POSTED BY October 27, 2012 11:43 am COMMENTS (3)ON
I was generally reading up on Jeevan Anand policies and came across a blog written by you. It is by far the most helpful blog that I have come across.
I seek your guidance for my LIC policy as under.
Plan Name: Jeevan Anand
Sum Assured: INR 25.00 Lakhs
Premium: INR 69,770 p.a.
Tenor: 33 years
An indicative (not guaranteed) Bonus Ratio provided by an agent is as follows:
Year 1 to Year 14: Bonus of 45
Year 15 to Year 18: Bonus of 65 – 85
Year 19 – Year 25: Bonus of 100 – 135
Year 26 – Year 33: Bonus of 165 – 195
1. Could you please explain how / why the Bonus shoots up to range from 65 – 195 after 14 years and whether this estimation is conservative or optimistic / realistic??
2. Also, given that PPF returns are better the LIC at the end of 33 years, does it make sense to opt out of the LIC policy?? (i.e. PPF + Term Policy from say an HDFC instead of the Jeevan Anand policy) -> A similar term policy from a HDFC would be for INR 4000-5000.
Look forward to hearing from you.
Thanks a lot for your time and help.