Term Insurance or Jeevan Amrit (LIC policy) ??

POSTED BY Krishna ON September 27, 2010 10:39 pm COMMENTS (4)

LIC’s Amulya Jeevan (term insurance) and Jeevan amrit policy 

If I take Amulya Jeevan (term insurance) for 25 lacs with 30 years cover,I pay Rs.10850 as premimum per year. (Overall I pay 30 x 10850 = Rs 3,25,500) 
If I take Jeevan Amrit for 25 lacs with 30 years and 3 yrs premimum paying term,I pay Rs.142210 (1st yr), 71655 (2nd yr), 71655 (3rd yr) as premimum. (Overall Rs 2,86,620).
So, if I go for Jeevan amrit, I get my 2.86 lac back plus bonus given by company (@30 per 286 = 8580 x 30 = 2.57lac). If it is so, why should I throw away money (total 3.25 lacs) in term insurance? Do you have counter argument? Am I missing something?

4 replies on this article “Term Insurance or Jeevan Amrit (LIC policy) ??”

  1. Ramesh says:

    Hi, I’m still don’t understand why amulya is better than amrit. Please explain more. Thanks in advance.

  2. Krishna says:

    Thank you guys :-). You saved me from regretting later!
    Surely I missed the point while comparing!

  3. Hemant B says:

    Mr. Krishna do you understand time value of money(in simple words value of money decreases with time) – in term plan your net present value is 1.5 Lakh & in second case that also consider your inflow of 2.5 Lakh – net present value is 2.15 Lakh.(I have considered inflation at 6%)

    In jeevan amrit you are actually paying 43% extra premium.

    Waiting for your thanks message. 🙂

  4. rakesh says:

    If you calculate the returns generated by Jeevan Amrit over 25 years it will be within 6-8% only which won’t even beat inflation. However if you invest the balance premium from your term plan in the equity mutual funds you will definitely get 12-15% returns.
    Also if you happen to die in the 4th year you would have already paid 2.86L and would get 25L, however incase of term plan you would have only paid 32.5k and would get 25L


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