From today onward LIC started to offer new plans which are according to new IRDA Regulations. LIC closed its existing plans by 31st Dec 2013. So from this month onward you will find plenty of new featured plans. The first plan in the list is “Single Premium Endowment Plan, Table No.817”. Let see what it actually offers.
It is a single premium policy and contains the below features.
Below is the loan availability % based on the total surrender value.
So is it beneficial to invest?
Let us consider a person whose age is 30 years, interested to invest Rs.1,00,000 for a term of 25 years, then the premium will be Rs.48,545 (Including 3.09% Service Tax). It looks great at first instant as for getting SA of Rs.1,00,000 you are paying less than half of it. But do remember that this is the traditional plan and you need to wait for 25 years. In terms of liquidity this plan seems good. But when you consider as an investment tool then my suggestion will be “STAY AWAY”.
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B K Mishra
my son is 18 yrs old and is mentally challenged. i want to know a single premium plan for him so that he will get a monthly income for life time after 10-15 yrs.
Basavaraj Tonagatti
Mishra-If your intention is to have corpus for his monthly expenses after 10-15 years, then better to opt equity mutual funds and debt in proper asset allocation. Never run behind such endowment plans.
Vijoe J
Dear Sir,
I work for an driver association which we formed recently, Few days back one of our member passed away leaving behind his 2 below 10 yr old girl children. we would like to invest a single premium investments for these 2 little angels for their future education or may be for their well being. Please advise the best investment the family can get benifit from.
Vijoe J
Sir our investment will be approx. 1lk/ child.
Basavaraj Tonagatti
Vijoe-For how long?
k satyanarayana
Mr Basavaraj
This is regarding Single Premium Endowment Plan-817
I’ve heard that there is an option to reinvest the Maturity Benefits in Jeevan Nidhi
further to get a pension per month for the life term.
Are they exempted from tax? – (i.e. the Maturity Benefits (SA+Bonus+FAB)
which will be credited to the account / the pension which will be received every month)
Basavaraj Tonagatti
Satyanarayana-Jeevan Nidhi is not an immediate annuity plan. I don’t know who said this and how they planned. Also, any amount you receive from pension plans are taxed.
channa
Dear Basavaraj
Can you suggest a single premium policy for my nephew who is 1 yr old. I have just 20oo0 rupees to invest as a single premium and expect that it would be of some help to her at 18 yrs of age
Basavaraj Tonagatti
Channa-If you really concern about this money and his future, then stay away from a product or policy offered by insurance companies.
Mohammed
Dear sir
I’m thinking about my daughter she is now just 2 year old and i want good benefits for her marriage
I’ll invest 50000 per year to five year and after want to return 2000000 on her age of marriage.
Please advise me which plan good for her
Basavaraj Tonagatti
Mohammed-Use equity mutual funds and debt product (PPF or Short Term Debt product) in a ratio of 70:30. Don’t touch these endowment products. Refer my post regarding equity mutual funds selection at “Top 10 Best SIP Mutual Funds to invest in India in 2016“.
ritwika
Hello Basavaraj, I am 29 year old married woman. How much annual premium do i have to pay for a LIC term plan of 1 crore cover.
Basavaraj Tonagatti
Ritwika-You need insurance of investment?
NISHITH
I WANT ONE TIME INVESTMENT PLAN WHICH GIVES MONTHLY INCOME TO MY PARENTS I DONT WANT TO WARRY FOR THEM
Basavaraj Tonagatti
Nishith-Use either Postal MIS or you can think of LIC’s Jeevan Akshay VI too.
B Hazra
Good afternoon Sir,i am 47 yr old man, I have a 13 yrs old daughter.Come to the point I have 2 lakh rupees for investment ( one time). can u plz suggest me the best place to invest this this amount so that I can good return and also no risk.
Basavaraj Tonagatti
Hazra-Use FDs. Because I feel she need this cash when she turns 18 years, which is just 5 years away.
basant kumar
i have retird on 31/05/2015 and having an income of rs 550000/-including salary of 3 months and pension. i need an exemption of rs 150000/- please advise my investment
Basavaraj Tonagatti
Basant-Before running for tax saving purpose, first understand your financial goals. It is purely wrong to invest in any product ONLY to save TAX.
Satish Reddy
Hi Sir,
My name is satish. I want a one time investment plan for baby (not yet born ) . My intention is if I invest 300000 in 2016(only once) and shall I get lump sum for my daughter marriage or education . Can you suggest me some polices and the amount I can receive.
Basavaraj Tonagatti
Satish-No policies please. First understand your target amount. Blindly investing may harm your important goal.
Satish Reddy
Thank you sir for your reply.
Please suggest me one and my investment is 300000 INR. It will be great help if you guide me and i prefer long term plan , 18 years.
Thanks,
Satish
Basavaraj Tonagatti
Satish-Go for equity-oriented balanced fund like HDFC Balanced Fund.
prateek kaushik
hi
i have 50,000 and i want to divided this amount in three part and invest as one time payment..
like 15,000, can you tell me the schemes who have one time investment plan(low amount like 15000 to 20000)
Regards
Prateek kaushik
Basavaraj Tonagatti
Prateek-What is your time frame and expectation? Whether it is insurance or investment?
archana
hai hello i just completed my b.pharmacy so i am thinking of taking lic money back policy of annul premium but for less period like i meant to say 5 years but i can pay upto 12000-20000 so is any plan is available for my interest in lic or in any other insurance company which is secured
Basavaraj Tonagatti
Archana-What is your goal? Buying an insurance or an investment product?
gosavi prafull
Dear Basavraj ,
I want to invest single premium 200000 for my daughter marriage. She is 5 year old and I want get money back on age of 23 yrs .
What will be the best plan ? What will be assured return .
Regards
Prafull
Basavaraj Tonagatti
Gosavi-Stay from a product (like these policies) which combines insurance with investment. Such products give you return of around 5% to 6%.
Prasad Kulkarni
Dear Sir,
I am an NRI age 47 and looking for Term Insurance. As a NRI will I get any Term cover. Also suggest if Jeeven Anand is suitable option as it offers Life Cover and lumsum amout at the age of 62 and life cover remains till death.
I can invest upto 1.5 lakhs per annum. Pls advice.
Thanks & Regds
PK
Basavaraj Tonagatti
Prasad-Check with insurers like HDFC, ICICI, Max or Bajaj (just naming few, you have option to choose others too). You can go with Jeevan Anand if you feel the return of 5% to 6% is BEST for you. Otherwise, stay away from this plan.
vinod
Hi
Please suggest me best policy with higher rate of intrest for my Daughter age 04 Year and my age is 37 Years. Which i can i give to her .
I can invest yearly Rs 24000/-
Please help and suggest me.
Basavaraj Tonagatti
Vinod-NONE.
rajesh gawli
single policy lic yearly premium 24000 per year date 30-10-1980
savita
please guide me good one time investment.which is good and it should be short term plan
Basavaraj Tonagatti
Savita-Can you please define the words “Good” and “Short Term”?
Informe
I am quite impressed with your advice to all the members .I too have to made a clarification as I am 40 yrs old private employee invested Rs.36,600/- for my daughter’s higher education with LIC Endowment Plan for 2015 .Can you suggest me does it yield any benefit?I am additional plan of investing of Rs.50,000/- with some good returns for my retired life or my daughter’s marriage.Can you suggest me where to invest?Which is best firm ?Can i trust private firms ?If so which is the best suitable one .PI suggest…
___
Informe
Basavaraj Tonagatti
Informe-This LIC plan fetch you return of around 5% to 6%. If you feel that’s a great return then go ahead. Before proceeding for fresh investment, I suggest you to analyse your current investment, why you want to invest, what is your target amount and what is your expected return.
dr kumar desai
sir i am doctor and my age is 51 i want to know policy for one time investment
Basavaraj Tonagatti
Kumar-Policies? If you are expecting 5% to 6% then all single premium LIC policies are for you.
puahpender singh
My name. Pushpender singh
That I singal policy primiyam
Evary. Month. 1000 . Pay
So. Plz information. D.o.b
20/07/1987
krishn
Hi Basavaraj,
I am software engineer in IT company. For tax saving i have opened a LIC New endowment plan with premium as 54500/- yearly for 20 years. I am 25 years old unmarried. I had already running policy of 18k yearly. I wanted to know what i did is right or not? If it is not please tell me the way i can make this policy cancelled or should i continue this?
And what way i can invest so i can get more benefits in term of money as well life cover.
Thanks.
Basavaraj Tonagatti
Krishan-It is good decision if you are going to satisfy with return of around 6% and feel the insurance coverage this plan offers is suffice in case of your sudden death. Otherwise think seriously to come out.
Deepak Gungun
Hello Sir,
Nice to see here that you are solving problem for many people. I am also hoping some better solution for me .
I am 30 years old married man , and also I have a 2.5 year old kid.
I dont have any policy or insurance. Could you please suggest me any good product which give me high return and also give protection to my family for any mishap happen to me. I can invest monthy 3000-4000/PM.
I am looking for LIC product which is more trustful as compare to private player.
Basavaraj Tonagatti
Deepak-Then first buy online term insurance from LIC. Then forget about any insurance products and invest based on your goal.
samrita
Hi.I want to invest 3 lacs single premium for 20yr for my 1yr old daughter.pls suggest me which plan will b better.also suggest some other option to invest regularly for her studies n marriage in future.
Sree
Sir my name is sree i want to know about lic money back policy is better than bank investment
Basavaraj Tonagatti
Sree-None of them can beat the Bank FDs.
gopal
i want a child policy for my daughter who is 2 months old kindly suggest i can invest upto Rs 50000 yearly. kindly suggest
Khalil
My wife having a LIC single premium(155783.00) endowment plan under table n0.817.it was made on 07.02.2014.
Shall it consider in tax saving of financial year 2014-2015.Please advice me
Basavaraj Tonagatti
Khalil-Investment was done prior to 1st April 2014. So how can you consider for 2014-15?
Sanjeev Kumar
Sir,
I want to invest 5000 monthly for my one year kid for 10 years from today so that he could start getting a healthy sum per month after completing his 17 years. plz suggest me a suitable lic plan.
Basavaraj Tonagatti
Sanjeev-Sorry none of the plans will generate you HEALTHY SUM.
Mrs.mala
Sir,
I like to buy a term insurance policy in LIC for my son,age 13yrs.
Pl suggest me some policies.
Thank u
Basavaraj Tonagatti
Mrs.Mala-Term insurance and to be clear insurance is required when someone financially dependent on him or her. So in your case I don’t think insurance is not required at this stage. Because as per my assumption, none is financially depend on your son.
Mrs.mala
Sir,
Thanks a lot for ur reply…
But as my son likes to take his higher studies at abroad, I hav to submit
Some policy on his name…that’s y I asked U for a suggestion.
Thanks once again,
Mala
Basavaraj Tonagatti
Mrs.Mala-Can you elaborate the procedure about “I have to submit Some policy on his name”?
raja sen
hi
i quite impressed with your financial advice. Sir my investment portfolio i am investing 70% amount in PPF and 15% on ulip rest on FD’s.
Plz suggest it is okey or some change will be beneficial. Secondly many time you have suggested to go for mutual find requested to advice which mutual funds are beneficial.
Basavaraj Tonagatti
Raja-PPF must not be around 10% to 15% of your investment. Also stay away from ULIPs. Because of it’s cost structure and liquidity issue. Instead why not you opt equity mutual funds for your long term goals? Investing must be based on your goals.
Himanshu
Hello, I would like to invest 3lacs in a single premium policy for my 6 months old kid focussing toward his higher studies. Which policy would be the best suited for the same?
Basavaraj Tonagatti
Himanshu-NO POLICY will suite. Because you are claiming for your kid’s future and tenure is long. Also return from such policies will be around 5% to 6%. So stay away from any product which combines insurance with investment.
Himanshu
Thanks Mr. Basavaraj, please can you suggest me where should I invest to secure my child’s education after his 10+2.
Basavaraj Tonagatti
Himanshu-My suggestion is to go for equity investments if your goal time horizon is more than 7+ years. But at the same time don’t forget the importance of insurance. So buy term insurance at the earliest.
Himanshu
Thanks a tonne Mr. Basavaraj. I highly appreciate for your suggestion. Thanks once again.
sanju pradhan
i would like to invest for 10 yrs with 2500 per month what is the best policy for invest for my child please suggest as my child age is 2yrs
Basavaraj Tonagatti
Sanju-Better to stay away from any policies. Buy term insurance and invest the rest in equity mutual funds (as your time frame is more than 10 Yrs).
Ashish
we have 2 lakh to invest for my son whose age is 10 years
pl suggest the plan in which we can get max returns
Basavaraj Tonagatti
Ashish-Can you elaborate according to you what do you mean by MAX RETURNS?
Ashish
Thanks for your responce
what maximum returns we can get when he would be around 25-30years
So pl suggest which type of investment should be done.
Pl suggest plan which cover insurance and give good returns
Also give us option without insurance
Basavaraj Tonagatti
Ashish-Don’t expect ready made answers by sharing few lines. Suggesting a investment product or planning requires lot of data from your end. Hence I can’t.
Mahesh
I am looking for insurance cum investment for my daughter who’s 5 now.. I want around 5cr by her 25th birthday..suggest best plan
Mahesh
I have seen your some good suggestion.. Really good work, Thanks..
Basavaraj Tonagatti
Mahesh-May I know the reason for asking “Invest cum Insurance” plan and how you arrived at Rs.5 Cr?
NARENDRA SINGH
Hello sir
i want a 3 lack insurance on single premium plan (plan no 817) for my 1.5 years son for 17 years
What will be premium and what i get afeter 17 years
Basavaraj Tonagatti
Narendra-Please search for the same on LIC site. How much you get after 17 years? It will be around 6%.
sandeep
Sir i m 24 years old army person and i have a 6 month son..which is the best plan for his future and me also…
Basavaraj Tonagatti
Sandeep-NONE. Please buy pure term insurance (online or offline or from LIC or private insurers) and invest separately based on your risk appetite like PPF or mutual funds.
SOM RAJAN
I have gone through your opinion on single premium LIC policy Plan 817. What I could understand from licindia web site, there is a discount of 30%, 25%, 18% on SA, which is unbelievable. As per information received to you it is not 30% but 3%. If it is so 25% should be 2.5% and 18% should be 1.8%. If it is a mistake, it is blunder, misguiding and confusing the customers. It is a major mistake of LIC. One more thing – the page is silent about the tax rebate which is limited to 10% of SA. Am I correct?
Basavaraj Tonagatti
Som-Regarding rebate you can cross check with your nearest branch.
SOM RAJAN
Sir,
I have received a response from LIC authority, which says %0 means per thousand. This sign is not commonly used in English speaking countries. In other countries,such signs are used to mention ‘particle per thousand’, ‘particle per million’ etc. as %0, %0000 and like manner. Why LIC has used such an uncommon sign which is not understood by common people.
Thanks, good byed.
Yours sincerely,
som rajan
Basavaraj Tonagatti
Som-I am not aware about why they used that.
Kathiresan
Hello sir,
I would like to take health insurance for my mom & dad because my dad going to retire next year . So they need some health insurance for their health. Please advice me which best for them.
Basavaraj Tonagatti
Kathiresan-I hope my earlier post “Best Senior Citizen Health Insurance in India-Product Comparison” or “Best Health Insurance Companies in India-Based on IRDA Data” will help you.
SOM RAJAN
Dear Sir,
As per LIC Plan 817 the following particulars are submitted. Pl convey your valued advice.
Age : 63 years, term : 10 years, SA : 2.00 lac. One time premium : 151600, Rebate : 25%, Net premium : 101600 + Service tax. After 10 years I’ll get 2.00 lacs+Bonus+additions if any. and risk cover for 10 years. Less 2% TDS . Tax rebate on 10% of 2.0 lac @ 10% = 2000. Please advise me whether it will be beneficial for me.
Basavaraj Tonagatti
Som-First let me know why you need insurance at age of 53 years?
NAGENDRA
I AM 24 YRS OLD.AM LOOKING FOR SHORT TERM INVESTMENT PLAN ,WHERE I CAN CLAIM TAX BENIFIT.SBI UNIT PLUS SUPER PLAN IS SUGGESTIBLE.OR PLEASE ADVICE ANY BEST LIC POLICY
Basavaraj Tonagatti
Nagendra-NONE…because first advise is not to mix insurance with investment, second is you have not mentioned what do you mean by short term and third is I am against ULIPs too.
Ranjit Kumar
Sir my son is 7 months old, i want to invest monthly some money for him. which plan i should take. please advice me my monthly income is 30000 rupees, i can invest 3-5 k per month, please advivce me. thank u
Basavaraj Tonagatti
Ranjit-First stay away from any of these PLANS. Buy term insurance to the tune of around 15-20 times of your income. Then based on goals start investing. But strictly no such low yielding products.
Mrs C K Pandey
Sir : My husband is retiring this month end. Kindly let me know best safe investing plans. There is one senior citizen saving post office scheme. Is it ok to invest on it. Kindly suggest – Rgds Mrs Pandey
Basavaraj Tonagatti
Pandey-Madam you can check postal SCSS, Varishta Bima Yojana and LIC’s Jeevan Akshay VI.
S Shah
I want to invest and insure for my son aged 18 yrs. May be one item on yearly basis.
Requesting you to suggest the best plan for my son which will give reasonably good return.
I m given to understand any Life Insurance Policy will give return in the range of 6 to 8 % Max..
Pls advise the best option.
S Shah
Basavaraj Tonagatti
Shah-If no one financially dependent on him then insurance is not required. Please search for some other products.
MUKARAM
DEAR BASVARAJ,
MY DAUGHTER AGE 13 YEARS,IWANT TO INVEST FOR HER FUTURE REQUIREMENT, WHAT IS BEST INVESTMENT .
THANKS,
Basavaraj Tonagatti
Mukaram-If her current age is 13 years then when you need this invested amount?
shashi
suggest me for a best plan for my daughter her age is 6months
Basavaraj Tonagatti
Shashi-Stay away from any such traditional policies for goals of your daughter.
prashant
Hi..
I m planning to buy LIC’s jeevan anand..my age is 30..and advisor told me for 20 yrs term and 5 lac SA..I need to pay 29561 yrly premium.and after maturity i will get 1080000(FB+SA+FAB ie. 48*500*20 + 5 lac+ 200*500)..and they will provide lifetime insurance to me though policy is matured,so is it good to buy it or i should go for money back plan.plz suggest.
thanks..
prashant
Basavaraj Tonagatti
Prashant-First ask yourself that after buying this insurance and of your sudden death, for how many years your financial dependents survive with this Rs.5,00,000 amount? Second thing think yourself the quoted return will be suffice to meet your financial goals. With the kind of return around 5% to 6% will you beat the inflation and sustain in long run?? If for all these questions your answer is YES then go ahead.
Saurabh
Hi Basavaraj,
Request you to put some light on Single Premium Endowment Plan (No.817) .. One of the agent is saying that if you pay Rs 60,000 then after 18 years you will get 18 Lakhs from this Single Endowment Policy (One time Premium) . I wanted to do this for my son. Please let me know if this is true or not. If not then how much would my son can get returns after 18 yrs ..His Current Age is 1 year..And I can invest Rs 30,000 max. at one time.
Your help would be really appreciable.
Thanks,
Saurabh.
Saurabh
Hi Basavaraj,
Request you to put some light on this Single Premium Endowment Plan (No.817) .. One of the agent is saying that if you pay Rs 60,000 then after 18 years you will get 18 Lakhs from this Single Endowment Policy (One time Premium) . I wanted to do this for my son. Please let me know if this is true or not. If not then how much would my son can get returns after 18 yrs ..His Current Age is 2 years..And I can invest Rs 30,000 max. at one time.
Basavaraj Tonagatti
Saurabh-There must be some limit to claim such false, but your agent crossed everything to garner business. God can only protect his clients. Rest is your take because it is your money.
saurabh
Thanks for your reply. Request you to let me know then how much could i get on the investment of Rs 30,000 in the Single Endowment Policy(Table 817). Please let me know it would be really grateful to you.I wanted to invest for my child in this policy.
Basavaraj Tonagatti
Saurabh-May be around 5%.
Rakesh
i want to deposit 1 lakh for year so please assist me and tell me if i will deposit under insurecne then what benefit i will get and after years how much amount i will get.2nd please tell me also if i will deposit under investment then what benefit i will get and finely how much amount i will get.
Rakesh
sorry for miss the figurs for 10years
Basavaraj Tonagatti
Rakesh-Then too better to stay away from such product as they will not give you even around 8% return.
Basavaraj Tonagatti
Rakesh-If you want to deposit for one year only then better to choose Bank FD rather than running behind any product.
Mithu
I have invested Rs 40,000 in LIC Wealth Plus (Single Premium Investment) in year 2010. Now I have been informed by my LIC Agent that NAV is best during this period, hence he suggested that I should close that plan and reinvest the same amount in LIC Table No 817 plan (Single Premium Endowment Plan). Please suggest if it would be a good idea. Thanks Mithu
Basavaraj Tonagatti
Mithu-This is a worst advice your agent pitching. He need one more policy. So he is suggesting you to surrender the existing one and invest newly. But frankly if you surrender it now then you will get highest NAV, instead the current market value. Because you get highest NAV only in case you continue policy till end or in case of death claims. Also the suggested plan of your agent is not worth for investment.
gayathri
Dear Sir, Same case with me for wealth plus.. do u suggest we retain the money in wealth plus.. can I have ur email id to email my specific investment needs.. do u help us for the same.. regards gayathri
Basavaraj Tonagatti
Gayathri-Wealth Plus is a ULIP and currently not available. This fooled all stating that you will get highest NAV guaranteed plan. But the sad part is, it is typical low equity exposure plan. Hence IRDA itself banned such products now. You need to verify how the fund is performing. You can mail me details at basavaraj@basunivesh.com.
Pulla Reddy Panditi
Hi Basavaraj,
I am looking for best insurance policy.
My current age 29 Years.I want invest 50,000 p.a.Could you please give suggestion which policy is better
Basavaraj Tonagatti
Pulla-Your requirement is INSURANCE or INVESTMENT?
AMIT LODHIA
Hi Basavaraj,
I am 30years old. I have no insurance or investment. I want to spread Rs.6000/- per month on insurance & investment. Please advice best term plan, medical plan for family & investment options with good long term ( 15-20 years) returns.
thank you
amit lodhia
Basavaraj Tonagatti
Amit-Buy term plan of your choice from the LIST, regarding investment, first prioritize your goals. Based on goals start investing in the product which suites your need.
Nikhil D
Hi Basavaraja,
I am the one who is newly join to the work, who i’m stay in bangalore. I am thing to make some savings to my feature, i have intrest to make small investment on Rs.500 to Rs.1000 monthly, can you advice me in which sector it is possible to make invest and it also provide safety for my money and good return back after 10year.
Basavaraj Tonagatti
Nikhil-First buy term insurance online for around 15-20 times of your yearly income, buy health insurance for you and for family, buy accidental insurance as well as critical illness insurance. Create around 6 months household expenses as emergency fund. Once all these are set then we can discuss for investing.
Sunitha
Hi Basavaraj,
I want to do one time investment of Rs 50000 and the term period should be 5 years for my son’s education who is 10 year old. please suggest me good investment plan. I am a house wife and this 50000 is my savings.
Basavaraj Tonagatti
Sunitha-Go for bank FD. Don’t try to take risk as the period is less and the goal is important.
Biju
Dear Sir,
I am 38 years old. I need insurance coverage for 25 years. Is it a good idea to deposit a single premium amount of 50000/- ? what may be the sum assured? What may be the amount “I” get after 25 years?
Biju
Basavaraj Tonagatti
Biju-Before proceeding further please let me know whether you need insurance or investment?
Biju
Dear Sir,
Thank you for your prompt reply. I am interested mainly insurance (but great amount). I mean, my nominee should get a good lump sum amount. How much will she get if I deposit 50000/ with 25 years coverage?
Thanks.
Biju Joseph
Basavaraj Tonagatti
Biju-If your concern is only insurance then why can’t you buy regular online term insurance than going for one time investment of Rs.50,000? Ideal insurance cover should be 15 times of your yearly income. But I felt you are opinion that how much you get that much is better for you. It is not like that. Insurance companies usually review the requirement on one’s income, health or age. Based on that they will issue.
shashi kapur
I am investing Rs. 17000/year in LIC PLAN 815. TERM 30 YEAR .MY AGE NOW 26 YEAR.(LIC 500000).BETTER YA NO.KINDLY REPLY
Basavaraj Tonagatti
Shashi-If you are satisfied with returns of around 6% then go ahead. Otherwise better to stop it.
shashi kapur
I am investing Rs. 13000/year in LIC PLAN 814. LONGE TERM 35 YEAR .MY AGE NOW 23 YEAR.(LIC 500000).BETTER YA NO.KINDLY REPLY
Basavaraj Tonagatti
Shashi-Worst decision.
shashi kapur
I WANT CONVERT PLAN 814 TO 815.TERM 25 Y.BETTER YA NO. BETTER YOUR SUGGESTION
Basavaraj Tonagatti
Shashi-Both are worst, but if you are satisfied with return of around 6% then go ahead.
Suresh
Sir,
If you have paid 13000/- PA up to 12 Years you will have paid tot 156000/- get 5 Lakhs.
OK Its good and you get 5 Lakhs and unexpectedly if any, Accidental coverage 1 Lakh.
In the same way you can Open PPF A/c and pay Just 3000 PM 36000 PA you can get 9.40 Lakhs getting in 15 Years. If you want require after 7 years 50% of returns get back from you PPF A/c Balance. You can see Google PPF Calculator for your PPF returns of your invested Amt in 15 Years.
Basavaraj Tonagatti
Suresh-Thanks for sharing 🙂
rohit raj
dear sir. i have a new endowrment plan from lic (250000).for twenty years. i want to know what is meturity amount (lumsum).
thank you
Basavaraj Tonagatti
Rohit-It will be around 6%.
Anupam
I am 28 years old,planning to invest in a retirement plan,i can invest around 25k now monthly
Which is the best LIC plan now.
Basavaraj Tonagatti
Anupam-NONE….better to start investing in equity mutual funds for your long term retirement goal.
lokesh gupta
Hi,
I am investing Rs. 20,000/year in Jeevan Anand from 2005. I know it is not a great product for investing but afraid will loose money if i surrender.
I have already taken LIC term plan for Rs. 50 Lacs from last year onwards.
Pls guide if i can surrender or keep investing.
Thanks.
Lokesh
Basavaraj Tonagatti
Lokesh-Your assumption is 100% correct. So better to come out of this plan at the earliest.
jatin chandrahas patel
Dear Sir,
I have Invest in LIC yearly Rs32000/- approx in different plan
1) Jeevan surabhi 15 years yearly premium Rs 13000/- Approx
2) Jeevan Mitra Tripal Cover Plan Yearly premium Rs 3100/- Approx
3) jeevan Saral Yearly premium Rs6120/- approx
and other Bima gold policies
Please give me advise of return
Basavaraj Tonagatti
Jatin-All are typical traditional plans. So lower life risk to your potential (ideal insurance cover should be around 15-20 times) and lower returns of around 6%. So what purpose these plans fulfill in your financial life? Think and decide.
Krishna
Hi,
suppose SA is 1 Lakh, then Single Premium comes around 47000. My question is, what is the loan amount, which can be taken in the “2nd year”? Is it 90% of the premium paid OR 30% of the surrender value??
Thanks,
Krishna.
Basavaraj Tonagatti
Krishna-Please refer the second sheet where I mentioned in detail about the same.
gunjan
PLS HELP.. I HAVE 1.43 LACS TO INVEST IMMEDIATELY FOR MY SON WHO IS ONE YR OLD… WILL NEED THIS MONEY AT THE END OF 15 YRS.. WHERE SHOULD I INVEST…
Basavaraj Tonagatti
Gunjan-If this is only investment you want to invest for your kid’s future then use Bank FDs (but interest earned is taxable) or some tax free bonds. Otherwise use PPF (invest Rs.1,00,000 in first year as highest investable limit is only Rs.1,00,000) then from next year onward try to invest remaining amount as well as monthly contributions. But to me including a well diversified mutual fund for such long term goal looks suitable. Think and decide.
Mani
Nice information for people who are looking for option in lieu of fixed deposits..
Vinod
If i deposit 50 thousand in single premium for 25 years… Them please tell me what is my lic revived maturity after 25 years,
Basavaraj Tonagatti
Vinod-This plan being traditional plan, you can’t expect more than 7% return (I am claiming this by the trend of such traditional plans return).
Teja
Good verdict Basu, to ‘stay away’. For me, Life Insurance is only term plans; it is the service fee you pay for insuring your life! You don’t insure your bike/car and expect a return at the end of the year from the premium paid. Same for your health insurance. You don’t go to a cinema and expect the ticket price in full/part to be paid back. Then why’d anyone expect returns from his/her life insurance? For tax saving, or investments, there are multiple other options with decent returns, but not life insurance. This is purely what I feel. Not being judgmental or influence anyone’s decisions.
Basavaraj Tonagatti
Wonderful Teja 🙂
Arijita
Hi Basavraj,
Can you please suggest me a good LIC policy with good returns and loan facilities. I am 31 years old female and want to invest 60000/80000 only in LIC.
One of the agents suggested Endowment Policy and Jeevan Saral.
Please guide.
Thanks & Regards,
Arijita
Basavaraj Tonagatti
Arijita-May I know the meaning of “Good return” so that I can guide you in better way? Or hos much you think is considered as “Good return” for you?
MALAY
Arijita-LIC is not having any Policy like Jeevan Saral as on date. But there is New Endowment Policy which offers moderate return with Life Risk. You may go for Single Premium Endowment Plan for 25 years. Longer the term Higher the return.
Basavaraj Tonagatti
Malay-But her requirement is “Good return” not the “Moderate return”. So let her come up with the figures, like how much is good return for her, then we can discuss further.
Manimekalai
Hi
I want to invest in insurance in the name of my son who is 11 months old. Also i want to opt for Single premium plan with amount of Rs.15,000/- only. Please Suggest me some good plans.
Basavaraj Tonagatti
Manimekalai-Do you feel insurance is required on your name or on your kid’s life? Also how you felt yourself that Rs.15,000 is enough for your kid’s future expenses?
Manimekalai
No. We have already made some insurance on our child name. For tax saving i want investment of Rs.15,000/. So i thought of taking policy on my child name. So that it may help in future.
Manimekalai
Please reply. I want to take decision now.
Basavaraj Tonagatti
Manimekalai-Instead of buying such products. Give first priority to cover your life risk by proper term plan. Then in my view if you are planning for long term then equity is best. But if you are totally risk averse then my suggestion will be PPF.
rizwan
Dear Bsawaraj ji , hope doing well , your articles help me to know about various investment and insurance product in depth .please send me details of lic new term polices 1. anmol jeevan ii & amolya jeevan II .
Regds
Rizwan
Basavaraj Tonagatti
Rizwan-Today morning I wrote a post on the same. You can view that here “LIC’s new term plans 2014-Anmol Jeevan-II and Amulya Jeevan-II“
rizwan
Dear BT,
hope doing well , i really appreciating your imitative to spread financial literacy .i want to learn more.
Regds
Rizwan Shaikh
09820468704
capital one financial services (Mumbai)
capitalfreedom@outlook.com
Basavaraj Tonagatti
Rizwan-Pleasure 🙂
Nitin
Sir
Please let me know if I am on the right track:
SA = 3L
Premium: 64260 *3 (30 yrs of age and 15 yrs term) = 1.9L
Now there is rebate of 30% of SA = 90K
So premium = 1.9L – 90K = 1L
And after 15 yrs = 3L
So return of 13% pa.
Pls advice
Basavaraj Tonagatti
Nitin-Please let me know that who said you there is a rebate of 30%?
Nitin
http://www.licindia.in/single-premium-endowment-plan-01-parameters-2014.htm
REBATE FOR HIGH SUM ASSURED :
High Sum Assured Rebates:
Sum Assured (S.A) Rebate (Rs.)
50,000 to 95,000 Nil
1, 00,000 to 1, 95,000 18%o S.A.
2, 00,000 to 2, 95,000 25%o S.A.
3, 00,000 and above 30%o S.A.
Basavaraj Tonagatti
Nitin-Thanks for sharing. Please notice that it is not 30% of what you pay. Instead it is 30% of SA. So both are different. Also let me first understand how they give rebate on SA. But it is clear that you can’t rebate it on your premium.
Nitin
Any update? Is it 30% of SA on the premium amount?
Basavaraj Tonagatti
Nitin-It is sure that it is not a discount of 30% on premium. But I need to check with someone from LIC higher authority, like how this is calculated.
Nitin
I am not aware where that 30% of SA rebate goes. I met an LIC agent today. He had a book with him and he says premium is 1.9L. When I asked what about the rebate, he agreed its 30% of SA but wasn’t sure where it went.
Basavaraj Tonagatti
Nitin-Let me check at my end once again as I have few readymade tables available now.
Nitin
Any update?
Thanks
Nitin
mylearningcafe.blogspot.com
mymoneyrules.blogspot.com
Basavaraj Tonagatti
Nitin-Regarding what?
Nitin
This was regd the 30% of SA rebate qns.
You had mentioned
“Nitin-Let me check at my end once again as I have few readymade tables available now.”
Kindly let me know because I am unable to find answers from anyone
Thanks
Nitin
mylearningcafe.blogspot.com
mymoneyrules.blogspot.com
Basavaraj Tonagatti
Nitin-Hey sorry for totally forgetting about your previous comment. What you presumed is wrong. The premium as per your data (SA-3 Lakh, Term-15 Years and age 30 years) will be Rs.1,83,780 but not what you told Rs.1,00,000). You can check this calculation online now by visiting the blow link (which yesterday one of my blog reader shared with me).
https://customer.onlinelic.in/MobileWeb/PlanInput.jsp
Nitin
Hi Basu
I am very sorry to be bothering you on this one query.
Actually I agree the premium is 1.8L
But there is a rebate mentioned for SA > 3L
The rebate mentioned is 30% of SA
So 30% of 3L is 90K
My question is :
Is this rebate of 90K added as bonus or deducted from premium.
If you have any sources can you help me out?
Thanks
Nitin
mylearningcafe.blogspot.com
mymoneyrules.blogspot.com
Basavaraj Tonagatti
Nitin-You are understanding it differently. You will not get rebate of Rs.90,000. They never mentioned that 30% rebate on premium but on SA. Please understand the difference.
Nitin
Hi
So I kept on following up with LIC and they finally called me to apologize.
They said by mistake its mentioned 30% rebate.
it should be 3%
They mentioned they are making change to their website
Tht of letting u know.
Thx
Nitin
mylearningcafe.blogspot.com
mymoneyrules.blogspot.com
Basavaraj Tonagatti
Nitin-Thanks for your follow-up and updating the same here 🙂 Let them update and I will also do the same afterward.
Sabu
Min Term is 10 Years. NOT 9 years.
If a 30yr Old cant wait for 25yrs, he can invest for 10 yrs with Rs.76,281 premium for 1 Lakh SA.
Basavaraj Tonagatti
Sabu-Thanks for pointing. I will change it.
Poorvottar Sampark Kranti
As per my presumption returns on LIC policies depends on how much premium you exactly pay to LIC & for how long duration..based upon that LIC may give you 6-7% return.All other lucrative theories are nothing but customer attraction.
Now my New Bima Gold Policy where I’m enjoying 2 kind of rebates,
->The first one is 2%(Re 694) rebate on yearly premium(Re 34726) which I think LIC offers on all the policies.
->Second one is High Sum Assured Rebates..Where I’m enjoying rebate of 7.5 per 1000 SA.So for 1050k SA yearly rebate is a hefty amount(Re 7875).
As per the table my premium should be Re 43260 but actually my Annual Premium is 35776(34726+1050(Accidental Benefit Rider))
What I think is that concessions provided on premium payment will have an inversely proportional affect on Final Maturity amt.Also please share me whether LIC provided such hefty concessions in their other policies.
Basavaraj Tonagatti
Poorvottar-There is no direct relation between high sum assured or yearly payment rebate to return you receive from this plan. Such rebates are same and will be available to all plans. So don’t confuse yourself that only that plan will offer you such rebates. Giving you 2% rebate on yearly premium is the business thinking. Getting Rs.100 now is best option for me instead of getting it for the one year in quarterly mode, as I can invest this Rs.100 immediately somewhere where I can earn more than 2%. So don’t confuse yourself.
Vengat
Except Service Tax on premium, no major changes in Single Premium Endowment Policy. Unlike popular perception, this product is no customer friendly.
Basavaraj Tonagatti
Vengat-Yes you are right 🙂 You can’t expect some drastic changes in upcoming plans also.
Eswar
Excellent Review.
Jignesh
Its not 30%, it is Rs 30 on tabular premium for large sum assured
Basavaraj Tonagatti
Jignesh-You mean to say that Rs.30 discount per Rs.1,000 SA?