LIC Jeevan Ankur Review

POSTED BY Jagoinvestor ON January 27, 2012 COMMENTS (173)

LIC Jeevan Ankur (Plan 807) is the new traditional Children Plan from LIC. It has come at the right time when most of the people look for investing their money for tax savings and given the right time (markets doing bad), it is expected to get a lot of interest from parents looking for parking their money in something safe.

LIC Jeevan Ankur Policy

Jeevan Ankur is a traditional endowment plan where you pay regular premiums and at the end of the policy term the sum assured is paid along with loyalty additions declared at maturity. The nominee in this plan has to be your child (which makes sense), assuming that the plan is bought purely from the point of securing child’s future. (Learn how LIC Policies work)

If policyholder dies before Maturity

In case the policy holder dies before the maturity of the policy, the basic sum assured is payable immediately and a 10% of sum assured is payable each year till the end of the policy term as the income. This is a good option which makes sure some payment is made each year without fail. The premiums are not to be paid after policyholder’s death. Though there is no specific wording about this waiver of premium, it is very obvious.

If the nominee (child) dies before maturity

In this case, the policy holder can nominate another child and other benefits continue as it is. If there is no other child then, the benefits will continue and the maturity proceeds will go to legal heirs.

Optional Riders like Critical Illness and Accidental death benefit.

Apart from base plan in LIC Jeevan Ankur, you can also add two riders in this plan at extra cost. These riders are Critical Illness rider and Accidental Death rider.

Critical Illness rider: One can add critical illness rider for an amount in range of 50,000 to 5,00,000 and in case of diagnosis of some defined illness, an amount equal so critical illness sum assured will be paid. However this is available only if the policy holder age at maturity is below 60.

Accidental Death Rider: One can also get a rider called Accidental Death rider, which will pay additional sum assured in event of death . The maximum sum assured for accidental rider can be upto 50 lacs and the condition is that the maximum age at the time of maturity has to be 70 yrs.

Other Features of LIC Jeevan Ankur

  • There is option of regular premium payment and Single Premium (one time)
  • Minimum and Maximum age of the policy holder at the time of taking the policy has to be between 18-50 yrs and minimum and maximum age of child has to be 0-17 yrs
  • The maximum age of policy holder at maturity has to be 75 yrs.
  • The maximum policy term is 25 minus age of the child.
  • No loan facility will be available under this plan.

Surrender value and Paid up of Jeevan Ankur Policy

To surrender this policy or making it a paid up is very similar to other endowment policies, where it attains the surrender value only after the premium payment for minimum 3 yrs and the surrender value will start from 30% of the premium paid (excluding the first year premium). In case of paid up policy, you will get your premiums at the end of the maturity period.

Returns from LIC Jeevan Ankur Policy

Just like other endowment policies even LIC Jeevan Ankur seems to provide lot of features and bundles things in such a way that it’s too tempting, but from investment point of view, its returns are not something to cheer about. Consider this example- If 30 yr old male wants to take a 10 lacs sum assured policy for a 20 yr tenure , the premium would be Rs 41,350 per year (as per the chart on LIC website). Assuming that the payment is done on yearly basis and the sum assured is above 5 lacs, the rebate’s would be 5% (2% + 3%) so the final premium would be around Rs 40,000 per year. So if a guy pays 40,000 per year for next 20 yrs he would then get 10 lacs as sum assured and loyalty additions extra. Loyalty additions generally range from 10%-20% of Sum assured, assuming its 20%, the final maturity proceeds would be Rs 12,00,000 .

So if you pay Rs 40,000 per year for next 20 yrs and get back only Rs 12,00,000 , the final return (IRR) turns out to be only 3.7% CAGR return over long-term. Note that the actual IRR would depend on the tenure , if you take the case of 10 yr tenure , then the IRR would be different , but overall the returns from this policy is extremelly low.

Best returns only if death is premature

The policy return would really work out well if the policy holder death is premature, the early, the better. Assume that in the same example as above, if the policy holder dies after paying 2 premiums in that case, the total outgo would be Just Rs 80,000, but his family would get Rs 10 lacs and Rs 1 lac per year as income. This looks very attractive but note that this is the situation whose chances are very less and just because of this point, you can’t buy the policy.

Look at Liquidity also

The only thing which most of the people concentrate is returns from the policy, but one of the parameters to look at is liquidity of the policy too. The biggest nightmare can happen if you need your money from the policy after 2 yr or 5 yrs or 10 yrs. In that case the money you get back is horribly low and that’s where most of the people feel the pinch.

Should you buy Jeevan Ankur?

I am really trying now a days to let you decide on such questions. As I have done this short review its enough for you to decide if you want this policy or not. The returns over long-term are guaranteed only to certain level and a lot depends on loyalty additions. If it’s not good every year, then returns can be extremely bad, else it might be okay. I personally don’t see a reason to invest in this policy. A plain term plan and SIP in balanced funds looks better option to me from returns point of view and definitely from liquidity and simplicity point of view. I hope you liked this review of LIC jeevan ankur

173 replies on this article “LIC Jeevan Ankur Review”

  1. conybhai says:

    I have bought jeevan ankur policy n I want to surrender it after paying 5years consecutive premium I want to know that will I get all the full 5years paid up premium value with interest or not?

    1. There is no concept of “interest” in insurance premiums. If you surrender it now, you will get very less amount !

  2. Rajive Chopra says:

    Dear All
    Can u pls guide me for the following.
    I want to go for a financial plan(Edu plan/Insurance/PPF/ SIP/ ETFs etc) for education of my daughter aged 4 yrs. My age 39. Monthly premium I wish to give for this is 2500/- to start with and increase upto 3500./- after two years and after 6 yrs from now 4500/- till her studies and marriage.

    I need corpus when she goes for her professional degree (MBBS/ENGG or any other) Year wise . She will be completing her 12 std in 2026 i.e after 14 yrs from now. Then after 5-6 yrs corpus for her marriage.
    Please suggest me which one or combination of the best for it withen the above limits.
    Thanks and regards.

    1. Have you done any calculations on how much this will generate ?

  3. Ram says:


    Truly appreciate your insights…

    What are your thoughts on HDFC SL Young Star Saver Premium? I have been offered SA of 80lacs with 2lacs of annual premium for a 15 year term. I have already exhausted the PPF route and invest around 1.5 lacs in mutual funds for education. I want to ensure that I will provide adequate money for my child. I am a single parent


    1. I dont think you should get into this . Better take the route of mutual funds .

  4. kuldeep sharma says:

    Best Child me Provide Urjently Basis

    1. What is your query ?

  5. Sivananda says:

    Hi Manish,

    Please suggest me what is the best Child policy . One time payment policy or Monthly payment policy.

      1. Sivananda says:

        Thank you Manish,

        Which is the best Child policy. My budget is 25,000 to 30,000 per annum.

        1. Go for SIP in mutual funds

  6. sanju says:

    Hi Manish,

    I have already invested in Jeevan Ankur Policy, by paying for the first quarter- Rs 9000. I read thru this article and thinking of getting out of the Policy – Only thing stopping me is that it will Zero-Down my INR 9000 straight away.

    Please suggest. My next premium is due in a couple of days only.


    1. Thats teh only best option .. better forget that 9k as learning fees !

      1. sanju says:

        Thanks Manish!

        I’ll take it as ‘Der aaye durust aaye’ πŸ™‚

  7. Yagnesh Chauhan says:

    Dear Manish

    I have 5 month old daughter and I am planning to by policy for her future after 20 years. Kindly suggest me some good policy for her which covers me and my wife also.

    Warm Regards,

    1. Yagnesh

      We generally do not recommend “policies” . we suggest going with basic products like term plan + SIP/FD/PPF

      1. Yagnesh Chauhan says:

        Thanks for early reply. please suggest me some good Child Insurance plan for my child.

        1. Yagnesh

          As I told you , we do not recommend any child insurance plan . Its not going to be a great thing for you . Better take a term plan for securing your life and do investments in SIP/FD/PPF

          1. Yagnesh Chauhan says:

            Dear Manish
            Thanks for the reply.

            I know PPF & FD. kindly help me with SIP as i am not aware about SIP. please help me on this.

            Warm Regards,

  8. Vijay M B D says:

    Hello Manish,

    I wanted to invest 20 to 25k /year for my 8month son, and it should be tax benifit also. please tell me where I need to invest.

    1. for a long term, we suggest SIP in mutual funds like HDFC top 200, DSPBR Top 100

  9. Parimal Valamiya says:

    Hi Manish,

    I have 2 month old daughter and I am planning to by policy for her future after 10 years. If I invest Rs10lacs on her name than what will be best policy or if I buy the Jeevan komal policy or Jeevan Ankur policy which one is the best policy from this or any other.

    Many Thanks in advance for your cooperation


  10. Deepak Arora says:

    Hi Manish

    I have recently been Blessed with Baby. I am Planning to Buy an Child Insurance Plan for her. I was recommeded to Buy LIC Jeevan Ankur Plan for Her. I am Looking for an an Annual Premium between 20-25 thousand & Term 20 Years

    Please suggest if Jeevan Ankur will be Best or What Other Plan do you recommend for he

    1. Better avoid it , here is the review . What is the single most big reason you want to buy it ?

  11. Nikhil says:

    Hi Manish,
    I got pay hike of Rs.5000 from this month onward. I want to put aside this salary increment in some investment plans. Please suggest.

    1. Why dont you start a mutual fund SIP

      1. NIkhil says:

        Hi Manish,
        Except few most of the funds are not doing well. How would option of bank RD and FD be?


        1. Nikhil

          Funds are not doing well, because markets are low right now, this is the best time to put your money in mutual funds with long term perspective .

          You can open RD and FD also if you have to save money with 1-2 yrs perspective only


  12. Nikhil says:

    Hi Manish,
    I have home loan (35 Lacks) and because of that I had to stop my all investments in SIP and Recurring deposit. I bought term insurance of 1 cr to secure my home loan and family in case of uncertainty. After paying home loan, car loan and household expenses I dont left with much surplus cash in hand. How should I plan my child future? What could be the better avenue to invest in?

    1. NIkhil

      When you are not left with any money , how will you invest , that is the first thing you need to ask !

  13. bharati says:

    thank u very much this plan will be best plan to children

    1. Did you read the article ?

    2. bharati thakkar says:

      About which plan you are saying its the best? I have son of 1yr old we have not yet done any investment for his study ect….we are looking for the best option for him……….
      thanks & regards,
      bharati thakkar

  14. syam says:

    sir you are doing great service to society by educating in financial aspects. keep the good work sir

    1. Thanks for appreciation !

  15. suraj parkash says:


    What will be average return for the below mentioned figures under LIC Jeevan Ankur Policy.

    Rs. 10000 anually, Term 20 years.

    1. I guess you will get around 40k

  16. Shiny says:

    Single premium in Jeevan Ankur for age 35 looks good.

    1. Shiny

      What is good ? Can you explain ?

  17. Mak says:

    I have a clarification on the statement mentioned in LIC website for Jeevan Ankur :
    “i) Death benefit:
    On death of the Life Assured during the policy term: Basic Sum Assured shall be payable to the nominee and an income benefit equal to 10% of Basic Sum Assured shall be payable on each policy anniversary, from the policy anniversary coinciding with or next following the date of death, till the end of the policy term.
    ii) Maturity Benefit: At the end of the policy term an assured maturity benefit equal to Basic Sum assured along with Loyalty Addition, if any, shall be payable irrespective of survival of the Life Assured.”

    Does this mean that the nominee will get totally two Basic Sum Assured (BSA)+ loyalty addition + 10% of BSA. i.e. On death of the Life Assured during the policy term the nominee will immediately get a Basic Sum Assured + 10% of BSA every year until end of the policy term + @ the time of Maturity date (end of the policy term) Basic Sum Assured + Loyalty Addition.

    Is my understanding correct?

    1. YEs exactly .. thats how it is ! .. thats the real benefit of the policy and only if one has a early death , this policy is very useful , in other case the return generated is below 2-3% at times.


  18. RAM YADAV says:

    Sir, you are doing a great social service by simplifying the intricacy of various financial products which are not easy to understand even for a well educated individual.
    I know you can not read all comments but I hope you will read this one. I want to say that I have no words to praise you. Million million of thanks for educating us.
    Please keep it up for the welfare of society at large.

    1. Ram

      thanks a lot of praising . I feel good that you are learning from this blog . Keep visiting πŸ™‚


  19. jagjeet says:

    True Manish. Ideally the real return is what you have mentioned. But every economy has its own restrictions. Major developed countries have low inflation rates, but at the same time are very prone to recession. If we see japan, the GDP rate is just 0.6% and the economy is not growing at all. In economics this is said to be a said of recession. The inflation rate is just 0.2%. But if we see the rate of interests, they are not more than 0.5% to 1%. The major fact is not recession or inflation. Basically all developed economies have lower rate of interests. and down the line we can definitely or positively expect India to be a developed nation. so talking about long term investment plans, we do need to take all this into consideration.

    1. Yes I agree on that .. now the point is in how many years/decades one thinks India will reach the same situation ?

      1. jagjeet says:

        That is another topic of debate. we must have another place to discuss about that.

  20. jagjeet says:

    Every growing economy has lower interest rates. Be it US, UK, Japan, China. all developed economies are having lower interest rates available in the market. Since India is on the way from developing country to developed country, this is very much sure that in the coming future, the interest rates that are considered guaranteed in ppf, fds or any other rates will come down. In such a scenarios one must invest into diversified modes. Expectation of returns will depend on the how much risk taking capacity you have. For low risk taking capacity, insurance products is a good option, for high risk taking capacity- MFs, equity is the option.

    1. Deepak R K hemani says:

      Finally a good and sensible reply form someone who understands financial markets and a good suggestion in the last two lines of your comment.

    2. Yes Jagjeet

      That makes sense , but even inflation is low in those contries and eventually the real return (return – inflation – tax) is something we need to look at . What do you think about it ?


      1. Deepak R Khemani says:

        Asset allocation is the key, In the US over a 10 year period Bonds have outperformed equities!

        1. Deepak

          Yes .. but thats one example .. the economy of India and US/Japan are at different stage and eventually your decision has to be based on your thinking . If you feel debt asset class will outperform equity in next 10 yrs in India , you can do that way . Totally depends on how you take it .


          1. Deepak R Khemani says:

            I was in no way suggesting that Manish, My reply was in the context of the above comments where developed countries were mentioned, I am totally an equity person not averse to investing in the equity markets at all, I wanted to make a point that only proper asset allocation can get you to your goals finally!


    50% of claims rejected ??….how do you get that figure ? also you said “The Proper way is this, correct asset allocation and sticking to your plan will take care of everything, ” can you elaborate on this, means whats your advice for a Financial Plan ?

    1. Deepak R K hemani says:

      If you search the net or go to IRDA’s site you will get the claim rejection ratio of All life Insurance companies in India therein you will find Aegon religares Claim rejection Ratio of 50%, If you cant find it I shall forward a copy to your email, As far as a financial plan is concerned it can be prepared only after sitting down with a client, listing all his assets, liabilities, goals, income, family responsibilities etc, it cannot be done online and it is not a one sitting process, Holistic financial planning can NEVER be done without a comprehensive review of what I have stated above, At the risk of repeating myself A one size fits all plan like term plan plus PPF Plus sip in a mutual fund is not the panacea of all financial ills!

    2. Is this 50% rejection the current stats ?

  22. Sameer Sharma says:

    I have invested in Aviva Dhanvarsha 1,00,000 per annum which provide assured return of 25 lakhs after 20 years…15 lakhs paid after 15 years and balance 10 after 20 years. IRR is 6%. Please suggest your view about this plan.

    1. Deepak R Khemani says:

      You are giving Giving figures as if they are GUARANTEED, no Insurance Plan can assure you guaranteed returns be it ULIP or ENDOWMENT over a period of 25 years, are you going on assumptions or does it have something called GUARANTEED ADDITIONS? Have they given you a 6% and 10 % scenario with all expenses break up or did you buy because the agent told you so, any GUARANTEED figures given in the POLICY DOCUMENT?

      1. sameer sharma says:

        Dear Deepak,
        I am quoting them GUARANTEED as they are part of Policy Document. Aviva Dhan Varsha is Endowment policy. Annual premium is 1,00,000. At end of 15 years that is when last premium paid, will be getting 14,62,559 & at end of 20 years get 10,83,337. IRR is about 5.8%. Kindly let me know if this plan is worth taking or any other suggestions. SA is 10,83,337.

        1. Sameer

          the IRR says all .. so when you are already mentioniung that the IRR of the policy is 6% , then all you need to ask yourself is “Am I ok with 6% return” . If its Yes , then go ahead

          All these kind of plans are not at all suggested .


          1. sameer sharma says:

            Dear Sir,
            With due respect to you, I am not sure if 6% return is good in Insurance policies. Do you know any other policy which has better return than this. I will go for that. I also got illustration for LIC Ankur Jeevan, agent claims assured return at 30 lacs (end of 16 yr) after paying a premium of 1,00,500 for 16 years.
            I have already taken Aviva Dhan varsha and currently have 15 days free look period. So trying to learn from your blog.

            1. Sameer

              6% is definately not a good return in long run, especially if the inflation is 9% πŸ™‚ . Go for FD or PPF in case you want secured returns

            2. sameer sharma says:

              Sir, I followed your advice and returned my policy with in free look period.

            3. Good. .get a term plan from a right company now !

            4. KRANTIVIR RAJPUT says:

              @Sameer Sharma: Dear Friend,
              [1.] Do not mix insurance and investments.
              [2.] If you have free look-up still, cancel it out and save ur hard-earned 1lakh getting wasted in such plan.
              [3.] If you systematically invest 1lakh per Financial Year in PPF, then returns(Super-Guaranteed) will be amazing. read more about PPF in this forum itself.
              [4.] I assume you are a young working guy, JUST go for TERM-PLAN, as it the only purest form of PERFECT INSURANCE. My personal advice go for Aegon-Reliagare iTerm Plan (Online). I got a cover of 1cr 54 lakhs (Normal+Accidental) till 75 years of age for just Rs.12000/- PA.
              [5.] henceforth always follow a simple mantra of money appreciation:PPF+TERM PLAN+Mutual Fund SIP.
              Welcome to the forum….and happy studying.Take Care.

            5. Yogesh says:

              Hello !

              I agree with you, but don’t forget to check how many people actually get claims from such online term insurance policies. Are you 100% sure your loved one will be getting the claims easily.

            6. KRANTIVIR RAJPUT says:

              @YOGESH: Thanx for the +ve nod. Well getting claims form any insurance firm requires only 1 thing: While filling up details, everything must be filled up authentically.Also stress and go for medical tests and let them evaluate it. Also our near ones must be educated about the policies, way to fillup the claims etc. Hence by doing so, nobody will be denied any claim for whatsoever.

        2. Yogesh says:

          LIC will give you better returns. You will get 24 lac after 15 years. Please check

          Plan : Endowment Assurance (14) – LIC Of India
          Term : 15 Years Premium Paying Term : 15 Years.
          Sum Proposed : Rs. 1459204
          Premium (Yly) : Rs. 97082
          Age : 30
          Total Returns upto Maturity is Rs. 2349318 which includes Sum Assured, Bonus and Final Additional Bonus.
          (Sum Assured = Rs. 1459204 + Bonus = Rs. 831746 + Final Additional Bonus = Rs. 58368 )

          1. KRANTIVIR RAJPUT says:

            Is this JEEVAN ANAND PLAN ??

            1. manish says:

              who think LIC do not provide good return in long term please see this
              for Jeevan Anand Policy
              Proposer Age-30 SA(insurance)-10,00,000 for 35 year term
              premium-28600 yly
              and maturity =sum assured + bonus for whole term + Final additional Bonus
              ==>1000000 + 1000000 X 48 X 35 /1000 + 3550 X 1000000/1000
              ==>1000000 + 1680000 + 3550000
              ==> 6230000/-
              so LIC will give you 6230000/- at the time of maturity and Rs. 1000000/- risk cover for life. that means
              total return is 6230000 + 1000000= 7230000/-
              all these are actual bonus and final additional bonus rate of LIC
              now check the IRR yourself and compare it with PPF + term insurance
              Open your eyes guys please have complete knowledge……………

            2. KRANTIVIR RAJPUT says:

              @MANISH: Plz go through this link: and you will get complete knowledge.Also I have 2 questions for you, [1.] In your calculation you have taken PerYear Bonus as Rs.48/- per 1000 SA for entire 35 years….Does LIC gives a guarantee for this.[2.] You also have taken for FAB Rs.3550/- per thousand SA…can you plz gie the source for this ?

            3. KRANTIVIR RAJPUT says:

              @MANISH: Your Jeevan Anand Premium of Rs.28600/- when invested in PPF for 35 year term gives Rs.6121323.43/- as returns. Jeevan Anand just gives 10lakh extra as Insurance. The returns of PPF are Super-Guaranteed, but in LIC bonus has a small condition “IF” ….

            4. Deepak R K hemani says:

              Your assumptions are also flawed, Neither are returns on PPF super Guaranteed nor is it GUARANTEED, Interest rate on PPF is now floating and will now be changed every year according to the 10 year GSec.
              For your information Interest rate on PPF 12 years ago was 12% and a lot of people in their Wisdom Planned their Child education, retirement etc on 12 % returns SUPER GUARANTEED for all 15 years and now are crsing their planning! Last 8 year returns have been static at 8 %, can also go down to as low as 6%, no one knows.
              Any Financial product ANY PRODUCT which is showing returns 10-15-20 years down the line has to have some assumptions, you have made some assumptions so has Manish both of you maybe right or wrong or who knows what?
              There is never a one size fits all, every person is unique, his/her requirements are different and Financial Planning with PROPER ASSET ALLOCATION IS THE KEY!

            5. KRANTIVIR RAJPUT says:

              @DEEPAK R K HEMANIJI: Thank you for your comment. First I have not made any flawed assumption, the PPF rated whatever fixed is guaranteed (hence SUPER GUARANTEED). Well you have shared the past PPF rates,and yourself made an assumption that it might fall down to 6%…why ??. Also you rightly said “There is never a one size fits all, every person is unique, his/her requirements are different and Financial Planning with PROPER ASSET ALLOCATION IS THE KEY!”…..yes Deepakji….dot right….hence I adviced Sameer Sharmaji to allocated a part of his 1LAKH towards a TermPlan, a part for PPF, a part for MF through SIPs only…well YOGESH had given an illustration of JEEVAN ANAND which I had answered (which you too read) and I asked him about Bonus rate per 1000-SA, FAB-rate per 1000-SA. I think you missed on that.

            6. Deepak R Khemani says:

              What I was trying to get across is this, the plan suggested by you is THE PLAN BEING SUGGESTED BY EVERY so called FINANCIAL ADVISER/ PLANNER etc. It is this one size fits all plan that is not perfect for everyone, If PPF rates can fall from 12 to 8 they can fall upto 6 also who knows, what I was trying to get across was that a long term plan has same basic assumptions, which you have also taken into account, isn’t it by assuming SUPER GUARANTEED RETURNS OF 8.6% for the entire length of the plan, Similarly the Bonus and FAB suggested for Jeevan Anand are today’s Bonus and FAB rates for that period, nobody I repeat nobody knows that after 25-30 years what will be the Bonus and FAB rates, as you have assumed PPF Interest rate he has also assumed a bonus and FAB rate,
              The Proper way is this, correct asset allocation and sticking to your plan will take care of everything, By the way I’m sure you have seen the claim settlement Ratio of the Company from who you have bought your term plan, you say I’m sure a claim will not be rejected in a previous post, if everything is done properly, try explaining that to the widows of the 50% of their customers who’s claims they have rejected!

  23. Balu says:

    Instead of endowments policies taking term policy+ invest in PPF,FMP,FD…..good idea but what about income tax? Endowment policy is like supermarket we can satisfy risk+investment+tax savings…..Jeevan ankur, jeevan tarang,jeevan saral,jeevan anand,bajaj invest gain gold….good policies.

    1. Balu

      I am not sure of your comment , what do you think will be issue with income tax ? Just in the same way the income tax exemption can be calculated and claimed for term + MF (ELSS)

  24. Balu says:

    I think Bajaj Allianz ‘invest gain’ is better than jeevan ankur. If any death term or 10 years which is calculate+12% on sum assured and in maturity compound bonus come. So, i think invest gain is one of the best policy in present market.

    1. Balu

      What ever you are saying, is that written in the policy document

  25. ramesh bt says:

    so nice policy all the best…..

  26. M.jayant says:

    Dear All,
    Definitly this is marketing gimics. In JFM Lici has introduced the Jeevan Ankur . Targetting the young clients having only one or two kids between age of 0-5 years with Tax benefit + Loyalty additions (not sure as in case of Bonuses). Return should not be consider as per features of the product.
    I fill Jeevan Tarang is better option which will keep on getting you throughout life .Can it work as pension ? If it is so Tarang can be purchased by both(wife).

  27. amandeep says:

    please do actual comparision (LIC/PPF/Saving /MF) with very simple calculation

    LIC=sum assured+loyalty bonus/accrued bonus+insurance+tax free maturity+incometax rebate(80c)

    specially people who are targeting jeevan saral/jeevan anand/endowment

    why to make things complex by advicing people to increase knowledge if facts and figures are so simple to discuss.with govt. branding+60 years of survival.

    1. ajay.kolambe says:

      What Brand 10 rs ka 7 rs ye konsa dhanda hai.

      term plan lo bas. for example

      Mr X invested in one plan rs 50K Per annum having Sum assued 5 Lacs
      Mr Y invested 40 K in PPF & buyed term plan have Sum assued 75 Lacs with remaining 10K

      both of them surived till 15 Years
      X will receive 12 to 12.5 lacs this is assured value.
      Y will receive 12 lacs or more guarented.

      Uncertainty happen in both of them.
      X will receive 5 Lacs
      Y will receive 75 Lacs

      Who is better amandeep you tell me?

      & aman try to understanmd how the tradional plan works.

  28. Ajay says:

    Not related to Jeevan Ankur, but some other child plan… See the link.

    Offer is based on conditions and one of them is “Father’s age is considered as 18 years” not even a legal age to get married in India for men πŸ™‚

  29. pankaj says:

    I completely Agree….:)

  30. Yogesh says:

    It not possible for every body to gain the financial knowledge. People invest in LIC because they have trust in it.

    Bharosa usika jis par hai vishwaas ! Bakii sab bakwaas !

    1. Yogesh

      Agree .. but there are many who can increase their knowledge , but still they dont .. if one is content with what he is doing . then everything is fine

      1. Yogesh says:

        I completely agree ! It is for us to find a right fund planner in order to invest in the right direction.

  31. sunny says:

    LIC – Life Is Costly πŸ™‚
    small but true comment

  32. Pankaj says:

    Its really hard to make some people understand about how these financial products misguide common people due to lack of knowledge about financial world.

    (Manish please correct me if i am wrong about below numbers)
    Just for your info , taking inflation rate as 7%, after 20 years, 12 lakh will be equal to today’s 3 lakh……instead put 40k every year in ppf after 20 years it will be near about 1.2 crores (Magic number isn’t it)………..

    For inflation rate calculator go to the below site ….

    1. How did you get that 40k per year in PPF will get you 1.2crores ?

      It should be around 20 lacs assuming 8.5%

      1. pankaj says:

        Hmmm…..Thats the reason i had put please correct me if i am wrong

        Apologies I miscalculated it…..It will be somewhere around 2099562 ……;)

        1. Yogesh says:

          Hello !

          What wrong in putting 38,000 p.a. for 21 yrs in LIC Endowment plan, Total Returns upto Maturity is Rs. 2018092 which includes Sum Assured, Bonus and Final Additional Bonus. (Sum Assured = Rs. 841573 + Bonus = Rs. 848306 + Final Additional Bonus = Rs. 328213 ). Income is totally tax free, plus you get your life insured. In my opinion its better than PPF.
          please comment.
          * calculated at current bonus / additional bonus
          *calculated at age of 30 yrs

  33. Yogesh says:

    Dear Arudra,

    I did a mistake 7 years ago, if u want to feel the heat please try and take a loan. There is no question of cribbing. Loan take over by public bank is in process.


  34. Yogesh says:

    Hi all,

    My personal experience is LIC is doing a good job by launching new products in the market. Also one must understand the very basic purpose of insurance. If we agree with author of the article then I simply ask him to provide us the alternative to Jeevan Ankur Policy.

    We all know what the private compaines are doing now a days. All I know is, if I invest in LIC, I will get my money back which is not a case in private companies. I personally recommend to invest in government agencies instead of investing there hard earned money in private companies. If I want to buy insurance, I will buy from LIC.The claim process is fast in LIC.

    I am paying a interst of 15.5% to a private bank from the last 7 years and they have raised the tenure to 40 yrs instead of 20 yrs original sanctioned. It seems like they will recover loan from my childrens after my death. What a common man do against them. He does not have the time to fight against them. The current rate is still 10.5% in public sector banks.

    LIC main objective it provide you insurance cover for your dear one’s. i.e. in your absence they can afford to live comfortable. If your main aim getting good returns on your investment, then invest in ppf, public sector banks FD, share market etc.

    1. Arudra Kumar says:

      Dear Yogesh,

      Simple question. If you are so much aware of Pvt banks vs Public sector banks then why the hell did you take a loan from the private bank??? And now why and what are you cribbing about ??

    2. Yogesh

      Thanks for your views .. alternative to jeevan ankur is not easy to create .. but you can do similar thing with term plan (LIC only) and PPF

  35. Jay says:

    Dear Manish

    I Need children policy for my niece (4 yrs. old) this is better for her future? our requirement is her education & marriage. if its not good for her so which one is better for her ? plz. suggest.


    1. Jay

      Buy a term plan and invest in MF , thats all u need to do , no child plan

  36. Anoop says:

    I think it is a good policy. Everyone who are ignorant should buy this policy. As most of the money is used by the government given to LIC as premiums, so help govt. We all know the how badly our govt need money. The coffers have been already dried by the Kalmadis and Rajas in last few years, please fill them up for this year.

    Govt need money for the greatest schemes like NREG, and now Food Guarantee. We have to support our fellow countrymen. All these schemes are for the fairness, and distributing the fruit of economy to the people living in lower strata of the society someway. We should not be selfish.

    Please buy the policy. Just think about the millions of LIC Agents. From your premiums they run their houses as told by IRDA for not to change the commission structure.


    1. thanks for your views Anoop

    2. amarawargaonkar says:

      Dear Anoop,
      I am a taxpayer and i am being taxed so that this money is utilised for other purposes. If i have to invest so as to help the govt. more well then i do not agree with that. If you want to help the govt. there are other ways but investment with charity is a toxic concoction of no use.

  37. Dhawal Sharma says:


    Hope you remember what both of us talked at the time of launch of BIMA ACCOUNT-1 and BIMA ACCOUNT-2 last year. LIC almost invariably launches a new product for the TAX-SAVING season of JFM quarter. Like it did with
    2009 – Wealth plus
    2010 – Smridhi plus
    2011 – Bima Account-1 and 2
    2012 – Jeevan Ankur.

    So nothing new, just the usual ploy by LIC..

    but after reading a lot many comments above, let me share a few things here
    1) Me as an insurance advisor/you as a blogger/media as a social activist; howsoever hard we try, the true picture is that the average age of any SIP is 18 months. Even after agreeing to TERM PLAN + MF as the best combo for all financial goals, let us conduct a poll on our blog and see what percentage of readers are running SIP for more than 2 years?? In such scenario, LIC takes a lead because common public is buying and running their LIC policies for ages. At least LIC is mobilizing savings and giving them a decent return over the bank deposit rate of 4%.

    2) Agents are again painted as black sheeps πŸ™ Are they pointing guns on the public ‘s head to sign the documents and sign cheques?? and these INNOCENT INVESTORS who are cheated/looted by the agent, is the same public who have all the time in the world to check the latest score, knowledge of current affairs of film stars, and gossips about national politics, but dont have time to check the viability of such plans. To me, mis-selling and mis-buying are two different sides of the same coin; where both parties are at fault.

    3) Nothing to choose between LIC and private companies now. With the latest IRDA report showing that most of the private companies have their claim settlement ratio above 90%, nobody can point fingers to private companies now. We are seeing LIC’s 95%+ claim settlement ratio after 54 years and private companies are almost there in 11 years. So this issue of LIC vs PVT has almost lost its meaning. Return wise, check any site showing ULIP returns and you will see only private companies fund doing well and not LIC ULIPs. Its ultimately the choice of the investor which matters and not the company.

    4) Most of the bonuses declared by LIC (Terminal bonus, revisionary bonus, loyalty bonus etc.etc.) and just additions to the accumulated fund, not on the COMPOUNDING basis. So they ultimately dont show huge returns. But nothing wrong with that, LIC openly says so..

    Dont know whats the take away from LIC JEEVAN ANKUR, but its just another plan. People are buying this because of their trust (or MISTRUST) in LIC, and LIC agents are making full use of it. Nobody is at fault..

    Yes, if you realise that return will not actually beat INFLATION, then try MF route but please (please-please-please) run that SIP diligantly for a same duration that you run your LIC policy.

    Dhawal Sharma

    1. Dhawal

      Thanks for your comment .. the points you raised are valid .



    Best Combination given by Manish Chauhan: PPF + TERM Plan+ MutualFund SIP+ Health Insurance + Personal Accidental Cover. BAKI SAB BAKWASS….Ankur-Anand-saral….

  39. Saurav Sinha says:

    Nice article Manish…
    Wonder what this “loyalty Bonus/additions”amount size would be like?

    1. Saurav

      Note that loyalty additions are just one time payments at the end , and can range from 5-10% of the SA . The regular additions would be anywhere from Rs 30 to Rs 70 per 1000 SA , but it can really be different in different years and given that its not guaranteed, it can be 0 also in some year , which actually does not happen in case of LIC, but in future who knows ..


    2. Saurav

      Note that loyalty additions are just one time payments at the end , and can range from 5-10% of the SA . The regular additions would be anywhere from Rs 30 to Rs 70 per 1000 SA , but it can really be different in different years and given that its not guaranteed, it can be 0 also in some year , which actually does not happen in case of LIC, but in future who knows ..


  40. Narendra N Kondajji says:

    Hi Manish, How are you doing? Is your book released in Bengaluru? Where can I get a copy?

    BTW, LIC must be playing some tricks here. Under the LIC act sum assured and the declared bonuses are guaranteed by Govt. of India (sovereign guarantee). I am not too sure if loyalty addition comes under this category. If not it could be a great rope trick to avoid sovereign guarantee. Also, unlike bonus, loyalty addition gets declared only at the end of the tenure.


    1. Narendra

      There is nothing like “releasing in Bengaluru” … Its a nation wide release where the book will be available in all the book stores like Crossword and other places .. The book is out tomm , but as it would be the first day , it might not be there every where .. however its already there online for pre-order , so one can order it online and get it shipped in just 1-2 days at home : . Would love to hear your views.. I have put all my learnings and worked hard to make it a good book .

      Regarding LIC point , the LIC website says “LIC’s Jeevan Ankur is a conventional with profits plan” . So It means that every year there will be some bonus declared for this policy .

      I actually didnt get your point about “trick by LIC” , why do you say that ? this policy looks similar to other plans to me ?


      1. Narendra N Kondajji says:

        Well Manish,

        There is a difference between bonus and loyalty addition in case of with profits policies. Bonus once declared is guaranteed either by LIC or by Govt. of India (in the worst case scenario). As per my understanding, loyalty addition does not seem to have this shield.

        As per LIC’s website, loyalty addition is:
        Loyalty Additions
        The loyalty addition is given upon the maturity of the policy, and not before. It’s a small percentage of the sum assured. Broadly speaking, loyalty addition is the difference between the performance, of the insurance company and the guaranteed additions. It is LICs effort to further share its surplus after valuation with the policy holders, as LIC is a non-profit organization.
        As I can understand it, both of them do not stand on the same level. Why LIC is doing away with bonus and solely depending on loyalty addition to reward the policy holder is not very clear. Is it reduce the premium or any other reason?

        1. Hmm.. ok

          So you mean that there are no regular additions per year through bonus in this plan ? Then I got confused with “with profits” part , because I thought when a policy is “with profits” , there are regular bonus . Which is not the case .. my mistake then


          1. Deepak R Khemani says:

            Bonus is declared in With profit plans(endowment type), the bonus is just an addition which sits in the policy and does not earn anything it is just added to your kitty, The LOYALTY ADDITION is declared at maturity and is almost equivalent to a bonus. Let me explain with an example , If loyalty addition is declared at a rate of 800, the it is an addition of 800 per thousand SUM ASSURED so a policy holder with a sum assured of 10,00,000/= (TEN LAKH) will get a loyalty addition of 8,00,000/= ie a total of Rs 18,00,000/= at maturity. Now lets suppose this was your with bonus policy and assuming bonus of 50/1000 SA per year it would have meant a 50000/= addition every year for 20 years (normal LIC POLICY TERM) now that would result in a maturity value of 20,00,000/= not very different. It is this thing which has not been taken into consideration by Hemant Beniwal for which you have answered a question previously. Loyalty addition at maturity can never be 5-10% of SA at maturity that would just give you 11,00,000/= at maturity for a 10 lakh policy after 20 years. NOT POSSIBLE.

            1. Deepak

              In your last line you said , Loyalty Addition of 5-10% is not possible , why ?

            2. Deepak R K hemani says:

              Loyalty Additions are a culmination of profits generated(Not declared) under the corpus of a particular plan payable at maturity and if the plan can generate only 5-10% over a period of 20 years then there is no purpose of having a with profits endowment plan!
              It has to generate at least 6-7% IRR only then would it be worth.

            3. Deepak

              Even 6-7% is bad !

          2. Narendra N Kondajji says:


            Just to add, LIC used to declare loyalty addition along with bonuses for many endowment policies, kind of icing.. Of late, in some endowment products like Jeevan Anukur, bonus is completely done away with and ‘loyalty addition’ has taken the place of bonus. Now look at this situation: Once bonus is declared, it should be made good. So there is a pressure on LIC to perform at a particular level. In the case of loyalty addition, it is not like that. This is a major change for a behemoth such as LIC. Why this change in the way profits are distributed is not made know to the public.

            ‘Sovereign guarantee’ that LIC is bestowed with, comes through LIC Act. Section 37 of LIC’s act says, and I quote here:

            +++ Quote ++++
            37. Policies to be guaranteed by Central Government.-
            The sums assured by all policies issued by the Corporation including any bonuses declared in respect thereof and, subject to the provisions contained in Section 14 the amounts assured by all policies issued by any insurer the liabilities under which have vested in the Corporation under this Act, and all bonuses declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the Central Government.

            Strangely, the word ‘loyalty addition’ does not find any mention in LIC Act. That is the reason I expessed as such.

            As I can see it, for Bonus there is a commitment and for loyalty addition no such thing. I think LIC being a govt. owned entity, has to be more open and transparent on such issues.


            1. Narendra

              Thanks for those points .. lets see how different policies unfold in future ..

      2. Narendra N Kondajji says:

        Sure would send my feedback after I go through the book. You would have done a good job definitely; I am confident of that.


        1. Great .. will wait for your reviews πŸ™‚

      3. Jig says:

        Flipkart does not deliever out side india. πŸ™
        What is the other way to get book?a


        1. Jig

 ships outside india, but they will charge $30 extra if the order is less than $100 , which is very obvious . You have that option, but why dont you ask some of your relative in India to buy it and courier it to you , that would be better –


  41. Naina says:

    Full of sound & Fury signifying NOTHING.This is a new gimmick from LIC.Similar type of plan was launched by Bajaj Allianz before 10 years under the name of Child Care.ICICI Pru also had similar plan before decade under the name of Smart Kid.There is NO NEW FEATURE in this plan.This plan offers less Life Insurance,It is not flexible,liquid or transparent.Most of the companies have Family Income Benefit Rider in all plans including ULIPs.The returns from this plan will not exceed 5% like other traditional plans. According to me it should be strict NO NO for anybody to go for this useless plan

    1. Naina .. thanks for giving your views .. i agree with your points


  42. Surya says:

    After reading your blogs on LIC …. i would say one thing…. LIC production can make different movies (Jeevan anand, jevan ankur, jeevan saral)…with same story (endownment) and you are a great reviewer (helping people to save their money).

    1. Surya

      Good point πŸ™‚

    2. Tejaswi says:


    3. aniruddha joshi says:

      fantastic thought
      and yes manish is a great reviewer

  43. S S says:

    LIC once again…I really don’t know what to say! My gut feeling is one should stop paying attention to all financial news specially related to tax saving during these three months i.e jan-march.

    1. SS

      Yea .. but the review has to be done for the sake of new people coming on blog


  44. sekhar says:

    Dear Friend,

    I have a doubt. If i invest 1,00,000 every year in this policy, Then what will be the returns after maturity and What about IRR from this?


    1. Sekhar

      It would be very low amount , SA + some loyalty additions .. The IRR might be extremelly low like 2-3%

      1. sekhar says:

        Dear Manish,

        Thanks for your reply.

        Just 2 to 3% IRR can’t beat the Inflation (where average Inflation is in between 7 to 8%). If people want to make insurance companies rich, they can invest. Otherwise simply go for a Term Policy.

        Always remember, “Insurance is an expensive, not an Investment”

        1. Ye a.. agree with that

      2. neeraj saini says:

        manish ji,
        how can you say loyalty addition as “some loyalty additions” loyalty addition of lic are always better than conventional bonus……………..

        1. Neeraj

          Can you give some numbers , how much are they ?

  45. Neeraj Chauhan says:

    Who wants to Die ?? And anyway it’s not all about wants Manish it’s about need, behavior and discipline.
    We regularly hear comments like SIP + Term is better over any insurance product which reminds me of same returns comparisons in 1990 with PPF.
    Today after 15 years when i ask same set of investors to show their PPF passbooks most of them have not even utilized their full subscription limit and were inconsistent in deposits even after having money in savings account but in Insurance they paid more regularly than what in PPF and now enjoying good maturities.
    Even now if one look at the life of SIP it speaks the tale of investor behavior therefore i believe theory is different from practical and every thing in financial planning cannot be just maths.
    Hence i firmly believe that solution for different people is different and product becomes good or bad by it’s prescription, It’s important to suggest right solution and right product based on qualitative, quantitative, need n behavioral analysis.

    1. Ya .. I agree with you on that point .. ULIPs and Endowment plans make investor more disciplined. But I believe the investors whose discipline is on mercy of a product design , how will they do well in their financial life , does one really want to make their financial life better just because a product is designed like that .. we as planners and mentors should break this .

      A strong investor who has high conviction has SIP’s going on for last 10 yrs , i Know many like that and they are very less .. but thats where the difference lies πŸ™‚


    2. neeraj saini says:

      neeraj ji,
      i absolutely agree with you, i have some lic policies which are running, otherwise SIP ya fd to khaa peekar khatam kar di hai………………

      1. Neeraj

        Who is responsible for that ? Who needs to be more cautious for that ?

    3. DK says:

      No product is good or bad until you keep invested in to that product till the end. Jeevan Anand baught on Dec. 2013 has given bonus of premium amount (Todays virtual value SA= Premium + Bonus) is double!!
      Also, people in SIP+MF during 2008 to 2013 were talking very bad about it but since 2014 it is booming!! I have saw people in 2012 , 2013 who left out of MF schemes loosing money.

  46. avneet kaur says:

    the answer to whether to invest in any ulip or endowment( in 99.99% cases) remains same : A BIG NO !! However, i do understand why these insurance companies bring such products which for most of the times do not give positive returns to the policyholders. The reason is that these companies know that the people do exist who still wait for such products. Here people think emotionally and any plan in name of ‘ child benefit’ will be seen as something good and useful. Insurance companies take advantage of this. A simple SIP in an equity fund for the same tenure will yield much better and higher returns. But such products will keep flowing into the market and now its upto the investors to act SMART….. πŸ™‚

    1. Avneet

      Really .. its too the point and very simply explained πŸ™‚


  47. Asav Patel says:

    Hello Manish,
    The only problem with LIC policies (Jeevan shree, Jeevan Anand, Market plus, wealth plus and many others) is – their websites don’t have anything mentioned about charges under the policy as mentioned with the brochures and websites of private company ULIPs.

    Do you have any idea that where can we have access of all such charges associated with variety of LIC products?

    1. shrey says:



      1. raman says:

        Whether LIC or private insurance, policy holder is the only looser. INSURANCE IS NEVER INVESTMENT. Company don”t matter.

    2. Asav

      Which all charges are you refferening to ? there is no other charge than mortality rates


  48. raman says:

    Again trying emotional selling… Insurance is never investment or saving.. Insurance gives very bad real return on maturity. Only Insurance company and agents make money. For tax purpose, put five year bank deposit for tax benefit … Donot get fooled by this reviews

    1. Raman

      Good points ..


  49. R. K. Bansal says:

    Some of these policies seem to be a better option for the agents as they offer them assured commission every year for the policy term, whereas for the investor the assured return component is very less. I agree that it would be far better to invest in a low cost term insurance like AVIVA abd some good SIP.

    1. RK Bansal

      Yea true .. LIC policies are so complex for customers at times


  50. Sayi Sarat Chandra P says:

    I definetly believe that Term plans play an important role. Definetly SIP in balanced funds help. Investing in such insurance endowment plans doesnt make sense.

    1. Yea Sarat

      I agree to that

    1. Yea Manish .. i Saw that one .. really nice one .. The only thing which I didnt find there was some assumptions of bonus, because in reality there will be some amount of bonus , so a minimum assumption should be taken


  51. Anand says:

    Are plans from LIC worth even the review?

    1. Anand

      Yea .. there are thousands of people added to blog and they might be very new for this , so these people need it πŸ™‚

      1. aniruddha joshi says:

        very true
        i am grateful to u for that
        keep the good work

    2. shrey says:

      WHY NOT?



      1. Shrey

        Good to hear your views ..


      2. bk dureja says:

        LIC policies no doubt are the most trustworthy, but do not forget that these are costly among all insurance companies. B etter do a comparision for best deal.

      3. Naina says:

        Returns from LIC plans………then ELEPHANTS WILL FLY

        1. Arudra Kumar says:

          Lol. nice one Naina. πŸ™‚


        2. Arvind Kumar Dubey says:

          You r Right

      4. Jai says:

        Dear Shrey,

        Even I agree with you that no other life insurance company in India is able to give returns as LIC only in terms with traditional products. Look at the longevity they are in the business. I am sure and confident that, when private life insurers complete 60years of business, then they will out beat LIC with huge margins.

        1. Vijay says:

          All of your private life insurer will bankrupt before completing their 60 years.

          1. JD says:

            Yes u r true… if u see their last 5 years balancesheet thn u wil realised ….. it is true…….

        2. Arvind Kumar Dubey says:

          OK , Can any one wait up to 60 years , after that may b u r right but we can say same LINE for LIC that LIC will beat all the company in insurance sector

      5. JD says:

        Yes , I Totally Agree With U…….

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