Lic policy jeevan saral & Term insurance

POSTED BY Jwalant ON September 7, 2013 3:58 am COMMENTS (12)

Dear  Manishbhai

Myself and my wife earning 50000 per month.

We are having  2 nos. Jeevan saral policy for 35 years term for my wife one 24000 per anum & other 36000 per anum. first one started in jan 2009 & other one in Sept 2011.

After reading your blogs for jeevan saral & other lic policies I was shocked.

Kindly advice me if I  am satisfied with 8-9% return then shall I continue with jeevan saral as pension fund or not.

I am planning for term insurance for 1 crore either from hdfc click 2 protect for 30 years or I-raksha supreme from tata-aia for 40 years.I prefer tata due to name & 40 year term.

Shall I take term insurance for my wife or not?

I am having Jeevan sathi policy with premium 19545 per anum from jan 2009 for 30 year term.It has accumulated 96000 vested bonus.shall I continue same or not? 






12 replies on this article “Lic policy jeevan saral & Term insurance”

  1. Dear Jwalant, what about tax liability on the property sold?



  2. Jwalant says:

    Dear Ashal
    Thank You Very much for Your Prompt , eye opner response.

    I was thinking taking home via home loan & sell it after 2-3 years when price good price come.
    It will give tax benefits also & if not sold property can be maked.

    what is your suggestion?

  3. Dear Mustafizur, you are taking a right step. Please go for it.



  4. Mustafizur Rahaman says:


    My father had had bought 2 Saral, when I was not very much proactive in financial aspects of life. After going through some of the blog, I have prepared a details comparison chart of all LIC policy & among them Jeevan Saral is the one of the worst, that I consider to cancel immediately. I have read somewhere that because the guaranteed return for surrendering is like 80% of MSA after 3 yrs, 90%of MSA after 4 yrs, and full MSA after 5 years(note this MSA is in proportionate to the actual premium paid w.r.t. original premium supposed to be paid). People say that it is better to surrender after 5 yrs because of 100% MSA but my calculation is follows
    if surrender after 3 full years- Loose 64K (Premium paid till date- surrender value)
    If surrender after 4 full years – Loose 64K
    if I surrender after 5 years – Loose 55K

    Therefore, I have decided to cancel immediately even if I loose more now, but I hope to encash that in 2 years if I invest wisely now.

    My thought is if you have a term plan, no need to Saral, no matter whatever the argument may be.

    I know this decision making requires lot of calculation, but overall from the above, can any one please suggest if I am taking the right decision.

  5. Dear Jwalant, FYI- the moment, you ‘ll apply for surrender of SAATHI, the vested bonus ‘ll also come down as it ‘ll be given on the proportionate sum assured. Please check your surrender value.

    Regarding other investment options SIP is a medium to invest systematically in MFs. It’s not an instrument in itself. How ‘ll you earn benefit from Home?



  6. Jwalant says:

    Dear Ashal

    i got your Point.
    StiI l will reomve my mental block for same
    Please advice me for online term plan which company to select after Tata.

    Kindly also advice me for Jeevan sathi for which i had paid 97000 total premium & 96000 vested bonus has been earned. I had purchased same in 15 Jan 2009 for 30 years with 500000 sum assured.

    After investing 50 K -100K in PPF for both individually ,which option i should select?
    1. Gold
    2. SIP
    3. Home

    can you suggest Good SIP for longer period?

  7. Dear Jwalant, the return is already written in your SARAL policy bond. Do not believe me, just check it now & look for the maturity sum assured. this MSA is the Gtd. part of SARAL if the policy is run for full term. apart from this a one time loyalty bonus ‘ll also be added which I can not predict as on date. 🙂

    In any case, the SARAL can not provide more than 5-6% return.

    For term plan, if the idea is to earn claim any how, one of you should kill the other one at the age of 65-70. that’s the possible way to earn profit from your prem. outgo for a term plan. Please do not take this as a joke. I’m seriously answering for your mental block – by hook or by crook, I should get some money back from my insurance policy.



  8. Jwalant says:

    Dear Ashal
    I got the knowldge form jagoinvetor forum team (specialy you & manish ) that
    1. insurance & investmnet should not mixed ,
    2 LIC polciies are poor in return ,
    3. equity /MF / SIP also wil give 10-12% at longer run etc.

    I had taken Jeevan saral for my wife as PF fund for her reiterment. as PF deducted by her employer is very less yearly. (1000 app. yearly).

    After reading Jagoinvestor blogs i was surprised for Jeevan saral & LIC policies.

    For term plan 40 years just due to availbity of term for 40 yeras by company like TATA & family get retun of insurance if i die after 60 years. ( Ha. Ha.Ha…)
    I had selected HDFC / TATA as trust for online term plan.

    As per your exeperince what will be LIC saral retun?

  9. Dear Jwalant, if she is earning 50K independently, why she should not has a term cover for herself?

    Please do not assume 8-9%. Please check your own policy documents to understand what ‘ll be the possible return from this (nothing) Saral policy. 🙂

    Why are you mixing investment & insurance? Any specific reason?

    Regarding Term cover, why do you want to purchase till age 72 i.e. 40Y term?



  10. Jwalant says:

    Dear Ashal
    My age is 32 & my wife age is 30.we both eraning individualy 50 K per month.
    i just assumed for 8-9%.

    Jwalant Desai

  11. Dear Jwalant, what’s your age? is it 50K+50K = 1L total income or 50K total income for both of you?

    How did you come to the conclusion that Jeevan Saral is giving you 8-9% return?

    Please elaborate.



  12. Jwalant says:

    Dear Manish / Ashal
    Kindly reply to my query…..

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