I need a clarification about Jeevan Anand, as I was not aware anything of term and endowment policies rather any kind of investments, and my father has bought it in the year of 2009, just to help one of my relatives. Now I realize that its an endowment policy, and want to get rid of it.
Now I am 27 year old and unmarried and the policy says as below.
Date of Commencement of Risk – 20 / 11 / 2009
Sum Assured – 100000
Premium Payable – 7110.00
Date of last payment – 20 / 11 /2024
As of now we have payed 2 premiums, please suggest me whether I should continue or not or make it as paid up after some premiums.
Also please suggest me about the good term policies, as I am not financial expert and don’t want to fall as a prey to ULIPs or endowment policies.
My requirements are
Death / Accidental / permanent disability cover of upto 50 lacks for my family after 30 years.
Also one more help,
The policy document says incorrect name of my mother as she is beneficiary, and if it is mandatory to get it corrected, then what might be the procedures.
14 replies on this article “Clarification regarding Jeevan Anand policy”
Got it.. Thanks once again.
Also one more clarification, to save my TDS, I have invested in HDFC Tax saver, mutual fund last year. Now willing to continue in the same, how good it is to go ahead, I want to play safe.
Dear Santosh, you may continue with this fund. Regarding safety issue, being a market linked product, it’s not as safe as a bank Fd or PPF.
thanks, for that and ll check with the riders on LIC first, and go ahead.
Dear Santosh, You mean to say that you’ll go for a Term cover + Rider? Please clarify, what types of riders you are looking & why, the reason of opting riders?
I mean to say term insurance come up with different types of riders, followed by this link https://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html , so if any insurance which covers for AD and WP, I may prefer to go for that.
Dear Santosh, instead of opting Riders, please purchase standalone Critical illness policy as well as Accidental Death benefit policy from the insurer of your choice. The reason is simple, the coverage of these riders are very limited & the most important thing, these riders are only one time affair, you can not revive the rider, once it’s utilized.
ok.. thanks for your valuable suggestions.
I meant to say, he can earn some good commission with it, rather with term insurance. But after paying 3rd year I may try to surrender or make it paid up..Also please advise me the term insurance which have very less premiums if you come across any.
Dear Santosh, if helping your relative is your sole point of selection, please pay 3rd prem. to him/her directly instead of giving it to LIC. Regarding your own term cover requirement, online plans are dirt cheap. I do not know in your city which plans are available or not. Please try from following insurers. This is an indicative list only & not the order of preference.
Aviva, Aegon Religare, Bharti AXA, HDFC, Kotak, ICICIPru, Metlife
In case of offline term plans, you may opt from the above insurers + SBI & even LIC (to help your relative).
If u want to opt low premium term insurance means u can go for Aviva or Aegon Religare but their Claim settlement ration is low compare to others as per IRDA ratings.
When comes to jivan Anand policy – Returns are less and Life risk coverage even after maturity of the policy withoput paying any further premiums. You can also make it paid up by paying minimum 3 premiums & u can surrender the policy only after maturity date. Returns will be the premium paid plus bonus for that period only.
Dear Santosh, please read past discussions on Jeevan Anand here in the forum. You ‘ll get answer for your query. If still in doubt, please write here again & we ‘ll discuss it for you.
After going through the articles, we have many more negative views towards it. Though I don’t want to continue, but just to give some profits out of it to my relative, I am thinking to continue, also the premium I a paying is very less comparatively. And will decide accordingly.
Dear Santosh, Can you please explain –
“Though I don’t want to continue, but just to give some profits out of it to my relative, I am thinking to continue.”
If you do want to help your relative, why are you not helping him/her directly? Actually in this case (continuing LIC policy), you are not helping your relative but helping LIC to suck your hard earned money. In case you want to continue, the loss ‘ll only increase not decrease. To continue or not ‘ll be a personal call.