS it that every year if they declare some amount say 250 than LA will be added every year till 20th year

    Dhimant Shah

  139. Hi..

    I took jeevan saral at age of 23.
    SA = 9,00,000
    Half yearly payment = 21834

    I have already paid 7 installments of premium (3.5 years).

    I want to convert this policy into paid up policy.

    I have heard that your sum assured is reduced, but you will continue to get benifits of loyal addition.

    Q: is it so?
    Q: Do i need to pay premium after 10th year, to continue the policy. I want to continue by paying low premium, is it possible>??

    need your quick advice,

    Also let me know the pros and cos of paid up policy in my case..


    1. Pratik-Paid up will be useful when you are about to end the policy term but not at early years. So better to opt for surrender. Are you so much interested in this plan which even if you complete 10 years will give you not more than 5% return??

  140. Hi basvaraj

    I have jeevan saral policy, SA = 9,00,000, 21834 Half yearly payment.

    I have already payed 7 installments of premium (3.5 years). I have read you can convert this policy into paid up policy.

    I know that maturity sum assured will be reduced to nearly 1/3rd, if i do so.

    Q: whether will continue to get the loyalty addition after 10 years, if will continue paying premium (reduced premium )after 10 years??
    Q; According to my agent, my policy will get lapsed after 5 years, if i wont pay any premium.

    I want to get out of this policy as it is hardly giving any returns.

    I need your help..


      1. Thanks Basavaraj for reply.

        I read in the bond document that partial surrender is possible after 3 years of the premium payment.

        Minimum premium to be paid has to be 3000 p.a.

        Does that mean LIC will give us rest of the premium back?? (which is nearly 40,000 p.a )

        Does LIC really allows so? My LIC agent told me a shear NO..!

        According to me, if i partially surrender it, it wont be a bad deal..!

        Because i would lose a good amount of money now, or even after 5 years..

        Pls advice.

        Thanks in advance..

  141. Sir, I have taken Jeevan Saral..Yrly Permium Rs.60000/- Term- 35000/-.
    I have paid 3 Premiums. ( I also have Pension plans with LIC. ) . However looing at approxx. return of 7% , i would like to surrender this. Kindly inform shall i wait at least till 2 more yers and ten surrender the policy after completion of 5 yrs. Or Right now also ok.

      1. Sir,Whts the advantage. I will be any way loosing the first permium/ min one even after i surrender after 5 yrs.. I think in this policy for no loss is not possible for min 10 yrs. i.e. only after 10 yrs – no paid premium is deducted even if i surrender the policy.

        kindly advice.

          1. No Sir.I dont want to wait for 10 yrs.What i am asking is shall i surrender it today?- as I have already paid 3 premiums – today my loss will be 30% – if i surrender.. However if my knowledge is correct – then even if i continue for two more yrs and then surrender it after 5 yrs. – still i believe i will loose the first premium whicch is around 60000/-.. My exact qn. is — whats the advantage of paying 2 more premiums – wait for 5 yrs to complete and then surrender.. Pls pls advice. ( As such if at least some benefit is ther.. I can afford to pay two more premiums) Thanks.

              1. Dear Basavaraj,

                I have Jeevan Saral for annual premium of 40,000 for the period of 35 year and I have already paid 7 premiums. I am wondering is it best to surrender the policy or continue for 10 year to get the loyalty bonus.
                Your advice would be much appreciated.
                Many Thanks

                  1. Hi Basavaraj,

                    Greetings !!

                    I have one Jeevan saral plan and I`m paying 65000 PA , Just need your advice if this is really worth to continue ?

                    How much I can expect after completion of 10 years ?


                    1. Varnu-It is worth if you are satisfied with return of around 4% to 5%. It is worth if you feel your insurance coverage from this plan is suffice. Otherwise it is BIG NO product.

  142. Hello Sir,

    I have two LIC policies: –
    1. Jeevan Anand : For 30 Years : Premium : 2519 quarterly : Paid 17
    2. Jeevan Saral : For 35 Years : Premium : 7656 quarterly : Paid 11

    Sir, my questions are following: –
    1. Do I need to stay with both policies?
    2. What are the maturity value for both policies?
    3. Planning to invest 1500 monthly for 10 – 12 years, so what is the best option.

    Please advise.


    1. Abhishek-Please understand that if you are totally satisfied with the return of around 6% to 7% by go on investing for around 30-35 years then you can continue. Otherwise you need to think seriously. Option is left with you.

  143. I have taken Jiwan Saral policy ( Table-165) in Aug’2008 half yearly premium Rs.24240.00 . Already others policy purchases from Various Insuarnce Company also,total sum insured Rs.22 lacs.Now I want surender of Jiwan saral policy,because return after 20 years from LIC Rs.18-19 lacs from this policy.If I invest this amount in PPF return after 20 years Rs.27.00 Lacs. Now Jiwan saral plan continue or surennder. OR Open PPF account insted of LIC Jiwan Saral Plan .Please advice/Suggest to me for

  144. Dear sir,
    I am 20 years old student and also doing job in LIC.My monthly salary is 10000/month.I am looking for my family future and also mine.So, please suggest me some financial planing for me.

    1. Vivek-First buy online term insurance of your choice for around Rs.20,00,000. Create around 6 months of household expenses as emergency fund and keep it in Bank FD. Buy health insurance to you and to your dependents. After this we can discuss regarding investing and all.

      1. Dear sir,
        Thanks, but i am already taken a anmol jeevan plan of LIC, and sum assured is 8 lac and also my father done 1 lac FD in SBI on my name 3 years ago.after paying my premium of anmol jeevan 10000/m is my in hand sallary.
        So, please suggest me a good type of financial planing.
        I want in my 40 years age,I have around 40 to 50 lacs in my name.What type of planning is better for achive this goal.Because if i am investing in LIC,it’s not possible.So,please suggest me sum FD and PPF or other investment area.

        1. Vivek-Suggestion is to increase your sum assured from Rs.8 lakh to Rs.15 lakh at least. For this I suggest you to go for LIC’s online plan which will be cheaper than what you are paying now. Second thing, buy health insurance for your family. Next start investing in PPF around 30% of surplus, rest in the mutual fund like Franklin India Bluechip Fund (G) or HDFC Top 200 Fund (G)

      2. Hi,

        I have a query, I took the LIC’s Jeevan Saral policy in 2012 .
        Monthly I’m paying 3062 Rs and policy term is 25 (is policy term means no. of years?) .
        Could you please tell me what I will get after the completion of this policy?. What will be the return percentage.?
        Then only I have to decide ,whether I need to continue or not.


    2. Policy no DOC Premium
      903776951 08/07/2010 Rs.510/-

      903776952 08/07/2010 Rs.510/-

      903776953 08/07/2010 Rs.255/-

      903590139 22/7/2009 Rs.510/-
      Above mention details for jeevan saral policy.I want to know surrender value of above policies after 5 years and after 10 years.If the value is not tell clearly,than please tell me approximate amount,which i get after surrender.

  145. Hi Basavaraj,

    I have a LIC Jeevan Saral (165) policy which i took in February 2009 – monthly premium INR 3062 for 35 years. I have not been given any loyalty bonus (LA) till date on the policy.

    Now that i have completed 5 years of premium payment, i wish to surrender my policy. However Iam not able to properly calculate the indicative/approximate surrender value of the policy. I request some help from you in this regard.

    According to me, the guaranteed surrender value (GSV) is INR (3000*52 months*30%) i.e. INR 46,800
    The Special Surrender value (SSV) is 100% of the Maturity Sum Assured (MSA) in this case, which Iam unable to calculate. Can you please explain to me the SSV taking certain assumptions for clarity.

    1. Sidharth-LA will be calculated at once only. So as of now you have not received any LA. Regarding surrender valuation calculation at 5 years, I suggest you to visit LIC office they will guide you with MSA and eligibility of LA.

  146. i want know , i alerdy complete 3.6 years ,my montly preium in 1021 , i wnat know if now i surrender what should be amount i get , policy no is 883990656

  147. Dear Basavraj

    Jeevan Saral was launched in 2004. It has not completed 10 years yet then how the LA for 10,11,12 years are declared for maturity,death, surrender claim?

  148. Hi Basavraj,

    I had taken LIC Jeevan Saral policy . Here are the details:

    Date of commencement – Feb 2007
    Mode of payment – yearly
    premium – 48040 Rs
    Age at the time of buying policy – 25 years
    Duration of policy – 20 years

    So in Feb 2014, it has been around 7 years since I have been paying annual premiums for it. However, I am confused whether I should continue this policy for whole 20 years and expect some good returns or should I discontinue it now .

    There was a chart prepared by my agent considering 10% Projected Investment Rate of Return according to which after 20 years I might get around 21 lakhs.
    Can you please let me know if this looks realistic or was just a marketing stunt from him to sell the policy.

    Also please let me know that when the maturity sum assured is already fixed at the start of policy, then how does this interest rate affect the final sum which we receive in Jeevan Saral.

    Really looking forward to your guidance on this.


    1. Tarana-Even if you continue till policy end then you can’t expect more than 6% return from this policy. So better to surrender it now itself. It was indicative return what your agent showed you but not GUARANTEED. But the reality is that after agents expenses of around 35% in first year, 7.5% in second and third year and 5% after that, will you still hopeful that this plan will generate even 7% return??
      MSA is like SA, it equals to around or more of paid amount. But real yearly addition is loyalty addition which changes year on year based on LIC’s declaration. So eventhough MSA is fixed, depending on LA your returns from this policy fixed. Now ball is your court to decide.

  149. Hello,
    i’m 26 years old now, Last year i’ve taken jeevan saral of Rs. 36630 / year. Now i get to to know about real insurance means and i would like to take a term insurance and i want cancel my jeevan saral.
    Till now what i understood is i can only cancel this jeevan saral after 3 years on 30% loss OR i’ll get full amount after 5 years….Is that correct what i understood?
    Kindly help me… i don’t want to loose my money.


      1. Nobody knows what you will get after five years. It is not necessary that even you will get your total premiums paid for last 5 years???

  150. Hello Sir. I took Jeevan Saral policy in Aug 2010. Half Yealy Premium= Rs 4852/- Sum Assured 2lac .I have paid 5 half yearly premiums(4852*5=Rs 24,260/- i.e for 2.5 years). After that i haven’t paid the premium. I want to surrender it. Currently i will get nothing as 3 years premium have not been paid. Now the LIC guys says pay the revival premium for the policy and then surrender to get some(80-90% of MSA) money back. Revival quote they gave me was of 3 half yearly premiums(4852*3=14556+100(late fee)) . So should i pay the revival premium to surrender in future or not to pay?Need your expertise, Thank You

      1. I did asked the question. They said “First Pay then only Surrender Value quotation will be available”.
        Also in last month I did surrendered one of Jeevan Saral policy which was in dad’s name.
        Its details..Annual Premium=Rs38,116/- paid for 3 years i.e Rs 1,16,448 After surrendering it i got Rs 71,050/-
        which was around 80% of reduced MSA(82,000) .By corresponding this policy to current scenario I did some math and came with Rs 24,686/- surrender value payable.
        Case 1: If I dont pay revival that case Rs 24,260/- loss
        Case 2: If I pay revival premium that case Rs 16,740/- loss(as total premium s paid will be of Rs 40,000/-)

          1. The,26 case i dont pay revival premium loss would be 24,260 Rs would be greater comparitively to.
            If i pay revival premium Loss would be around 16,000.
            Whats your suggestion??What should I do??

                1. Got the surrender value of 26,165 rs after total premium amount paid of 38816/- whose MSA was Rs 29,248.

  151. Dear Sh. Basavaraj,

    I am also a person who have done this mistake. Can u please tell me how much amount i will get if i surrender this policy (Jeevan Saral) as i have paid my 3 policy years @ Rs-24000/- per annum and next is due on August, 2014. Sum auured amount was shown Rs- 5 lac. Please also suggest should i continue or not.


    Rahul Sharma

  152. I took Jeevan Saral Policy : Plan -165 below are the details of the plan.
    Term : 25 years
    Date of Commencement : 28/03/2012
    Inst Premium : 6125(monthly)
    Mode : Monthly
    Sum Assured : 15,00,000
    Age when plan started : 25

    Could you please give me the exact maturity amount?
    Also please let me know if it is good to continue with this policy? If not, when should I plan for an exit?

    1. Siva-Siva-Please go through below comments, you find numerous examples to arrive at % of return. Your return of this plan will be around 6%. Better to discontinue once 5 years completion.

  153. Sir,

    I like ur suggestions and I have a query for you. Im a bit late but still my question is, can I switch my Jeevan Saral plan with some other lic plans and what is the appropriate time for doing so…….

  154. Hi Sir,

    I took Jeevan Saral Policy : Plan -165 below are the details of the plan.
    Term : 22 years
    Date of Commencement : 21/12/2010
    Inst Premium : 24,260(Half Yearly)
    Mode : Half Yearly.
    Sum Assured : 10,00,000
    Age when plan started : 21

    Could you please give me the exact maturity amount?
    Is it good to continue with this policy?


  155. Sir, I took Jeevan Saral policy when I was 60 yrs. Annual Premium Rs. 48040. I paid 10 annual premiums and now when I gave policy for discharge i.e on maturity , they told me that i will get only between 1.50 lakhs to 1.90 lakhs. I was promised by the development officer that I will recd more than 6 lakhs from lic on maturity. I have got a written presentation from him and on that basis i took this policy. Now it seems that LIC and its officers have cheated millions of people like me by mis-selling the policy based on some fancied returns projected by them.

    Pls help me as to how should I recover my premium paid of Rs.4.80 lakhs from LIC or its agent

    1. Shah-Sorry for your state because of few officials. But this is the reality. They sold you to increase their sales. You already paid the premium and there is no wordings on LIC bond which states the said return of Development Officer. If you have the written presentation with you now then why can’t you contact the branch or divisional office raising the issue. Please let me know whether you have any such presentation or not to guide you further. It is shocking that at this age you need to bear such losses.

      1. Sir, I do have the presentation which my agent gave me and it is lying in my file for last 10 years. On that basis , I put in the money. Now the LIC agent is also shocked that such less amount is given on maturity by LIC. He says that he also was not knowing regarding this.

        However, in laymans terms, agent has earned hefty commission , LIC has eaten the premium amount in 10 years. I guess due to Jeevan Saral marketing , lots of people are going to loose lots of money and this is clear Cheating on the part of LIC. Something needs to be done against LIC and its officers / agents.

        1. Shah-See the duality in agent’s mind. While claiming such high return I think he forgotten how much hefty commission he is eating. LIC never said that it give you such high return. But few agents or officers did such things to grab business. Let him be responsible for what he claimed. Otherwise remind him that you can sue him.

          1. Ok, I will find the legal recourse by consulting my lawyer. However , I wish to point out that I had purchase the same policy for my wife, but the duration is 15 years i.e. it will matured in 2019. Pls advise whether I should surrender it right now since premium is paid for 10 years or wait for maturity.

            Your advice will be greatly appreciated.

  156. Hi Sir,

    I’m 31 years old, I have 2 kids below 3 years. I’m planning to take useful money back or term policy for my family safety. Please suggest one good policy.

    I also have Jeevan saral policy from 2011.

    Commencement Date : 24/05/2011
    Sum Assured : 12 Lakhs
    Policy Term : 15 Years
    Plan : Jeevan Saral (T.No.165)
    Premium : 14,700 Quarterly
    Premium : 58,800 Yearly
    Policy Expiry Date : 01/May/2026

    As of now 3 years completed, I know it was waste paying this policy. It was taken by my father-in-law for my wife in her name since the agent suggest this was one of the best policy in LIC.

    After seeing your review, I’m planning to surrender this policy on the completion of 5th year (ie, May 2016).

    If Could you please suggest me whether i can go for closure and take good policy for my kids.

  157. Hi,

    I must appreciate your efforts to bring these complex calculations to a layman.
    You have mentioned ” I am working on this chart and soon will upload the whole Basic Maturity Sum Assured Chart.” Is this chart available?

    1. Priyanka-Thanks for your kind words. I dropped the idea of uploading the MSA chart because currently this plan is not available for sale. Also finding your MSA will not be a big issue. If you visit any nearest branch with policy documents then they will let you know.

  158. Hello Sir,

    I have taken Jeevan anand policy in 2007 and my age was 24, and yearly premium is 21000/- term-16 years, Sum Assured- 300000.

    How much amount i can expect on maturity.

    Thanks In Advance.

  159. Dear sir, i started the Jeevan Anand plan of LIC in the year 2010 with sum assured of Rs.2500000.00 for 25 years.I have been paying a yearly premium of Rs.1,03,114.00 since then and needs to continue till 25 years is over. I was told that i will get an amount of app. Rs.72,00,000.00 on maturity while the sum assured amount shall be paid to my family in case of my death. However, till date no such documentary proof has been provided by LIC or the agent about this Rs.72,00,000.00. Now i am worried amout the maturity value. Kindly give your expert comments & suggestion regarding the same.

  160. Hello Basu !!

    First of all let me appreciate all your efforts that you are putting in educating all of us through these blogs !!
    I have gone through this complete blog and I got much more clarity on Jeevan Saral.

    I still havent got a clear picture on one point.
    How should I calculate “Maturity Sum Assured” (without any loyalty additions) for this policy for a specific term say 10 or 15 years and for a specific age of the person.

    So if I have taken a polcy in year 2010 and my current is 31 years and my annual premium is INR 48040, how can I calculate my maturity sum assured after
    1) 10 years
    2)15 years
    3)20 years
    4)35 years etc..

    Is there any formula based on current age and the premium term?

    Kindly guide me on this front.


    1. Jasraj-LIC have their own formula to calculate the MSA. Your MSA value available on policy bond. Usually the Basic MSA was disclosed by LIC, rest of the calculation will be done based on your basic yearly premium, term and age of proposer.

  161. Hi Basunivesh

    I am phanikumar from Hyderabad. I have taken Jeevan Saral policy on 31/12/2013 with term 35 years and premium of Rs 9187 quarterly. As per the information provided by you I got the difference from Death benefit Sum assured and Maturity Sum assured. In my document, it was specified as Maturity sum assured is Rs15,37,410 and Death benefit sum assured is Rs 750000.

    Please let us know is this fix for 35 years term, as I have a plan to withdraw the policy after 24 years. Is the Maturity Sum assured vary if I had taken back the policy after 24 years. Also let us know if there is a chance that the Maturity Sum may go high.

    As per your information above i.e. Basic Maturity Sum Assured will be calculated by age and policy term
    multiply that to your Basic Premium. So, My age is 28, policy term is 24 and yearly premium is Rs36748 (9187*4).

    So is my maturity value will be 28*24*36748=24694656 which will become more than the Maturity Sum assured.

    Also let me know if after maturity will i get the all premiums paid also except 1st year.

    Please suggest me on this as I have taken this policy for my daughters future.


    1. Phani-MSA varies according to term of plan. So lower term means lower MSA. Also when you choose a plan like 20 years then this MSA for 20 years will be fixed and there is no variation on this amount. It changes only when you surrender before 20 years completion (will not increase but decrease). You are getting wrong on calculating LA on MSA. Please do read my above post in detail to get a better idea. It is wrong selection for your daughter’s future.

      1. Hi Basunivesh,

        Thanks for your reply. So can u please suggest any good policies for the child’s future and economical growth. I am interested in only traditional policies..

        Can you please do the needful..

        1. Also after reviewing your pages, I get to know investing in Equity and PPF will be more helpful for future needs. I have already taken a term plan in India firstlife for 40 years. So I am interested in improving economically only. So, is it fine to go for equity and PPF instead of Jeevan Saral..

          1. Phani-Good choice but do remember that equity investment is for long term. Hence you can start investing monthly if your goal is of long term. PPF is the instrument which you can use for diversifying your investment.

        2. Phani-Well choice….GOOD POLICIES, ECONOMICAL GROWTH and investment in TRADITIONAL POLICIES. Forget about your expectations from traditional plans. Also insurance must be in your name but not in your kid’s name. Because if something happens to you then your kid will suffer financial burden but in the reverse case. Sorry I don’t know the Traditional policy which can fulfill your kid’s dream. I think some agent may have such policies, as they are very much knowledgeable in showing exaggerated return to get business.

          1. Thanks for your reply Basunivesh.. Could you please explain me a detail about PPF, how it is going to handle in risk situations..

              1. Hi Basunivesh,

                Thanks for your valuable suggestions. Could you please let me know if SIP (Systematic Investment plan) refers to Equity investment only. Also let us know is there any risks involved in Equity investment.

                1. Phanikumar-SIP is a way of investment. So it may be any investment like equity, debt or even RD. Yes risk is there in equity market. But to mitigate that risk you must use the SIP tool, selection of good fund, periodic reviews and of long term waiting period.

                  1. Hi Basunivesh,

                    First i would like to say thanks to you for your advice. I am planning to take PPF account, but in our near by post offices it is not available. So, I plan to take PPF in SBI or ICICI Bank which is near by. Could you please let me know if there is any difference in interest rates in ICICI and SBI compared to post office..

                    1. Hi Basunivesh,

                      I am planning to save the money for my baby’s education and future (marriage etc).

                      Since we can save money in PPF only upto 15 years only, is there is another savings scheme which can give the same returns as PPF, so that I can plan two and fill my needs. Please let me know how National Savings Certificates (NSC) will work.

                      Also let me know your reviews on the SBI smart performer plan, is it any helpful.


                    2. Phani-When you are planning for your baby’s education and marriage, which in my view is of long term then why can’t go majority towards Equity Mutual Funds and part into PPF (as debt product). If you invest in PPF and again planning for NSC (which is again debt category and return is taxable) is not a good idea. Regarding SBI smart performer plan, it is a ULIP Plan and I am dead against mixing insurance with investment. So first buy a proper term insurance for yourself. Then based on your goal choose and start investing in products.

                    3. Thanks for your comments Basunivesh.. I already own a Term policy. Regarding Equity funds, after discussing with you even I am more inclined towards it but just checking for other options. Also let me know since PPF account is available in post office, Sbi, ICICI banks is it possible if I can take two PPF accounts in different banks…


                    4. Phanikumar-You can’t own two PPF account in your name. Even if you do so and afterward if they come to know then the second account will not earn any interest. So you can take your own risk for such activity.

                  2. Hi Basunivesh,

                    I have a doubt regarding the PPF account. I have taken the PPF account in ICICI bank before 3 months. My doubt is if after paying something risk happened to me, how much amount my family will receive. I am paying monthly 5k on every 1st or 2nd of the month.

                    Also when I am checking the PPF statement online in ICICI website, it was just showing the amount I am depositing every month. But not showing the interest I have received for the month and the cumulative calculations are not showing.

                    Is it will not show in the statements.

                    Please let me know.


                    1. Phanikumar-In case of your death, your nominee will receive all the invested amount along with accrued interest. Your bank statement not showing interest, because they update interest part once in a year.

  162. Hi Basavaraj

    Any idea whether LIC has declared Jeevan Saral LA. This month Jeevan Saral has completed 10 years and i hope LIC will declare LA now.

  163. HI sir,
    I have taken jeevan saral policy after years before.i am paying rs 12248 per year.this is the third year.will i get the money this year.if so how much will I get?

  164. Sir,
    I Purchased 3 LIC Jeevan saral policy 35 year plan This december 2013 of Rupee 2,50,000 Each SA. My Age is 34 Year & I pay Rs. 36000/ per year. I wise to recive 7,00,000 Lac rupee after 11 Years From this policy. Can I got this. Please Reply Me sir

  165. I have a jeevan saral policy with the following details:
    quartarly premium:15312/-
    What is the lumpsome amount I am going to receive after maturity?

  166. Hi Basavaraj,

    I bought Jeevan Saral in Nov 2011 (Age 26 yrs on Nov 2011).
    My yearly premium is 48040 and Term is 20 years.

    My husband (31 years on 2011).
    Yearly premium 48040 and Term is 15 years.

    Can you please suggest following:
    1. Maturity value for both of us?
    2. If both of us should surrender it or one can retain (may be 20 years policy) ?
    3. Whats gud time to surrender? Before next due date (may) OR now OR after Nov 2015 (After 5 years)?

    I would really appriciate your advice.


    1. Ritu-From below comments you might have already got a fair idea about returns from this policy. So my assumption will be around 7% from this plan. Hence surrender both the plans once they complete 5 years. Doing the same mistake for the rest of the period is not a wise decision.

  167. hi sir,
    my age 22. i got Jeven Saral for 30 yera term.
    my premium 510 per month.
    as per your above clerification i am confused.
    how much i get after maturity.

      1. sir,

        after 30 yers how much amount i will get garateed. (jeevan saral)
        monthly instolment Rs.510/- with accident benifit.
        above your giving information Sum Assured are not fix. , so i want to know about my maturity benifit.

  168. Hi ,

    I have a Jeevan Saral policy for which I am paying Rs.46,452.00 per year. i paid my 5th installment on 11.02.14.

    1) Please tell me the best time to surrender it. Now or after 31st Mar 2014 or in January 2015 before the next due date of 11.02.2015. ( what is special surrender value, is this including any LA or Loyalty Bonus)

    2) As if today my surrender value informed over the phone to me by LIC is 173001.00 ( what a joke!!!) I am in no mood to continue.

    3) is it possible to continue it without paying any premium and surrender it any time.

    Please advise and answer all my question as my next step will be based on your reply.



      1. Sandeep-Sorry for delayed reply. Below are my answers to your doubts.
        1) Once you complete 5 policy years then go for surrender.
        2) It is best decision what you are planning to do. Because even if you wait then you will not get more than 8% return from this plan.
        3) I don’t think it is wise to stop paying and receive amount at maturity (which is also called paid up of policy). This waiting will be useful when you are nearer to completion of policy term. Hence in your case it is too far. So don’t opt for this option.

        1. Hi Sir,

          ‘Thank you for your reply.

          1) I am bit surprised why the amount is so less. I thought it would be 46,452*5=2,32,260 – 46,452(1st yr premium) = 1,85,808. But was shocked to know that the amount is Rs.1,73,001. Do you have any idea why this amount is so low as compared to Rs 1,85,808 .

          2. The person from LIC said that if I surrender it around Dec’14 the amount will be bit more then Rs.1,73,001. He talked about some factor thing.

          Please advise.



          1. Sandeep-
            1) They have formula to arrive at surrender value, paid up value or special surrender values. So they just follow it.
            2) I am not sure about the calculation he did. If it is beneficial for you then definitely go ahead. But get the exact confirmation about the claimed amount of that guy and postpone.

  169. Hello Mr Basavaraj Tonagatti,

    I had taken jeevan saral policy in March 2010 with Quarterly premium of Rs 6125/-
    The policy is of 10 years. it means it will be matured in year 2020.
    At the time of subscription to this policy my age was 25.
    May i please know what output i will get after it gets mature.
    your kind assistance is rquested please.

    1. Handeep-I think by below comments you already got a fair idea about the return from this policy. But I still maintaining that you will receive around less than 5% if the term of policy is 10 years.

  170. Hi,

    I have taken Jeevan Saral policy in 2010 for a S.A of 2,50,000 RS at an yearly premium of Rs 12010. Currently my age is 29.

    please tell me how to arrive at the maturity benifit of this plan.


    1. Hello Sir,

      My Age was 25 when I have started this plan . Policy term is 20 and the policy started in 2010 March ( Paid 3 installments till now , Yearly payment).

      Thank you very much for your response.

      1. Srikanth-MSA depends on your age while buying, term of policy and premium you will pay. Based on your data, MSA will be Rs.2,78,140. This MSA chart will be easily available with all agents. You can cross check my amount with your concerned agent also.

  171. Hi Basavaraj,
    It is really a pleasure to have such a good knowledge sharing from you.
    I need to know the expected returns for me,Details are as given below.

    Policy Name:- Jeevan Saral.
    My age when i took this planwas:-28 yrs.
    Yearly installment:-60050/-
    Plan term is:- 20 years.
    Total Maturity Sum Assured:-1250000.

    Can you pls help me calculate the amount which i would be getting @ of maturity.

  172. I have taken a Jeevan Saral Policy during the last period of closing of the policy during December 29th 2013. The sum assured is 8,75 lacs with 10 years and 15 years each of Rs. 3573/= per month. When the policy arrived the MSA is 365085, the Death Benefit sum assured is Rs. 875000 and accident benefit sum assured Rs 875000/- Can you please make me understand how the amount of rs 365085 has been arrived and how LIC has come to this calculation since the total premium paid at maturity period of 10 years is 428760/- Is that the total amount at maturity is same printed int he policy bond. Or the maturity time bonus and LA will also be included in this amount. If the age of 40 years will have any difference in the maturity amount.

    1. Krishnan-MSA is based on your age at the time of policy buying, term of policy and premium you pay. They have calculation on which they arrive at this values for each individual. SA which is also a death benefit during policy period is usually 250 times of your monthly premium. In this plan, as I mentioned above you will receive MSA+LA only but not any bonus. Hence if we include the LA to this MSA then you may receive the return from this policy around 7%.

      1. Dear Sir,

        I have jeevan saral plan for 16 yrs.
        I am paying yearly premium of Rs.24,020/-
        I have completed 05 years.
        I want to know the surrender value.
        I am not going to pay further premium.

  173. Sir, I’ve taken LIC Jeevan Saral during Feb’2010. My age that time was 29 Yrs completed.

    Yearly instalment Rs. 30,025. Insurance period: 20 Yrs (Maturity Year: Feb’2030). Sum Assured: 625,000.

    I’ve decided to surrender this policy. From the above comments It’s clear after 5Yrs surrender penalty will be min.

    Whether 1st year i.e., Feb’2010 will be considered as a year? After paying Feb’2014 Or Feb’2015 I’ve to surrender. Pls give your invaluable feedback. Kindly thanks in advance.

      1. Sir, Thanks for your reply.

        Now I’ve paid INR 120,000 (Including first payment). But surrender value is INR 82,000 (Approx.)

        After paying premium in Feb’2015 Total amount paid will be 180,000.

        Will I get around 180,000 (After 5 Yrs). or Same as now 38,000 will be reduced. Pls suggest.

        If around 38,000 will be reduced. I’ll surrender now itself.

        Saravanan B

          1. Sir, The amount 81,990 exactly, data given by Authorised LIC office.

            I understand i’ll get less. But there is difference between 38,000 (current loss) and around 5,000 may be after Feb’2015.

            If I surrender after Feb’2015 will they pay back first payment also Pls..

            1. Saravanan-If you surrender after 5 years then it will be treated as the plan of 5 years and you will get benefit accordingly. May I know which first payment you are talking about? I think it is about first premium payment what you paid, no in that case they already mentioned clearly that, if your complete 5 years then 100% MSA+LA will be payable but not your first year premium.

              1. Basavaraj: I think after 5 year only 100% MSA will be payable and not LA upto 10 years. After 10 years LA will also be payable for surrender case. Please confirm and let us know. I am also thinking of surrendering my policy but confused whether i should surrender now (after 3 years) or after 5 years.

                @Saravanan: You need not to pay 6th premium if you plan to surrender after 5 years. So in total you just pay 30000*5 = 150000 only including first payment and surrender anytime after 5 years from the date you paid your first premium.

                1. Indra-It is clearly mentioned in Special Surrender value option of this plan that it must be a+b. Below are options in “a”.
                  1) 80% MSA in case of less than 4 years, 2) 90% of MSA in case term is between 4 years and 5 years, 3) 100% of MSA if paid for 5 years or more.
                  Now in point “b”, they mentioned as below.
                  The Loyalty Additions, if any, for the term for which the policy has been in force, as announced as at 31st March immediately proceeding the date of surrender.
                  Now it is clear from above two statements that after 5 years, you are eligible for MSA+LA. Hope I cleared your doubt 🙂 That is why I recommended to surrender after 5 years to get full advantage of surrender.

                  1. Today I paid 5th premium. So I completed 30,000*5=150,000. I’ll wait for more one year and surrender the policy.

                    Thanks for both of you. As I’ve taken good decision based on your input. However there will be loss, but it will be minimum..

  174. I have received intimation regarding Jeevan Saral Policy. Gross amount payable is shown as Rs.46240.00, (payable on 20/03/2014). I have been paying yearly premium of Rs.4804.00 since 2004 and last premium was paid in March 2013. The basic amount is shown as Rs.36992.00 & Interim Bonus is Rs.9248.00? Should it not be Rs.48040.00 (the total 10 years’ premium deposited by me with LICI)??? I have asked LICI to clarify but they are silent. Could you kindly throw some light on the matter. Thanks.

    1. Thomas-I am unable to understand what is your exact doubt. You are saying that you received letter from LIC stating that amount payable of Rs.46,240, whether this is from your end or from LIC. Also please provide policy details (except policy number), to guide you in a better way.

  175. Hi,

    I’m paying 6125 quarterly for jeevan saral and i’ve taken it for 30 years. Could yo pls. tell me how much will I get at the end of 30 years.

    Please tell me the amount i’ll get if I close the policy after 15 years.

  176. Dear Basu,

    I have also took Jeevan Saral in July 2011.
    Per month I am paying Rs. 1633/-.
    SA is Rs. 4,00,000/-.
    I was know – (This above SA value i will get after policy maturity in 2046. For 35 Years I have taken. + Bonus Amount which calculating by Rs. 250/- amonut. So by looking jeevan saral chart, i was know that i will get Total Rs. 30 Lacs)

    Now, After Read your article – (SA will only the amount which will get my family if I loose my life. That’s it.)
    (Great Word explantion from You.) (And In shock now for dont understand what amount i will get in 2046.)

    I have talk on this matter with my LIC agent many a times, but never understand the concept.
    God bless you for making people understand and Hats of your study.

    I have read in above, some post you have mentioned that surrender after 5 years so we will get full surrender value.
    a) I dont know how you have calculate surrender value? b) if above my policy details is also match for surrender policy after 5 years then I will plan to do that in year July 2015 OR should I continue only If i will get an amount on above Rs. 10 Lacs in 2046.

    Mr. Basu, You are highely appriciated, to pls answer on above..

    And I appriciate your list of answer’s and patience you have to explain people.

    Thanks for good post. Awaiting for answer. Thank You.

    1. Pankaj-If you complete 5 years in this policy then the policy term will be treated as 5 years. Hence no surrender but maturity at completion of 5th year. That is what I said. If you are satisfied with the kind of return (around 7%) by investing for 35 years then you can do so. Otherwise you can come out from this plan after completion of 5th year.

  177. Dear Basavaraj,

    Thank you for this wonderful article. My parents were sold two policies of Jeevan Saral by a pushy agent in 2010 and I had been paying the premiums for a few years. Generally I do not invest in instruments that I don’t understand, but this policy seemed too complicated and I did not scrutinize it, rather trusting the agent. The next installment is due in March and today I tried to make sense of the policy again, and your article came to my aid.

    Here is the scenario. I have two policies with annual premiums of INR 30,025 each, term 30 & 35 years each, and MAS 11,23,500 & 13,18,535 each. I have paid 4 premiums to date with 5th is due in a couple of months. I am in need of advice, whether

    a) To surrender the policy immediately
    b) To pay this (5th) installment and then surrender
    c) To pay till 10th year

    I am NOT okay with the returns of this pan, and will be careful with insurance in future. Please advice.

    Best Regards,

      1. Dear Basavarj,

        Thank you for the quick and short reply. I have been trying to obtain the surrender value after the 5th (next) instalment from various LIC helplines but without luck. The current surrender value is INR 81,118 (against premium paid today INR 120,100) and I want to be sure that paying the next instalment will minimise my losses.

        i. Would you any source from which the future surrender value can be obtained/ calculated?

        Best Regards,

        1. Krish-Sorry to say that I don’t have any source to help you. But instead of calling to helpline numbers. I suggest you to visit personally to your nearest LIC branch or servicing branch and ask for the details.

          1. No problem; I will visit the branch or try to get it from the agent who sold it to me.
            Thanks again for your help.


          2. Dear Basavaraj,

            Sorry to keep bothering you, but could please elaborate on the reccomendation to exit the plan after 5 years? Will it not be better to wait till 10 years and avail the LA benefit?

            Can the loss of LA gains be offset by PPF/FD investments(in the 5yr to 10yr period)?


            PS: I understand it’s not possible to predict LA.

            1. Kris-Advantage of Jeevan Saral is it’s liquidity option than other plans. If you opt out of this plan after 5 years then the term of the plan is considered as if 5 years and you receive all benefits available for 5 years term policy. Hence, I don’t think it is wise to wait for another 5 years by committing the same mistake.
              Why you are sticking to only PPF or RD when your waiting period is around 10 years? Diversify your investment to equity too and generate the good overall return from your portfolio.

              1. Dear Basavaraj,
                Thank you. Termination at 5 years does not grant the policy holder LA benefits, which come into effect only at 10 years. Hence my doubt.

                On a side note, it is confirmed that future (next year, LA inapplicable) surrender value cannot be predicted. So I will pay my fifth (next) premium, obtain the exact surrender value, and then take a decision.

                As always, appreciate your help.


  178. Sir,
    I have the Jeevan SARAL policy with yearly premium of 36000 for 20 years , My sum assured is 8,90,000 Rs .Sir , I have been told that Endowment plans are Bogus plans which give very little returns compared to PPF , I am 23 years of age and I have paid 2 installments .Sir, can you give me an idea of how much amount I will get after 20 years and please tell me if I should continue with this plan.

    1. Furiabhavesh-MSA will be calculated based on your age while taking this policy, terms of the plan and your yearly premium amount. It is based on a formula set by LIC. You will find your MSA easily by contacting your LIC agents (they usually have the ready made chart).

        1. Furiabhavesh-Not this one. In this particular chart agent illustrated with return calculating at 10% which is impossible from this plan. You contact agent and ask for MSA chart but not maturity or other charts.

          1. I wanna surrender this policy (completed 3 years), according to you when should I surrender it which will give me minimum loss ? 3 years, 5 years or 10 years ? Currently, my risk taking capacity is high.

            According to my agent, the returns will be +ve only after 10th year. Till then surrendering the policy will give -ve returns. So, is it wise to surrender it after 10 years ?

  179. Hi
    I just wanted to know the good child investment plans. Presently, i am not having anything. My age is 29. Thinking of to save my money per annum in ppf upto 20 yrs for my son. Is this ok, or else, do we have any better plan.

    1. Srinivas-First have enough life risk coverage (approximately around 15 times of your yearly income) by buying term plan. Then start investing based on your financial goals. If your goal is more than 20 years, then my suggestion will be to start investing in well diversified equity mutual fund. Keep PPF investment around 25% to 30% of your portfolio.

  180. Hi Sir,

    I have a Jeevan Saral policy from DEC 2009, I am paying quaterly premium of Rs.3062. I have few questions regarding this policy:
    Is it advicable to continue this policy for 35 years?
    If Yes, what will be sure returns + approximate bonus (if any) after completion of 35 years?

    If I surrender the policy after completing 10 years, what will be sure return + approximate bonus (if any)?

    Can I withdraw partial amount after completing 10 years and continue with the premium payment? If Yes, how much percentage can I withdraw?

    Can I get a loan against this policy? If yes, how much percentage and the rate of interest?


    1. Amit-1) Is it advisable to continue this policy for 35 years? -If you are satisfied with the return of around 7% after investing such long period of 35 years then definitely you can continue.
      2) If you surrender this policy after 10 years, then return on investment will be less than 5%.
      3) Partial withdrawal is not available. But you can have loan on this. Again, how much you get depends on the calculation and the term of your policy. So I can’t say how much you get loan amount after 10 years or 20 years onward 🙂

      1. Hi Basavaraj,

        Thanks for your prompt response.

        1)So what will be assured returns after 35 years? My age is 26 yrs now.

        2)Also, we have other options like RD, PPF and SIP which will give better returns than 7 percent. So do you think investing in such option is better rather than Jeevan Saral?


  181. Hi
    I have paid 2 premiums of jeevan saral plan (table no 165). I want to discontinue it. can you please suggest me the appropriate time to discontinue it. When can i get full surrender value.if i want to surrender it.

  182. respected sir
    i want to invest 3000 per month for 10 years ie 120 months, which one is better RD or SIP of SBI ?. or i would diversify in both, if i so then by what amount,
    I will be grateful if you kindly suggest me the better scheme for saving in any banks for best return.

  183. Hi Basavaraj,

    I just need ur valuable suggestion on difference between JEEVAN SARAL & JEEVAN ANANDH (RETIRE AND ENJOY) Policies

    which policy will give a good return on investment of 25,000 per year for 30 years term & my DOB is 21/08/85

    Here am looking for more return as well as risk cover.

    Please suggest me on this am very confused…..

    Rajeev Chavan

    1. Rajeev-There are slight differences. But lot of common features 🙂 All of plans which mentioned by you are traditional plans and return will not be more than 7%. If you are satisfied with the kind of return then go ahead. Otherwise stay away.

  184. Sir when you say ” 100% of MSA if premiums are paid for 5 years or more.”, does this means that I will get atleast the entire money that I have paid for those five yr or will there be a clause of “excluding 1st year” in this case also where i have paid the premium for 5 yrs or more.

      1. Sir, I took this policy at the age of 34 and have paid 4 premiums, thus if i pay for the 5th yr or move, will i be getting 100% MSA with no clause of ” excluding 1st yr) or else.

        1. Sir, I took this policy at the age of 34 and have paid 4 premiums, thus if i pay for the 5th yr or more, will i be getting 100% MSA with no clause of ” excluding 1st yr) or else. My premium is 46452 PA and term is 35 yrs

  185. Hi Basavaraj…..
    Much appreciated for this good post…. If I could read this blog before Jan 2013, I would be choosing some other investment.
    I have one Jeevan Saral policy which is commencement date is 05/01/2013 and the next premium date is coming Jan 2014.
    When i check that bond recently, found that the calculated MSA and death MSA are not markable as told by the LIC agent at the time. So, I plan to quit this worst plan. Could you please tell me,

    1. if i quit the plan in second year (not yet paid the 2nd premium) how much will i get ?
    2. if I don’t pay the premium hereafter, what will happen?
    3. Without paying the 2,3,4,&5th premium, can I go for the surrender after 5 years? Will I get the full amount (which I paid for 1st premium) with LA?

    My Policy details:
    Age: 28 Years (at the time)
    Yearly Premium: Rs. 57448
    Term: 16 Years

    Thanks in advance…

    1. Hi Basavaraj… wants to add one more point, my lic agent told, “The plan offers Auto Cover of 12 months after the policy has been in force for a period of 3 years and more”. what is this means????

    2. Venkat-My answers are as below.
      1) If you quit within 3 years then you will not receive anything.
      2) If you don’t pay the premium hereafter then you need to forget about what you paid already and the policy will be in lapsed mode where you will not get any risk coverage.
      3) No you can’t do so. You need to first pay till 5th year then you can opt for surrender.
      I know it is hard to say that forget the amount already paid. But this is the reality you need to face-Either forget the money you already paid or continue paying (committing the same mistake). The choice is yours.

      1. Hi Basavaraj, Thanks for your reply…. Could you please calculate, if i go for surrendar after 5 years, How much amount will i get MSA +LA=?
        My Policy details:
        Age: 28 Years (at the time)
        Yearly Premium: Rs. 57448
        Term: 16 Years

  186. Hi Basavraju,
    Greetings. I’m paying a premium of Rs 36,748/yr (Qly basis). I want to discontinue this policy as I have realized how stupid I was buying such a bad policy for my needs.

    Date of commencement (I was 22yrs when I took this): 19/04/2011
    Table : 165
    Term : 25 yrs (Even though the agent convinced me that it is 10yrs only)
    MSA : Rs 11,00,850

    Please suggest me the best way out of this. I can push through two more years if I have to with a minimal loss by completing 5yrs. But then, I want to know how much would be my surrender value now(when i complete 3 yrs) and surrender value when I complete 5yrs?

    I’m still wondering whether I’m eligible for Special Surrender Value (i.e., 100% SA after completing 5 yrs)

    Eagerly awaiting your response sir.

    Thank you..

    1. Deepak-The best way to come out of this plan will be after 5 years. But I am unable to tell you the surrender value as I don’t have data to calculate the same. Hence if you need more help then contact your nearest LIC branch.

      1. OK, can you give a bird’s eye view of amount I might get if I discontinue after 5 yrs?
        One of the LIC agent said, I might get around 40k. But i’m still wondering what is this “Special surrender value” .. Isn’t that supposed to mean I can get 100% of money I paid back to me ??
        How much will be my loss?
        Please help.

        1. Deepak-I am unable to give the nearer figure also. Because I don’t have any data to say so. Don’t believe agents especially when you are going for surrender. Instead contact the nearest LIC branch. Special surrender value for 5 years will be 100% MSA. But 100% what you paid. Again this MSA for years will be depend on your age and premium amount you are paying yearly. So I am unable to say exactly that you will get 100% of what you paid. But in my opinion “YES” you get what you paid with little extra 🙂

  187. Dear Sir, I am adequately insured (Rs. 1.5 Cr ) by term insurance plans of private companies – ICICI and HDFC. I am thinking of buying Jeevan Saral policy for my minor daughter (age=12 years). I understand she is not earning and strictly speaking does not need any insurance. However when i compare the returns as illustrated by an insurance agent, it beats FD / RD / PPF. Here are the details

    Age: 12 Years
    Sum Assured: Rs. 5 Lakhs
    Yearly Premium: Rs. 24000
    Tenure; 10 Years
    Maturity Amount: Rs. 425808

    This results in an IRR of 10.2 % (that too all maturity proceeds are tax free)

    I have done investments in MF SIP / Gold/ PPF / FD and Jeevan Saral is just another means of diversifying. Is there anything wrong in my thinking, is the maturity guaranteed or wrongly projected by agent on higher side?

  188. Hi Sir,

    First of all, thank you for such crystal clear description of JEEVAN SARAL plan.
    I am 22 years of age, and want to start this insurance cum investment plan.
    After reading your post, I got to know that we are going to pay extra than what is written on paper for Premiums. Like: some amount more for YLY, much more for MLY, much much more for QLY, and same around for MLY also. Apart from this, If we are going for deposit via ECS(i.e. by direct deduction from bank accounts then we have to shed 5% more on our premiums every month); and that will prove to be a handsome burden in the name of policy.

    I was wondering if you can help me with – how should I pay my premiums to save as much as I can, I know YLY will be answer(obviously), but again starting this policy would be burden on me to shed out so much money at once specially in starting.

    Actually I was planning for 36000 per year premium, which I am not able to decide how to pay(YLY/HLY/QLY/MLY).

    Could you please help me out here?

    Thanks in advance.

    1. Vishesh-Insurance premiums always will be paid before taking risks. So if you are unable to pay the premium at the start then the only option for you is, immediately start yearly RD. Start investing for a year. Once this RD matures then buy the insurance plan of your choice. If you do so then you save on insurance premium and you earn a bit by investing monthly. But again postponing insurance buying a year means the premium will increase. Think of that aspect also. Apart from this issue, are you sure your choice is best by clubbing insurance with investment? Think twice 🙂

  189. Respected Sir, Please advise me, I am planning to take Jeevan Saral ( plan – 165 ), why because it emphasis more on risk. No doubt I will take another policy i.e. ” Term Insurance ” My Age is 08.06.1961. would like to take up to 70 years. ( may be 18 years term) Monthly premium payment Rs. 2500/-. Please give your comments. I am looking RISK and as well as Small Investment even though 4 to 5 percentage.

    1. Prasad-Before proceeding further let me know how you come to know that Jeevan Saral will emphasize more on risk? Can I tell you the simplest product to get the guaranteed return of 4%? PUT YOUR MONEY IN SAVINGS ACCOUNT where banks offer around 4% return. No risk…no fluctuation…everything is guaranteed. But NEGATIVE REAL RETURN=INTEREST ON INVESTMENT-INFLATION. Decision is your’s 🙂

  190. My reply
    1)The purpose of investing in LIC plan is for good return + risk coverage and also tax saving.And LIc agent gave me the pamphlet having details of maturity amount against term.So i had just given you a example that preimium of 1000 per month for 30 years gives the maturity amount around 22lakh.
    2)My concerns is : Being 24year old and taking a term insurance,the probality of survival till 60 is high.hence all my premium paid on term insurance will be lost.So which is the suitable policy which give me good returns+death benifits.

    1. Abhishek-1) Please let me know what do you mean by good return? How much return according to you is a good return? Risk coverage-You will get term insurance at damn cheap prices these days then still you feel these traditional plans only have solution of covering your life risk? Also regarding tax saving-Do you feel LIC plans are only the best plans available in the market today to save tax? No dear friend…please change your mindset and do some research (even not believe me blindly also). Then you will come to know where you are heading. Please…
      The agent gave you the details but have you cross check how this may be possible? I will assure you that from such traditional plans your return will not be more than 8% also.
      2) Please let me know how you arrived at word called “PROBABILITY”? Yes you are right if you survive then you lose the premium you paid which currently cost you around Rs.500 per month. But have you thgouth what will be your dependents financial life without you in the future (after having a family). Life is uncertain so the first step of planning will be to cover those risks.

      1. thank you sir for your reply..
        Can you please suggest be a term insurance plan?Which i have to opt?500/- per month is so cheap really.
        From LIC or any other firm whose claim settlement percent is high.

        1. Abhishek-For your age considering the SA of around Rs.50,00,000 to Rs.1,00,00,000 I mentioned it may cost you around Rs.500. Buy online term plan from ICICI, HDFC, SBI or any of your choice. But buy it now itself. LIC doesn’t offer an online term plan. Hence it’s term plan is costly even compared with other insurer offline plans. So go with private insurer of your choice.

  191. Hello Sir,
    I had read your blog and come to know a lot about instruments available for investment in market.
    Like first u should have a term insurance then some emergency fund and park rest of the money in safer instrumnets like ppf,fd etc or SIP in MF.
    But for a wise investment i am posting my comment to you.
    My age is 24years.I am only 1year experienced in a private firm.
    My concerns are
    1)31dec the plans of lic are ending like anand,saral etc.So can i plan to take one.?
    2)I had approaced an LIC agent,even i had search a lot about their products.I found jeevan saral giving more return.Why is it so?Like investing 1000 per month for term 30years i can get 22lakhs.According to their chart.But this is a very huge return.How can i get this.This is just a fraud i think.
    3)As i mentioned i am 24yr old.Is is good to take term insurance now?I am single yet.;-)
    4)For SIP in mutual fund.Which product of which firm i have to go for.?

    Waiting for your reply.

    Abhishek Saxena
    [email protected]

    1. Abhishek-My answers
      1) For what purpose you are buying this plan? Only for the reason that this plan will not be available post 31st Dec? If this is the case then NO.
      2) Is it possible to share the details related to what your agent is claiming of Rs.22 Lakhs? We will discuss then you decide yourself who is right and who is wrong.
      3) Insurance is cheaper when you buy it at younger. Hence my strong recommendation will be to have now.
      4) Selecting mutual fund for your investment involves lot of things like your waiting period, how much % of your portfolio in equity and what is your risk taking ability. So without knowing the basic things I am unable to guide you.
      In one way you are claiming that what your agent shared with you are all false and at the same way you are asking me whether to go ahead to buy this plan or not. Please decide yourself first.

  192. raju banerjee
    sir I want to take pure term policy for 25 years . my age is 36 i would like to know from you frm where should i buy this from lic or from sbi? i m confused about the death clause
    sir i want to make investment max 45000 PA where should I ? buying 100% pure bond or RD

    1. RAJU-Buying term plan depends on your comfort with the company. So I am unable to say the best company to go for term plan. If you are so confused then split the SA among chosen insurance companies. So how you arrived at Rs.20L to buy term plan? Does it suffice for your family to survive in case of your sudden demise? I found the undecided move from your end like how much you want to save as in a previous comment (which I deleted as a duplication of above) you said (Rs.30,000 PM and here Rs.45,000 PM). So decide yourself first how much you are able to save and for what purpose this investment meant for. Then we may discuss further.

      1. thank you sir for your quick response . sir i want to save Rs 45000 pa it was wrongly typed as Rs 30000 i arrived 20L keeping in view the yearly premium which i able to pay yearly. which is Rs 6783/- for 25 years though the purpose of my investment is to give financial protection to my wife and my only son after my demise. as i am self employed i have already three policies of lic.15 days ago i was duped by one of the lic agent he acknowledge me Table No 90 for half yearly payment Rs 20826/-. for 21 years. But when he gave me the deed it was Table 165 (jeevan saral) half yearly payment Rs21834/- but by the god grace i opted for free look cancellation and the lic has refund the amount after some deduction(Rs 21386) I had gone through several agents of Lic and SBI but when i gone through your comments i found that lic is not for investment and you had advise for term plan and PPF, which really touch my heart (thank you for your valuable suggestion). sir i want to know from you how should I diversify Rs 45000 PA for guarnteed maximum return?

        1. Raju-You are able to pay for the existing three dummy products but not able to pay for term insurance? You are able to invest another Rs.45,000 yearly but not able to pay for term insurance? Raju…first have a proper term insurance on your life. You are claiming as self employed. So my first suggestion will be to have term plan, health insurance for family and accidental insurance for you. Then create an emergency funding of at least 6 months of your household expenses. Once these are in place then we discuss about the investment based on your financial goals. You are always welcome to discuss the issue related to your finance. Hence first have the above said products in your kitty then we start slowly. What you say??

          1. thank you for your prompt reply, sir i had already an health insurance paying RS 4700/- pa for my wife,son and for myself, from last 3 years, I had also an accidental insurance from SBI paying RS 100 pa for me,and 3 lic long term policy and emergency fund in my saving account worth Rs 285000 in CBI and SBI A/c . sir pls guide me which and from where i will adopt proper term policy ?, is it better to purchase off line or on line? so that future disputes may not arise is there any hidden clause in term plan policy. which is the vital points should i take into considereration when i adopt pure term policy? all the agents either from lic or from sbi they give suggestion keeping in view of their own interest and the interest of their institution. you give free and fare suggestion keep it up sir . i m totally depend on you regarding pure term plan( for 25 years) and investment(RS 45000 pa) how should i proceed.?

            1. Raju-Good to know that you planned for emergency. Buying term insurance-I suggest you to diversify your SA among HDFC, ICICI, SBI or LIC based on your comfort (among all above mentioned companies or based on your pick). Also suggest you to go for online by declaring all material facts they ask for. Most important thing is to share with your family about your investments and whom to contact when you are not there, especially with term insurance.

              Rs.45,000 investment will be based on your financial goals, which is not proper to ask you to share on this public platform. Hence suggest you to drop a mail to me @ [email protected] by stating your objective and goals. I will definitely help you.

              1. good evening sir,
                I will be grateful to you if you pls clarify the reason of diversifying the SA among the companies regarding buying term insurance, though all the insurance body is regulated by IRDA.

                1. Raju-In the current scenario of competitive pricing in term insurance, a risk to one company many not be a risk to another. Hence few companies are offering you term plan of Rs.50 Lakh without any medical test. Whereas few still follow the same. So if you end up having a term plan where your claim rejected due to some reasons then your dependent will suffer a lot. Instead if you diversify then you are spreading the risk among insurer. That is the reason I mentioned to spread your SA.

                  1. good evening sir,
                    can you state some chief reason under what circumstances the term plan policy claim may rejected ? recently i had visited some SBI and HDFC agents, I asked them about the death clause. they told me any type of death is covered under term policy, but if anybody commits suicide within one year then 80% of the premium is given to the nominee, and the policy will become null and void. but after one year all type of death including suicide is covered.and full SA is paid to nominee. Medical test is compulsory in SBI, But in HDFC it is compulsory for the age above 45 years and SA above 75Lacs. sir I want to take term policy for 20 lacs. sir at my current financial condition I want to end up having a term plan for my family cent percent full that i can fully relax as i am self employed person.
                    sir pls suggest me the companies which is most reliable and among which companies and what amount i will diversify 20L. But sir pls pls state some chief reason under what circumstances the term plan policy claim may rejected. I will disclose all the material fact honestly while filling up the form, beside is there any hidden clause?

                    I am giving one example for better understanding
                    suppose i had a nerve related problem, But at the time of taking policy i am normal. and i had not disclose it because i am normal from last 1 year. But after 5 years I died due to nerve related problems, will the claim be rejected?

                    1. Raju-Rejection of claim will be again based on case to case and company to company. So it is hard to say and list out the reason behind the rejection. But my advice to you is, disclose all material facts properly, don’t leave anything to hide from your end. Then I don’t think they have right to reject. Yes what you heard about suicide clause is correct and it will be same for all companies. As I said earlier, issuing a plan to you is again depends on company to company based on their underwriting estimates. Hence we can’t judge that too. But the best way is to have Rs.5,00,000 term with LIC, Rs.7,50,000 with SBI and Rs.7,50,000 with either HDFC or ICICI. At the same time, by naming these companies don’t estimate that I am fond of these companies. You can do your own research and buy also. But start with one plan and start to mention the existing covers in all future buying. So that they all know how much SA you already have.

                      Regarding the nerve related problem, if it is found that while taking plan you are 100% healthy and disease is post buying then no one can reject the claim.

  193. Dear Basavaraj,

    I checked the details mentioned in my Jeevan Saral Policy document while reading this excellent blog. My HLY premium for Jeevan saral policy is 19711 (19304.75 + 406.25) In my Jeevan saral policy document (which I purchased in 2011 at the age of 32, for the policy term 25 years), following figures are mentioned:

    Maturity Sum Assured: Blank
    Death benefit Sum Assured under main plan (Rs.): 812500
    Accident Benefit Sum Assured (Rs.): 812500
    Installment premium for main plan (Rs.): 19304.75
    Installment Accident Benefit Premium (Rs.): 406.25
    Total Premium (Rs.): 19711.00 (Half Yearly)
    Policy Term: 25 Years
    At the first instance which I found wrong here is Maturity Sum Assured in not mentioned. Is this usual for LIC or should I run to LIC for making this correct.

    Second can you advice, if I surrender this after 5 years after making 5 year premium payments will it be a good decision, and how much will I get then.

    or should I continue this till maturity, what will be the maturity value roughly after 25 years…

    Thanks In advance..
    I really appreciate your efforts for spreading so much awareness about jeevan saral and then only I came to know that for Jeevan saral seems to be a cheater policy and LIC agents is the worst caste in field of investment and most of them are picking our’s pocket just for thier huge commissions.

    Eagerly waiting for your reply.


    1. Nikhil-No need to worry about not mentioning MSA on your policy bond. I don’t have data related to 5 year policies, so unable to comment. Instead what I suggest you is to contact your nearest LIC branch, they will definitely help you. Better you surrender it after 5 years. No need to continue the same mistake again and again for the rest of 20 years.

  194. I have been investing Rs18000 per year in JIBAN SARAL POLICY , three years have been completed, it is a policy of 15 years my questions are ….i) if i surrender after 5 years how much i will get
    ii) if i withdraw after 10 years how much to get

    iii) if i complete 15 years or more how much i will get

    1. Anupam- 1) You need to contact your nearest LIC branch on this.Because I don’t have data to arrive at any figure about 5 years policies.
      2) If you withdraw at 10 years then return on investment will be around 4%.
      3) If it is at 15 years then will be around 6% to 7%.

  195. Dear Basavaraj,

    I have take Lic jeevan saral in august 2012 with Rs 15312(15000+312) quaterly premium. As agreed with the sales person coming directly from LIC that terms would be 10 years for the said policy but on my LIC bond paper date of maturity is coming as 25.08.2033 which comes to 21 years, however the maturity sum assured mentioned on the LIC bond paper is Rs. 14,78,600.
    so, what do you think is this maturity sum assured is for 10 years or 21 years.

    Amit Aggarwal

    1. Amit-It is not for 10 years but for 21 years. You need to check the term of the plan which is mentioned on bond claiming as 21 years and MSA also matches accordingly. Hence it is 21 years plan what your agent mentioned while buying plan. The simple reason is, he will get more commission by saying so than issuing you 10 years policy.

  196. Hello Basavaraj,
    Very informative blog, so i thought of writing you before investing.

    i planned for Jeevan saral of Rs750000 with annual premium of 36030.

    My agent told me i would be getting Rs2404440 after 20 years, i dont know exact MSA or LA.Even though he has given one pamphlet explaining premium & maturity.

    pls help me is this really true? what would i get after maturity as per your calculation.

    Thanks in advance.

    1. Abhishek-Before proceeding further, ask your agent what LA rate and MSA he considered to arrive at the maturity amount of Rs.24,04,440. Once you share this information with me then the real game of what is true will start. So hope you share this information with me.

      1. Hello Basavaraj,

        LA rate he told same Rs350 per Rs 1000. But for MSA he did not mentioned

        i hope with this you can estimate roughly maturity amount after 20 years .


        1. Abhishek-MSA depends on your premium,term of policy and your age while buying. So without this information I am unable to calculate myself MSA. Either you provide these details or once again ask your agent about MSA he considered to arrive at above amount. Better you provide the information I asked for and we discuss about the actual return you may receive from this plan.

          1. Premium – 36030 Rs yearly
            term of policy – 20 years
            my age 31 years

            so pls let me know the actual return after maturity


            1. Abhishek-By considering above data, MSA will be Rs.8,16,000. By considering the current trend of LA for Jeevan Saral we can presume LA @ Rs.600 per Rs.1,000 MSA, the total LA will be Rs.4,89,600. So total receivable from this plan will be Rs.13,05,600.

              Your agent not disclosed you the MSA, the reason may be that you will come to know the reality. The second thing he considered LA @ Rs.300 which I don’t think is fair. So this is the reality. Now the decision is left with you.

  197. SIr,

    I have a Jeevan Saral Policy paying Rs.36030 per Year from Feb. 2009
    Term is for 29 Years.
    DBSA – 750000/-

    Please let me know 2 things. Even an approximate figure would be fine

    What would i get if i Surrender @ end of 10 Years?

    What would i get on maturity? I dont know what is MSA?

    Would it be prudent to go in for RD / PPF than continuing with this policy?

    Please advice.

    1. Murthy-If you wait for 10 years then return from this plan will be around 4%-5%. Regarding MSA read fully the above post. Yes it is wise to go with PPF (if you consider for tax benefit) or RD than this plan. But proceed after having proper pure insurance on your life.

  198. Hi Basav,
    Can you please calculate me the surrender value for jeevan saral after 10 yrs with loyalti addition for below details

    Premium – 60000 Rs/Yr
    DOB – 11/05/1977
    Policy start – April 2008
    If you have any formula please share

      1. I don’t have any exact amount in my mind.I am thinking , as 5 yrs completed , may be it will better to complete next 5 yrs.It is very difficult to decide if we can surrender it now & invest somewhere else.

        As you told earlier for Rs 50,000 & more annual premium , loyalty addition is 375 , does this help to increase the surrender value ?

  199. Sir,
    First of all, thanks a lot for your highly informative posts!

    I was recently approached by an LIC agent with a “pension plan”-like proposal that was essentially a set of around 20 different policies (most of them table 149 plans and a few table 14 plans) that would start maturing on an annual basis starting from a specified age. Since the total sum assured of this proposal exceeded some limit, I had to undergo medical tests, following which the premium for every policy in the proposal was increased by over 10%. I subsequently decided to reject the proposal because of the extra medical premium and also I felt that I shouldn’t commit myself immediately to paying the rather high net annual premium for a long period. The agent however said that any insurance policy I take henceforth would require a medical test because I had taken a medical test for insurance once. I have a few doubts in this regard – could you please clarify on these?

    1. Is it true that once a person takes a medical test for life insurance policy but then doesn’t sign up for that policy (i.e. decides not to take up that policy), then any future policy he decides to opt for would require a medical test, even if that policy normally falls within the “no medical test required” category (for eg. policies with relatively low sum assured that don’t require medical tests by default)? Would the medical test reports have been recorded with LIC and hence any future policy may attract a medical extra premium?

    2. When viewed purely from a long term savings or returns perspective (say 25 to 30 years at least), which of the two is better – Jeevan Saral or table 14? Jeeval Saral’s loyalty addition (Rs.250 for 10 years, i.e. Rs.25 per annum, annualized for the sake of comparison with table 14) seems to be less than endowment policies’ bonus (Rs.48 as per your recent LIC bonus chart) and hence when the intention is to use these insurance policies to provide a sort of pension after 25 to 30 years, it seems that table 14 is a better choice. What is your recommendation in this case?

    1. SHR-It is not mandatory to go for medical test in all insurance policies. Because each policy offer you different values of risk. Hence I don’t think what your agent is claiming is right. These days even term insurance of around Rs.50,00,000 are offering without medical. Also I want to clear you that during the policy buying all medical expenses will be borne by the insurance company itself. So no need to worry on that. Above all if they are claiming that you need to undergo medical test then go ahead. Because this will clear any future doubts about your current state of health.

      1) What your agent claiming is entirely a wrong thing. I smell that your agent might have paid the medical expenses previous time and because of your cancellation of buying he might have borne the cost of it. Hence this time he wants to go with safe 🙂

      2) Both are traditional policies. Hence you may not expect more than 6% to 7% of such plans. If you have a long term perspective then why can’t you opt for the PPF kind of products which will give you more than what such traditional plans give you. My strong suggestion will be to first have term insurance to cover your life risk. Then based on your financial goals start investing. Also if you have a long term perspective like more than 20 years then I suggest you to go for equity mutual funds also.

      1. Sir,
        Thanks a lot for the quick reply! I have already been investing in PPF on an annual basis and was looking at these insurance policies to supplement that (since PPF has a limit on the amount that can be deposited per year), as I do not want to go for MFs right now given the associated market risks. I have also taken 2 long-term Jeevan Anand policies already to cover life risk. With reference to your answers to my 2 questions:

        1. The agent did say that the medical test expense would be borne by LIC and that if I rejected the proposal, I only had to bear the medical test expense; so on that specific aspect he doesn’t seem to be hiding the truth. But it is his claim that *any* future policy I take will require a medical test and hence the extra medical premium cannot be avoided that concerns me. Is a 10.5% increase in premium moderate or is it on the higher end when the only problem is a somewhat low BMI? And is there no way to avoid medical extra premium?

        2. Yes, I realize that insurance plans cannot yield returns comparable to MFs but the risks of MFs is something I want to avoid right now, Given this constraint, which of the two is better when viewed from a purely savings and returns perspective – table 14 or Jeevan Saral?

        Thanks and regards,

        1. SHR-Are you able sustain the inflation rate in the long run by investing in such low yielding products? Think twice and decide yourself. Do you know even in PPF and LIC policies do exists interest rate risk. So it is not right to reject outrightly the asset class like equity when your period of investment is long term. Ideal insurance cover should be around 10-12 times of your yearly income. Do all your existing policies have such sufficient insurance coverage? I don’t think so.

          1) Yes regarding medical expenses what your agent told is correct. But the next part what he is claiming is 200% wrong. I don’t know why he is claiming so. Regarding charging higher premiums depends on case to case and the decision of underwriter which no one can predict. Hence I am unable to reply to you whether the rise in premium is right or wrong.

          2) I still suggest you think twice of investing in such plans. The risk involved in equity mutual fund? You can reduce the risk by investing monthly and investing for long term. People who lost are those who have short sight and invested lump sum also. Now coming back to which plan is best, when both offering you the same type of return, I don’t think it is wise to say which is best.

          Think and decide yourself.

          1. Thanks again for the detailed response! I have extremely limited knowledge of financial markets (equity funds, shares etc.) and related investment options, which is why I was averse to investing in MFs and hence thought I should familiarize myself with the related concepts and market scenario before considering that option. Besides, I haven’t been keen on asset creation and only in the recent times have I even started thinking of asset preservation (i.e. ensuring that income earned so far doesn’t lose value due to inflation) – perhaps that is another reason why I didn’t give a serious thought to MFs. I will definitely take your advice and think further before opting for the mentioned policies. By the way, would it be wise to invest in MFs now for the sake of providing some sort of pension (i.e. income during retirement period), just like how insurance policies were put together by the LIC agent into a “pension plan”? If you have any blog posts that would help people like me who are totally new to MFs, could you please provide a link to that?

            Thanks and regards,

            1. SHR-It come to notice that due to ignorance you are staying away from MF. I know including me all of us have first priority is to preserve our hard earned money. But at the same time money kept idle or giving you negative real return (interest earned-inflation rate=real return) will mean the depreciation in that value than appreciation. Regarding retirement planning, actually there are two phases. One is called an accumulation period and another is called a distribution period. If your retirement planning is of a longer term (more than 10 years) then you can start to build your retirement corpus by investing in any well diversified large cap fund. Once you are nearer to your goal then switching over to secured funding. During the time of retirement period you can invest the accumulated amount into any pension product (such as LIC’s Jeevan Akshay) and earn the decent return. But having said so, you need to calculate yourself the corpus needed for your retirement. Hence my suggestion will be first to educate yourself by google it on the same issue. Understanding regarding the basics of MF, if you google it then you will find plenty of knowledge platforms. Hope you go ahead with better knowledgeable investor than blind investor. Best of luck 🙂

  200. Hello Sir,

    Your doing a great job in explaining the policy, keep it up!.

    My wife enrolled in Jeevan saral begining 2010 with monthly Premium of 5000 for 15 years.

    My wife age at the time of enrollment 31yrs.

    What would be my return if i cancel now or after 10 years. Just FYI we moved to US after enrolling this policy. Would you suggest continuing this policy or cancel and enroll in something else?

    Appreciate all your help


  201. Hi Basavaraj,

    My name is Prabhat. I have asked my agent to give me jeevan saral but he had given me jeevan anand. I started jeevan anand in jan 2012 and paid two premium. I am paying yearly premium of 96,000 and the policy is of 15 years. Now i have some queries.

    1) Is there any provision to quit from jeevan anand at this point as my premium is due in Jan 2014. Also how much amount i will get.or please advice when should i quit.
    2) what is the total amount that i would be getting after 15 years when it gets matured.
    3) Return wise, which policy will be better jeevan anand or jeevan saral after maturity. Please calculate on the basis of 96000 as a premium and 15 years as a time period.
    4) Is there anything better than these two policy where i can get assured better returns.

    My age is 29 years.


    1. Prabhat-My answers are as below.

      1) At this point you can’t quit as your policy not completed 3 years. So if you quit within 3 years then you will not get anything.
      2) Both the plans are of endowment type where return on investment will hover around 6% to 7%.
      3) In my view for the period of 15 years, none of traditional plans such as Jeevan Anand or Jeevan Saral are best.
      4) Best option to me (if you are totally risk averse) then start investing in PPF than running behind these plans. At the same time cover your life by taking sufficient term insurance.

      I don’t know what made you to invest such huge amount to invest in low yielding products. Think and decide because it is your hard earned money but not your agents 🙂

  202. Basavaraj Sir,

    I’m a Central Govt. Employee, working for last 1 yr (Covered under NPS). My present age is 29 yrs. Marital Status: Single. I am contributing Rs 2000 PM in PPF A/c. Still need to invest Rs. 24000 PA to save IT. Presently I have no insurance cover, so I was thinking about Jeevan Saral Plan. But by reading this thread I have come to know that Term Insurance is best. But in many comments you have advised that PPF is better than Jeevan Saral. Please elaborate this using 24000 Annual premium. and also advise some good Term Insurance policies.

    1. Kaushik-Your first priority should be towards having sufficient life insurance (by taking term insurance), enough emergency fund (I don’t think you need it being Govt Employee. But the ideal amount should be around 3-6 months expenses). Then based on your financial goals start investing in any product. Instead of running behind such low yielding insurance plans, better to opt for PPF (some portion of your overall portfolio) and the rest will be in equity (for long term goals like more than 5 years).

      Elaborating the difference between Jeevan Saral return with PPF is a big topic. But I am assuring you that definitely PPF has an edge over Jeevan Saral. So go with PPF.

  203. Sir,

    I took Jeevan saral at the age of 31yrs in 2004 with an yearly premium of Ruppes 47000. May I know how much will I be getting at the end of 10th and 11th yr. Pls let me know the calculation.


    Maj S.Mamgain

    1. Maj-MSA will be Rs.4,31,616+LA Rs.1,51,065 (LA @ Rs.350 per Rs.1,000 MSA for the premium band of less than Rs.50,000 per year). This is for 10 years policies. For 11 years there will not be much change. For detailed calculation, I suggest you to read the above post in detail.

          1. Sir,
            I am at my post in Jammu thus dont have access to all these details. Please let me know the calculation of the amount Rs.431616.

            Secondly by colleague has Jeevan Saral with an accidental rider of Rs.841.50, will this is included while calculation MSA.

            Pls reply my two questions and I will be done.


            Maj. Sandeep

            1. Maj-No need to worry, you just contact your nearest LIC branch or call them and give the same information. They will provide you. Accidental rider is the facility where if the policy holder dies due to an accident then additional SA will be payable. So it will not be included in MSA.

              1. Sir,

                This will be my last reply for you. I am presently in post, almost 175 km away from the civil habitat and from last 66 yrs LIC has not been able to open its branch near to this border terrain called Kargil and will never be . I expected a reply very simple to answer from your end however I believe you are not willing to answer the question of mine.


                Maj. Sandeep

                1. Maj-I don’t have the exact formula to explain the same. But it will be available with all insurance agents which LIC provides. You are claiming that you don’t have access to the outer world. But at the same time you are replying to my comments. Dear…suggest you to contact your agent from whom you took this policy.

  204. Hi,
    My father took Jeevan Saral policy in 2010 paying 46502 per year (no rider)..his 10th yr has completed do let me know how much will he be getting if he surrenders it today. let me know the amount in 10th, 11th and 12th yr. Do let me know the total amount with break up.



  205. Hi Basavraj,

    Thanks for the good work you r doing.

    I had take Jeevan Saral with monthly payment of 10000, in 2009 at 29 Yr of age.

    Can you please tell me how much total amount shall I get after surrendering the policy at 5 Yr. and 10 Yr.

    Thanking you…

    1. Praveen-I don’t have data for calculating for 5 years. But for a 10 year policy, MSA will be Rs.11,07,600. LA will be Rs.4,15,350 (LA @ Rs.375 per Rs.1,000 MSA for the premium paying policy of more than Rs.50,000 annually). So total you will receive Rs.15,22,950.

      1. Thanks Basavraj,

        Thant means I’ll be earning approx. 3.2Lakhs, over an Investment of 12 Lakhs (10 Yr’s period).

        I’ve decided to opt out of this now, even if I loose around One Lakh.

        I’ll be putting that money plus some more on a piece of land already identified.

        Going for term insurance for the life cover.

        Thanks a lot for the info.


  206. Hi

    I’m 39 years old and i taken my Jeevan Saral insurance policy for a 25 year term in May 2012 at 38 years , monthly plan, install premium -4999.84 +Installment accsident benifit 104.16 ,the Sum assured is 1612300,accident benifit 1250000, term rider sum assured 1250000.

    Now since i have invested in a property I plan to surrender my policy where i have completed a 1 year 4 month payment through ecs scheme.

    I had taken it under the understanding of keeping it for 15 years, ideally if i need money for my daugheters education
    i could pull out the fund after 10 years.

    My question is now if i close this policy for say after 12 years and use it for my daughter education , what sum would i get if I surrender on 12 years. What is shown in the table 165 are these figures just tentative or are they actual returns that you will receive. And if these figures are tenatative , how much returns is expected if i withdraw in 12 years as i will have overridden the penalty of keeping the policy for minimum of 10 years lockin.

    Thank you in advance for your advice.
    Kind Regards,

    1. Vijay-If you close the policy at the end of 12th year then you will receive the MSA of Rs.6,72,100 (Age I considered as 38 years while taking this plan and monthly premium of Rs.5,000)+LA Rs.2,85,642 (LA @Rs.425 per Rs.1,000 MSA for more than Rs.50,000 annual premium band)=Rs.9,57,742.

      1. Thank you so much Basavaraj , it is a deciding factor for me .I think keeping this amount in PPF yearly will be more benificial than LIC ,only here the insurance cover is not present. I will be going in for Term Insurance plan instead.


    1. Vinod-Will you think that you are properly insured? I mean for how many years your dependents will survive if something happens to you today by that insurance claim amount? Can you please elaborate in detail?

  208. SIR, MY D..O.B IS 17.11.1961. I WANT TO TAKE EIGHT POLICIES OF 165 TABLE FOR 18,17,16,15,14,13,12,11 YEARS EACH RS. 500/- PER MONTH I.E. RS.6000/- PER YEAR EACH POLICY. I WILL PAY RS. 108000/-, 102000/-, 96000/- , 90000/-,,84000/-, 78000/-, 72000/- ,66000/- RESPECTIVELY.

  209. Basavraj,

    I took this policy for 26 yrs term and i am paying 60,000 per year. can you help me what is the final maturity amount i will get ?


  210. Dear Basavaraj,

    Thank you for writing such an informative article & for taking the time to answer each & every question here. Truly amazing effort!

    I have a question too, about my Jeevan Saral policy. I started the policy on 6th September 2010, and the annual premium is Rs. 48040. I have paid premiums for 3 years, but my fourth year’s premium is due now (before 6th October).

    My policy term is 30 years, and my current age is also 30.

    I just called LIC & they told me the current surrender value of this policy is Rs. 82016.

    My questions to you are:

    1. How did they calculate this value?
    2. What will be the value after I pay the 4th annual premium?
    3. Lastly, should I surrender it now or wait to complete 5 years?

    Apparently, from the 10th year onwards, I get a ‘loyalty addition’ added to the value of policy. However, the amount of addition is not clear.

    Plus, there might be some ‘bonus’ declared from time to time, which will also be added to the value of this policy. Again, amount is not clear. The agent promised me the moon, but I am quite doubtful now.

    Thank you again for taking my question!


    1. Manisha-As your policy completed 3 years so they did like this-30% of total premiums paid excluding 1st year premium, all extra premiums and accident benefit/term rider premiums. Value after fourth year will be-90% of MSA. My suggestion will be to let it complete 5 years then choose to come out of this plan. In this plan there will be no bonus but only MSA+LA. For exact valuations of calculations you need to contact the servicing or nearest LIC branch.

      1. Thank you for your prompt response. However, there seems to be an issue with the calculation. On , it says that:

        Guaranteed Surrender Value:
        The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

        Special Surrender Value:
        80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid. The Maturity Sum Assured for this para will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy.

        Corporation’s policy on surrenders:
        In practice, the Corporation will pay a Special Surrender Value – which is usually higher than the Guaranteed Surrender Value. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

        If you are considering Special Surrender Value (i.e. 90%) for the next year, why not consider it for this year too (i.e.80%)? Am I missing something here?

        1. Manisha- Difference between 90% to 80% is a lot. They can’t give you 90% without having that much premium payment from your side. Please understand, they are running a business but not the social service. Hence the rules are like that. For exact calculations like how much you paid, how much % of MSA they arrive at surrender value, you contact your nearest LIC branch.

  211. I really feel glad that you are doing such a great help to needful. Thank you!!

    I’ve purchased LIC Jeevan Saral(165) a month ago.

    Details :
    Age : 25 Years 7 Months
    Term : 25 Years
    Premium : 2000/Month

    Agent told that MSA would be 6,90,00 Rs for 25 years. LA would be Approx 11,50,000 Rs, so total i would be receiving around 18,00,00 Rs on maturity, is it correct?

    1. Mitesh-MSA in your case is Rs.7,25,220 (I considered your age as 26 years and term 25 years). LA will be Rs.7,25,220 (LA @ Rs.1,000 per Rs.1,000 MSA). So total return will be Rs.14,50,440. I don’t know on what base your agent calculated and arrive at such high returns.

  212. Dear sir I brought a LIC Jeevan Anand policy with policy term 24 yrs, yearly premium 43603. Policy sum assured value 1000000/-.Commencement date :may 2007 at age 31 years . Please let me know my total maturity value once policy gets matured after 24 premiums are paid.

    Is this policy better or do you recommend me to invest else.


  213. I brought a LIC Jeevan Saral Policy (Table 165) for 35 years, yrly premium 43653. Policy sum assured value 9,87,500/-.Commencement date :Feb 2010 ( age 34) Please let me know my total maturity value and what will be the surrender value if i surrender it after 5 yrs and when will the 5th yr will commence.


      1. Please let me know my total maturity value and when will the 5th yr will end. And shall I stop paying the premium after that. What will be the surrender value if i surrender it after 10 yrs.


      1. Please let me know my total maturity value and when will the 5th yr will end. And shall I stop paying the premium after that. What will be the surrender value if i surrender it after 10 yrs.


  214. hi basav – One of my friend has opted for jeewan saral policy and he has opted for 5000/monthly plan for a term of 30 years.He was moved toward it for higher return around n above 1 crore based on I.R.R calculation @10%. and he is of the view that even if return wold be @ 6 or 7 %, it would fetch him a good deal i.e., around 60 to 70 lacs. but I doubt . could u please tell me what will he get after 30 yrs?

    1. Manohar-Your friend is very much satisfied with 6% return for the long run? Then ask him to put all his money into a savings account where he will get around 4-5% total risk free return. But inflation adjusted return of NEGATIVE. Ask your friend what will the inflation adjusted return of flat return of around 6-7%? It is a Zero to Negative. If he is comfortable with low return then even no need to take risk of investing in LIC also (where bonus or LA are yearly fluctuating).
      As you did calcuation, the return of this policy even for such long term will be around 7%. If you need calculations then I will do it. But the point is, will your friend sustainable with kind of return?

      1. first of all I appreciate your quick response.Yes I would like to know about the return. If u can please tell…….. Basav I am thinking of taking Jeewansaathi plan from risk cover point of view, as in case of any eventuality of either of the two the premium ceases and one gets S.A but policy still moves on w/out paying any premium further. My age is 40 and that of my wife 28. wouldn’t that be a right choice instead of going for individual risk coverage ?

  215. I have jivan saral policy(table 165 term-35) ,which I bought at the age of 24 and year 2010.I am paying quaterly permium 4594rs(4500 for main plan+93.75 for accident benefit premium) I want to surrender it after 5 yrs.what will I get.
    In policy it is written that Maturity sum assured is 791115 and accident benefit sum assured is 375000.pls reply

  216. Hi Basavaraj,
    Thanks for the article and all your helpful comments.This might be a repeat of what someone already asked-but here’s what happened.My father bought Jeevan Saral in 2007 (10 year term policy).The basic yearly premium is 58,800 and accidental benefit premium is 1250.So the total yearly installment is 60050.The Maturity Sum assured is 198550.I think now since it’s realized that this was more a “risk” coverage policy than preserving the principal policy-he wants to surrender the policy.He has paid the premium for 5 years now.The part that I don’t understand is the Loyalty addition part.So basically

    a)If he surrenders now(after 5 years)-what’s the surrender value of the policy
    b)If he decides to keep it and pay the premium for next 5 years-what can be expected money he will get at the end of 10 years.

    From what I understand-it’s better to take the loss and surrender the policy as the loyalty addition is something that cannot be guaranteed-but would like your advice.