LIC – Jeevan Anand

POSTED BY Kumar Ankit ON March 26, 2013 9:07 am COMMENTS (58)

Hello All,

I am planning to buy a Life insurance policy from LIC. The policy name is “Jeevan Anand”. My main motto is to have sum assured for complete life cover and then some money as pension for my old age.

Here are the details which agent has shared with me: (as per his excel presentation)

  • My current age: 27 years (Exactly 26 years 10 months)
  • Total policy term: 33 years
  • Pension term(in age): 60-74 years
  • Yearly Premium: Rs. 35438/-
  • Total Premium Paid (in 33 years): Rs. 1169456/-
  • Total Maturity: Rs. 9138842/-
  • Free Life Cover: Rs. 1500000/-

I have no experience about the insurance things, so I request you all to please share your feedback about this policy and If this policy in not adviced then:

  • specific reason will be really helpful.
  • any other policy/ option which can fulfill my requirements.

Your suggestion/comments will be really helpful to make my decision.

Thanks & Regards


58 replies on this article “LIC – Jeevan Anand”

  1. mbaruah says:

    hello all,

    as a new year resolution, I want to clear some of the clutter from my financial busket.
    the 1st one is LIC Market Plus 1.

    I invested Rs. 10,000/- (single premium) long time back may be 2008 in LIC Market Plus 1.

    Now, I am trying to call the LIC people to understand the withdrawl process but no response as always.

    plz help me to decide what to do with this policy though the amount is not big.


    1. Just visit the branch and you can give them a withdrawal letter along with the policy document

  2. Mahanand says:

    Dear Ankit,

    Best decision is to invest in PPF there is no risk. For your life cover you can go for any term insurance policy.
    Good luck.


  3. Prashant Bhardwaj says:

    The beauty of “Jeevan Anand” is even LIC professionals are not sure on what they do with your money. I requested them to kindly let me know the surrender value for my 5 Lakh Jeevan Anand Policy. Total premium paid till date is: Rs.79884.
    Answer1: From : The surrender value is Rs.35792
    Answer2: From : The surrender value is Rs.42035

    One thing to appreciate – atleast “THEY REPLIED” 

    Following is the e-mail I have received.
    From: “customerzone_bangalore”
    Date: Sep 13, 2014 4:16 PM
    Subject: RE: Surrender value for jeevan anand policy no. 3647****3
    To: “Prashant Bhardwaj”

    Dear Sir/Madam,

    Surrender value is Rs.35792.

    Assuring you of our best services always.
    NOTE: Please submit signed letter furnishing your policy numbers, Mobile Number,E-Mail ID for updation of contact details in our records..
    Scanned copy of the signed letter can also be sent as an attachment by E- Mail.

    With Regards,
    OUR PHONE NOS. IVRS 1251 & 26659230
    Please register your policies at
    Premium can be paid online using Net Banking facility or through Domestic VISA/Master Credit and Debit Cards.

    From: Prashant Bhardwaj [bhar******]
    Sent: Saturday, September 13, 2014 1:51 PM
    To: bo_61F; customerzone_bangalore
    Subject: Surrender value for jeevan anand policy no. 3647****3

    Please let me know the surrender value for my jeevan anand policy no. 3647****3.

    Actually I have paid premium for 3 years in this policy and I will not be able to pay any more premium now. Kindly let me know the total amount what I can get now if I surrender the policy OR what is the provision if I do not pay any premium now onward.

    Prashant Bhardwaj

    From: “bo_61F”
    Date: Sep 15, 2014 11:02 AM
    Subject: RE: Surrender value for jeevan anand policy no. 364798143
    To: “Prashant Bhardwaj”

    Dear Sir,
    The surrender value for the above policy is Rs 42035.

    Thanking you
    Branch Manager
    From: Prashant Bhardwaj [bhar********]
    Sent: Saturday, September 13, 2014 1:51 PM
    To: bo_61F; customerzone_bangalore
    Subject: Surrender value for jeevan anand policy no. 3647****3


    Please let me know the surrender value for my jeevan anand policy no. 3647****3.

    Actually I have paid premium for 3 years in this policy and I will not be able to pay any more premium now. Kindly let me know the total amount what I can get now if I surrender the policy OR what is the provision if I do not pay any premium now onward.

    Prashant Bhardwaj

    1. Thanks for sharing that Prashant !

  4. Manas says:

    Hi All,

    I am following this forum for quite some time now and thanks to you guys for giving some real infos about investment. Just need some suggestions on Mutual funds. I want to invest 5k p/m for atleast 5 to 10 yrs both in Largecap and Midcap funds. Please suggest me how could I proceed. And yes, do I need to look at the NAV of the funds because what I see is HDFC top 200 or Franklin India Bluechip growth is doing good from last 10yrs but it’s value is more than 250 now. So does this have an impact going forward if I invest on it.

    1. Hi Manas

      I suggest you ask a seperate question , because this is insurance thread , so it would be difficult to get others views .


  5. Kumar Ankit says:

    Hi Ashal,

    In your Suggestion, MIS is not a gud option?


  6. Dear Ankit, if safety (in your parents’ understanding) is the sole consideration, I w’d ask you to put all money in bank FDs & ask there for mly interest pay out. the ROI is better here. In case your mother is a home maker, you may gift the amount to her & she may invest under her own name.

    Regarding gold – my views are very clear. I’m not investing my personal money. For you only you can decide. Link your goal with Gold & invest accordingly. I hope you are aware about my discussion in that Gold related query by dear Sonadhi.



  7. Kumar Ankit says:

    Hi Ashal

    I have 1.6lacs cash now.
    My parents are suggesting me open a MIS in postoffice for amount 60k.
    And then for rest amount open a FD.

    What will you suggest me. Is is suggested to have some eGold funds.
    If yes, then which fund should I go for as SIP.


  8. Dear Ankit, please keep visiting the forum & also bring your friends who may put their own queries.



  9. Kumar Ankit says:

    Hi Ashal,

    I must appreciate your knowledge about this finance things.
    Keep helping bro 🙂


  10. Dear Ankit, consistency over various time cycles is important to me. The 3Y or 5Y performance for any fund may change based on the starting & end point selected by you but the performance of a fund ‘ll not change for a fixed time say CY 2012 or CY 2011……

    Please do some research on your own to check the consistency. Check the performance of the fund against it’s benchmark & against similar funds.

    Regarding Gold, I’m not investing my personal money, you are free to opt your own way. Although can not be termed as pure investment, whatever gold is there with me, is in the form of jewellery for my better HALF, since our marriage, in the safety of a bank locker. 🙂



  11. Kumar Ankit says:

    Hi Ashal

    How to know that which fund is gud. I would also want to learn about this.
    Can you help me.

    As these days we see dip in gold price, is it safe to buy gold mutual funds.


  12. Dear Ankit, the other fund, ‘ll be Franklin India Bluechip fund.

    Disclosure – i’m investing my personal money in both these funds so my view may be a biased one. Please take note of this.



  13. Kumar Ankit says:

    Hi Ashal

    Thank you so much for suggesting this fund. Could you please also suggest me more mutual funds.
    Or can you guide me that know which fund is good to invest in long term.


  14. Dear Ankit, normally RDs should be used for a short term goal say 6-9-12 months. In your case you are going to invest for 10Y & may be even after that. In my personal opinion, please stop the RD for long term. For 10Y term, please invest in Quantum Long Term Eq. fund growth option.



  15. Kumar Ankit says:

    Hello All,
    Thank you for for much detailed explanation.
    As earlier mentioned, I have already opened this RD( from this month).
    So from this year onwards shall I add all the interest earned (from RD, FD) while filing the ITR.
    Currently I fall into 10% tax slab.

    Or should I close RD now? If yes, then where should I invest this amount.
    I have no idea about MF or SIP. Don’t which fund should I go for.

    Please suggest


  16. Dear Ashish, thanks for putting in so nicely. Iwas still under discussion mode only & was planning to switch the discussion towards Eq. investing.



    1. Ashish says:

      Dear Ashal,

      Thanks. I am learning from all you guys there.

      I must thank all behind this forum to make individuals aware of the personal finance, investing and its benefit. Not to mention, the simple way, each and every query is answered.

      I just sharing my experience and knowledge here with other people and at the same time learning from their knowledge and experience.



  17. Ashish says:

    Dear Ankur,

    As Ashal has said, the 10K limit (which is available as of now) is only on the SB account interest and not on FD / RD. Also Bank directly deducts the TDS if interest is more than 10K in a year on SB / FD. Bank does not deduct any TDS on RDs and hence you have to calculate the tax on your own and pay accordingly.

    As far as your RD is concerned, you shall be paying Rs.3,60,000 over 10 years and will be getting about Rs.5,76,000 after 10 years (considering 8.75% p.a. interest). This means your interest profit is Rs.2,16,000 and you need to pay tax on this (as per current scenario). In case the rule changes you may need to pay accordingly. Because of this tax on profit generated through RDs is applicable it becomes less attractive and your actual rate of return gets lower.

    In case you would have opted for a equity MF, with SIP of 3000 a month for 10 years and assuming you will get same 8.75% return p.a., the maturity amount would be tax free (as per current rule) being long term capital gains. Hence your actual rate of returns is better than RD. Just think if the 8.75% p.a. changes to 12-15% p.a. in MF (which generally people expect in horizon of 10 years from equity), what would have been your benefit and return.

    I feel most of us here would agree upon this.



  18. Kumar Ankit says:

    Hi Ashal,

    I have checked with 2-3 banks and they are sent me the same Information.

    “The interest income earned through fixed deposit is taxable, if the interest amount exceeds Rs 10,000, in any financial year.”

    Please see the below links:


    1. Ashish says:

      Dear Ankit,

      Please check the below link from Income Tax India website, which clearly states:

      80TTA. (1) Where the gross total income of an assessee, being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) in a savings account.

      Explanation.—For the purposes of this section, “time deposits” means the deposits repayable on expiry of fixed periods.

      Therefore the 10K exemption is only for interest accumulated from savings account and not FD / RD.

      Also read another post on:

      This will give you some clarity.



  19. Dear Ankur, full interest amount from FD is taxable. You are again confusing yourself for the 10K thing. TDS limit says that below this limit TDS is not applicable on pety amounts but that amount is still taxable. So for the given example 30% of 25K = 7500 Rs. is the tax amount + edu. cess .



  20. Kumar Ankit says:

    Hello Ashal,

    I totally agree that Interest amount is taxable, but bank will not deduct the tax.
    I need to mention the interest amount as an earning and pay then pay the tax. (as per my knowledge and understanding)

    In your example,
    As the tax slab is 30%, and the interest earned is Rs.25000(in one year)

    The tax would be:
    Rs25000 – Rs10000(Not taxable interest amount) = 15000 x 30% = Rs 4500.

    Please correct me, if i am saying wrong.

  21. Dear Ankit, please read our replies again. We are saying the same thing that RD interest is not subject to TDS but the interest is taxable. Where as it sems you are thinking that only TDS is tax & nothing more ‘ll be due on you.

    Please answer a simple question, if you are in 30% tax slab & earns 25K Rs. from your FD as interest, what’s your tax liability?



  22. Kumar Ankit says:

    Hello All,

    Please read the Question 20 in below link:

    It clearly says that “The RD account is not subject to TDS”.

  23. Dear Kumar Ankit, it seems you have not understood clearly what the branch manager was telling you.

    Regarding TDS, even SB account interest is liable to TDS along with FD interest. RD interest is not subject to TDS but interest itself is taxable. From 1st April 2012, the SB interest (I repeat only SB interest) up to the max. limit of 10K in the FY is tax free.

    in case of FD or SB, the moment, total intertest income crosses the 10K limit in a FY, the amount is liable to TDS. If PAN is notified, the TDS rate is 10% & for non PAN case, it ‘ll be 20%.

    Regarding your 10Y RD, it’s not same as you are thinming on insurance policies that the tax rules at the time of opening ‘ll apply. In fact even Insurance cos. stats clearly that the taxation rules at the time of maturity ‘ll apply.

    Think over it.



  24. Dear Ankit, the TDS is not applicable for RD interest but the interest earned in RD is very mcuh taxable & onus lies on you to report the same & pay tax. Also as you are going to invest for 10Y, who knows by the time of maturity of your RD, it’s also in TDS net.



    1. Kumar Ankit says:

      Hi Ashal,

      If in future(by the time RD mature) it comes under the TDS deduction rule, it wont be applicable in my case because at the time i have opened this RD, the rule is to no tax deduction and this will rule will continue till the end the RD gets matured.

      Only if the Interest amount goes above 10,000 per year, then the “Interest above Rs10,000” will fall in tax criteria.

      Correct me, if i am wrong.

      1. Ramesh says:

        Who said ‘interest upto 10k is tax free’? Check that statement.
        It is wrong. The total amount is taxable, whether TDS is applicable or not.

  25. Dear Ankit, RD for 10Y term is not a good idea bot on return point & taxation point.

    Please think over it.



    1. Kumar Ankit says:

      There is TDS deduction in RD. and the interest rates are also good.
      I don’t see any problem with this.

      Kindly explain in detail.

      1. No TDS does not mean no Tax! The interest earned is fully taxable!

        1. Kumar Ankit says:

          The Tax deduction would be only if the Interest amount goes above 10,000 per year.
          This what the Bank Manager told me.

          1. Tax deducted at source IS NOT the same as total tax to be payed by individual.
            What is not deducted should be paid if according to law the interest (irrespective of amt) is taxable.

  26. Kumar Ankit says:

    Hello Everyone,

    As suggested (by almost everyone), i have not purchased the LIC “Jeevan Anand” policy.
    Now i have opened a RD account (Rs. 36000 Per Anum) for 10 years Term.
    Along with this i have also bought Term plan : Aviva iLife with Sum assured 55lacs.

    For Tax saving, i will be using PPF & NSC.
    Hope this is a good decision.

    Please share your comments/feedback.

  27. Dear Ankit, you may start with only 2 funds as of now.

    1. Franklin India Bluechip growth option direct invest

    2. Quantum Long Term Eq. growth option

    Disclosure – I have my personal investment in both these funds, so my view may be a biased one.



  28. Dear Ankit, now the discussion is running on right track. 🙂

    Are you running any loan liabilities as on date? if yes, please add the same into your sum assured. Now let me illustrate you from where this 15 times multiple is suggested. Actually it’s me who supports this 15 time all the time + loan liabilities. Why? let’s play with the math.

    1Cr. Rs. in your case,’ll genrate an yly income of 8-9L Rs. (pre tax), if the claim amount from your policy is invested in a simple product like bank FD @ 8-9% ROI. Now this is either same as your CTC or more than that. As simple as that.

    What you should do to purchase 1.05Cr. Rs. sum assured. personally I can go for a single policy from apvt. insurer offering online sum assured. if you are not comfortable with this idea, please purchase 5L Rs. sum assured from LIC Anmol jeevan -1 & remaining 1Cr. from any online term cover.

    What should be the term? Simple till the time, your financial liabilities are open. Say by the age of 50, you have enough wealth & a major part of your financial liabilities are also over, you do not need the insurance at all. Insurance is a risk cover tool which is to support the financial loss due to your untimely death & it’s not a profit making tool to earn profit from your death.



  29. Kumar Ankit says:

    Hi Ashal,

    55 lacs in just the random figure. Actually i have no idea how to calculate my exact sum assured.
    In the above posts, Ashish Mentioned that sum assured should be around 15 times of my current CTC.
    My current CTC is 7 lacs, so shall i go for the 1cr Sum assured. and shall i buy a single policy or break this in 2 diff term plans(may be 2 diff company) i.e (50 lacs x 2 plans)

    One more question,
    The maximum policy term in term plan in for 35 years.
    In my scenario this will be 27 (current age) + 35 (Max policy term) = 62 Years.
    What about if i dies at the age of 63?

    1. Ashish says:

      Dear Ankit,

      Most of us consider 60 yrs as the age of retirement, which means we shall stop earning at this age.

      So when you are not earning and die, there is no income loss to the family and hence no need to remain insured at that time.

      In fact family will be able to save some money that they would have to spend on your food, medical, travel etc. :-)… just joking!!! But isn’t this actually true.

      1. Kumar Ankit says:

        Funny yet very real statement 😉
        I will not concentrate on Term plan for the term of 35 years. I hope my decision about going with Aviva is correct.
        and then the some amount I’ll deposit in PPF for the purpose of saving tax.

        Any help/suggestion for mutual fund will be really helpful. Kindly guide which fund should i go for etc.

        Thank you once again for all the valuable comments/suggestion/feedback 🙂

        1. Ashish says:

          Dear Ankit,

          Suggestion on MFs – You’ll find lot of people asking the same what you are asking. Even I had also asked the same question some time back though I have been investing in MFs for about 7-8 years now (not regularly, due to personal reasons).

          Since you are new to MF concept, I suggest first to make yourself aware of what is a Mutual Fund and how it works. Once you have some basic knowledge about, you will be able to understand the reason behind people suggesting certain funds and where you should invest.

          Check the following:

          As for suggestion, I think there are lot many people in this forum, much more knowledgeable than me to guide you about that, since I have also taken their advice quite often.



  30. Dear Ankit, if you family can not survive with the 3L Rs. offered by this plan in case of your death, what’s the use of this plan? So dump it. Now comes the term plan. Please purchase one from Aviva, no problem. But here question arise, how dis you concluded that 55L Rs. sum assured is good for you?

    Any calculation or just your comfort number?



  31. Kumar Ankit says:

    Hello All,

    All your suggestions are very valuable for me. These will really help to make my decision.
    As suggested in above posts, This what i am looking for my future:

    1) Fixed amount (to be used as complete life cover) which my family will get after my death.
    2) Some money (may be monthly basis) to bare all expenses in old age.

    Currently i am investing around 80k per in PPF account (this also helps me to save tax) and the EPF deduction from my salary.

    Kindly suggest me best options,which can fulfill my requirements.

  32. Kumar Ankit says:


    The agent said that i will get:
    sum assured + bonus + FAB

    Is this true?

    1. Ashish says:

      Sum Assured + Bonuses + Final Additional Bonus (if any) will be paid at the maturity as part of survival benefit.

      Only Sum Assured on death thereafter. No bonus.


    2. Ramesh says:

      The amounts are NOT Guaranteed. And overall the TOTAL IRR is 6-7%. A big 1-2% less than PPF rate.
      Just to give you a picture, the Inflation rate is 11-12% in CPI terms. Do not ask about the real inflation rates.

      Multiple this by 30 years, and you are losing 4-7% on your investment, if you opt for debt based endowment plans.

      Do not buy any plan which is being sold to you! Very simple thing. It is in the interests of the LIC agents and LIC to market themselves as the best, most dependable, etc. But it is not in your own interest to buy any plan from LIC.

      Ask this:
      1. Where does the LIC invest its money to give you those returns?
      2. Ask the agent, what is the commission structure of this plan? He is bound to tell you his first year’s and subsequent percentages. If I recall correctly, it is anywhere between 40-70% of first year premium and 5-8% subsequently. But do not quote this, because I have never bought any such plan and I have never got a proper answer (Will check though, now).
      3. If the agent is old enough, ask him the past returns. How much that policy has given in the past? Get a real example and then do the maths yourself.

  33. Kumar Ankit says:

    As in the Jeevan Anand, Agent said that i will be receiving the money every year.
    Please see the list below:
    At Age 60 : Rs. 430379/- (Net on hand)
    At Age 61 : Rs. 456189/- (Net on hand)
    At Age 62 : Rs. 481997/- (Net on hand)
    At Age 63 : Rs. 512808/- (Net on hand)
    At Age 64 : Rs. 543627/- (Net on hand)
    At Age 65 : Rs. 579464/- (Net on hand)
    and so on till my age of 74 years.

    Don’t know if this is correct or not. May be these illustrations are just to make fool of me.

    1. Ashish says:

      Dear Ankit,

      After 33 years (your policy term) you will get sum assured + bonuses (generally about 3.5 to 4% of sum assured in LIC JA case). And in case of death after the term, SA will be paid again to the nominee, there is no periodic payment by LIC to you.

      For Term plans, I think lot of people had asked the same question, which is the best company and answer is whichever you feel best is (not just premium amount but also look at features, ease of interaction with them etc..) I have taken one from Religare (i-term) and one from HDFC (click2protect) but that does not mean Aviva is not good or something. Because most of my banking & investments are through HDFC so I am very comfortable with HDFC and its products.

      I personally feel you should first look at your goals that why you want to invest and accordingly you should start investing. Some part still can be in RD but a major part (at your age) should be in select 2 or maximum 3 MFs (please do check previous questions on how to select a Mutual fund scheme) and you will understand.

    2. Ashish says:

      by bonus of 3.5 to 4%, I mean per year bonus. But this figure keeps on changing every year as per LIC’s performance.

  34. Kumar Ankit says:

    Your suggestion is very detailed and informative. I really appreciate your effort 🙂
    Some of my other friends also suggested to not go for this policy.

    I have another option:
    1) to buy an Term play from Aviva for 55 lacs
    2) open a RD for 10 year term and keep on renewing after completion of each term. (for 3-4 term)

    Will this be the good option for future security? Is the Term plan from Aviva is suggestible?
    Can you please guide me for the Mutual Funds.

    In case i die at age of 32, My family will get:
    Premium paid (35432 x 6 years) = Rs. 212628/-
    Sum assured = Rs. 100000/-
    and some bonus..
    Total amount would be Rs.315000/- (Approx) 🙁

  35. Dear Ankit, if you die at age 32, how much money ‘ll be available to your family? Any idea?

    Please share.



  36. Kumar Ankit says:

    Hello FFC,

    Thank you so much for your valuable comments. Unfortunately i have no idea about the mutual funds. I do invest in PPF and EPF deduction is by default from my salary.
    I have thinking to go with a granted tings, where there is no risk factor or losing money.

    In this policy, these are some amount (approx 6,50,000) will be paid from my age of retirement i.e 60 – 74 years.

    Is this all false commitments? As we all know that LIC is most trustful name in Insurance industry.

    1. Ashish says:

      Dear Ankit,

      I took this same policy in 2004 for a mere cover of Rs.2,00,000 without any understanding of insurance. Today I am paying a premium of Rs.11,348 a year and in return LIC is going to pay me some 3.25 to 3.5 lakhs in 2023 (policy term of 20 years). Now after coming to this forum, I have realised my mistake that what have I done. Imagine the value of Rs.3.5 lakh 10 years from now, it may be good enough for a period of 2-4 months only. I personally suggest don’t go for this plan just because it has some return value as against the pure term plans.

      Simply take a good term cover depending upon your income (as FFC suggested take minium 15 times of your annual income). MF is no monster, just read various questions asked in this forum understand what is MF and benefits of investing in it. Trust me at your age, if you start investing in MF from now on it will do wonders for your futures and load of investing in coming years would be much less.

      PPF and EPF, of course, these are the safest bet, but you just can;t rely on these two investment instruments forever for your future requirements. This should be in your portfolio but at this stage a lesser % and keep in increasing the PPF / EPF share as you grow old and your capacity to take rosk decreases.



    2. The blunt simple truth is

      Unfortunately i have no idea about the mutual funds. –> You have no choice but to to learn.
      All of us are doing just that: trying to learn.

      I have thinking to go with a granted tings —>EPF and PPF fall in this category to a reasonable extent. Beyond this if you mix insurance and investment inflation will eat away your purchasing power. As Ramesh rightly pointed out, one should not look at ‘real’ inflation rates. They can be ‘real’ scary!

    3. nikhil141088 says:

      As soon as I realized the meager rate of return in LIC jeevan anand I discontinued my premiums which my father had started 5 years back. I even convinced my father to not invest in any LIC policy from now onwards.

  37. You should not by this policy for the following reasons:

    1. Th life cover is small. You need at least 15 times your annual salary as insurance cover. If and when you have children you will need more.

    2. The life cover is not free! If the agent said that it is nonsense.

    3. The returns you will get will be bet 6-7% (inc. all possible bonuses). for a goal like retirement 33 years away if you are not invested in about 60-70% equity stocks or MFs you will not have financial independence after retirement

    4. No pension plan. No child. The only plan is education plan. Yours that is: Learn and start investing in mutual funds/. For retirement invest in a combination of PPF, EPF and mutual funds

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