LIC’s new plans 2014-New Jeevan Anand (No.815)

Today LIC relaunched it’s one of the popular plan JEEVAN ANAND. As I said in my earlier posts, there is no such a major revamp. But only few changes to meet the new guidelines. Below are the features of New Jeevan Anand (No.815).

New Jeevan Anand (No.815)

What are the new changes?

  • Maximum age at entry is reduced.
  • The maximum policy term is reduced.
  • Rebates on higher premium and the Basic Sum Assured modified.
  • Loan features modified.
  • Change in Guaranteed Surrender Value.
  • Policy revival conditions changed.

Few readers suggested me to come out with the benefits of investing in these new plans. But as of now without knowing the premium rates and other details, I am unable to do so. Hence once the clear picture come out then I will do that review. As of now I am just updating the plan features whenever LIC launches new revamped plans.

358 Responses

  1. dear Raj,
    good morning ., my LIC policy of Jeevan Anand (policy no 705334336) has caught my neck with additional tax burden, as the maturity amount of Rs 5.91 Lakhs added and TDS deducted Rs11,830/00, as 10(10D) added as LIC maturity also to my earnings in Form 26AS, where as i am an employee of a pvt company, and paid the Premum thru my nose each year, and now my age is 60 years, retired, how come i have to pay IT for LIC policy , i never dreamt, please help me.

    however i have taken LIC policy ( jeevan anand in Sept’2010 and matured in 2016.

    As per my agent / auditor, understanding my Premium paid [ Rs. 37600*4 quarters*5 years] Rs. 7,52,000 Premium paid on yearly basis Rs. 1,50,400.

    Sum Assured [ Rs 5,00,000 + Another Sum Assured Min Rs 2,55,000 being Jeevan Anand takes care till life ] = Rs 7,55,000
    % of Premium Paid to Sum Assured 19.92%

    So this ratio is less than 20% then, am not exempted from tax under Section 10(10D).

    please clarify asap., and bachav please !!

    V.Ravi sarma

  2. Dear Sir,
    I am 24 years old and i plan to take New Jeevan Anand 815 for a Amount of 12500000. The yearly premium would be close to 3.5 lacs. Term would be for 35 years.
    Presently i dont have any life insurance. Also looking forward to this as long term investment plus life insurance.
    Is this the right choice or should i invest or buy some other policy.
    Thanks in advance.

    1. Raj-Check for how many years your family survive with Rs.1.25 Cr. If you feel this insurance is suffice, then go ahead. Also, check yourself whether the 5% to 6% return is BEST, then defenitely go ahead. Otherwise, serious think of what you are doing. In my view it is WRONG.

    2. Sir for this coverage you can buy term insurance for a premium of 40k/yr if u go through agent and 25k/yr in online mode. If u invest of the amount in PDF n equity mf u would end up with tons of money. If u continue this policy max u get is 2.5cr. if u take term +ppf+equity mf den u would make up more than 10cr

  3. The best part of new jivan an and is, as per my knowledge is the sum assured given to the nominee after death, even after its maturity.

    Is their such plan with Indian post.??

  4. I heard so much about jeevan anand, that its very nice to invest here, but was not aware what exactly it is, how much beneficial it to me.. thanks to you that u gave such a detailed post.

  5. Hello Sir,

    I am 26yr old working in IT, my CTC is 5.5 LPA (in hand 42k)
    i need a suggestion for Tax Saving and where to invest for better and short returns.
    i have a personal loan and land loan where i am giving around 21k per month.
    so kindly suggest a better option for me where i can invest yearly/quarterly and save tax and also do some investment.
    i am thinking about LIC e-term for life insurance.


  6. yogesh
    sir my age is 20 year. I take policy new jeevan anand plan no. 815 in year june 2015 for 21 years. my sum assured is 100000 and my premium for 3 months Rs1379 ,my agent said that maturity amount is appr. 3 lacs it is true and wrong . please help

  7. Hi Friends,
    I have a small doubt, need your advice for the same, kindly help,
    I have purchased following LIC Policy,
    “PLAN:0815 New Jeevan Anand TERM:26 AGE:31 SumAssured:500000, Monthly (Rs): 1773” – details as per online LIC website Premium calculator, excluding service tax.
    Where as Monthly Premium : 1815 is what I pay for the same policy as I have taken the policy from a Agent.
    Is this possible, that the premium is different for the same policy if you buy on-line or if you buy from an agent.
    As what I had assumed is that premium must be same irrespective of whether you buy on-line or from an agent. instead LIC would be paying to the agent from his profits and not by increasing our premium and paying to the agent.
    So my doubt here is can there be a difference in premium for the same policy, if you buy on-line vs agent?

    Also as per the agent the premium will reduce from next year onwards due to decrease in service tax which is currently 3.5% for the 1st year and from the next year onwards it will become 1.75%. then what about the ECS instruction given to the bank will it automatically adjust as per the decreased premium rate or the premium rate remain constant even if the premium decreases ?


  8. hi sir,
    Recently i have taken new jevan anand policy sum assured as 5 lakhs opted for 20 yesars
    i want to know how much i will get after completion of 2o years

  9. hello sir..
    i was planning for new jeevan anand policy for 21 yrs with sa 50 lacs . but then i realized after reading your article n doing my homework that i can get 1.5 cr in fd at 8% if i deposit the premium in my account as fd every year n forget about it .(premium 2.8 lacs pa).kindly advice me weather i m correct with this move????thanks in advance

  10. I Have a LIC Jeevan Anand 10,00,000 policy for 21yrs term started in year 2007, do i get any benefit by changing premium from quarterly to yearly now.

      1. Thank You, Can you please Explain what does “Rebate of 3% for tabular premium ” mentioned in above image mean and why I will not get that now.

  11. i want to open lic jeevan anad plan 815 policy and how much time i take loan againsed this policy after open it pls reply me

    1. Gopal-It seems your main motto is not either buying insurance or investment, but opting for loan. It will be available only after 3 years. Also, don’t be smart. They will give the loan which is less than of what you paid as premium.

      1. Hello Sir

        I have a LIC jeevan anand policy. i have already paid 102000 rs in last 4 years
        now i want to surrender my policy – at present surrender value is 57000 only

        can you provide any idea how much i will get if i surrender my current policy after 1 more year e.g after 5 years from date of start

        or it is good for me to surrender the same now


  12. Hi,

    I have Jeevan Anand policy for 21 years and paying 6612 as quarterly premium. What will i get if i closed it after 3 years? Suggest me what to do.


  13. Hello Basavaraj,

    I am planning to do investments which can also qualify for tax deduction.

    I have term policy from ICICI
    I have home loan but principal amount is less, interest is more 🙂
    i have one insurance with yearly premium of 16k
    i am planning for 60K per year for sukanya samriddhi yojana

    should i go for Lic jeevan anand endowment policy the premium is coming around 85k per year.

    Please suggest.

    Thanks & Regards,

    1. Shivakumar-Do you feel term insurance, home loan principal, existing insurance premium of Rs.16,000 and your EPF contribution not suffice to fill Rs.1,50,000? Don’t run behind ONLY TAX SAVING purpose. You may end up in investing in wrong products. First understand your financial goals, then select a product which meets your goal and also TAX EFFICIENT.

  14. I took New jeevan Anand policy for sum assured of 10 Lakhs and I have payed 1 year premium around 50,000 Rs. After going thru many blogs I feel its not fruitful. Also due to some personal commitments I am unable to pay that huge amount every year(I commited a mistake opting for 10Lakh without thinking about feature commitments). Now if I stop paying the premium from second year my money will be lost. Now I have only two options

    1. Forget the 50,000 which I have payed and close the policy as there are better options to save money.
    2. Opt for reduced sum assurance for <=5,00,000 Rs. so that I can save 25,000 from that 50,000.

    I am very much confused 🙁 Kindly suggest me which option is good by considering all the consequesnces.

  15. Hi Basu,
    I have been interacting to you through this blog. I was totally new when you suggested me for mutual fund investments. But after reading lots of your blogs and searching on internet I got some knowledge about MF, Thanks for your wonderful blog. Now I decided to go for MF investment.
    As I am new I have decided to go initially for regular plan through CAMS as it also provide investment through online which will be helpful for me and after understanding and getting some more knowledge I will switch my investment to direct plan. Can I do so? Is it possible later to switch over direct mode on MF utility portal from CAMS?? Please help am I in right direction.
    Will wait for your reply.
    Thank you.

      1. Thanks for reply. Actually I am little confused in approaching between CAMS and Funds India. Would you please suggest any one?? which one is having advantage over other???

  16. Dear sir,

    why we are confusing between life cover and investment it that necessary same product should take care of your investment as well as life insurance why we are mixing investment with insurance.

  17. Hello Basa,

    I am working with a Hospitality Sector & my age is 32 years I have two LIC policies but both are of very small amount.Please advise some good earning policy with LIC or HDFC. I heard about the SIT (Systematic Investment Plan).Please give me some brief about this & also product which we can choose.


  18. Hi Basa,

    I am working in IT company. I recently purchased a Jeevan Anand Policy in Jan 2015 at the age of 27.

    Term 35 yeas, Premium- 9500 Appx, Sum Assured 3,00,000.

    I was told that I will get bonus of 135/1000 if I choose it for 35 years. But I recently talked to HDFC agent for term plan and then he told me that in Jeevan anand max return you will get 4 to 5 %.

    Please tell me is it true. I already have jeevan saral policy paying since last 5 years 12k premium for SA 250000.

    Kindly guide me whether I should continue jeevan anand as only 1 premium paid and 50% cash back already get from agent. Also let me know if I should take HDFC term plan or I should invest somewhere else.

    Thank you.

    1. Bharti-Your agent is a big lier. Please go through the recent bonus declaration “LIC’s Bonus rates for 2014-15 and Comparison“. Your returns will be around 5% to 6%. If you just paid 1st premium and in that you already received half of that from agent then better to forget. Buying term plan must be your first priority. But which company to choose is entirely left with you. I am not forcing you to go with HDFC ONLY.

      1. Hi Basa,

        Thanks for reply. I am confused term plan of HDFC and Aegon Religare . HDFC claim ratio is high but aegon premium is less and claim ration also increase last year i.e. 81%. Request you to please guide based on your experience which one I should buy.

        Also with term insurance I am planning to invest in mutual fund for return purpose so that both insurance and return goal solve. I am thinking to go for axis bank long term equity mutual fund and tata balancing fund.

        please provide your review on these mf and any other investment mode you prefer over that..

        Thanks for you help.

        1. Bhartiy-I don’t feel any difference between HDFC or Aegon. You can choose anyone of your choice. How you selected those two mutual funds? Without understanding your time frame of investment how can I guide you?

          1. I checked the rating of Axis Bank at money I want to invest for a period of 3 to 5 years.
            I am ok to invest in equity linked (80C) also or in any open ended mutual fund. I will anyway complete the limit of 150000 but I want to earn return of surplus fund.

            Please advise where I should invest to get return more than FD and PPF.

  19. Hellos sir,
    Thanks for your reply, I am replying you little late due to some work and also I was unable to reply you in reply box.

    I don’t mean of investment for only short term for high return, I can also invest for longer period. I just wanted to know about return in 5 yrs if I do so.
    But I will invest for longer period for high returns, please advice some policy.

    1. Pankaj-For 5 year goal you can use either Bank FDs or Debt Funds. For 10 Yrs goal a balanced fund and a large cap fund of a mutual fund. More than 10 Yrs term of goal one large cap fund and one small and mid cap fund are enough.

  20. Hello Basa,

    Thanks for the reply, well let me correct you that maturity is 15 yrs (not 19 yrs) and I have also calculated the investment that would be 3 lac (actual plan is 2.5 lac) then return would be near about 2 lac but after 15 years of completion and also once my plan expired, I would be getting lifetime insurance for free which comes with this PLAN…Do you think I should still continue with it and also I have to pay premium on next month. So suggest me the best. If this is not good for me then I’ll move with some different Life Insurance according to you.

    1. Ram-Do you feel the insurance coverage suffice for you postmaturity? For how many days your nominees survive with that insurance coverage after 15 Years? Maybe 2-3 months?? Think seriously. I am not forcing you anything.

  21. Hello sir,
    Thank you for sharing your knowledge its very helpful for me.
    I am 27 year old were planning for jeevan anand policy of sum assured 10 lakhs for 21year ppt. But after reading your comments I don’t find this policy useful for me as for a long term investment it gives only 5-6% return.

    I am a central govt employee with annual income 4 lpa and saving of 1.5 lpa, after reading your blog I am now thinking to buy term insurance and rest to invest to get high return, am I in right direction??

    Which will be more suitable between term insurance and whole life insurance for me please help!!!

    Does term insurance will helpful in saving tax also?

    Please help me to find good investment policies I am totally new in this, my goals are to get 5 lacs in 5yr., 10lacs in 10 yr and 20 lacs in 15 year.
    Would be thankful for prompt reply.

    1. Pankaj-You are in a right direction. Whole life is one more typical insruance+investment product. So it is one more trap. It is fully helpful for you in saving tax. You have multiple goals with multiple requirements. So all can’t be recommended by a few lines. Sorry.

      1. Thanks a lot for reply!!
        Can you please suggest me some investment policy and methods which can give high returns, I am a beginner and don’t have sufficient knowledge .

      2. Thanks a lot for reply.
        Can you please suggest me some investment policy or method which can give me a high return and less risk. I am a beginner and don’t have any investment knowledge.
        Thank you once again.

              1. Actually I don’t know anything about investment as I told you I am new. As I said my saving is 1.5 lpa I want to distribute my savings into investment but don’t know how, would be thankful if you tell.
                I want to invest atleast 50k per yr. into high yielding return.
                What amount can I get if I do so for five year.

  22. Hi sir,
    I am 27 years old and working in IT firm from 3 years. Now my pay scale is 5.8 l p a. Now i would like to take LIC policy. Which one is better with what premium. Pls suggest me.

  23. Hi,

    I am Ajith age 32 years from Thiruvananthapuram.

    Today I contacted an agent, he told me about LIC – New Jeevan Anand Policy.

    I told i am planning to take Rs. 1000000/- policy for 20years.

    He told – The New Jeevan Anand Policy have life time cover insurance. even after maturity i will be insured.

    And told me to make it for 21 years.

    Premium of Rs. 4550/month

    and told i will get 48 000*21 + 1000000 + Final Bonus = 2250000/- Approx.

    and also i will be covered by insurance of Rs 10Lakhs life time, anything happens to me even after 21 years nominee will get the benifit.

    Is this information correct ?

      1. Hi Basavaraj, please help me on this, i like to invest for future looking 20 years ahead, and also a life insurance cover.

  24. i am a 31 year old with savings of Rs. 100,000/- per year. I have an Home loan + equity of 10900/- per month for another 18 years.

    i need a plan for proper investment on returns with tax benefit. I am a divorcee, non-smoker and currently do not have any health insurance policy.

    I can pay for a longer period to avail benefits on retirement hence i want to split the investment between high risk, high returns and low risk assured returns


    ranjith krishnan

  25. I am 25 yrs old and am planning to buy a policy.Agent has recommended with New Jeevan Anand policy(815) with details as.

    in this plan you have to submit Rs 1,991 in every month till 20 years.

    · At the end of 20 year LIC will give you maturity of Rs 12,80,000.

    · And from day one LIC will start your Normal insurance of Rs 4,00,000 and Accidental Insurance of Rs 8,00,000.

    · And after maturity your Insurance amount of Rs 4,00,000 with you for hundred years without submit your perium amount.

    Should i go with this.

  26. sir ,i applied for new jeevan anand 815,,(21 years ) 5lakhs policy,,my age is 21 now,,,lic agent told that i will get around 11 lakhs after 21 years ,,is it right

  27. Hello Sir,

    My name is Ram Bahadur (19yrs) and I have taken a Plan New Jeeven anand for 15 yrs (Rs.2,50,000) and currently paying 5045/quarterly. And the agent whom I dealt with he is my friend and I was told that after the maturity I’ll get 5,00,000/- (2 times of maturity) after adding all the bonus and interest. So do you really think he is right? Am confused please help me out.

      1. Hello Basa,

        Thanks for the reply, well let me correct you that maturity is 15 yrs (not 19 yrs) and I have also calculated the investment that would be 3 lac (actual plan is 2.5 lac) then return would be near about 2 lac but after 15 years of completion and also once my plan expired, I would be getting lifetime insurance for free which comes with this PLAN…Do you think I should still continue with it and also I have to pay premium on next month. So suggest me the best. If this is not good for me then I’ll move with some different Life Insurance according to you.

  28. Hi Sir,

    I am 28 years now and planning for a Investment + Tax saving + Insurance .

    Can you please advise. I can pay upto 70K per year.

    Can I go only for LIC/PPF or any other savings ?

    I need max 20L after 15/20 years ? Please advise …

      1. Sir,

        20 L is some random amount which I need for my son education. He is 2 years old now.
        Currently I do not have any investments.
        I am working in IT firm so looking for tax benifit also.

        Thank you for the prompted response …

            1. Vikesh-It is wrong to ask such readymade investment ideas. I don’t know your goals, financial status, how you planned currently and what set of mind set you are about finance. So hard for me to suggest.

  29. yes sir in total 15 policies for 15 lakhs. every policy has one lakh sum assured.the date of maturity of each policy is varying. the policy is starting to end from 2027 to 2041.

      1. last premium date will be 28.8.2041. from 2017 my policy payment starts to decline one by one upto 2041 as one by one policy matures.but upto 2016 i should pay that rs. 76481 annually.( i.e; policy 1 ends on 28.8.2027,policy 2 ends on 28.8.2028….and so on at last policy 15 ends on 28.8.2041)

        1. Raji-He sold you bundle of policies which made him to clear his yearly target 🙂 So the first policy term is 15 years and goes on increasing. Each policy for LIC is separate. So he cheated you by not fulfilling your requirement. Now the question is whether to continue or not. If you are satisfied with return of around 5% then go ahead. Otherwise seriously think about coming out of such dummy products.

          1. k thank you sir. how i can come out of this.can you suggest me please.i paid 3 yrs premium.can i quit it now. leave it as paid up.or if i surrender now i think i will incur loss may be will only get around 40000 back.till i now i have paid rs.2,29,443.

  30. Sir
    I am Ankush i have invested in New jeevan anand plan with premium of 295000 PA, for 15 years please let me know in the end of 15 years what is the value i get.

  31. sir, i am Rs.76481 annually for this jeevan anand policy 149 started on 28th august 2012.till now i have paid 3 premiums 2012,2013, and 2014. i asked the agent for 15 lacs policy for 15 years. but maturity date mentioned as 2042 i am really confused.i cant pay up to 30 years and wait for it possible for me to reduce it to 5 laks for 5 years policy because returns are only 5%. wat can i do now.

      1. sir in my policy they have mentioned as Ins 1,T-T-PT149-74-15 continuous upto Ins1,T-T-PT149-74-29 in total i have been issued 15 separate bonds and 15 separate receipts..really is it not jeevan anand policy.?

        1. Raji-It is old jeevan anand. No need to worry about that. The term of first policy is 15 years and last policy is 29 years. Hope you got clarity now. If you are satisfied with kind of return then go ahead. Otherwise think seriously to come out of it at the earliest. It is a trap which your agent sold to you.

  32. Hello sir,

    I am thinking to buy LIC policy..
    I can pay around 25000 p.a.
    Can you please suggest any plan?
    How is the new jeevan aanand?

  33. Dear Basavaraj,

    I am planning to take LIC jeevan anand plan 815.

    as per the discussions with agent , I have to pay a premium of around Rs 5,67,000 PA. for a sum assured of 1 crore.

    As per the agent at the end of 22nd year I will be paid a return of 2 crore, and the life insurance will be covered till death.

    On reaching the 100th year( as per by day of birth ) LIC will pay me or my heirs again 1 crore.

    is it true policy is still in process pls advice.


    1. Srikanth-Forget about the insurance coverage they offer you. But have calculated the return on this investment? Do you know the cost of Rs.1 Cr insurance these days? It hardly cost you around Rs.10,000 to Rs.15,000 (age range between 30-45). What will be the value of insurance coverage of Rs.1 Cr after 22 years??

  34. Sir,
    Currently i have started new jeevan anand policy. Currently I am 26 years old. My policy period is for 26 Years.My sum assured is 550000/-, I am paying 1960 Per month.So should i continue with this policy, Is it benifecial for my future.
    Agent told me that on maturity you will get 1538900/-.

    Please suggest

  35. hello sir,
    i have taken a lic jeevan anand for a periof of 25 yrs, 500000 sa and my age is 27.
    i m paying quaterly premium of around 5500 and have paid 5 premium till date.
    now i am planning to discontinue lic jeevan anand losing around 27000 and i will buy
    lic e term plan and rest of the money in sip or rd….
    please guide whether i m going ryt way or not…..

  36. Hi Basa

    I ‘m holding the LIC BHIMA GOLD policy . Currently I ‘m paying around 400o per month and the policy is about 13 lakhs
    Due to the financial situation . I ‘m not able to continue . And I completed my 4 years and got 1.30lakhs . Could you please suggest whether I can surrender the policy?


  37. sir, I am a government teacher. My annual income is about 3.45 lac. Which is a better option for me to invest in for a sum assured of 20lac? Either PLI or LIC New Jeevan Anand. Please reply as soon as possible.

  38. Hi Basavaraj,

    I am 27 and my income is 2.5 pa.
    It is very helpful site for newbies like me who have a very little knowledge about policies.

    I have taken a New Jeevan Anand policy of SA 6,00,000 for 21 years. Which was strongly recommended by agent.I have paid the first premium (Qtrly 8,412) already.I took this policy because of lack of knowledge about other plans in LIC.

    After discussing with my friend about my policy all of a sudden I realized that I will have to wait till 21 years to get my Sum Assured amount .My friend has taken some money back policy from LIC which sounds more fascinating then mine. In money back policy one can get some % of SA in every 4/5 year depending on the policy period.

    My intention behind LIC policy was to save tax and save/invest money.

    Have i done a mistake by taking New Jeevan Anand Policy? Is there any provision to alter it ? Kindly guide me the correct course of action I should follow now.

    Thanks and Regards,

    1. Sreekanth-Money Back a good option? Check the premium with Jeevan Anand. You need to pay more than Jeevan Anand to get your money once in 4-5 years. So is it good? It is more dangerous than this plan. Also your intention to save tax is good. But wrong choice for your intention of save/invest. Think over it.

      1. Hi Basavaraj,

        Thank you very much for you invaluable comments.
        My idea of saving/investing might be lame. I am just a lay man in this domain. May I ask you to suggest other options available?

        Grateful for your response.

      2. Dear Sir,

        i too have same the policy jeevan anand 815, currently i am paying 20000p.a for 15 year.
        I have paid one premium already.
        I am working in private organization employee.
        For tax saving purpose only i have requested one agent he suggested and provided this policy
        now i thought it is not good for me bcoz i need to wait till 15 years to get back my money.
        is their any better policy which will beneficial to me like FD,PPF or any other

        1. Aruna-You asked for policy and he advised it. So don’t blame agent. You need to wait for 15 years means you not planned your finance properly. Please first understand when you need money, how much you need and what risk you can take. Then decide about the product.

  39. Hi Basavaraj,

    Is it possible for me to change tee payment frequency from quarterly to yearly? By doing this, can I get any reduction on the premium amount ?

    This is for Jeevan Anand 149 plan.

    Why am I asking this question?

    My friend is paying less premium amount (52500 – yearly) but his SA(10,00,000) is more.
    Where as, my premium(15,271(quarterly) for 3 policies each 3,00, 000 (SA) and my SA is 9,00,000)
    Am I looser here? My insurance agent cheated me?

  40. Dear Basavaraj,

    I am 36 years old and an NRI, During my recent visit to India, the LIC agent told me about the New Jeevan Anand Plan No: 815 and asked me to invest in that. He told me that I will be paid a return of twice of the total premium at the end of 15 years. I asked for a 1 Crore return after 15 years. After the calculations he told me I have to pay 4,25,122 yearly for 15 years. This will; give a return of 1 Crore+ in 15 years and another 60+ Lakhs coverage for the life time. But after reading your comments for some of the questions, I really doubt now that this information is true or not. Can you please advice me to take a right decision. Thanks in advance.

    1. Rajesh-Let us say there are two ways. One is to invest in such products by paying hefty premium with less return and another way is to simply keep in equity mutual funds or even in Bank FDs (if you are totally risk averse). Then which one will you feel best? A product that makes you to commit more and give return of 5% to 6% or a product which is equally safer and will fetch more return (like bank FDs)? If your time horizon is 15 years then a single well diversified mutual fund is enough than to lock in your investment in such low yielding product.

  41. Hi Sir,

    I am into IT and my annual package is 13 lakhs. Please guide me as to what policies i should buy for investment + insurance,so that my tax is also saved.

    Till now i only declare amount in Voluntary Provident Fund.

    Your help will be highly appreciated

    1. Ali-I feel you fall short amount to fill the gap of Sec.80C. Because considering your salary and VPF I feel your PF contribution will fill around 80% gap of tax saving. If that correct then I always advice you to separate the insurance with investment. So buy pure term insurance for insurance. Rest of amount invest based on your goals where you can save tax.

      1. Thanks sir for your reply.I am planning to invest in New Jeevan Anand policy for SA = 20 lakhs and term = 20 years.This will cover both my section 80 c deductions and provide me insurance and hence i will stop declaring Voluntary Provident Fund.

        Kindly advice please

          1. No sir.VPF will provide more returns than Jeevan Anand policy for sure,but the reason for opting for Jeevan Anand is it also provides me insurance ie. during the term period and also once i recieve the maturity amount,still i am insured for 20 lakhs.

            Request your opinion please

            1. Hatim-Do you know how cheap are term plans these days? By buying online term insruance (from LIC itself) and if you invest the rest either in VPF or PPF then you earn more than what you expect from this policy. Also insurance is required till one’s retirement period. So think and decide. It is now left with you.

              1. Dear Hatin ali ,

                your decision is good for your family & you also… but you need more Returns refer some other policy & take Term insurance for your Life risk cover.

                New Amulya Jeevan ( for your family Risk Returns )

                Thnaks & Regards
                95 97 28 5448
                78 45 93 1597

  42. Hi Basu,

    I have LIC’s Jeevan Tarang (15 yrs) policy. I have paid 7 yrs premium (Rs.34361 yearly). I got to know that at the maturity i will get only accumulated bonus & Rs.27500 (5.5% of SA) yearly then onwards for lifetime. My so called agent cheated me by saying that on maturity i will get SA + Accumulated Bonus + 5.5% of SA yearly.

    Kindly help me on following issues –
    1. should i surrender policy now ? (there will be loss of Rs.50000)
    2. should i invest the amount (i will get as surrender value) in any fund/FD?
    3. if i want to buy any insurance which one should i go for?


    1. Shreyas- Loss of Rs.50,000 means to what you paid or what? Please let me know the exact amount of total premium you paid and also values of surrender as well as paid up. If share these details then I may guide you.

      1. I’ve paid Rs.240527 as total premium for 7 years (Rs34361/yearly). Accumulated Bonus is Rs.138000.I asked for surrender value to LIC customer care which is said to be Rs.189263. (which is approx 50% of 240527+138000) So i assume loss of Rs. 50000 on my total premium paid. (240527 – 189263(SV))

        1. Shreyas-What about paid up value? You are loss under just Rs.50,000? What about the return on investment of whole 7 years? This is a trap which usually agents create and we go into blindly. Now you have to continue, surrender (with loss of Rs.50,000+return of 7 years of your paid money) or convert to paid up (which may as of now looks great as value will be higher to surrender, but in reality you get that amount at maturity). So let me know paid up value.

            1. Shreyas-In Paid up option the policy ceases immediately. No need to pay any further premium. But you will get the paid up value at maturity. So your cover will be reduced to equal of paid up value. Usually paid up value will be higher than surrender value, because in surrender you get money immediately.

  43. Sir, i don’t have a fixed monthly income. But i usually save around 40,000 annually. I’m 24 years of age. My foremost concern is investment ONLY. I’m not much interested in insurance benefits. Key points are:-

    1) I want to know good LIC investment plans for 40,000 total annual premium.
    2) I am open to one time premium or few-times-an-year premiums.
    3)I’m only looking forward to greater investment.
    4)I want to invest money in a plan which will give high returns after 25-30 years or even more.

    Please take out some time to answer my query. I’m new in this field and keenly require your guidance as i found depth of understanding in your articles regarding LIC policies.


    1. Ritu-On one way you are claiming that you are not interested in insurance but asking me investment plans in LIC? If you want to generate good return for over 25-30 years time frame, then simply start a monthly investment in a mutual fund (equity) and see the wonder of compounding. But at the same time don’t underestimate the value of insurance. So buy online term insurance equal to 10-15 times of your annual income.

  44. Dear Sir
    I went through quite a few of the questions and responses in your website and its left me confused. I understand that its our needs to be taken care of and not the agents. Therefore, here are my details – my annual income is about 18 lacs. The LIC agent praised this New Jeevan Anand policy saying its Endowment plus whole life policy. I am considering a SA of Rs. 10lacs for 16 years with an Annual premium of Rs.80000/-. Is this policy viable ? I see you mentioned that the returns are only 5-6% and that PPF obviously gives much higher at 8%. And the final returns also are non-taxable which is a big plus. My aim is to 1) reduce my tax burden 2) provide for my sons education / take care of my needs post 16 years when I am about 54. Is there any other big Plus to New Jeeven Anand ?
    Kindly advise whether I should go ahead with this LIC policy or invest instead in PPF for the same duration ?
    p.S> i am already covered for a basic medical insurance from my company via Mediassist.

    Many thanks.

    1. CR-When you are claiming that yearly earning is Rs.18 lakhs then I doubt your Sec.80C limit already filled. But not filled then is it your major concern to save tax? When you said this investment is for your kid’s future education cost, do you know the education inflation? It is staggering around 10%. So if you are investing in a product which is giving you 6% return but the expenses are raising at 10% then return on investment will be negative 4% (6%-10%).
      Simply buying a online term plan from LIC itself and investing in PPF will be more advantageous than this plan. Regarding whole life insurance coverage, do you feel insurance required once I or you retire?
      Think twice before stepping further.

      1. Thank you for the clarity Sir. Yes, makes infinite sense not to go in for this policy. Regarding my 80C limit i already have invested to the tune of nearly 1.8Lacs per annum. Investments are Home Loan of and LIC policies. Now i am keen only on investments with good returns and of course bearing in mind 10% education inflation. PPF is a definite investment for me now.
        Kindly advise if NSC is a good option as i am unsure of investing in share market.
        thank you

  45. Taken jeevan anand 815 New Jeevan Anand on for 35 years with 15 lakh sum assured.
    Age – 27
    what would be the maturity under this plan includsing all bonus and FAB

  46. Hi Basavaraj,

    I have a Jeevan Anand with 15 year term, sum assured Rs. 10,00,000 and annual premium of Rs. 71000 . I had taken the policy in the year 2011. I have already paid the premium for three years.

    Now comparing the Jeevan Anand return, and the return from the SIPs. I want to either stop paying the premium or reduce the premium to about Rs. 18,000 per annum.

    So, can I change the premium amount. If not can I stop paying the premium and still get the reduced sum after maturity.

    Please suggest what would be a wise decision.

      1. Hi Basavaraj,

        Thanks a lot for your response. I understand the SIP is not a product. My concern is that if I stop paying my LIC Jeevan Anand premium after 3 years of payment. Will I get my the maturity amount for these three years deposit at the end of term, i.e. 15 years. or will I loose my three years deposits?

        Please suggest me.


        1. Vivekanand-Once you complete 3 policy years then you have three options. First one is to continue paying till end and get maturity, second is to surrender it and get the cash immediately and third is to convert the policy to paid up. For second and third option contact your LIC branch.

  47. Dear Sir, Main ek computer engg. hu.

    Maine app sabhi ke vicharoo ko bahut achhi tarah se padha or samjha, isshe yeh lga ki app sabhi bahut achhe se saamjha rhe hai unki life ko secure kar rhe hai. sir u r excellent one.

    sir mujhe bhi 2 opinion chaiye appse mujhe sir ek term plan lena hai 50-lack ka sir main SBI Life (E-shield) se luu ya LIC (E-term). Pls suggest me.

    2nd mujhe 60000-rs annual invest karne hai for 15 year ke liye jisme accha return mile.

    Pls advice me.

    Thanks With Best Regards

    Deepak Arya

    1. Deepak-Both companies offer good plan. So you can opt any one of your choice. Regarding investment, it depends on lot of criteria to finally suggest you. So unable to suggest a product particularly.

      1. Dear Sir, Thank you for your valuable reply

        sir main abhi bhi confuse hu ki LIC term plan lu ya SBI Life Term Plan, LIC Agent bol Rha hai ki SBI Life to fail hoo gya hai orr wah jyada din nhi chalega sir kya isha hai.

        pls suggest me. kyoki sbi life term main accident cover bhi hai jab ki LIC term main nhi hai.

        1. Deepak-Dig more about insurance agent’s information that SBI will no longer continue. Is he know any facts about SBI business? If so then let share with me too. He is simply claiming false things to garner business. Again why you need agent while buying online term plan of LIC? Why you contacted agent for the same?

    2. HI Basavaraj,
      I would like to investment under 80C for tax saving, so, please suggest me, which type of savings is better under 80C ?plz reply

        1. Dear sir,
          I would like to take a new life Insurance for my wife. she is 28 yrs. I would like know the difference between LIC New anand and Rural Postal Life Insurance. (RPLI). ( postal dept insurance scheme).

          which is better for premium and maturity value. ? I can able to pay upto max 10,000 per year for 20 years ( may be sum assured Rs. 2 lac)

          so, which is getting higher bonus and better maturity value ? LIC or RPLI ?
          plz suggest me.

          thanks in advance.

          1. Kanagavel-Whether someone financially depend on her or is your wife earning? If so then go ahead and buy insurance. Otherwise no insurance on her name. Postal Life Insurance is meant for Govt servants. If you fall in that category then go ahead. Yes PIL is best than LIC.

  48. Dear sir,

    I am planing to take a Insurance like LIC New Jeevan Anand (No.815) (savings and full life cover and rider facility)
    Also one of SBI Life agent told me, take SBI Life-Shubh Nivesh with Whole life Option.
    I am confusing for which plan need to choosing,
    So please advice me suitable plan. (If you know better than this plans please suggest me)
    I am able to pay yearly premium 1,00,000.

    Best regards,

      1. Hello sir,
        My requirement is INSURANCE + INVESTMENT.
        Because my insurance plan expired before one year. So now i am looking for good Insurance + Maturity amount.
        Thank you

          1. Dear sir,
            Good day,
            Regarding Investment I am expecting 50 Lakhs…
            Regarding the insurance expecting 20 to 25 Lakhs…
            Please if you know good separate plans like investment one plan and insurance one plan, please suggesting me.
            Thank you

            1. Reeda-Sorry for asking so many questions before advising you. But how you arrived at that Rs.50 lakh and whether this amount is in today’s term or future? Also how you arrived at insurance sum assured of Rs.20 to Rs.25 lakh?

              1. Dear sir,

                Previous our discussion if the plans separately like (Investment & Insurance)
                Regarding the investment future plan, like maturity amount 30 lakhs. period expecting 10 to 15 years.(negotiable until 20 year)
                Regarding the insurance (term) i am planing in next 20 to 30 years.
                I can able to pay money per year 1 lakh to 1.5 lakh. (include two plans)

                Thank you..

  49. Hi ?ir, I’m 31yrs, taken jeevan anand plan 815.S A-700000 for prem yly is rs 27171(s.t).Agent saying me after end of policy.i’ll get 21k. ?ir that is long time policy. and i think i’ll get not more benifit. pls suggest me.

  50. Dear sir,

    I am plan for term policy for per annual premium 50,000.
    Please advice me for the best term insurance plan like SBI,LIC.

    Thank you in advance.
    Best Regards,

  51. Hi,

    I am planning to take a housing loan after 3years. So whatever small investment i make to save my tax should be helpful for me to take a loan after 3years.

    So planning to take a LIC Policy of 5/10 lakhs. My Annual Income is 4.2 lakhs

    Please suggest me if i am making a right choice?
    Or else suggest me any other option.


  52. Sir, I badly need your help. I have taken LIC Jeevan Anand last year, details shown below;
    SA – 1 crore
    Term – 20 years
    Quarterly premium – 140,000

    Actually I have taken this policy without proper research and now I feel that it is not a good policy as return is only 6% and very expensive policy. I have paid 3 quarterly premiums.

    The million dollar question is should I cancel, continue or convert to paid up. I know I will lose money anyways but which option gives minimum loss.

    Many thanks.

          1. surrender can be done if you pay premium for atleast 3 years. but you paid only 3 quarters. so, you can not surrender the policy. it is better to pay the premium for the term. because the policy provides risk cover for the whole life as you can receive the maturity at the end of 20th year and the risk cover continues even after the premium paying period ceases.
            good luck

  53. Hello Basu,

    I’m 30 yrs old and married. I have no policy till now. And I’m now thinking to invest for Life cover + Investment (Retirals sort of). Could you please suggest something for me?
    My take home annually is Rs. 6 Lacs.
    One of my friends suggested for Jeevan Anand for 25 yrs, 60K annually, which will start pension after 25 yrs.
    Shall I go for it?
    Another plan which my many friends/relatives suggest is to get Term cover of at least 75L and invest in PPF.

    Which would be good for me?

    Thanks a lot!

  54. Hi Basavaraj,
    My annual income is 6 L p.a. and my investment are as follows :
    Policy Premium Monthly Yearly Start date
    Endowment policy 1999 YLY 1999 2004
    Jeevan Chaaya 2766YLY 2766 2005
    Jeevan Saral 2176Mthly 26112 2007
    Jeevan Saral 1021Mthly 12252 2013
    Jeevan Tarang 1068Mthly 12816 2013
    Komal Jeevan 4907H yrly 9814 2011
    Jeevan Anand 25000Yly 25000 2014
    SIP Non tax saving bonds 2000 monthly 24000 2012

    Request you to please advise me which plams i sud continue and which i need to surrender.

    1. Rakesh-None of them are worth. Because they neither fulfill your insurance need (ideal insurance cover should be around 15-20 times of your yearly income) nor investment need (return will be around 6%). So now it is your turn to take a call on all these.

  55. Hi Basaviraj,

    I am a IT professional with 6 lac CTC per annum. I have very less knowledge about Life insurance and savings plan. Can you please suggest me in which plan of LIC i should invest. I want to save money as well as cover life insurance. I have not invested anything on PPF as well.

    Kindly Suggest.

    1. Pinky-You need to first buy term insurance (either with LIC or private insurers) to the tune of around 15-20 times of your yearly income. Buy health insurance to you and your financial dependents. Along with that create emergency fund of at least around 6 months household expenses. Once all these are set at place then go for investment. Till that time concentrate only on these emergency steps.

  56. Hello sir

    i have taken 2 policy of 2 lakhs of jeevan anand will there be any change in final additional bonus if i had taken single policy of 4 lakh rupees ? if yes then what and how much will be the difference? please guide

    1. Adity-Not it will not affect that much. But do remember that FAB usually depends on term of policy and sum assured. But I have not seen any big difference going by single policy like what you told. So no gain and no loss.

  57. Sir,
    I wanted to take a policy in LIC, Jeevan anand new for 05 lac policy.
    Please suggest shall I forward for this plan for 20 years, with half yearly premium of 14,307/-

      1. My friend, earlier colleague at Hyderabad, now he become agent at LIC and do it as part time job, He suggest me this plan for sum assured of Rs. 5,00,000/- for a period of 21 Years.
        I have never take policy in LIC and if I take this policy will be my 1st LIC Insurance policy.

        I have invested in SBI PPF, with yearly contribution of Rs. 70000/-

        Please guide for better solution in this regards.

        1. Vipul-If you feel in case of your sudden death the amount that will get suffice your financial dependents to survive for at least 15-20 years then buy it. Also if you are satisfied with the return of 5% to 6% then you can go ahead. But do remember that ideal insurance cover should be around 15-20 times of yearly income. For example if your take home income per year is around Rs.5,00,000 then life insurance cover should be around Rs.75 lakh to Rs.1 Cr. This makes your financial dependents to survive for at least 15-20 years in your absent. So from this plan you will not get such sufficient insurance.
          5% to 6% is not a big earning when you are investing for long term like 20 years. Even if you put this amount in PPF then it will earn more. So it is neither good for cover your life risk nor in return. So why to buy?? Think and decide 🙂

  58. Plz give me advice of lic good plan. my age 29 years and i am married i have 2 sons big son age 4+ and small son age 2 year complete. So, pls tell me urgent

  59. Hi,
    I earn 9 l.p.a. Some LIC agents are suggesting me to invest in ‘New Jeevan Anand’ (Table No. 815) for 15 years with policy of 10 lacs. They are saying after 15 yrs(end policy term). I’ll get near around 38 lacs. Is it good plan with good return amount or would you want to suggest any other plan of LIC which gives returns 4-5 times max amount in 10, 15 yrs as I mentioned above. Actually, I want plan which gives returns 4-5 times max amount than I’ve paid in min time duration. I’ll wait for your suggestion.

    1. Jeetu-My first suggestion is to stay away from a product which combines Insurance+Investment. Buy pure life insurance online (in your case it is around Rs.2 Cr). Then choose a product for investment based on your financial goals but not your agent’s. Because they are highly expense product with low return (around 5%) and lower insurance coverage.

  60. Dear Sir,

    I am working for a Public sector wanted to get retirement pension one of our known LIC agent has informed me that to go for New Jeevan Nidhi Plan. If we invest 6.5K plus every month for 21 years then after maturity we will get around 18.5K plus every month as a pension through out our life span and 35L after death of policy holder ..please do let me know is it really helpful and also please suggest me about LIC term Plan as I do not have any knowledge about it..will it cover tax saving..please do needful by suggesting me good Plan for my investment+tax saving + good returns…Want to invest around 50K per year..

    Kind Regards,

    1. Sumaa-This is typical traditional plan and what your agent quoted is totally wrong. Second thing check out yourself the values of Rs.18.5K after 21 years. That amount MAY BE the cost of your milk+vegetable+groceries. Retirement plan is an important goal of your life. Don’t use such low yielding products for that purpose.

  61. Hi Basavaraj,

    Really liked the website and details shared across for all…It really helped…

    I would like to invest around 50-60K per year in some best investment plan for long term for maximum returns (around 20-25 years). Can you please suggest what is the best plan in the market now to invest ?

  62. Hi sir I m 25 years old . Iwant to take jeevan anand for 21 years. My premium is 31156 half yearly.l will get 2680000 after 21 years and life cover of 1600000. Is it right decision.

    1. Jyoti-Who claimed you that you receive Rs.26,80,000 and how? Can you elaborate more? Also even if we consider the returns are true then do you know how much % your return on this whole investment? It is just around 6.6%. So if you are comfortable with this kind of low return then go ahead.

  63. Dear sir,

    I have 1 police taken in 2014 March for SBI LIFE Saral pension plan. I paid first amount 1,00,000 per year.
    Total 10 year. There is mentioned Guaranteed simple reversionary Bonuses for first 5 years; @ 2.50% for first three years and @2.75% for the next two years, of the Sum Assured. Guaranteed bonus will be applicable only to in-force policies.

    I need your suggestion for this plan.
    As per SBI Representative statement after 10 year i will getting every month 10,000 INR.
    This is true or false?
    I cannot understanding the calculation method!
    Please let me know this plan good? May be any problem in future?

    Thank you for your valuable time spending for my query.

    Best Regards,
    Dominic V.K.

    1. Dominic-It is nowhere written that you pay Rs.1,00,000 per year then after 10 years you receive Rs.1,20,000 per year (monthly Rs.10,000). With the bonus rate so low and inflation at 8% do you feel even if they do the WONDER then you sustain it? It is nothing but a gimmick of what your agent shared with you. Also it is not retirement product. It is typical traditional plan. Once the maturity then you need to purchase pension plan. So the claims made by your agents are totally false. If you still have doubt then ask your agent on what base he claimed this pension and share the same with me. We discuss further.

    2. Dear sir,
      I discussed with SBI life Representative he told me this is a pension plan there is no any confusion.
      Also he give one SBI LIFE annuity chart. He stated when our maturity (per year 1,00,000 x 10 = 10,00,000) amount after 10 year will be 17.6 lakes. After that this money need to converted to pension plan, and choosing to annuity chart option no 1. 2. Lifetime Income with Capital Refund – Annuity rate 7.75% .
      How ever finally he calculated 17,60,000 x 7.75/100=136400/12= per month 11366 I will getting like this much of pension.
      I hope, you understand above mentioned all details.
      Now my question is how we can trust this people? and above mentioned rate in future applicable!!
      In the annuity chart bottom mentioned “”The annuity chart are subjest to change as per the policy of PFRDA””
      So please advice me if future any problem for this plan? or i need to surrender this policy..

      Thank you for your valuable time spending for my query.
      Best Regards,
      Dominic V.K.

  64. Hi
    I recently enrolled (2 days back) new jeevan anand 815 policy for 20yrs @ yearly premium of 11533/- (exc. S.t).
    I am 28yr old and working in bank. Is it good policy for me.? Kindly suggest me personally. This is the firs lic policy, there is no other policy taken…
    I feel 20yrs is too long… whethet this policy is good?? Kindly tell me this policy details according to my premium and suggest any other to switch over or else I can continue this??.
    Your suggestion is highly appreciated and guide me the future plans too….
    Thank you in advance.

  65. Dear Basavaraj,
    Mai government employee hu. LIC II policies to clear ho gayi. Investment kaha kiya jaye… Plz suggest me. And one more thing CGHS ki facility hai to health insurance ki jarurat to nahi hai. Mai ek term plan le leta hu insurance k liye aur Investment k liye aap bata do. Thank you in advance.

  66. Sir .
    Maine 21 years ka jewan anand plan liya hai..mera 21 years ka investment 500000 hai..mujhe milega 10,54000 and after death 500000 ..means total 15,54000 …kya ye sahi hai…21 years k bad mujhe kitna milna chahiye..

  67. Dear Basavaraj,
    MMera ek friend lic agent hai. Wo mujhse lic me jeevan anand me invest karne ko keh raha h. Annual premium 60000 for 25 yrs. Meri age 27 hai. Kya ye sahi hoga? Saving aur security k liye best in investment kya ho sakta hai. Plz help me.

    1. Niraj-Agar aap 6% to 7% return se khush ho sakate hai to lelijiye (woh bhi 25 years invest karaneke baad). Aur yeka bar seriously sochiye ki agar aap isa duniya mein aja nahin rahein to usa LIC policy claim se kitane barasa aap ki family reha sakati hai? Think seriously…it is worst decision for long term investment.

  68. sir,
    i read one advertisement regarding rupees one crore life coverage at rupees 18 per day. kindly give me details regarding this .

  69. Sir; In New Jeevan Anand policy what are the charges for accident benefit is inbuilt in premium or I have to pay additionally?

    My age is 38 and I want to go for 21 yr. policy for SA 25 Lac. Kindly illustrate and calculate the premium including ACCIDENT RIDER for 25 lac

    1. Hriday-Whether you are buying this plan for Life Insurance, Life Insurance+Investment or for Accidental Insurance? For your information accidental rider is in built. But to do you feel this is best plan of earth??

      1. Sir; I have gone through the circular from LIC towards Jeevan Anand Policy which state that Accident & DISABILITY rider is available for Rs. 1 per thousand (hence I understand it is not in built).

  70. Hi,

    I have Jeevan Anand plan for 21 years term with Rs.200000/-SA.But i want to extend my term till 35 years and increase SA of Rs.400000 after giving only 1 premium last year..Is it Possible?


    1. Tarannum-In that case don’t run behind product. Buy online term plans to the tune of 15 times of your yearly income. Create emergency fund for your family of at least around 6 months household expenses. Buy health insurance for your family. Start investing in PPF. Choose mutual funds (equity) for your long term goals like more than 7 years.

      1. thank you very much sir, for your advise. I really appreciate your suggestion. so kindly tell me sir ,which online term should I take? what do I need to buy online term? how can I create emergency fund ?please specify this as I know nothing of it. I am thinking of sbi SIP to invest RS.2000 p.m.for 20 years . so how can I create sip account?

  71. hello sir, i am from bengal, my yearly income is Rs. 3 lac . My age 31,unmarried. For tax rebate i took a new jeevan anand policy on march 2014 .S.A. 5 lac. Now i am tensed. Will i get tax benefit before or after maturity. Or i should invest in ppF?can i invest in in NSC ? will i get tax benefit on NSC!please give me yous valuable suggession. I am very much in depression

    1. you get tax benefit before or after maturity. Or LIC Of India is best for you

  72. sir i have one policy new jevan anand (815) i wants to get complet details of amount plz give me lnformation -21term,policy 100000,6month payed amount 2815. Plz give me details

  73. sir…..
    mai 26 yrs ka hoon. yrly primium – nearly 20000.
    Lic-jeevan anand plan
    Lic-endowment plan…….en dono plan mese konsi plan mere liye best hogi…??plz reply as early as possible.

    1. Subrata-Donoan bhi ache hai agar aapko 6% return se kuch problem nahin hai to. Donaon kam return dene waale products hai. Isiliye mera salaha yahi hai ki, ina donaon plan se door rahe.

      1. Dharmendra-Please reply to all your earlier comment if you are here on this platform for sharing your knowledge but getting any business 🙂 Otherwise we may consider you as spammer and block permanently. I welcome for knowledge sharing but not spamming.

  74. Hi Mr. Basavaraj… I have been reading your comments very frequently. You seem to be hitting the bulls eye always. Gr8. Need suggestion.

    I have a Daughter (presently she is 24 yrs – working) and a Son ( presently he is 22 yrs – will be going to work soon)..Please suggest the best LIC Plan for them which should cover, Life + good income + IT Rebate + Bonus etc. or any other that is giving good returns and not a loss. Because, in my early days I lost many. I don’t want them to suffer like me. Revert with your valuable suggestions and. Regards. KN Venkatesh

    1. Venkatesh-It is the truth which I am unfolding and nothing more than that. Stay away from typical traditional LIC plans. Instead suggest them to buy the pure insurance product which is also called Term Insurance (even with LIC, which recently launched online term plan called e-Term) to the tune of around 15-20 times of their yearly income. Rest invest them in a product based on their financial goals. Even if you choose a simple product PPF then you have 100% possibility of earning more than all these LIC policies.

  75. Hi Basavaraj,

    I am an IT professional (age 22 years) and I have very less knowledge about these policies.

    I have enrolled LIC policy of New Jeevan Anand 815 plan for Term (21) and SA (15,00,000). The commencement date was Feb, 2014 and my premium is INR 19,725 payable quarterly.

    Please guide me if I have taken the right decision.

    If possible, please predict the approx. amount (SA + bonus, gratuity and everything) that I may get after 21 years? 🙂

    1. Sanket-Return from this policy will be around 6%. So if you are satisfied with kind of return then go ahead. Otherwise better to stop immediately and buy term plan to the tune of around 15 times of your yearly income.

      1. 6% is very much low. Please guide me the plan or premium which can provide me a good return. I am very confused.

        1. Sanket-No plan will give you more than 7% return if you are very thoroughly searching. So stay away from such traditional plans. Instead buy online term plan to cover your life risk and start invest in separate products based on your goals.

          1. Hi Sir,

            Writing you after so long.. I have decided to withdraw this plan and go for some small premiums rather than such large premium of 19,725 payable quarterly. I also want to opt for small term plan which can provide me a good return.

            Need your guidance again. Should i withdraw the plan now or after the third premium? Can i reduce the premium? Will 10 year plan serve better?? confused…. Help me!

  76. Hi Basavaraj Tonagatti

    I am really impressed with your answers.Now a days i am planning to purchase a LIC (Pension Plan) for securing my retirement .Can you please suggest me for the same.My basic requirement is i want to get the handsome amount(40K-50K) after 55 years (Retirement). Now i am 30 yours Young.Also please can u provide me the detail i.e. a calendar type information so that i can able to know that after investing how much money how much money will i get after retirement.


  77. LIC New Jeevan Anand Plan Table No 815 policy details

    Dear Sir,

    Good morning,kindly share the details of LIC New Jeevan Anand Plan Table No 815

    So i may request you to confirm that,where it’s government policy or not.


    1. Hi sir,
      i would to like to investment @ fixed deposit.
      i here about Shriram Transport Finance Company Fixed Deposits scheme. may i know how they are deliver the Cash,at the time of maturity ? i mean, all the 100 % depositors get the cash @ time of maturity ? OR if any problem or issue@ deliver the cash,to customer @ time of maturity ? may we trust the concern for deposit ?
      This concern is good for Inverstment or Not ? please suggest me.give some Top 5 concerns and give your suggestions please.

      Thanks in advance

      1. Hi sir,
        i would to like to investment @ fixed deposit.
        i here about Shriram Transport Finance Company Fixed Deposits scheme. may i know how they are deliver the Cash,at the time of maturity ? i mean, all the 100 % depositors get the cash @ time of maturity ? OR if any problem or issue@ deliver the cash,to customer @ time of maturity ? may we trust the concern for deposit ?
        This concern is good for Inverstment or Not ? please suggest me.give some Top 5 concerns and give your suggestions please.

        Thanks in advance

  78. hello sir,

    my policy in LIC new jeevan anand 815, term(21), SA(1000000)

    I got my first premium receipt in which premium noted 52488 but as per premium calculator 51488. So what have should i paid.
    However I have paid by cheque Rs (53299).

    As per receipt .

    premium 52488 + ser tax 1575 + surcharge 47 = 54110 (total amount)

    what is happened .why Rs 811 paid extra .

    Please shall i get clarification .


      1. Sir,
        Many many thanks for this really helpful blog.
        I am a 30 years, married woman, working in a PSU.Annual income is around 4L.

        I want to know that what kind of tax benefits I can get from a Single Premium LIC policy of Rs.1L for FY 2013-14.

      2. I am holding a Jeevan Anand LIC policy 21 terms since 2010. Paid 4 premiums of Rs 96000/ year. I want to reduce the terms for 11 years now with the same premium and reduce sum insured accordingly or willing to increase the premium to attain maturity value in 11 terms for the sum already insured whichever is more more beneficial. Kindly give your valuable suggestion on the subject. With best of regards

        1. K N Pandey-If you reduce your term of policy then your return will be lesser than 21 years policy. Because bonus declaration is based on term of the plan too. For me best option is to come out of the plan after 3 years.

  79. Sir,
    Gud Afternoon,

    I bought a policy JEEVAN ANAND (149) last year. My yearly premium is Rs.17545/- for 20 years.
    What the benefits I get after 20 years. and what other benefits I got before death and after death.
    Can I get the after maturity benefit alongwith maturity.

  80. Hi,
    Last week i got a call from LIC marketing team.
    As per them,because of year closing they are offering some extra benefits on Policy 815.
    I’ll explain it with an example of

    Sum Assured=500000(5 L)
    Term=15 years,
    My age=27 years

    After maturity
    total sum=1260000 (12L 60K)+death cover of 5L for rest of the life(that I can encash after 3 years with 5% deduction)

    10% discount on yearly premium upto 15 years
    3% extra bonus that makes it 12L 60K
    After maturity i can convert it into yearly pension of 160000 for rest of my life or I can get my 12L 60K any time.
    plus other benefits as explained by you.

    So i just wanted to know if these are genuine promises or just the tricks to attract customers.
    will I get something in written(in contract)?
    should I go with these promises?

    Please reply in urgent as I have 4 more days to go for 2013-14 session(I want tax rebates also for the session 2013-14).

    1. Abhishek-It is complete way of mis-selling. There is no where mention of such kind of discounts. Never ever be in such trap. If you need confirmation of my claim, visit any nearest LIC branch and discuss with them the same issue. Otherwise if you receive the same call once again then let them give in writing all the benefits they are claiming to be. If they ask why then simply say in one line that “TO SHOW WITH IRDA FOR CROSS CHECKING”. I assure you that they will automatically disappear 🙂

      1. Hi Basavaraj,
        I think they have disappeared already, as before writting to you I asked them just to provide all these in written and I did not hear from them since then.

        Thanks, for your help.


  81. sir, mai lic agent hoon. aap ye jo awareness de rahe hain wo bahut acha hai. sir maine ulip nahi sell kiye the.hala ki mai Z M club member hoon agar mujhe pahle aapke baare mein jaankari hoti to shayad mai jeevan saral ki maturity aane ke baad jo term insurance bechne ki soch raha hoon wo mai pahle hi bechta sir jeevan saral mein 255 per month for 10 yrs maturity is only 30246 aur customer pay karta hai 30600/ sir mai apollo se health insurance bhi kar raha hoon kya ye theek co hai kya aap mediclaim se sambandhit awareness progame bhi chalate hai sir mere liye kya theek rahega kyonki sir mai chahta hoon ki meri earning bhi ho aur meri vajah se kisi bhi person ka loss na ho

    1. Sujeet-Aapaka decision correct hai. Aap jyada se jyada customer ki bhalaayi dekhiye to aapko long term meing fayada hoga. Apollo Health Insurance company acha hai aur usaka products bhi ache hai. Aap jaroor donaon companies ka product bhejo aur tarakki bhi karo. Best of luck 🙂

  82. Hello Mr Basavaraj,

    For quite a few days I follow your blog. I am impressed, to say the least.
    I am a 34 yr man with my wife (home maker till date), a 3.5 yr old son and a pensioner Mother. I work in a Pvt co with a salary range between 4-5 pa. I stay in my own Flat at Kolkata.
    here are the details of my investments till date. can you evaluate, and suggest improvements?
    – got an online Term Insurance Policy (Kotak Life Insurance) of SA-50lacs. (planning to increase that to Rs 1 cr).
    – got a Mediclaim (Star Health) of SI-3lacs with Top up facility.
    – got a few MFs which are
    —Debt SIP of Rs 2k pm, in DSP Blackrock World Gold Fund & IDBI Top 100 Equity Fund
    —Equity SIP of 8k pm, in TATA Equity PE, IPRU Focused Bluechip, Birla Frontline Equity, Reliance Equity Opportunities & HDFC Top 200)
    -got a Bank R/D of Rs 2k pm
    -got an R/D from ESBI of Rs 3k pm
    -planning to buy a garage and a Residential Flat (for investment only).
    Please evaluate and suggest for betterment……..

    regards Sir.

    1. Samrat-1) Cover your mother too in your health insurance. Because she must have health insurance more than you 3.
      2) May I know the reason for choosing debt fund? For your information DSP Blackrock World Gold Fund is not a debt product. It invest in gold mining companies, which I don’t think a right way to have your investment in Gold. Also restrict your investment in gold to the tune of around 10% only. For this purpose you can choose Gold Funds (underlying assets are Gold ETFs but are costly as you need to pay the expenses for Gold funds as well as Gold ETF) or Gold ETF (cheapest but minimum one gram investment is need and you need demat account to invest). IDBI Top 100 Equity is large cap fund (but not debt fund) and in my view not a right choice. Switch to ICICI Focused Bluechip Fund.
      3) TATA Equity is PE fund which is taxed to you as debt fund (you loose advantage of long term tax exemption from equity) and this being fund of fund, expenses will be at higher end. Hence come out of this fund. You can continue Birla Frontline Equity (Large and Mid Cap), Reliance Equity Opportunities Fund (Mid and Small Cap) and HDFC Top 200 Fund. Keep equity investment for your long term goals like more than 7+ yrs.
      4) May I know the reason behind having RD of Rs.5,000? Because it’s return are not tax free.
      5) Include PPF in your investment (part of debt portfolio) which is best tax saving and good return generating plan for long term.
      6) Missing emergency fund (if not shared then alright), create around 12 months household expenses fund in liquid funds and Bank FDs.
      7) Missing goal based investment. Rather prioritize your goals and start investing based on goal. Simply investing surplus from your saving will not be a best option. So create investment for your kid’s education cost, retirement planning or some other important goals of your life. Then think for one more investment in real estate. Keep in mind that, real estate is good investment but at the same time don’t over expose any one sector and liquidity is an issue with real estate when you need.

      1. Hello Mr Basavaraj,

        First of all, thanks for adding values, I was a bit confused, no more now.
        I have got a few things to share,
        – my mother has got a Retired Employees’ Mediclaim of Rs 2 L.
        – I always do online F/Ds for short tenure after adjusting AQB/AMB, for any contingency which I did not mention.
        – I do R/Ds because I like to Deduct Tax instead of saving for it. And these R/Ds mature during April to continue with the expenses, pay LI & Mediclaim Premium. That’s why I don’t get stressed out. Can pls suggest any other alternative?
        – I will start investing in PPF
        – what can be done for my Child’s education? I already have invested for the Milestones, like Class 1 Class 10, Class 12, Graduation, PG, (F/Ds & NCDs). Have not invested for expenses in between, my fault. What can be done?
        – Can the MFs build a corpus for my Annuation? I invested keeping a horizon of more than 10 yrs.
        Thanks once again, looking forward for your inputs…..


        1. Samrat-Regarding your kids education cost, you need to consider each year requirement separately and start investing based on time frame like what you did for your RDs. Select product based on goal time frame and your risk appetite. You can build good retirement fund by investing in equity only if your goal is of long term view like 7+ years. Otherwise it is not worth to test your knowledge. Also I can’t guide you plainly without knowing the full details about goals, investment and your current financial situation. It need proper planning. But in short I guided you in better way. Hope this answer will satisfy your need.

          1. Mr Basavaraj,
            of course sir, you have given valuable insights which I will definitely work upon.
            I will let you know, and seek for your help, even if that costs me. I simply want to make a better financial life with whatever limited resources I have.
            Thank you. Let’s talk later………..

            Regards Sir.

  83. Hi Basavaraj,
    Recently, I was approrached by LIC agents, who told me about New Jeevan Anand plan. They told me that it will give assured annual return of 14 per cent (in addition to the insurance and tax savings benefit). I surfed through different website to know about the same. However, i didn’t find any mention about 14 per cent (they told that even if I invest for 3 years minimun, i will get this return). Further, i am skeptical about the return since the investments will only be in govt bonds. Can you please clarify me about the query regarding this plan? Thanks.

    1. Manikandan-Your understanding is 100% right. Please think generically, like a product which involves such high expense ratio like agents commission and again collected corpus will be invested in Govt Bonds then how come will give you more than say 8% return at least? It is complete mis-selling by your agent. Hence request you to stay away from this plan. It is a typical traditional plan and you can expect around 7% return from this plan.

  84. Good morning sir, i dont no how to convience the people about lic only, because now a days people not have faith in lic. and so many companies are there to compitate. please give me some guide line for marketing.

    1. Badiger-Competition is good for any business. First you learn what your clients ask for and spread that awareness among them and importance of awareness (I mean pure life insurance products). Then business is secondary.

  85. Are you Insured?LIC is here, why to go anywhere else.
    I am MDRT LIC Agent.I have customers all over India,especially in the state of karnataka(Bangalore,Mangalore,Mysore,Davanagere etc….) if u are around these places, why late, For all plans and benefits you can contact me.

    1. Santosh-A strict wanting to not promote your business on this platform. This is purely for knowledge sharing. If you have knowledge about Financial Planning then share it and readers will automatically contact you. Hence I removed your contact details from above comment. You may be MDRT, but what good you are doing to customers? First let them understand where they are and where they need to go financially. Try to spread awareness about financial literacy than SELLING.

  86. hi Basavaraj

    Really liked the website and comments/details shared across for all…It really helped…

    I have a query on the 3 items below. i Plan to invest in all of this…
    so, looking for details…suggest some plans either from LIC or other private players…

    1) Life Insurance – got few details on LICs New Jeevan Anand…Your suggestions on any other policies which are better than this…
    2) Health Insurance –
    3) Investment –

    Looking forward for your reply…you can share me the details or


    1. Jaymin-Thanks for your kind words 🙂
      1) When you are planning for investment then why Life Insurance? Separate your investment with insurance. So buy term insurance.
      2) You have plenty of options to nowadays with competitive price on health insurance product. Hence you can buy them online also. (I am not suggesting you any plan as I am unaware about your need and requirement from this product).
      3) First prioritize your financial goals then based on the time frame start investing.

  87. Hi
    Life insuranc Corpration (LIC) is the largest lic Companany
    in india fully owned by the Goverment this
    Financial year 2013-14 takc lic best new policy and save tax under
    80C,Maturity/claim are 100% tax free amount

    1. Alok-This is the wrong platform you used to canvas your business by submitting your contact details like your address, phone number and mail ids. Hence I deleted those personal details and retained your comment. This is for knowledge sharing. You can share your knowledge with all of us and we can exchange a healthy knowledge sharing. But friend not business 🙂 Sorry to say this.

    1. Hi, this is good and knowledgeable site. This is response to ashish question. If u have old jeevan anand plan (149) after maturity, u can take loan on free risk cover and also u can surrender the free risk cover. U need to visit home branch with your policy documents to complete the required procedure.

  88. Hi
    Thanks for the detailed description. Me and my wife want to invest in life insurance which can give higher returns after 15-20 years. We zeroed in on 2 plans, one is Jeeva sathi (which is discontinued) and other is this new jeevan anand.
    Which plans (any plan including above 2) according to you can give higher returns without much risks? What’s the trend till now? Can you suggest few plans to us?

    Thanks in advance,

    1. Dinkar-First understand that high return always involves high risk. So without taking risk you can’t earn more return. Coming to this plan, this is typical traditional plan (combination of insurance+investment). So your return will be around 7%. If you are satisfied with the kind of return then go ahead.

    2. If you are looking for lesser risks you could look at:

      – Debt MF
      – NSC (guaranteed and safe)
      – PPF

      I would advise you to have PPF first and look at other alternatives later.

      Simply put:
      If you put 1L every year in PPF for 15 yrs @ 8.5% – guess what amount will you get?

      If you make 2, one for you and one for your wife – you can get 60L (guaranteed)



  89. Want to take a policy 1200 to 1500 INR /Month for 25 to 30yrs !!Need suggestion and please explain plan-(815) LIC jeevan anand!! plans and benefits!!

    Thanks in advance!!

      1. Sir my current age is 22 years and my agent is forcing me for jeevan anand.which policy should i opt for better returns?What if if surrnder it within 3 yrs?Should i go for monthly premiums or half yearly or quarterly?


    1. Darshan-Investing Rs.50,000 per year and expecting Rs.4,00,00,000 after 35 years means return expectation is around 14.50% which is highly impossible from this product. Better you think something different 🙂

  91. This is a follow up to the above discussion with Mr. Basavraj on equities versus secure investments for retirement. I pointed out to an article
    which has indicated the failure of the stock market based retirement plans in the USA (401k plans). Mr. Basavraj responded by picking out two specific points in the article which indicate that people in USA borrowed and used the plans for paying mortgages and suggested Indians are somehow better in not making such mistakes. But this is precisely the tragedy.
    The main point of the article is not to blame “Americans” or “Indians” but it points to the volatility or “gyrations” of the stock market. The reason people borrowed is because poor economic policy created inflated assets making borrowing look attractive.
    The reason Americans spend more is not because they are Americans but because of a policy of advertising and a culture of consumerism around it.
    Today in India, with FDI all over the place, and a kind of greed and inequality in wages that is being promoted, more Indians are being made into the spenders that we detest in America. There is more reason to think that stock market gyrations over the long term will be more extreme in India given a range of factors including that we have less protections for people and more vulnerabilities arising from resource mismanagement/depletion etc. unlike the US where they don’t have these latter problems or are better technologically equipped to deal with emerging challenges like climate change.

    So, sure you can look at the stock market over the last 10 years and then go yay, Indian equities are great. But there is no evidence I repeat of any society encouraging a social insurance/retirement program based on stock market. US Social Security by law requires its trustees to invest the funds in safe bonds and such instruments. This is almost the same thing LIC does with its investments. Inflation is a problem, but that cannot be solved by the imaginary magic bullet of the stock market.

    I would only recommend investing a smaller portion of ones savings (say 20-30 %) on stocks. And when one turns over 40 to reduce that to 15% and under.


    1. Raman-Thanks for this detailed explanation. Now let us come to the core issues and let me know your answers on these.
      1) Where does LIC invest it’s corpus?
      2) What solution you are providing me to beat inflation?
      3) How one can sustain for such long post retirement life (considering the current high life expectancy rate)?

      1. Hi Basavraj,

        1) My understanding is LIC does not invest more than 15% in the stock market (equities). The rest 85% will have to be in government and other bonds.

        2) Inflation is a problem and I don’t claim a magic solution for it. But I disagree with those suggesting stock market is a solution. My solution would be simpler : be less involved in consumerism and remember that we are a people of limited means and resources, put away as much as we can in safer instruments and it will be sufficient. And also as an aside, I would try to demand solutions from a democratic society to create a climate that is concerned about peoples in old age, so we should try to get social security for all Indians. It can be done if people work together on it.

        3) Same answer as above.

        1. Raman-1) Check your information 🙂 Because of Government policies currently LIC is more exposed towards equity than any other insurer.
          2) Now let us understand this in a better way. Suppose a person with limited source of savings and planning for retirement. Then how can you suggest him to invest? In my view for goals such as retirement planning you have three options if you have to invest a) Invest in safer products, earn less. But to reach goal of specified you need to invest more as return from investment will be less.So in this case you need to cough more. Otherwise you will need to compromise your retirement life. b) Take a calculated risk by diversifying your investment among all asset classes (which automatically reduce your risk) and achieve your financial goals. c) Totally forget the inflation, planning or investing and live the life as it is. Which one you suggest to that person?

          1. Hi Basavraj,

            Thanks for your observation that recently LIC is investing more than 15% in stocks. This is something I did not know till you indicated. Now I think its between 20 and 25% after I checked the latest reports. Still good as it is not placing majority investments in stock market.

            I would agree with you that diversification (b) is the best approach. My only word of caution for young Indians is to still be cautious about the stock market even when diversifying. Its their hard earned money. And unlike you, there are many financial vultures out there, encouraging them to put most of the savings into stocks. That I would guard against.

            I would be making a trip to B’lore area next year and would love to meet you in person and talk.

            Best regards,

            1. Raman-Again, this equity investment is not based on LIC guideline. Government is using LIC as it’s scapegoat for it’s disinvestment policy. Which I think will harm the belief policy holder have on LIC. Thanks for endorsing my views about equity. So once again I am retreating my belief that no products are bad. But if we choose them based on our requirement then it suites you. Otherwise whether it is LIC, Equity, Gold, FDs or even real estate may ruin your financial life. Hence education about personal finance is the panacea.
              Oh Sure…you are always welcome. I always love a healthy discussion like what we both did. Looking forward to meet you 🙂

      1. Hello Basavaraj.
        your website is veryusefuls for us.
        i want to know 1 clarification from you. i would like to start the LIC policy (New jeevan anand). instead of start my policy through LIC agent. if i start my policy through LIC direct marketing, can i get any extra features (extra amount will be added @maturity). which is more benefit for policy holders ?

        Thanks in advance.

  92. Looking at the LIC website for new Jeevan Anand, it appears that the Premium has been increased by about 20 % per unit BSA if we include 3% service tax and that too without an inbuilt “accidental death” clause. With the old jeevan ananad, accidental death clause was inbuilt. In the new jeevan anand, the “accidental death” needs to be purchased as separate rider. Meaning to get a similar policy to the old one, we have to now pay more than 20% of what we would have paid earlier.

    This means that to get the same returns as before LIC will have to provide between 60-65 rupees annual bonus per 1000 Rs. of BSA. Since old jeevan anand was providing between 45-50 annual bonus, it will be something to watch out for in the next year or so what LIC announces as annual bonus for new plan..

    1. Raman-It looks costly now. But before these new IRDA moves, LIC used to pay service tax indirectly (not directly collecting from insured). So I think it will get reflected in the bonus rate increase in coming days. In my view accidental death benefit was not in built previously too. But agents used to say including that (especially few ready reckoner tables). So in my view overall it is a good move of these new IRDA guidelines.

      1. Dear Basavraj,

        I first want to thank you for the article and following up on LIC – an organization I value a lot as a citizen of India. If you really think about it, we don’t have uniform Social Security (pension) for all citizens in India and in such a situation, LIC plays an important role in my opinion to provide some security.

        But regarding old Jeevan Anand (plan 149), the LIC website indicates that the old plan used to have “Accident Benefit” as part of the plan. See

        That clarification apart, I agree with you overall, that new bonus rates should reflect the increased cost.

        Best regards,

        1. Raman-What role LIC providing in the case of providing pension to all citizens of India? I don’t think LIC has any game changer plan, especially when you look at pension perspective. Old LIG Jeevan Anand might have inbuilt accidental benefit cover. But what I am pointing is, it was not free. It was included in your premium which not reflected upfront (same way like service tax). Am I right?

          1. Hi Basavraj,

            Not exactly the same cost regarding Accident cover. In Old LIC Jeevan Anand the accidental benefit being inbuilt means the cost was spread across all the jeevan anand policy holders. Now, if Mr. X purchases new Jeevan Anand and wants Accident cover, he will have to bear the cost himself (and with others who opt the option, who will only be a subset of all jeevan anand policy holders) so that makes it more expensive to get an equivalent policy on top of the increased premium.

            Regarding the social securiy aspect, LIC doesn’t provide pension to all citizens, we don’t have that yet in India. But a citizen does have the option to secure long term savings using a plan like Jeevan Anand. What I meant is its not same as getting a pension, but in absense of universal pension, its a good second option for Indian citizens, particularly given the phenomenal reach and spread of LIC agents in the country. This point is separate from the accidental cover aspect.

            1. Raman-I am still unable to understand, if it is inbuilt then you mean to say it is free of cost? Please clarify it. I understand your point about social security provided by LIC, which differentiate from the accidental cover benefit discussion. My point is, how Jeevan Anand can be substituted to one’s retirement planning? Can you elaborate more on this?

              1. Hi Basavaraj,

                When a risk protection feature like Accident cover is inbuilt, it is not cost free. Nothing is. But the cost per policy holder is less as all policy holders of that policy are sharing the cost. Now, each individual has to buy the feature as an add-on in the new Jeevan Anand. This means that only a subset of people will opt to buy this add-on. In a cost-sensitive market like India, the subset will only be fraction of all the buyers of the policy. So before if 100 people brought it the cost of accident cover is shared by all 100 policy holders.

                Now, if 100 people buy new jeevan anand policy, and only 10 opt for accident cover, then only those 10 will pay for the cost of accident cover. Hence, those 10 individuals will pay more for a policy with accident cover which they would have got for lesser in old jeevan anand. This is my point. And furthermore, I don’t know how LIC is going to calculate Accident cover. The following is a possibility : The people who are going to opt for Accident cover maybe the high risk types who live in crowded cities or are police officers or work in a other risky environment. People in second-tier cities, rural areas and NRIs are less likely to die from accident and may not choose to buy this option. The person who gets accident cover being from a higher risk for accident, LIC can now possibly also scale the cost further based on LIC’s estimate for accident risk for the given buyers. So, all in all, it has the effect of individualizing the cost for accident cover and hence higher cost to buy a feature equivalent policy to old jeevan anand.

                Regarding retirement and LIC: Retirement is a long-term planning for a young person say 30 years old. If we get a LIC policy like Jeevan anand for 30 years, though the returns maybe slightly less than a bank deposit, there is no Bank deposit where you are forced to contribute for 30 years. Recurring Deposit maximum period is 10 years and that too if you close early RD penalties are only minor. If one pays an RD for 10 years, given modern life and its consumption demands (buying a car, wife wants vacation to Assam, kids want computer and iPhone etc.) chances are very high that funds will not be invested for retirement.

                With long term insurance policies on the other hand, there is a demand for a long term commitment from policy holder over the PPT which we can choose for a period of 30-40 years. If buyer stops paying half-way through, the penalties are much higher than a recurring deposit. This creates a long-term incentive for buyer to commit to the policy contract. Hence in my opinion, long term LIC policies can be a valuable base for retirement planning. It cannot substitute retirement planning, but can provide a strong base, which is what social security is fundamentally about – not complete but a insurance program.

                1. Raman-I understood the concept. So, according to you how much more it will cost a person who opt for Rs.1,000 SA? I don’t think there will be much higher difference. If you have data to show the comparison then you can do so. So you mean to say that only LIC has this option of investing over the long term like 30 years or more? If that is the case, then what about PPF (15 years+extension of 5 years in each block till investor’s death), Equity Investment (I know you may argue that no guarantee of return-but LIC gives any guarantee?) or opting for 10 Yrs FDs and again reinvesting (not my suggestion but one can play with it)? You can just say that LIC might have created saving habits among Indians. But it is not a good tool for retirement corpus creation. Return from these plans are around 7% and inflation is around 6%, so real return of 1% suffice to survive on this corpus creation?

                  1. Hi Basavraj,

                    You mention PPF, which I agree with you is a very good option to provide a sound fnancial base for retirement. However, PPF is only max of Rs, 1 lakh per year. If someone wants to contibute on top of that, I would argue LIC is more preferrable from retirement perspective than equities and 10 Yr FDs because from a modern consumption behavior standpoint, people are less likely to reinvest FD’s after 10 years or higher risk equities.

                    I also want to clarify that I’m talking about providing a solid base for retirement, not about creating a complete retirement plan only using LIC.

                    I would agree with you that FDs and equities can provide an additional layer of support to ones retirement planning. But FDs and equities cannot provide a base.

                    PPF and LIC policies can, by creating incentives to contribute over many decades and providing consistent returns.

                    Best regards,

                    1. Raman-So according to you Equity is an additional layer of retirement but not the core? How about inflation of retirement planning? How you hedge this by investing in which product? Also, let me know the portfolio structure of one’s retirement corpus?

                    2. Hi Basavraj,

                      PPF and LIC policies like Jeevan Anand have a historical record of providing protection over many decades. The stock market (equities) on the other hand have no track record in providing protection to people. Not only does its value gyrate by definition, the country with the longest history of using the stock market for retirement is the US. In that country, they call equity based plans for retirement as 401k plans. The record is a terrible one for that entire country, with the exception of the very wealthy sectors.. Take a look at this article (How America’s 401k Revolution rewarded the rich and Turned the Rest of Us into Big Losers):


                      There is every reason to think that Indians today who are being goaded to push their hard earned retirement money into the stock market, are setting themselves up for a similar terrible risk.

                      Unlike PPF and LIC, the evidence for stock market providing security I’m afraid is mainly mythological if you consider society as a whole.

                      Best regards,

                    3. Raman-So you mean to say that equity investment for long term perspective like more than 10 years will give less return than PPF or LIC or it may suck our own invested amount itself? Have a look at Indian stock market rolling return calculation, you will come to know who is at upper hand. Coming back to USA’s 401, do you feel USAs spending habit equals to Indians spending habit? Please read yourself the above mentioned article, you will come to know other side of reasons also (over spending and withdrawing for mortgage).
                      If you still believe equity is risky then let me know how you will plan yourself for your retirement corpus creation? What asset classes you consider for your retirement corpus creation wherein inflation itself is around 7%?? Please elaborate more 🙂

  93. Dear Basavaraj..Thanks for your help in this arena…

    I have 2 policies taken in 2008..i am definitely thinking for making them as paid up…I need your suggestion for that…

    1) Jeevan chhaya – Premium 10K / year…term of premium 18 yrs – (SA – 1.8Lakh)…(accured bonus as of jan`14 – 30K)
    2) Jeevan Anand – Premium 20K/year…premium payment for 17 years…(SA – 3 Lakh)…accured bonus as of jan 2014 – 50K)

    I have paid premium for those 2 policies so far 6 yrs…i am thinking to make it as paid up..

    Question is –
    1) Are both policies are applicable for paid up ?
    2) What i have to do to make it officially paid up ? (Agent is my i am facing issue in getting the real details for the paid up details)
    3) What will be the amount i wil get after the maturity in above 2 policies ?

    Thanks for your help in ad..


    1. Krish-My answers are as below.
      1) Yes, you can take the options of paid up for both.
      2) No need to worry. Visit the servicing branch with the original bonds. They will guide you.
      3) This will be answered by your servicing branch or nearest branch.

  94. One more question, if after 3 yrs even for a 20 yr policy, I stop paying for Jeevan Anand, it becomes a paid up policy right. Can you advise what would be the maturity benefit and death benefit after a policy becomes paid up policy.

    1. Vamsi-Yes it will be converted to paid up policy. The same paid up amount will be payable to you both in the case of maturity as well as death. Because paid up value will not grow and it will become constant throughout the period of the plan.

  95. Very well compared Mr.Basavaraj. Thanks for all the info. By the way, for someone like me who is already enrolled in Old Jeevan Anand, do you advise a switch to new Jeevan Anand.

    1. Vamsi-Thanks. If you took this policy between IRDA new guideline announcement and 1st Jan 2014 then you have the option to switch to this new plan. Otherwise, you don’t have the option to move. Also closing the old plan and opening the new plan now will cost you more.

      1. My father took this plan on Dec 31st 2013, if he has to switch to the new plan, how much will it cost more and is this beneficial in the long term?

        1. Vamshi-How it costs more is depends on your father’s age, term and SA he opted. So I can’t say plainly. Yes, it is beneficial in one way as there are more flexible options than the older one to come out or death benefits. But you also need to think how much it cost more.

  96. Thanks Raj for sharing latest things clearly, hope for next sharing this way on fb/email/whatsup, Anil Oza, DO, 3/838, A’bad

  97. Thank you for posting details in clearly & convenient to differentiate.
    Just now we are waiting for your green signal to the list of policies as per your analysis.

      1. Dear sir,

        why we are mixing investment with insurance are they not different thing is that necessary the same product should take care of your investment as well as life conver. basically life insurance is not for return it is for on happening of unfortunate event so that claim recd. under lic will take care of your loans & liability.

        1. Anil-In one way you say why not mix the insurance and investment by buying the product which comprise both. Suddenly in next line you say the importance only INSURANCE but not INVESTMENT. This is how these products sold 🙂 Basically Life Insurance is not for return. Hence, buy the pure insurance why the combined product which lacks in covering once life to the fullest and provide returns of around 5% to 6%. First make up your mind and they canvas to client about what you want to offer and what is your client need.

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