LIC Jeevan Bheema Policy Query

POSTED BY Paul ON January 18, 2013 4:56 pm COMMENTS (2)

Hi all,

I took an LIC Jeevan Bhima 4 years back for 10 lakhs for a tenure of 16 years. My premium amount was around 49000. After 4 years, I will be getting 15% of the sum assured. That would be 1,50,000/-.


But few days back, I thought 10 lakh covergae is not enough and I went for a pure term insurance from ICICI. It had 1 crore cover for 30 years. The premium amount was around 13000 per year. I know this policy does not provide any survivor benefit. But I have an insurance coverage of 1 crore for 30 years (It was 10 lakhs for 16 years and 5 lakhs for another 8 years by LIC for a hefty premium of 49,000). 


If the rest of the money 36000 (49000-13000) is invested in a simple investment options such as PPF, which provides an interest of 8.6%, I could have saved more money than I can get from LIC. If I had paid, 36000 per year (3000 per month) in PPF, after 16 years it should be around 1230552.61/-. If I had gone for more riskier options like equity the returns would be much more( Can expect 15% for 16 year horizon). More than that, I am getting life cover of 1 crore for 30 years from ICICI.


I read there is LOYALTY bonus after 16 years. How do you decide what is the LOYALTY additions? What are the factors deciding this LOYALTY additions? I might get the loyalty bonus, or might not get. It is not assured from what I understand. If the loyatly additions is good, then I think, I might consider going forward with this plan. Otherwise, is it even advisable to go forward with this plan? Please let me know your suggestions.

2 replies on this article “LIC Jeevan Bheema Policy Query”

  1. Loyalty additions will hard make any difference to the calculations you have made

    You can check with these numbers

    You can safely surrender your policy and invest the money elsewhere to get better returns

  2. Dear Paul, please surrender thius Jeevan Bima policy from LIC. It’s not worth of your money. Your own simple calculations are telling you the truth, still you are in search of some more confirmations.

    My dear friend, pure term plan is the best option for your life insurance needs. The investment should be done in pure investment instruments like PPF, FDs, MFs….



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