MY VIEW ON LIC'S JEEVAN ANAND
82JEEVAN ANAND IS NOT SO ATTRACTIVE
JEEVAN ANAND
At first glance, Jeevan Anand looks attractive. All insurance policies look great while buying and look quite meagre when you receive it.
Sample this -
A 30Y old male person `ll put in 27550 Rs. prem. per annum for a 20Y policy. Now look at the bonus announcements of past years for this policy.
2004-2005 - 43 Rs. per 1000 Rs. Sum assured
2005-2006 - 40 Rs.
2006-2007 - 41 Rs.
From the above bonus rate, u can expact an average bonus rate of around 41 Rs. for all the 20 years (not guaranteed).
So after completing 20 years -
A. Total prem. paid over 20 years = 27550*20 = 551000 Rs.
B. Total accrued simple reversionary bonus = 20*500*41 = 410000 Rs.
C. Loyalty addition = 100000 Rs. (not gtd.)
D. Total Maturity amount after 20 years = 1010000 Rs.
E. Now ur family `ll get 5L Rs. more after ur death from the maturity date of policy, it may happen any time in next 10-20-30 years. = 500000 Rs.
Plz. do note in case ur death occurs, during the normal prem. paying term, the benefit of receiving Sa again after maturity of the policy `ll not be there.
On a simple note, u r not even getting double of ur money after paying for 20 years & the remaining cover of 5L in case of death after maturity, may seems high at present but think for next 45-50-60 years & think about the effect of inflation on this 5L amount.
don`t invest in Jeevan Anand Policy, instead ask ur agent for following 3 policies.
1. 1 Anmol Jeevan - 1 Policy of 10L Sum assured for 25 years
2. 1 anmol jeevan - 1 policy of 15L Sum Assured for 20 years
3. 1 Amulya jeevan - 1 policy of 25L Sum assured for 15 years.
Plz. do note all the above mentioned policies r term plans of LIC & u `ll not get any money back from ur prem. pmt. for these policies but on the other hand, ur total prem. paid for these policies `ll not be more than 25-30K (depending upon ur age) whereas ur Jeevan Anand Policy prem. `ll be around 2.25 to 2.75L per annum (again depending upon ur age). U can invest the saved prem. as per ur choice & by the end of 20 years or 25 years (ur term selected in Jeevan Anand policy) u `ll have more money than Jeevan Anand policy.
Insurance is not Investment. Go for PURE TERM COVER. The difference in premium if invested in mutual funds will give you far higher returns. Remember your insurance agent gets 35 to 40% commission on your first premium .
Insurance is an EXPENSE, not an INVESTMENT. No amount of money put in INSURANCE will make you richer or recover the loss suffered by your dependants in your absence. As policy holder if you receive any money from Insurance - you are a loser because you have taken a policy which is costlier than a basic term cover. As nominee if you receive money - you are the biggest loser . What you receive from insurance will only give you temporary relief. The best thing for a nominee is the policy holder staying alive and earning well. So do not look for returns when you are choosing an insurance policy. As policy holder look for the least premium payable per lakh of sum assured. Best & cheapest is PURE TERM COVER.
Instead always go for Mutual Funds. Even Mutual funds do offer you Life Cover. Do consult your Financial Advisor before investing.
Best of luck,
Srikanth Shankar Matrubai
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Hi! Good post. I appreciate. You can also find more information on http://www.liclifeinsuranceindia.com
this policy is very good sir. check http://www.mylicindia.com
Great article, you made my day (no, not day but life!)
Jeevan anand is one of the best plan in Indian Insurance industry for more detail please check on www.delhiLICagent.com or call me at 9212201725
srikanth ji are you an life insurance expert and may i know your qualification in insurance world
Plese Send Me All Details JEEVAN ANAND POLICY
I Want to Save Per Year 15,000
Sir, what is the minimum return after 15 years if i invest 10k pm.
I bought policy from agent on http://www.licofindiainsurance.com/
I just posted my review of this policy in my blog.
It is not good policy for investors.
logically perfect.
I have already taken this policy for 21 years and paid 4 installments each of 25173,
Can some one suggest me, Do i need to continue this policy or stop it, if i stop this how much will i get
U cannot close before completinf 3 years. Once u complete 3 years then u can opt for surrender and get the surrender value( if u decide so)
I am 27 year old . how many prem. paid half yearly.
Thanks a lot for putting this up. I totally agree this LIC Policy is crap. Good for nothing. I have lost all my confidence on LIC, all these LIC agents are big bast****.
U mean to say sir that insurance is not necessary...can you tell me what other options should we look at? If you are talking about mutual funds linked to market , there's as much possibility of losing my money as with the share market ups and downs. And what if i die when the market is down? Will my family be aasured of getting back the money invested by me ?
Srikanth Shankar Matrubai commnets and analysis is awesome
Dear GB,
Yes, I read your analysis of the same and you are right. There are other options which are better and should be considered by investors
i was likely to opt j.anand.but i stopped.thanks.
Dear Mr Srikanth Shankar Matrubai
Hats off to you for such a realistic analysis. No financial magazine would dare to do such an analysis. I fully agree with your views. All insurance plans are just to cheat the gullible investors. In fact IRDA should ban all insurance plans other than TERM insurance because they force the people into wrong decision making
I am agree with you, But tell me one thing, why Jeevan anand is being sell in India more then all policy count, there is something, Insurance does not mean that you will double or triple your amount, it is simple saving cum Insurance, It create saving habit.
If you have money in your bank you have the flexibility of spend that, but is you are creating monthly saving habit its very useful for future.
For more detail
Regards
Harish Chand
9212201725
9811896425
9212201725
Regards
Harish Chand
Hi,
Nice detailed analysis. I have a policy for which I am paying annual premium of 10800 Rs for SA 3 Lacs since Aug 2007. POlicy duration is 25 years. It is whole life convertible policy and bonus rate has been 48 per 1000. I have paid 3 premium and next one is due in a week. How much bonus might have accrued by now in my policy so that I can verify things.
Should I surrender the policy?
regards
Prashant
late premiyam.
Hi! Good post. I appreciate. You can also find more information on http://www.lic-policy.com
pl provide me where is going to lic no entry & premium details
Hi!!
This is a sensible and realistic analysis. I have enrolled for Jeeven Anand for my wife couple of days back and yet to transfer the funds to my insurance agent.
Should i go for this or should look for other options?
Hi,
i am no good in all this. in fact i have just started reading things.
as i read, anmol or ammulya plans dont give u loan option.
which is given by anand plan.
also, u atleast get 5L after death (ur point of inflation is acceptable) but its always better than NOTHING.
also, No surrender value is available in anmol or ammulya, which is available in anand.
so, no policy is bad or good. it depends on your need. Anand policy is good, if u r young and have a fix income.
Valid example: Mr. Rahul Bose aged 30 yrs. Taken amulya jeevan policy, S.A Rs.25 Lac from term 20 years. He pays annual premium of Rs.6975/- on death of Mr. Rahul Bose during policy term, his nominee will receive Rs.25 Lac. On maturity if Mr. Rahul Bose is alive, he will not receive any amount.
Now compare,understand yourself, never trust other's understanding. learn yourself.
shavin49@gmail.com
Its very good for lic life insurance
Great info. But please note that , you just cant compare jeevan anand with term plans as there is only death benefit in term plans but in jeevan anand u will get natural death benefit + accident death benefit + disability due to an accident.
MATLAB PAISA MARNE KE BAAD NOMINEE KO HI MILEGA... AUR NOMINEE, INSURED KE MARNE KA INTEZAR KAREGA..hehehe
Great & brave! did good job, helped to rethink and shift, thanks.
JEEVAN ANAND POLICY
Please give me details of jeewan anand
Mr.Srikanth,
I am a 23y old male,i can pay a annual premium of 20 to 30k per annum. one of my friend suggested LIC jeevan anand..this is my first policy..pls suggest me which one will be suitable for me...
You can take after reading the article here.
Otherwise for a detailed Financial Planning and advise, please send me your Details to my email.
You will find my email in my blog http://goodfundsadvisor.blogspot.com
Hello Sir,
Media and other optition use by govt. to save papaer and save tree.But i see lic issue a reminder letter to policy holder in very large size,if company notice it he help to save paper and tree and save his money on spending on paper.
Very gud analysis Mr. Srikanth>>
I have already paid 4 premiums for 5L policy ...is it better to stop this policy and put these money into mutual funds??? I hv already started the mutual funds investements>
Coz im very much worried abt this the investment in this further...
pls advice me>>>
useful informative site
sharemarketing live
lic concepts
thanks srikanth.. thank god, i didnt take this policy.. i planned to take this policy on april 2011, by reading this post, i decided not to go for it...
You can send a mail to sharesher@indiatimes.com for personalized financial advise.
Hi, Can someone let me know about Future Generalli Saral Anand plan. I am planning to buy one for my father who is 55 (as other insurance will either go for a medical test or prem. will be too high). Also, is this plan good for other ages or not.... Please help
Peoples are simply taking "Lic is great" because of their poor knowledge. They are not looking around the industry. LIC is giving income only to agents , not to a policy holder.
Take a TERM POLICY .. and invest in mutual funds..
YOU ARE TRUE.
TERM INSURANCE IS THE BEST.
BUT PEOPLE PSYCHOLOGY IS THAT THEY WANT SOMETHING IN RETURN OF POLICY.
GANESH
Hi!!
This is a great analysis. I have enrolled for Jeeven Anand for my wife couple of days back and yet to transfer the funds to my insurance agent.
Should i go for this or should look for other options?
Pls suggest among LIC Jeevan Mitra and Jeevan Anand?
If I think for more coverage amount, I believe Jeevan Mitra is good. What is the opinion of experts.......
technically u are correct
but i feel live jeevan anand is still the best policy for me and i am not interested with any investment policy
i am going to buy that policy in coming days ........
HI All,
i am sharing one best example to show Jeevan Anand is some kind of trap..
Here is the example,
If you take Anmol Jeevan life insurance term policy of Rs 20 Lakh coverage for 20 year, and your age is 27 year, you need to pay premium of around yearly Rs 5500 only.
But if you take Jeevan Anand plan of Rs 20 Lakh coverage for 20 year, and your age is 27 year, your yearly premium will be around Rs 1 lakh. After 20 year you will receive Rs 20 lakh on total investment of around Rs 20 Lakh. So there is almost no gain.
Suppose you have Rs 30,000 per year amount to invest, if you take Anmol Jeevan life insurance plan (term policy), you have to pay Rs 5500 per year for Rs 20 Lakh coverage. If you invest rest of money i.e Rs 24500 in equity per year, and if you assume minimum 15% return from equity market, you final return after 20 year will be Rs 28 lakh.
So using 2nd method, by Rs 30,000 per year you can get 20 lakh life insurance coverage and return of Rs 28 lakh after 20 year, The best thing is, you can use your invested money in equity at any time in emergency
sunilkbp@gmail.com
Sir I am paying Jeevan anand 28k per year for 15 years and the agent said i will get around 15lakhs after...
Allready 3 years over if I surrendor the policy does it make sence?
Also I took a policy for my new born son 26k per year and return 250times after 15years...am now confused please help me..
You can send a mail to sharesher@indiatimes.com for personalized financial advise.
Do send in all the details about your present investments, etc.
Then I will be able to advise you better.
Sir,
Your analysis is sound but it misses a couple of crucial points. I am NOT AN LIC AGENT but a regular investor and would like you to consider the following:
1. The present value (PV) of your investments in Jeevan Anand over the period will generate a return of about 7.5%, this is without considering the bonus, simple PV on MS Excel.
2. Considerign this is LIC this is zero-risk, guanranteed return.
3.This guaranteed return comes with an insurance that gives a sizeable amount to the benefactor in case of early demise of an early member
4. if I consider buying a term insurance and invest the balance in mutual funds , assuming a return of 15% over long term(double of what Jeevan Anand), the Jeevan Anand policy still gives better return if you considert hat rem insurance is money lost in case of no death during the cover.
So, in sum, please do a thorough analysis and present a mature view, mutual funds are great but they will never guaratee returns, not give an insurance and will be subjected to markets.
Yes, Rajat,
While I agree with some of your points, I still feel that a combo of Term Plan and Mutual Fund is definitely better.
Indians have this bad tendency of expecting returns from everything and that's why they do not like Term Plan and you too seem to have fallen in the same trap.
Ok. Now let us look from your angle. Still, you have missed the point that there are some Mutual Funds which also offer FREE LIFE INSURANCE COVERAGE.
Why not go for a combo of these products, if you want to avoid Term Plan expenses......
Regards,
Srikanth Matrubai
NOW YOU ARE 30 YEARS/ DO YOU KNOW WHEN YOU ARE AT 80/IF SOME ONE CARRIES YOUR INSURANCE IT HAVE SOME COSTS /AFTER 50 YEARS WHAT WILL BE THE TAX POSITION --- THE BANK INTEREST ..NO ONE CAN KNOW . SO THOSE WHO PURCHASED "JEEVAN ANAND" THEY ARE RIGHT -DEBASIS AWON 09883255865
WHAT ABOU LIC JIVAN SARAL ...YES OR NO FOR 15 YEARS
i hav already paid 2 installments........... afterading this im a bit worried..... can sumbdy suggest me wht to do/
see its right that insurance is not an investment plan whereas its just a provision or asset creation for the family.But its not bad to invest your money into life insurance because its giving you a secured return in coming years and its creating a habit of savings.Invest in MF is riskier though could fetch good return.But market is not stable which can decrease your return to 6% p.a may be less that it. Invest in bank is a good option where we can get now 9% but not for long.so stable is nothing but it is assured that life insurance is secured and steady, no loss expected.Everybody is talking about inflation where the return's value is coming down.But friends you should look into the premium too where insurance companies are suffering as premium value is also decreasing with inflation.See nothing is profitable in this world though it looks , except share trading where we can get instant profit on investment and instant loss too.
My recommendation is to invest everywhere.do not concentrate on one mode.Do Life insurance do MF keep money in bank ......
my lic policy is end forlast sunday.i dont know how to see my total amount in my account.
please tell me my total amount in my prewmium.
my policy no is 735262581.please give me my account details.
Sir, First and foremost, I am not an LIC agent.
I also did some calculation. You are mentioning that one does not get even double money after 20 years. Only point is one is not investing 5 lakhs in one shot like a bank FD. He/she is paying 27k each year. The bonus of 4% odd something is on "SUM ASSURED" of 5 lakhs and not on "PREMIUM PAID". By your own calculation, Bonus each year works out to Rs. 20k. So effectively, LIC is giving back 20k each year on premium receipt of 27k. Further, the spreadsheet calculation gives a compound reurn of around 6.4% tax free. Simple interest would be around 12-14%. This also as mentioned is tax free. If one is in the 30% IT slab it is like getting nearly 10% compound returns.
Finally, one of my endowment policies (which was taken 20 years ago) matured last year and the overall returns was around 7.75 % compound / tax free.
Dear All,
Any TERM PLAN, available in India, can not provide life coverage
after 75 years of age. Only Jeevan Anand Plan can give your life
coverage till 100 years and that is also Return of SA is available at
100 yrs in case of survival.
Presently survival age of human being in India is much
more of 75 years.
Regards,
Nicky
Insurance is all about saving something for the family in your presence and also in your absence. At the age of 21 years if you take jeevan anand policy for 8lakhs,you end up paying premium of around 50,000 per year for 17 years. The maturity amount in the present scenario will be 16,38,000. After that the policy continues and if at the age of 50 the person is no more another 8 lakhs is paid to the nominee and 16 lakhs if death is due to accident. Term insurance pays you only if the death is natural. What if the sole earning member meets an accident.
LIC has another good policy "limited endowmwnt". Here as per my calculation choose the premium paying term as 5 years and term of the policy as 20years. This policy gives you returns of 12%. Lesser premium paying term and good returns. Just pay for 5 years and relax. Good for people to create lumpsum in their old age. I believe savings should be combination of different investment options. There should be combination of Health insurance, mutual funds, fixed deposits, term insurance, life insurance. Plan and start early.
I beg to differ on the writer's view:
I am investing 2977 per year in jeevan anand since fiscal year 2006, thus so far I have invested 2977*6=17862 rupees.
Consider all the bonus declared so far on my policy, it is 22400 rupees. Now I am not adding any loyalty bonus, my returns thus so far are 125.40 % which is annualized to 20 %. I don't think that return is bad so far.
I am not sure why people are against LIC policies like Jeevan anand. Am I missing something?
Thanks
My Dear Anil,
Yes, you are missing.
It is not just something. It is the compound effect.
Your 2977 investment for 6 years (17862) which has now gone to Rs.22400 has not given you a return of 125.4%, but
..but..
but..
a return of under 8%, yes you read it right BELOW 8% compounded annually.
Please calculate once again.
Insurance is never for investment.
The returns are very very low.
I think Amit gets an interest of 10% PA
iam a lic agent, my friend is taken jeevan anand policy for 20 years sum assured is 5,00,000. in this policy how much commission is get for agent please tell me sir
Dogs barks and lion roars, the truth in life is the death comes like LION and eat u up... if u dont have family its very good for you.. if u have make arrangement for orphanage for them... insure if ur love them or if u hate them no need to work..just have fun and make ur path to hell..c u ..
Jeevan Anand is a very good plan after maturity the insurance cover it will be for whole life.
policy no.286788564 Varansi Division
All those who have question regarding Jeevan Anand that it acts as saving tool this is not you can invest invest in term insurance as well as u can take a large cap SIP(for period of minimun 5 yrs), these both will give u higher return as well as higher sum assured.
Guys, it completely depends on your need, if you want to save money with peace take Jeevan Anand, if you want to get tension in life by watching the stocks go up and down invest in mutual funds and take term insurance, anyway, the with kind of pressure and tension you will definitely die before your term policy ends.. ;) There is a latest plan announced by LIC, it is also a Golden Peacock award winner, ask your IC agent for "JEEVAN SARAL PACK", n\you need to pay 24K Per annum for 15 years, you will get the following returns from 16th to 22 years annually, 90k,107k,126K,147K,170K,194K,220K,249K.. gud luck guys..,..happy saving
sorry.. its from 15th year itself.. not 16...the total you pay is 3.60 Lacs and you get is 13.06lacs...almost 31/2 times your money.. and 5lacs risk cover and 10 lacs accidental cover.. + total premium paid - first year premium+ loyalty addition in both the cases..
MY AGE IS 28 YEARS. I HAVE TAKEN JEEVAN ANAND POLICY OF 3 LAKH FOR 21 YEARS AND 2 LAKH FOR 24 YEARS.
KINDLY TELL HOW MUCH AMT (APRROX.) I WILL GET AFTER COMPLETION OF THESE POLICIES.
Now I want to take JEEVAN SURBHI for 12 years ( 2 lakh)and BIMA GOLD for 11 years (2 lakh)
Should I go for these policies.
Jeevan anand is best scheme in endowment policies. On survival after maturity benefit it gives whole life cover for sum assured even after maturity.
However my advise to people in 20-30 yrs age group is to invest
for 10 years x 1L in SBI tax saver (5 yr schemes) On maturity of these amounts park them in mF or company fixed deposits and earn for your 10L investment anywhere between 50L to 84 lac depending on your skill. Also go for 50L term plan with Aviva life shield platinum at about 6600 pa premium. or LIC Anmol Jeevan single premium
By this you get risk coverage of 50L for 25 years also your investment for first ten years only grows to somewhere around 74 lacs very easily. over 74 L return you require special skill.
for detailed calculation in excel plz contact bnvenkataraman@gmail.com
dear DEEPAK SANGWAN 22 hours ago (regarding your query)
"MY AGE IS 28 YEARS. I HAVE TAKEN JEEVAN ANAND POLICY OF 3 LAKH FOR 21 YEARS AND 2 LAKH FOR 24 YEARS.
KINDLY TELL HOW MUCH AMT (APRROX.) I WILL GET AFTER COMPLETION OF THESE POLICIES."
As per my calculation you would be investing around 3L and 2L in 21 yrs and 24 years.
On survival for these many years you are likely to get
5.4L and 4L after 21 yrs and 24 yrs respectively
plus whole life cover for 3L and 2L respectively.
good thing you have done in choosing jeevan anand. also go thru my suggestion few minutes ago before investing on more on LIC
LIC policies give only 2% to 7% return on ivestment on survival
jeevan anand gives a return of 7.1% on 30 year policies. shorter the term lesser the return.
singe premium policies of private players are better than LICs any scheme. best of luck
What a surprise!!!! I have searched for Jeevan Ananad and landed this page through Google from the first page of the search. Nice popular one ..thanks for SHAring:)
street num 171 h num 2/ madia coloy bagban pura
Hi Shrikant,
Good blog but did not get your calculation.
1. Total accrued simple reversionary bonus = 20*500*41 = 410000 Rs. Why did u use 500 is this? What is the formula for this bonus?
2. Total Maturity amount after 20 years = 1010000 Rs.
How did u get this value?
It should be 551000+410000+100000 = 1061000. Am I right?
hi
i have bought anand for 17 years at 32000 pm premium.
and after two year bonus is 70000/- (100000 paid as premium). So after 3 years investing 100000, 70000 are added as bonus. Which investment give this return
hi,
i want take jeevan anand sa 5l policy or birla sun life vision polacy, which one is the best. could please tell me
thank you
dear anand raj
i am not an insurance agent nor any member nor guest of this site
i am just an analyser
with the present constraint of Monthly addition in BSLI vision policy of rs 45 per thousand per year
for 25 year policy of typical customer will work out to 10.39% including consideration of tangible benefit for whole life risk coverage
the calculation works out to 10.39%
with similar constraint of rs.40 bonus plus rs 20 loyalty addition per thou per year in LIC jeevan anand including tangible benefit for whole life risk coverage after term period
works out to 10.8% for same sort of customer
But the paid up policy in case of Birla LI is better option to LIC policy
so if you consider any lapse in policy BSLI is superior.
This .5% difference means one lac rupees in 25 years span
bnv
correction:
After allowing for mortality rate in the above calculation
BSLI-vision works out to 8.1% return per year on survival and
LIC Jeevan anand works out to 8.6% return per year on survival
The difference of 0.5% works out to Rs. 77000 in 25 years policy term.
BSLI vision is the same jeevan anand (wine) in new bottle BSLI vision.
In case of lapse in LIC scheme surrender value is just 30% of premium paid and the paid up due to lapse is too less compared to BSLI-vision. vision is superior in this aspect.
The monthly addition in case of vision is more compared to bonus of J.Anand and in case of premature death one gets more money in case of vision.
b n venkataraman
for more information about excel calculation you may contact me at bnvenkataraman@gmail.com
very gud post
i think jeevav anand is best policy
The whole exercise of srikant seems to go waste with a number of posts in this site going in for LIC Jeevan Anand.
Srikant is very much right please think over again and again with modern tool of computer and MS Excel spread sheet.
I give my views (eventhough posted two weeks ago from this date) with more statistics.
Jeevan Anand is best in endowment and whole life policies
However better option is to take a term loan coupled with tax free investment for 10 years in FD or PPF allow your money to grow for further 15 years (a total of 25 years).
it is equivalent to 10 years premium paying term and policy term of 25 years.
There is no such scheme of this combo in any insurance company.
you are going to be master of your funds and the lock in period is just the Tax saver FD (in SBI/HDFC) 5 years. subsequently you can manage and park in high yielding schemes.
basically FD gives you 9.25% taxable interest and PPF offers non taxable 8.6%
Assuming you are in 10% tax paying slab, age 28 and your saving capacity is rs 1L per year for next 10 years, if u continue saving u will be much richer.
for my calculations
u invest in Tax saver FD at 9.25% with interest taxable at 10%
rs one lac per year less the term loan amount of rs 6618 per year for the first 10 years for 50,00,000 sum assured and subsequently no fresh FD other than that rotated from your maturity amount.
Next 15 years pay only term loan premium of 6618.
Now you will see your investment in fd grows to 22.60 lacs in 15 years and grows to 50.59 lacs. In case of better management of maturity fund with as high as 12.5% compounded monthly in company deposits grows to 82.61 lacs
That is 10 L investment in 15 years 22.60 L and 25 years from 50.59 lacs to 82.61 lacs
The same thing with ppf 8.6% compounded monthly works out to
: 10 L investment in 15 years 23.23 L and 25 years from 53.64 lacs to 70.33 lacs
If you do not have any skill in fund management of investment
FD coupled with term plan is a better option than Jeevan Anand
and PPF coupled with term plan is still better option than FD.
If your are confident of making more of investment then
FD and termplan is better than PPF option which is better than jeevan anand
With a little skill if you invest your maturity from Tax saver FD in speculating with mutual fund then you can very easily see with 15% overall growth (long term gain is tax free) your money of 10L invested in 10 years cab grow to 31 lac in 15 years abd 1.2 crore in 25 years,
So my advise is to go in for 50Lac sum Assured term plan (like Aviva Life Shield Platinum) and invest 10 Lac in 10 Years (@ 1L per year) and go in for Tax saver FD with interest taxable or
tax free PPF and rotate the maturity amount in market whether taxable or tax free.
Your gain will be much bigger than Jeevan Anand.
If you want a SA of 2500000 in Jeevan Anand (to benefit of the order of 50L) your premium will be of the order of 32000 rupees per year.
Choose FD or PPF for investment and tax saving part rather than putting investment in the LIC or other insurance.
Keep investment and insurance separate and go in for term plan only.
bnvenkataraman
Lucknow phone 0522-2361968 , 0522-4072761 no mobile
8.6% compounded monthly works out to 8.95% pa
12.5% compounded monthly woks out to 13.24% compounded annyally
correction:
for 25lac sum assured in Jeevan Anand the annual premium will be of the order of 1 L per year and not 32000 as posted earlier
correction
term loan \ read term plan (term plan insurance)
bnv
I took Jeevan anurag, jeevan surabhi in 2005 and still paying 20K per year for the two policies.. the sum assured after 15 years and 19 years is 1,00,000.00 and 1,50,000.00 .. I feel like I have to surrender them now.... can you please advice?
These are traditional policies. Do not think of surrender of traditional policies. Think of surrender only if it is of ULIP policies. In case of Anurag u can convert it into paid up policy in case of surabhi it is not possible to do that also. So u continue your policies and what all u can do is to regret going in for insurance policies other than term plan
bnv
7. Conclusions
On the whole, it seems that it is much better for an individual to buy the cheapest term
insurance for the required amount of death protection (sum assured) and term. Instead of
buying the only non-participating endowment policy available in the Indian market, it seems
better to invest the extra premium in a PPF account.
The situation is not that clear cut between buying participating endowment policies versus
buying the cheapest term policy and investing the difference in a PPF account. Inter-se
comparisons between participating policies are difficult as they depend on the uncertain
future investment performance and bonus policies of insurers. Instead, we have worked out
the minimum compound reversionary bonus required under each policy for it to be equivalent
to investing the extra premium in a PPF account. Considering the bonus rates in the recent
years, in our assessment, PPF seems to be a much safer and flexible alternative investment
for the extra premium.
In general, whole life policies are charging heavy loadings. A participating whole-life policy
looks better only in comparison to buying a non-participating whole life policy and investing
the extra premium in a PPF account.
THESE ARE FROM report published by Dr R Rajagopalan, dean (Academic affair) T A PAI Management Institute Manipal
Contact me (9538127779) for any Insurence Needs in and around Bangalore.
Jeevan Saral is the great policy,,,,,,,,,,,,,,
Jeevan Saral is assured Term Maturity plan and the table shown by agents gives clearly 10% return on investment for all ages admissible under the plan. I entered one for my wife aged 56 for 11 years My maturity benefit for 1500 pm premium as per table shown by agent is 375000 but i am disappointed to see the actual policy document with maturity benefit working out to around 340000 only with the current loyalty addition of rs 250/- per year per thousand of guaranteed maturity benefit. So read someone else's policy document. The agent gave the policy document well after free look period of one month. So there is a catch somewhere. LIC is saying one thing but doing something else. beware.
Jeevan Saral is assured Term Maturity plan and the table shown by agents gives clearly 10% return on investment for all ages admissible under the plan. I entered one for my wife aged 56 for 11 years My maturity benefit for 1500 pm premium as per table shown by agent is 375000 but i am disappointed to see the actual policy document with maturity benefit working out to around 340000 only with the current loyalty addition of rs 250/- per year per thousand of guaranteed maturity benefit. So read someone else's policy document. The agent gave the policy document well after free look period of one month. So there is a catch somewhere. LIC is saying one thing but doing something else. beware.
Very gud analysis. Sir tell me how I invest my money.in great plan. Iwant to pay 50000 pr year for 22 years. sunny_singla222002@yahoo.com
Dear Shri Sunny bingla
i sent you email asking for your date of birth so that i can give more accurate figures but no reply from you in two days.
Assuming you are 38 years of age and have 22 years of service and you do not have skill in investing in mutual fund or gold fund or balanced fund i give you three options and you can invest as per your choice.
Option I: (PPF and term plan)
Take LIC Anmol Jeevan policy for SA 1200000 for 20years at premium around Rs.6700 per year
Balance of your saving that is rs. 43300 per year be invested in ppf account with state bank or other centres at 8.6% return compounded monthly which works out to 8.95% annually, for 15 years and extend upto 22 years.. If you die after completing 15years your family will get 12 lacs from LIC and 13.79 lac from PPF account total of 23.79lac. Onthe other hand if you survive you will get guaranteed matuirty value of 29.61 lacs at the end of 22years from PPF and nothing from LIC.
Option II: (Jeevan Anand)
Take LIC Jeevan Anand policy for SA 1000000 for 22years at premium around Rs.50000 per year
If you die after completing 15years your family will get 10 lacs from LIC and 6.0 lac (not gtd) as Bonus total of 16 lac. Onthe other hand if you survive you will get matuirty value of 10 lacs plus bonus approximately 11 lac (not gtd) at current bonus performance a total of 21 lacs at the end of 22years plus a whole life risk cover or maturity val at the age of 100 another 10 lacs rupees.
Option III: (Jeevan Saral)
Take LIC Jeevan Saral policy for SA 1000000 for 22years at premium around Rs.48000 per year
If you die after completing 15years your family will get 10 lacs from LIC and 7.0 lac as Bonus total of 17 lac. Onthe other hand if you survive you will get matuirty value of 5 lacs(Assured maturity Benefit) plus bonus approximately 20 lac (not gtd) at current bonus performance a total of 25 lacs at the end of 22years.
My suggestion for you to go in for term plan and PPF (option I) as there is a clear edge in guaranteed tax free return which is higher than the other two options. There are a number of private players like Aegon religare, Aviva etc offering termplans at half premium of LIC Anmol Jeevan You can try those and put more money in PPF and get more benefits.
bnvenkataraman@gmail.com
Dear Shri Singla,
correction for option III above
Option III: (Jeevan Saral) for entry age 38
Take LIC Jeevan Saral policy for SA 1000000 for 22years at premium around Rs.48000 per year
If you die after completing 15years your family will get 10 lacs (Death Sum Assured) from LIC and 6.76 lac as return of premium paid total of 16.76 lac. Onthe other hand if you survive you will get matuirty value of 1127880 (maturity Sum Assured) plus loyalty addition approximately 20 lac (not guaranteed) at current bonus performance a total of 31 lacs at the end of 22years.
Jeevan saral is wonderful product and is excellent for entry age below 40. It is good for ages from 40 to 45 and bad for higher ages as LIC's mortality rate is very high compared to competitors.
Hats off to Jeevan Saral. do not hesitate or delay in taking Jeevan saral. It is better than PPF option for young ages say below 35.
The present interest rate of return (IRR) is 8.81% and expected to touch 10% with parties like you entering into it.
with 10%irr you can expect a maturity return of 39 lacs for the above policy
best planssssssssss
I have taken policy of Jeevan anand plan 149 and it is for 10years and the amount i choosen was 13000 per month.
After maturity of the plan how much i will get from this policy?
data incomplete:
sum assured ? i hope it is 15 lac the maturity proceed at current level of performance would be 15+5.4 =20.40lacs
dear sir, for jeevansaral enterin at the age of 38 and suppose demise after 5 yrs or less than that, will be there any return
you would have paid 60 times monthly premium and will receive 250 times plus 48 times monthly premium.
in that case your family will get sum assured plus all premiums paid less first year premium and no loyalty addition ask your lic agent for more accurate figure lic will show less profit to other customers in such a case of premature deaths. Present statistics is that 95% of policy holders survive the entire term so that lic earns profit. The loyalty addition accrues after 10 years only.
Dear Sir, Now i would present my case. I am 38 yrs married,30 yrs wife and two kids 9 yrs and 1 yr. I want lic cover for my family. I mean after 12 years i want something handful cash for me and my wife, after 15 yrs educational fund for my elder son and after 20 yrs, educational fund for my younger son. I can invest upto 1-1.5L yearly for this.
please wait for budget announcement. in the mean time pl indicate your income per year or at least in what tax slab are u. do you own a house or paying emi etc. what is the present value or earmark for elder son's edn need and younger sons edn need.
MR.YOU ARE TALKING ABOUT WORLD'S TOP 3 POLICY "JEEVAN ANAND".IF IT IS NOT A GOOD PLAN INSURANCE INDUSTRY SHOULD BE SU NK.ACCORDING TO YOU PEOPLE HAVING JEEVAN ANAND ARE FOOL.YOU HAV'NT CORRECT VIEWS.
FRIENDS IN MY VIEW
"JEEVAN ANAND IS BEST PLAN AVAILABLE IN INDIAN INSURANCE INDUSTRY"
Dear pranav,
thanks for waiting for the budget. It has nothing new for the tax saving schemes.
My suggestion for you is the following fortfolio:
1. Jeevan Anand prem 16223 pa, sum Assured 300000 with Double accident Benefit, term 22 yrs. Approx matury amount 700000 plus whole life risk cover of 300000.
2. After 2 months Jeevan saral prem of 18015 pa, SA 375000, term 22 years, Approx maturity benefit 9.9 lacs.
3. After 4 months again Jeevan Anand additionl policy prem 16223.
4. After 6 months again Jeevan Saral prem 18015 pa.
5. Any time at your convenience Anmol Jeevan plan prem 7057, SA 1200000, maturity benefit nil.
6. AEGON religare Imaximize plan with TRIPLE BENEFIT option, prem 4000 pm, SA 480000, term 20 years. Total prem 9.8lacs, Approximate maturity benefit 24 lacs (@10% profit calculation). The triple benefits in case of demise withing policy term are a)family to get sum Assured b) to get your income replacement of 48000 per year and c) continue paying of premium of 4000 pm by AEGON to get maturity value to your family around rs 24 lacs. That is in case of demise in 3 years the family will get 4.8 plus .48x17=8.16 plus 24 lac total of 36.96 lacs. On implementation of direct tax code by govt the benefit under 80c for premium will go. Yet it is a very very good plan as far as risk coverage is concerned. Even at 6% profit, the maturity benefit willbe of the order of 14 lacs and being private company i will not be surprised if it gives 15% profit share in which case the maturity benefit can touch to 32 lacs
7. Invest balance of your saving any where between 500 to 100000 per annum in PPF (Public Provident Fund ac in SBI or elsewhere). In PPF there is no hard and fast rule to deposit a regular premium or at regular interval; You can deposit at your convenience and at any number of instalments in a year and your balance will carry a interest rate of 8.6% per annum on run balance every month, that is compounded every month. Assume you deposit of the order of rs 50000 per year, the guaranteed maturity amount in 22 years will be rs 23.08 lacs. No insurance policy gives this much tax free return.
8. Any other non tax saver savings be invested in company fixed deposits at 12.5% compounded monthly or quarterly and even after taxation (assuming your slab is 20%) the effective return will be more than 10% which is much better compared to 8% in insurance returns. A difference of 2% will work out to difference of 20 lacs for the sums we are talking about. Maturity depends on your investment. The companies offering high rate of interst are premier limited, Jayprakash Associates Ltd, Jaypee Infratech ltd. Or go for mutual funds.
9. Other than 8 above no TDS will be deducted in above portfolios. For your investment of 37.4 lacs in 22 years, the maturity benefit will be of the order of 80 lacs. No tds but tax liabilty at 20% slab will be of the order of rs 9 lacs over 22 years. Tax laws will change and hope you get into no tax or 10% liability.
In LIC policies go always for annual premium so that in first year you get back full 25% of premium as he gives back first year commission. In the above cases you can get back rs. 17000 in the first year. Of course LIC agent gets hefty commission in subsequent years but will not spare. If you go for monthly premiums, he will give back only 25% of first premiums ie 890 and rest 16000 he pockets. So dont go for less than annual premium. You take multiple policies spread thru year but take only annual premium modes.
In case of jeevan saral product, a lot of tables are in circulation with agents and one table shows an astronomical figure of 29.9 lacs as maturity sum for 3000 pm premium in your case. And another table for age 38 shows some 32 lacs and lics projected figure will show two figurs 13 lacs at 6% and 22 lacs at 10% and nothing is guaranteed. You have to wait upto 21 years to know how much approximately you will get as maturity. In between you may not know its progress.
If you want to avail my free service to make you know more about these products you may contact me at
bnvenkataraman@gmail.com
i will be happy to give my experience in shares, mutual fund and insurance performance with private insurars ULIP schemes.
Regards.
B N Venkataraman, Lucknow
Dear Venkat, Thanks for the insight. Just for more clarity, ill give my details. I am earning 10L pa.My plan includes that i should get some 10L or more after 12 yrs.I want atleast 10L after 10 yrs for study purpose for my elder son who is 8yrs old.And further i want 15L for my younger son for study purpose who is 1 yr old now.I understand i get total benefitted through PPF investment but that doesn't cover my life and discipline of regular investing is not there. If in due course of time my salary is going to increase i can park my surplus in PPF only till then i want to plan according to first priority of Life cover and investment.
Or else kindly suggest if i cover myself & wife for term plan only and invest in PPF.
Also do let me know in these situations which are the plans for my kids.
correct the following:
7. Invest balance of your saving any where between 500 to 100000 per annum in PPF (Public Provident Fund ac in SBI or elsewhere). In PPF there is no hard and fast rule to deposit a regular premium or at regular interval; You can deposit at your convenience and at any number of instalments in a year and your balance will carry a interest rate of 8.6% per annum on run balance every month, that is compounded every month. Assume you deposit of the order of rs 50000 per year, the guaranteed maturity amount in 22 years will be rs 34.02 lacs. No insurance policy gives this much tax free return.
accordingly total maturity figure of 80 lacs will be 89 lacs
Dear Pranav,
For the time being until the implementation of direct tax code, tax saver FD is also an option for terms of 5years and after 5 years you can invest for 3yrs or 4 yrs and interest rate is same at present at 9.25% in hdfc/sbi.
taking term plan and invest balance in bank FD or PPF is a good option.
Better is forget about tax benefit. invest in company fd for 3 years and reinvest after every 3 years. If premier ltd is not accepting FD after 3 years, there will be some other company offering at these rate of 12.5% compounded quarterly or monthly which means 13.24% compounded annually. Here the lock in period is only for 3 years. Even though it is unsecured loan to company, the companies are highly reliable.
for my personal investments for me as well as for my sons i am following these lines.
shares and mutual funds are dull for the past 4 years. i have more than 14 mutual fund products for last 7 years and even though companies are talking tall about returns, only canara infrastructure fund and tata contra had given me over 15% others less than 10%. As i redeemed after 3 years and all are equity funds there was no tax.
In share market banking sectors are doing well in spite of high fluctuations in share market for last 10 years. You can try your luck with directly participating in share market. banking sector is best bet.
Dear Shri Pranav,
thank you for writing about your eagerness to insurance plans.
After seeing your requirement for education of your sons i give you my suggestion:
Go in for Aviva life shield platinum term plan for sa 5000000 at prem of 11526 pa The equivalent Amulya jeevan will cost you 20850 which is very high people like AEGON religare gives you the same benefit at 6120 pa only. choose judiciously.
In claim recovery Birla Sun tops the list with 92% settlement,hdfc with 82% and Lic with 79% or so.
do not hide any minor ailment while declaring and taking term insurance plan especially with private players.
Invest rs 50000 pa regularly for 15 years in ppf to get 15.92 lacs after 15 years for your second sons studies.
invest rs 70000 for 7 years in non tax saving scheme like MF, company FD or other means getting not less than 10% after taxation to get a sum of 7.5 lacs after 7 years for elder sons
studies.
For your retirement plans invest at Jeevan Anand(15923 pa premium), jeevan saral prem 18015 and another jA for 15923 total 49861 pa premium as i mentioned earlier for 22 years so to get maturity benefit of 24 lacs
If possible go in for AEGON Religare triple benefit plan for Rs. 4000 pm, SA 480000, maturity in 20 years rs. 24 lac
I hope this will look after your need. In a nutshel you have to plan saving 2.29 lac pa towards these for the next 7 years.
if 7.5 lac is insufficient for elder sons studies, you can take loan from other lic jeevan anand policies. or partial withdrawal in jeevan saral policy. As the conditions for partial withdrawal is not clear (it have heavy burden on maturity), i do not recommend partial withdrawals
regards
Hi,
You mentioned about Loyalty addition (not gauranteed) other than the bonus with Jeevan Anand policy. If i pay all the premium for the entire duration of pilcy period (16yrs) do i get sum Assured + bonus + loyalty? Will the loyalty addition be gauranteed upon completion of 16yrs policy period?
There is no loyalty addition in jeevan anand as per brouchure. Yet agent and even development officer says there is loyalty addition for policy term more than 20 years or so. There is only Final (Additional) Bonus. It seems since inception Jeevan Anand has not matured for over 15 years or 20 years and no FAB declared so far. So you can depend only on simple reversionary bonus.
Let any knowledgeble agent and development officer see this site and let them respond.
regards
b n venkataraman
bnvenkataraman@gmail.com
as per brouchure nor as per policy document even for 30 year policy term. It simply mention bonuses in plural.
I was also thinking to join Jeevan Anand Policy but after read it whole conversation i'm not interested. Can any suggest me for better way to assured my family.
pl contact me at
bnvenkataraman@gmail.com
with your age and tax slab and your approximate annual investment desired for insurance on in lieu.
i will suggest you term plan with ppf or fd
with necessary calculations
Birla sunlife vision plan is better than jeevan anand yet and still better option for secured money is ppf option and so on
For check www.lic-policy.com Lic policy status on lic-policy.com or lic branch locator
Hi...I AM LIC AGENT.. PLZ. CONTACT ME ANY TYPE OF LIC..
9999170005
NEW DELHI
I want to know my acc. Of jeevan trang police detail
if you are already an on line customer login and find policy details
if not you try new registration
If everything fails
ask any collection center or your lic agent for jeevan tarang policies
can you mail me that how can i pay my monthly lic installment online by net banking or by debit card. my mail id is (girdhari1234@yahoo.com). thanks
look at your mail
dear yadav,
go to website licindia.in
if you are already an on line customer login with user id and password
or click new user.
if new user, it will prompt further for your policy number, email id and details as per your policy document for verification
give password of more than 8 digits and characters, (8 digits/char will not work, it has to be 9 or more with atleast one digit)
do not rely on the automatic login after the successful customer id creation so
logout.
If done then go to home and do login
on successful login on the right hand side below logout link there is customer services and click "pay premium online" and continue the questions as per your bank netbanking login or credit card particulars.
Thanks for writing
b n venkataraman, Lucknow
i have to stop commenting, author is not publishing all my comments
If you are not satisfied with my answer login at lic - policy . com and do online or offline chat
compare PPF and termplan option for age 30 with jeevan anand and jeevan saral in the follwing pdf file of my site
lic is good for ur family ( nominee ) bcoz no one give u guarantee how long u alive.....i own jeevan anand and 1 more from LIC
dear experts
my age is 52yrs.i am planning to invest 50k annually for 10 yrs. where should i invest?
for planning your investment visit mail and chat with bajaj capital at
i have also many kind of investments plan which in you will get guaranteed returns but not lic plan other companies more more details - 09930197509
People who benefit from LIC are only its agents and no one else. As far as putting small amount of money in LIC for only insurance schemes is concerned, it is o k but never put money for growth or investment in LIC. It is just like throwing your hard earned money in DUSTBIN. I have experienced it twice with sour taste..
PS RANA is very much correct. LIC agents get 25% of first year premium and 5% on subsequent years. This is lot of money and also the expenses on development officers is also huge. Then comes first year marketing expense. After allowing for all these it can only give twice the premium paid in 25 years. It is too less a money.
Take another example:
In 1987 Mr sankaran was earing 1500 per month and he took LIC money back policy for 25 years for sum assured Rs.40000 thinking it is a big money. Today after maturity he gets including bonus rs 90000 which is too little for him now. He is earning rs 9 lac rupees in a bank.
Similarly people earing 5 lac per annum think 5 lac is too big money (for 25 years). God knows in 25 years he would be earning more than 10 lac rupees in 25 years. It is all poor man's money going into drains.
PPF itself is a better option than insurance
go only for term plan and rest of your first 1 lac saving be put on PPF. Next one lac save in company deposits (earning 12.5% pa compounded quarterly). Next one 30000 to 50000 put in housing or housing EMI. Then you put excess money in MF with long term goal
This is for people who earn below 10 lacs per annum. For more than 10 lac consult a good broker like http://www.bajajcapital.com/
God knows in 25 years he would be earning more than 10 lac rupees in 25 years.
read it as rs 10 lac per month in 25 years later
do not block money for so long.. plan short term and keep shuffling.. that's the best way to grow.. just you need to know how to study the market..By the way thanks for the negative analysis guys, and dear agents do not make peoples fool.. generation is much ahead now and does not get carried away by you guys..
Jeevan Anand is very good policy.. If you want to buy or want to enquire about it.. you can call me..
Manish Raghav
9312888478
Hi,
I would like to know why every reviewer tries to run down insurance products, specially endowment products. Agreed that there us nothing better than a Pure Term Insurance Plan.
But let us consider some points:
1. Does any Mutual Fund guarantee any amount. Even if it is just 1% above the invested amount. To my knowledge, the answer is a BIG NO!.
2. Does any Mutual fund assure a fixed amount as pay out to nominee in case of fund investor' death. NO. They only pay out the fund value. Same in case maturity.
The argument given by the Blogger in some cases above is that Mutual Funds provide free insurance in some cases. REALLY! I didn't know there were free lunches in the financial services world, even if it is in insurance - endowment or term or ULIPs.
Any mutual fund claiming to provide free insurance is a joke. They only provide you five times the amount of premium as Sum Assured. So, if you pay Rs. 5000 for a FREE INSURANCE with a Mutual Fund, your insurance is Rs. 25000 at the maximum. For Rs. 5000, for a 25 year old male, the insurance provided by endowment plan is at least Rs. 100,000. Does the MF insurance compare?????
The so called free insurance comes with mortality charge with the MF installment. Check the charges section of any MF.
In case of LIC, the bonus rate is fairly consistent over a period of last 10-15 years. So your returns are guaranteed. Even if they are 4%, THIS COMES WITH THE SECURITY OF LUMP SUM AMOUNT OF SUM ASSURED.
3. MF DO NOT GUARANTEE THE RETURN OF EVEN ONE PAISA IF IT IS NOT PERFORMING WELL IN THE MARKET. So God forbid, if something happens to the MF holder when the market is down, your dependents get pittance.
4. Investing in EQUITY is not cheap either. How many people in India are capable of understanding the stock markets. And same as MF, do they guarantee the return of even a rupee, if the stock is not performing!!!!!! let alone an assumed rate of 15%.(which is on the maximum side rather than even on an average side.)
5. Every Investor has different needs. Insurance with LIC is cause for peace of mind for many who do not like to risk their money. They are happy if their money gives them assured returns withs security and SOVEREIGN GUARANTEE of the GOVERNMENT OF INDIA.
6. TRUE, Insurance is an expense, but for a large majority of INDIANS, it also serves as an investment. A Very safe investment.
7. BY THE WAY.... does any MF give your dependents, say Rs. 500,000, if you have paid the first monthly installment of Rs. 2000 and the next day, you happen to die. LIC does.
There are many more points I can raise in favor of insurance, but I think the points mentioned above will pique the interest of people to know more about benefits of taking an LIC policy.
Regards,
Sri.
If you are optimistic with investment in companies like Hero Honda (Presently Hero motocorp) you will enter in share market.
In case of Hero Honda if you are lucky to get allotment of rs 500 worth of share in 1983, its present market value is 4,80000 with bonus and bonus to bonus etc. It also gives you around rs 24000 for the last 7 years as dividend every year. It is really a goddess laxmi.
I got allotment of 50 shares of rs 10 each in the primary market, with allotment of 1 in 16 persons and due to my bad face i liqudated all my shares of all companies i had in the period 1992 to 1995. yet in case of HH i did not get dividend for first 8 years and even then the market increased from rs 10 to rs 80 during that period and once it started declaring dividend the share price in market increased manifold. Twice they had declared 1:1 bonus and another time bonus coupons at 5:1. Through liqudation i got rs 80000 in 1992, 27000 in 1995 and still i have small holing of 50 shares of rs 2 each whose present market value is around 1 lac. I am getting dividend on that at aroud rs 4000 per year. No other company ever has matched its performance.
I had also invested in shares of GMR infra and fraudulant Satyam computers wherin i am losing capital very heavily.
Share market is for the people who can take risk.
Take the example of Hero Honda, which insurance or even MF has market value of 5 lac for just an investment of rs 500 in 28 years.
Banking sector is fairly a best bet even there there is bank like ICICI whose market value is dwindling below the IPO price, wheras Bank of Baroda, Punjab National bank etc are roaring at 4 times and 5 times Initial Purchase Offer.
All brokers of share market give guidance for short term gain only so that they get hefty brokerage.
If you are new to share market do enter only primary market.
Even sick company like British India corporation which was taken by govt, paid 5 times the face value in 25 years while taking over.
Those who enter share market should hold their hearts and should not mind the losing here and there. There are number of incidences people get stroke when they do heavy investment and lose.
I floated a personal private limited company and 16 of my friends invested in it. I paid them dividends (operating with hired equipments) 20% regularly per half year and returning their capital equivalent in 2 1/2 years. I could not arrange for bank loan and i had to wind up. I returned back their capitals apart from the dividends.
In business even 100% profit in one year is possible.
In MF in one of Birla's MF of 1995 with face value 10 is now having nav of over 300 in 27 years time.
If you face risk you can gain heavily or lose heavily, It is all matter of your luck.
Only handfull of people can understand share market or mutual fund.
Those days it was rs 500 ipo offer. Nowadays it is 6500 - 7000 range. If you are new try only minimum amount in IPO offer.
I am not against Insurance
ICICI life link policy had given me 2.5 times market value in 3 years. I exited with that.
One should have diversified investments and should have patience. or your grand children will be benefited on investment by you in share market.
I was unemployed for most part of my prime period yet i made investment of rs 8 lacs in insurence, MF, share market and company deposits. I am happy that the present market value in 7 years is more than double. For the last 4 years the market conditions are not good for long term investments.
Hope the market conditions will improve.
What LIC is doing is investing 30% in government trusts (by compulsion) at very low return of 6% balance in housing loans, debt market and share market.
You can also do the same thing and get a balanced return of more than 10%.
what share market and MF offer you is easy liquidity. LIC has also Jeevan saral whereing easy liquidity without penalty after 10 years. Before 10 years you lose you capital heavily.
regards
BNV
Peoples 100% believe of LIC of India, so such negative thinking cannnot change the mind of LIC Policy Holders. Insurance is never given for handsome return. It is for risk cover + return like saving account. So Life Insurance is very useful for that peoples who want to get return in old age
Any person want to invest any amount of money for assured return(12-15%) in Fixed deposits/secured debenture in different schemes contact me. No any risk because we are not dealing with mutual funds or in share market .we are dealing in only debentures which is fixed.for more details cotact to reetesh singh-9868081800
hi, i have a jeevan saral policy having premium amt 36030 pa for 25 years.i have already paid 4 installment.can anyone tell me if i surrender this policy after completion of 10 yrs (10 premium)how much amount will i get???
TAKE JEEVAN ANAND 30 YRS PLAN .
FOR EX. 10 LAKH
MATURITY AROUND 30 LAKHS. WHOLE LIFE RISK COVER FOR 10 LAKHS FREE AS WELL. CONSIDER FINAL ADDITIONAL BONUS. DON'T TRY TO BE A DOCTOR YOURSELF. TAKE EXPERT OPINIONS
hello sir ,
i have lic's profit plus 188 groth plan,
current nav is 11.40 round of & my unit is 4400.
my quation is, it's better for me to switch in other plan like bellenced 0r bond plan to setup more return
because bellenced & bond's nav is currently 14.00.
& if i switch to this plan my unit is still same 4400
or lese or more because devlompment officer say it is not possible to see & compare unit with other plan before switching it is only you switch to other plan and see.
Hi to all,
Appriciate the point raised by Mr Shrikant ji,
however there so many views triled the issue.
but there are few FACTS every one should know before droping there money in any IN-VESTMENT plan:
1) premium rates:
If youre insurer is oldest one there is chances of heavy mortality reasone past experience of heavy claims,
past few years heavy claim of any insurance company desides future rates of premium,
2)cost of product:
If u r buying mone refundable or saving plan(if u need experts advise while illoness =Dr),
why don't we refer expert advise after all to earn money is not as simple as we expand there r few gud feelds to invest which compete inflation rate's,
example if u r planing to buy 1kg GOLD in 2022 for someones wedding and u put money in locker which matches today rate's of 1kg GOLD = what u think how much GOLD u coud be able to purchase that time..?
3)while buying life insurance policy deal with insurer:
All ways believe on companies wbsite,portal's,brouchers or web based illustration instead of commitment by insurance agent,
because u r purchasing policy from insurance company not from agent, u r dealing with mediator not with owner it will always helpfull to read any sample policy which have been offered by agent,
4)future value of your investment:
As exaple of GOLD always keep in mind what would be Future Value o your investment at matuirity,
is that product offering you current dates average returns..?is that match's inflation rates...?
5)If you are paying too much premium because of saving & money bk plans dont forgate to add tax's paid for premium
in your IT return for accurate premium cost=in example..
if some one paying Rs 5500000 for 1 CR jeevan anand (instaed of term plan which is available in market @ cost of just Rs 13000 annual) he should consider
his premium as follow:
base premium Rs 5500000-100000(examption in 80c)=4500000,
=now for Rs 4500000 he already paid taxes in his It return to show this amount as his income source actual premium he shpuld count:Rs 4.5lac*33%tax=598500+100000 which have been paid under 80c=698500,
its up to u weather u choose option of Rs 13000 or Rs 698500 and make LIC richer......
HITESHWAR MOTIRAMANI
Risk Manager & insurance expert
(Diploma in insurance from The American College).
09823496875,
hiteshwar.motiramani@gmail.com
MY SELF AZEEM SIR MY PHONE NUMBER IS 07599184131
Term plan and Jeevan Anand are separate entities...dont compare both of them as the benefits are different for both the plans.
Morever when anybody is planning for Jeevan Anand plan opt for a longer term as the bonus rates are more.Infact it is a very good product as it offers free life cover till 100 Yr.
And every financial instrument has its advantages and disadvantages.So dont try to invest your complete savings into mutual funds as they are prone to more risk.Same way dont invest completely in Jeevan Anand.Make a balanced plan.
Wrong Comparison by Mr Srikanth Ji.we should not compare jeevan anand plan with term plan.customer can avail a insurance benefit behind his/her 70 years where as no term can give.Sir how can you say that the plan is waste.Not only Jeevan anand,No plan is a waste plan,every plan is having its own advantages.we have see whether it suits our requirement and need.
Can you please tell how much bonus given by all life insurance companies apart from LIC.
Answer is No.
Bcoz no company is displaying there bonus rates in their websites exept LIC and the claim ratio of LIC is more than 96 percent.
Frndz Jeevan anand plan is ever good plan which serves as retirement fund and gives life long risk cover.Kindly dont withdraw or surrender the policy in between it is loss for us.
GB 2 years ago
Well done.. I did a different analysis.. but with more or less the same results.