LIC Jeevan Saral or PPF – Which is a better investment option for long run ?

POSTED BY yogjeet1984 ON February 3, 2014 10:17 am COMMENTS (3)


I have taken a LIC Jeevan Saral policy just for the sake for the saving tax, Life insurance + Investment. Since i was guided by someone and didn’t have much idea about all these policies, i went for it. But now after doing some research I realise PPF + Term insurance is a better option for my need.

I have already given some Rs 49000/- premium since it’s the annual premium and it’s been an year since i purchased it. My question is that from Investment point of view, Can I surrender this policy now without much hassles and go for the PPF option?. I guess i should recover the loss of 49K (+ if any other charges) in some years. Am i correct?. Please guide. Thanks.

3 replies on this article “LIC Jeevan Saral or PPF – Which is a better investment option for long run ?”

  1. ashalanshu says:

    Dear Yogjeet, please visit site and check the maturity value of your policy there. The PPF value ‘ll be 25.9L Rs. roughly.



  2. yogjeet1984 says:

    Thanks for the confirmation Ashal. But please help me out with few calculations here.
    If I am correct, PPF with an investment of 49K annually, should give something around 19-20 Lacs at end of 20 years. And to correct myself I have actually paid 48.5K+24K =73 K Premium till date. So I have 2 questions here :

    1. What is the MAX amount I can get from this LIC policy if continue to pay all premiums on time for full 20 years? My current age is 29 years. The sum Assured is 10 lacs and exact premium amount is 48.5K annually. If you can just provide an Approx figure?
    2. What would be the maturity amount of a same PPF investment? Online calculators show me around 15 lac by the end of 15 years with an interest rate of 8.7% . So can we say it’ll be around 19-20 lacs by end of 20 years? Please confirm. Thanks.


  3. ashalanshu says:

    Dear Yogjeet, as you have paid only 1 prem. you ‘ll not get any money as surrender value from Jeevan Saral. Yes PPF + Term insurance is better option for you.



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