POSTED BY November 19, 2013 9:13 am COMMENTS (4)
ONHi All,
I have read a lot on endowment policies and also that actually the investment should be term insurance + PPF + MF. I am completely convinced that the latter is far much better however I would like to have illustrative view on the same.
Unfortunately, I am a victim of Jeevan Anand and want to get rid of the same and start investing the money in proper channel. Can you please share a sample or point me to a correct forum.
Thanks in advance.
Mohit
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Thanks a lot Ashish.
Hi Mohit,
Consider a hypothetical scenario and them use your numbers.
Lets say you pay Rs.50000 per year as LIC premium for a sum insured of Rs.10,00,000. You get 80C benefit and after 25 yrs you shall get Rs.10L + Bonus (Rs.5,62,500 @2.25% on sum assured for 25 yrs) + some other bonuses. So all in all you get about 15-17 lakhs after 25 yrs. And you were insured only for 10L throughout.
Now consider you take term + PPF option. You pay Rs.10,000 per year for a sum insured of about 60-70L and invest Rs.40000 per year in PPF. After 15 yrs you shall get about 11Lakh which you may choose to withdraw of extend for another 5 yrs. In case you withdraw you may put in FD at about 8.5% per annum for 5+5 yrs and finally you will get around 19-20 lakh. And you were insured for Rs.60-70L throughout.
Now think which is better. The 80C benefit remains valid in both scenario.
Ashish
Hi Mohit,
In fact you are in the correct forum. Please take 1 month time- read up on as many qs as you can in this time- and if you still have any doubts (dont think you will have any), please feel free to ask.
Thanks,
Kuntal.
Thanks Kunal. Yes I completely agree that I am in the correct forum 🙂
The only thing I would like is an illustrative view of difference between Jeevan Anand and Term Insurance + PPF. Can you please guide me on that. I just want to have a look at sample calculations.
Thanks,
Mohit